Austria MOF Clarifies Real Estate Transfer Tax Liability on Reversal of Unregistered Building Rights

The Austrian Federal Ministry of Finance May 7 posted online Federal Finance Court Decision No. RV/2100882/2020, clarifying the real estate transfer tax liability on the reversal of unregistered building rights. The taxpayer, a landowner, granted building rights to a limited liability company that constructed and exploited buildings. Upon expiration of the rights, the landowner paid a reversion price. The Tax Office assessed real estate transfer tax on the reversion, characterizing it as a taxable retransfer of economic control. The taxpayer appealed, citing a lack of land-register entry and a purely time-based reversal. On appeal, the Federal Finance Court found that: ...