VP Finance Minister Magnus Brunner continues to insist on the abolition of capital gains tax (KESt) with a retention period. The model developed by the Ministry of Finance provides for a retirement account with a ten-year retention period in order to generate capital gains tax-free. If there is a precautionary reason, such as retirement, capital gains might also be withdrawn earlier tax-free.
Most recently, the Greens rejected the minister’s proposal. “It is incomprehensible how one can be once morest this,” said Brunner today, Thursday, at an online press conference. The retention period prevents speculation and at the same time strengthens the Austrian capital market, said Brunner.
Since 2011, capital gains tax has been due on income from securities – regardless of how long these securities are held. The tax rate was initially 25 percent and was increased to 27.5 percent in 2016.
