Austria: New Depreciation Rules as part of Covid-19 relief package under review

On 15 July 2020, a draft bill for a law aimed at strengthening the economy in 2020 (Konjunkturstärkungsgesetz 2020) was approved by the second chamber of the Austrian parliament. Publication in the official gazette is now imminent. Part of the draft bill is an investment and relief package for entrepreneurs.

Two measures are particularly noteworthy for acquirers of Austrian real estate: (i) the introduction of an accelerated form of straight-line depreciation for buildings; and (ii) the introduction (for other assets) of the declining balance depreciation method as an alternative to the current straight-line depreciation.

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