The City of Vienna has postponed the introduction of a second-home or vacancy tax, a city official has announced.
Finance Councillor Peter Hanke confirmed in a press release that the tax, originally planned for January 2025, will not go ahead as scheduled. A Vienna city government spokesperson clarified that this does not mean the tax is off the table entirely, saying it could still be introduced later after further review.
The purpose of the tax is to discourage owners of multiple flats or houses from leaving them empty and to encourage their return to the housing market.
The proposed tax rates have already been set: an unused flat up to 60 square metres would have a yearly tax of €300, up to 130 square metres €450, while larger properties would face a €550 charge.
The decision to delay the tax faced strong criticism from the Vienna branch of the Green Party. “We have had enough of the excuses, we finally need a consistent fight against housing robbery through a vacancy tax,” said party leader Judith Pühringer in a press release.
However, Karl Mahrer, chairman of Vienna’s People’s Party (ÖVP), described the delay as a “pause for reflection” which is “sensible and to be welcomed.” “In any case, the goal must be to ultimately refrain from any levies,” Mahrer was quoted as saying.
Mahrer argued that a vacancy tax or second-home tax would not resolve the shortage of affordable housing. He also cited a Greenpeace study suggesting that Vienna has the lowest vacancy rate in Austria, with just 3.4% of flats unoccupied.