Income tax allowance
Invest your profits and benefit twice.
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Use your tax allowance to save taxes
Entrepreneurs and freelancers can reduce their tax burden by investing in certain securities or capital assets.
Please be aware that investing involves both opportunities and risks.
The profit allowance under Austrian law is a tax benefit available to individuals with business income. This regulation is defined in § 10 of the Austrian Income Tax Act (EStG).
The profit allowance consists of two parts:
- Basic Allowance: This applies to all taxpayers and is automatically considered.
- Investment-Based Profit Allowance: This can be claimed additionally, provided certain investments are made.
The investment-based profit allowance is tied to the purchase or production of specific assets. These assets must:
- Be depreciable tangible fixed assets
- Have a useful life of at least four years
- Belong to the fixed assets of a domestic business or permanent establishment
Alternatively, certain securities – such as specific investment funds – may qualify as eligible assets. These funds meet legal requirements for tax-effective investment. After a minimum holding period of four years, they can be sold without retroactive taxation.
Since January 1, 2022, the basic allowance is up to 15% of business profits.
For profits up to €33,000, the allowance is granted automatically without the need for investment (up to €4,950). For profits exceeding €33,000, the allowance can be increased up to €46,400 through eligible investments, such as qualifying securities.
- Natural persons with business income, including:
- Income from trade or business
- Income from self-employment
- Income from agriculture and forestry
- In partnerships (e.g., OG or KG), each partner can claim the allowance based on their share of the profit.
- The profit must be attributed to a natural person
- Business income must be present
- The profit must be determined via cash accounting or accrual accounting
Taxpayers using a fiscal year different from the calendar year may be able to claim the allowance earlier. It is recommended to consult with a tax advisor.
Opportunities and Risks
Opportunity for Value Growth
Your money is invested in promising sectors.
Increased Profit Allowance
With eligible investments, you can increase your allowance up to €46,400.
Building Reserves
You can create tax-advantaged reserves by purchasing or producing certain assets.
Price Fluctuations
Fund prices may fluctuate significantly due to various influencing factors.
Subject to Change
Legal or regulatory changes may affect the tax treatment.
Potential Capital Loss
Investing in capital markets may result in a loss of capital.
Which funds are eligible for tax allowances?
The funds listed below are eligible for the profit allowance under Section 10 of the Austrian Income Tax Act. These funds meet the legal requirements for a tax-effective investment. After a holding period of four years, you can sell the funds without incurring additional taxes. Please note that investing in securities involves not only the opportunities described but also risks.
In addition to the funds listed below, ERSTE IMMOBILIENFONDS and ERSTE RESPONSIBLE IMMOBILIENFONDS are also eligible to be held as securities coverage for Austrian pension provision requirements. ERSTE LAUFZEITFONDS KMU 2028 and ERSTE LAUFZEITFONDS KMU 2029 are not available anymore.
Please note that investments in securities entail risks in addition to the opportunities presented here.
Income tax allowance funds
Important information: Please note the disclaimer and legal notes at the bottom of each fund page. Further information and documents, as well as important legal information on the respective fund, in particular specific information on funds managed by other management companies, can be obtained by clicking on the fund name in the fund overview above.
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Important legal information - ERSTE Immobilien Kapitalanlagegesellschaft m.b.H.
This document is an advertisement. Unless otherwise stated, the source of the data is Erste Asset Management GmbH and ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. The language of communication at the sales offices is German and the languages of communication of the management companies also include English.
The prospectus for the UCITS fund (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. The “Information for Investors pursuant to Article 21 AIFMG“ is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.
The “Information for Investors pursuant to Article 21 AIFMG” is prepared for the alternative investment funds (AIF) administered by ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. pursuant to the provisions of the AIFMG in conjunction with the ImmoInvFG and is published on the website at www.ersteimmobilien.at.
The latest versions of the prospectus, the “Information for Investors pursuant to Article 21 AIFMG” and the Key Information Document can be found on the website at www.erste-am.com or www.ersteimmobilien.at under “Mandatory publications” and can be obtained by interested investors free of charge at the offices of the respective management company and at the offices of the respective depositary bank.
The exact date of the most recent publication of the prospectus and the “Information for Investors pursuant to Article 21 AIFMG”, the languages in which the Key Information Document is available and any other places where the documents can be obtained are stated on the website at www.erste-am.com or www.ersteimmobilien.at. A summary of investor rights is available in German and English on the website at www.erste-am.com/investor-rights, as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of share certificates abroad, taking into account the regulatory requirements.
Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the above fund documents before making an investment decision. In addition to the places listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com or www.ersteimmobilien.at.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity to sustain loss and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.
Please note: Investments in securities entail risks in addition to the opportunities presented here. The value of shares and earnings can rise and fall. Changes in exchange rates may also have a positive or negative impact on the value of an investment. For this reason, you may get back less than the amount you originally invested when you redeem your shares.
Anyone who is interested in purchasing shares in investment funds is advised to read the current fund prospectus(es) and the “Information for Investors pursuant to Article 21 AIFMG”, especially the risk notices they contain, before making an investment decision. If the fund currency is different from the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the costs associated with the fund in the home currency.
We are not permitted to offer, sell, transfer or deliver this financial product directly or indirectly to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information either.
Please see the corresponding information in the fund prospectus and the “Information for Investors pursuant to Article 21 AIFMG” for restrictions on the sale of the fund to American or Russian citizens.
It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Therefore, this communication is not a substitute for investment advice.
This document is not a sales activity of the respective management company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.
Erste Asset Management GmbH and ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. are affiliated with the Erste Bank and austrian Sparkassen banks.
Please also read the “Information about us and our securities services” published by your bank.
ERSTE Immobilien Kapitalanlagegesellschaft, Am Belvedere 1, 1100 Vienna
Imprint / Media owner and publisher: ERSTE Immobilien KAG, Am Belvedere 1, 1100 Vienna
service@ersteimmobilien.at / www.ersteimmobilien.at / Place of publication: Vienna