Government measures in key jurisdictions 5th edition - Flipbook - Page 8
Austria
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
Litigation
•
If a tenant does not pay/has not paid rent (or a part thereof) due from 1 April 2020 until
30 June 2020 because he or she has been significantly economically impaired by the
crisis, the underlying lease agreement may not be terminated by the landlord solely
based on the payment default until expiry of June 2022. Moreover, the landlord is not
entitled to enforce these outstanding rent payments until the end of March 2021.
•
However, the landlord is entitled to assert claims for default interest as of the due date
of the rent payment, whereby the default interest rate is limited to 4% p.a.
•
An eviction is to be postponed at the request of the tenant if the apartment is
indispensable for urgent housing needs of the tenant and other persons living in the
same household, unless the eviction is necessary to avert serious personal or economic
disadvantages of the landlord. Before the decision on suspension is made, the landlord
shall be given the opportunity to make a written statement.
•
Under the Austrian Civil Code tenants may be entitled to a rent relief provided that
their premises cannot be used as contractually agreed due to Covid-19; in practice
this currently mostly concerns leases in the retail and leisure industry, as most of
such businesses had to be closed due to respective ordinances. However, as these
provisions of the Civil Code are not mandatory and can therefore be deviated from
(which in practice rarely has been the case, though), the question if and to which extent
a rent relief actually applies, needs to be reviewed on a case by case basis.
•
In Austria, courts are operating regularly again: the court proceedings take place
mainly by attendance of all parties respecting strict measures (wearing FFP2
masks, using partition walls, keeping distance etc.). However, court proceedings
take place to a limited extent virtually (video conference). Procedural periods at
civil courts and administrative courts, which had not expired as of 22 March
2020 were suspended. These time limits restarted as of 1 May 2020.
Are the courts
operating?
Tax
•
Taxpayers affected by a liquidity shortage due to Covid-19 may apply for a deferral of tax.
Between 15 March 2020 and 30 June 2021, no interest is being charged on deferred
amounts. Thereafter, the interest rate will be 2% above the base rate (with the base rate
currently being -0.62%). If the taxpayer has already been granted a tax deferral after 15
March 2020 due to Covid-19, this deferral is automatically extended until 30 June 2021 by
virtue of law.
•
Further, a special scheme for payment in instalments was introduced. The scheme has
two phases. Taxpayers can apply for phase 1 from 10 June 2021 to 30 June 2021. Pursuant
thereto, outstanding taxes which mostly accrued from 15 March 2020 to 30 June 2021
shall be paid in instalments until 30 September 2022. If repayment of the entire
outstanding amount is not possible in phase 1, but at least 40% of the outstanding taxes
have been paid, then the taxpayer can apply for payment in further instalments until June
2024. Such application must be made by 31 August 2022. Interest is triggered at 2%
above the base rate.
•
Legal transactions necessary for the proper handling of the Covid-19 crisis are exempt
from stamp duty if concluded any time from 1 March 2020 to 30 June 2021 (e.g., sureties
granted to ensure the liquidity of a company during the Covid-19 crisis).
•
Public grants paid since 1 March 2020 to maintain sustainability during the Covid-19 crisis
are partly tax-free.
Has any new
legislation been
introduced in light
of Covid-19?
8
Government measures in key jurisdictions
