ÖVP Proposes Capital Gains Tax Exemption

The ÖVP proposes a tax exemption for capital gains on shares held for ten years to broaden Austria's pension system as PZV contracts fall.

The ÖVP has proposed a tax exemption for capital gains on shares after a ten-year holding period, aiming to reform Austria's 27.5 percent tax rate. While Neos spokesperson Christoph Pramhofer supports the move, the SPÖ rejects it as an expensive measure benefiting few. This debate follows reports showing Austria lags behind Germany and the Netherlands in occupational pension assets. State Secretary Barbara Eibinger-Miedl noted that countries like Slovenia and Germany already offer such benefits. The proposal arrives as premium-aided future provision (PZV) contracts fell 6.7 percent in 2025, marking 13 years of decline to 729,000 active contracts. Following April 2026 changes to 'Abfertigung neu', the government and Wifo economist Thomas Url emphasize broadening the pension system by developing its second and third pillars.