Whether the rent brake will come after a long battle by the coalition government will be decided by the financial committee of the House of Representatives no later than Thursday. With a formal trick, a so-called launcher, a corresponding application could be submitted at the very last minute. Otherwise, tenants in old buildings will be threatened with an 8.6 percent increase in reference rents, Greens representative Nina Tomaselli said on Monday.
The aim is to lower the rent increase in accordance with the law from 8.6 to 3.8 percent. The remainder of the rent increase will be postponed to 2024 and 2025. The benchmark rents, which are linked to the development of inflation, were already increased by almost six percent last year. The ÖVP also wants to negotiate an improvement of the law for the landlords, who are pushed to a noticeable loss of income in the event of a rent brake – more attractive tax depreciation options for climate-friendly thermal renovations.
Greens against relief when buying luxury real estate
She also wants to relieve buyers and home builders – when buying a home, the first 500,000 euros must be exempt from transfer tax (3.5 percent of the purchase price). The ÖVP tax advance goes too far for the Greens, as it would also relieve wealthy buyers of luxury real estate. They propose to increase the transfer tax rate from a purchase price of one million euros. This is intended as counter-financing for the municipalities that collect this tax.
The ÖVP declined to comment on ongoing talks. Finance Minister Magnus Brunner signaled room for negotiation on the subject of transfer tax before the weekend. Instead of a general tax exemption of up to 500,000 euros, he could also imagine “drawing an upper limit for the total property price”. Those who exceed this purchase price limit must also pay the GrESt for the first 500,000 euros. “We can talk about that,” said the minister.
A launcher is an application that is not so important in terms of content, which is sent to the parliamentary process as a precautionary measure during negotiations and can then be changed thematically if an agreement is reached.
Requesting a typo should become a rent brake
In this particular case, according to the Ö1 “Morgenjournal”, the Greens are planning an application this Thursday for a typo in the income tax law, which should become the rent brake. In the regular deadline, this should have been completed at the latest in the most recent building committee in order to enter into force on April 1. At that time, however, no agreement was yet in sight within the coalition on the details. Via the car transfer tax, the bill now also fits thematically in the financial committee.
Only until the end of March
If the coalition succeeds in introducing the rent brake at the last minute on Thursday, the corresponding law must be passed in a special session by the plenum of the National Council next week. This is followed by a meeting of the Federal Council and the signature of the Federal President. Then the official announcement could take place. All this should happen on March 31, before midnight. Otherwise, the reference rents in old buildings will continue to rise from 1 April (new leases) and 1 May (existing contracts).
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
