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🇦🇹 Austria /Economy & Trade

A broader easing of securities taxes should follow the Future Savings Account

From Der Standard · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

Opinion Named sources New plan
  • Austria’s ÖVP plans to introduce a Future Savings Account next year, allowing parents to save up to €5,000 annually for each child until the child turns 18.
  • The proposal would suspend the 27.5% capital-gains tax on securities in the account because financial markets are viewed as the strongest long-term investment option.
  • The article argues that similar, though limited, tax relief should be available to adults because the tax treatment changes sharply when a child reaches legal adulthood.

The planned Future Savings Account should be followed by a broader easing of taxes on securities, argues Alexander Hahn.

Austria’s ÖVP plans to launch the scheme next year. Under it, parents could set aside up to €5,000 a year for each child until the age of 18. Because financial markets offer the strongest long-term returns, the proposal would suspend the 27.5% capital-gains tax on securities held through the account.

Hahn welcomes the plan, but says it leaves Austria with a curious approach to taxing investment income. The tax framework changes abruptly when the child reaches adulthood.

If children can receive tax-free capital income, he argues, adults should also be allowed to benefit from similar treatment, subject to restrictions. That would make long-term financial provision considerably easier for many people.

About this summary

Originally published by Der Standard in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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