"Someday for grandchildren"

Tyrolean angry: Small house, skyrocketing flat rate

Luggi Hechenblaikner in front of his vacation home in idyllic Wörgl, where taxes have increased exorbitantly for small houses.(Bild: Andreas Moser)

A purchase in Wörgl (Tyrol), intended for his grandchildren someday, is becoming a tax nuisance for Ludwig Hechenblaikner (79). This is because the so-called leisure residence flat rate has increased by 160 percent in three years. He appealed to the state, but resistance is probably futile... 

The pretty little house is located above the district of Boden, quite secluded at the edge of the forest. For entrepreneur Ludwig Hechenblaikner, it has been a little paradise since 2011. "We didn't rent it out after the renovation, we use it for small gatherings or to play cards with friends," says the 79-year-old from Reith im Alpbachtal. The idea is that, if necessary, a grandchild will have a place to live here at some point.

A 160 percent jump in three years
One thing is clear: according to the law, it is a vacation home, for which an annual tax (to the municipality) and a vacation home flat rate (to the TVB Hohe Salve) are required. The latter amounted to 240 euros in 2022. Last year, the state amended the residence tax law – and suddenly the fee was €624! The entrepreneur and long-time taxpayer finds this "outrageous," saying he could never have afforded such a multiplication to his customers.

The 79-year-old in his lovingly restored kitchen.(Bild: Andreas Moser)

"I pay the same as someone with 100 square meters."
Another point of criticism: with 40 square meters of living space, the cottage (bathroom, kitchen, bedroom) is only suitable for two people. This puts it in the "30 to 100 square meters" tariff category. "Six people can live in 100 square meters, so why do I have to pay the same flat rate?"

Luggi Hechenblaikner in front of his vacation home in idyllic Wörgl, where taxes on the small house have increased exorbitantly.(Bild: Andreas Moser)

The flat rate mentioned above should not be confused with the vacation home tax, which is payable to the municipality – the city of Wörgl. In this specific case, it most recently amounted to 158 euros. Here, too, the costs for roads, sewers, administration, etc. are charged once a year.

State refers to existing case law
How is the state responding to criticism from the Unterland region? In response to a question from the "Krone" newspaper, the "rough" gradation in square meters is described as "practicable and constitutional," which has also been confirmed by the Constitutional Court.

It is emphasized that overnight stays in a vacation home are always considered "tourist stays." There is therefore no difference between guests, owners, or relatives. The Administrative Court is quoted here as stating that "equal treatment" is provided for.

According to the state, Mr. Hechenblaikner was informed of the legal situation and promised a review, which has been carried out. However, the Unterländer insists: "The tourism department promised me a written response, which never came." Conclusion: Owners will probably have to continue to bite the bullet.

„Krone“-Interview

TVB: „Finanzieren damit unsere Infrastruktur“

Stefan Astner, managing director of the Hohe Salve region, on the discussion.

"Krone": Mr. Astner, the amount of the leisure residence flat rate has skyrocketed. Are the owners affected accepting this?
Stefan Astner: Of course, we received a few calls after we sent out a letter informing them of this. As part of the legal reform, the state of Tyrol has set a minimum rate for the visitor's tax of €2.60, and we are currently adhering to this lower limit. The leisure residence flat rate is based on this. In Paznaun, for example, €5 is charged.

There are certain limits and gradations for all such fees. I think it's generally well regulated.

Stefan Astner, Geschäftsführer TVB Hohe Salve

Bild: TVB Hohe Salve

Mr. Hechenblaikner complains that he has to pay the same amount for 40 square meters as someone with 100 square meters because the gradation is only roughly "30 to 100 square meters."
For all such fees—as with income tax—there are certain limits and gradations.I think this is generally well regulated.

Are there cases where you have to engage in lengthy debates with the owners?
Yes, sometimes lawyers get involved. For example, one German family claimed that they were never there all year round. Apart from the fact that this is irrelevant, this is precisely the family that you see coming and going from the house for ten weeks in the summer.

What is your general response to the accusation that the flat rate is unjustified?
I don't think so, because the money stays entirely in the region. We use it to finance infrastructure—from cross-country skiing to hiking and tobogganing to playgrounds. How much each individual can and wants to use is up to them.