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Allocating the purchase price to inventory and furnishings: what is permissible

Allocating the purchase price to inventory and furnishings: when movable items leave the basis of assessment for the levies and when a sham allocation looms.

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BRANDAUER Rechtsanwälte

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Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In property purchase matters we look at the contract, land register, escrow and tax consequences together.

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1 July 2026 · Mag. Bernhard Brandauer, Rechtsanwalt

When buying a house or an apartment, a fitted kitchen, furniture or a sauna often remain. Many parties want to attribute part of the purchase price to this inventory, because movable items are not subject to the real estate transfer tax and the registration fee. That saves incidental costs but has clear limits.

This post explains what is permissible when allocating the purchase price to inventory and furnishings. The focus is on the basis of assessment for the real estate transfer tax, the distinction between movable items and components of the property and the risk of a sham allocation.

The allocation is legitimate if it corresponds to reality. From a lawyer perspective the clean separation of movable inventory and firmly connected components, as well as a realistic, substantiated value, are decisive.

Classify your case

Is your allocation to the inventory permissible?

Answer one or two questions on the type and the value of the items. You receive an initial classification of the permissibility.

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01 Question 1

Is it about genuine movable items such as furniture or a fitted kitchen?

Independent movable items can be separated from the land. Firmly connected components such as the heating, by contrast, belong to the property.

All paths at a glance

Overview of all answers.

01

An allocation to the inventory is defensible within this framework.

If it concerns genuine movable items and the value applied corresponds to the realistic second-hand value, the part of the price attributable to the inventory can be excluded from the basis of assessment for the real estate transfer tax and the registration fee. Record the items and their value comprehensibly in the contract and secure evidence.

Have the allocation reviewed by a lawyer so that it withstands an arm-length comparison.

02

Such an attribution is delicate and carries a tax risk.

Firmly connected components belong to the property and may not be attributed to the inventory. Inflated values for movable items also count as a sham allocation. The tax authority can then attribute the part to the property, claim back tax and, depending on the case, examine further consequences.

Have it clarified before signing which attribution is actually permissible.

Basis of assessment for transfer tax and registration fee

On a sale, the real estate transfer tax is assessed on the consideration, that is on the purchase price for the property. The general tax rate is 3.5 percent. The registration fee for title in the land register is 1.1 percent and likewise attaches to the value of the registered right, that is to the property.

Both levies capture only the property itself. If part of the total price is attributable to genuine movable items, that part does not in principle belong to the basis of assessment. If the inventory is shown separately in the contract and valued realistically, the basis for the transfer tax and the registration fee is reduced accordingly.

Which incidental costs arise in total is shown by the incidental costs calculator. We explain the term tax in the glossary on the real estate transfer tax.

Movable items or component of the property

Decisive is the distinction between independent movable items and components of the property. Freestanding furniture, a detachable fitted kitchen or a dismountable sauna are generally movable items. Parts firmly connected to the building, such as the heating system, the sanitary installation or firmly glued floor coverings, by contrast, belong to the property and cannot be deducted.

What matters is whether the item can be separated without significant damage to the substance and is valued independently in commerce. Accessories that serve the continued use of the property and form an economic unit with it share, in case of doubt, the legal fate of the principal thing. This classification is delicate in the individual case and should be clarified before signing.

A clean inventory list in the contract that names each item and its value creates clarity. On the review of the contract before signing in general, see the post on the review of the purchase contract before signing.

Adequacy, arm-length comparison and the risk of a sham allocation

The value attributed to the inventory must withstand an arm-length comparison, that is correspond to the realistic second-hand value. If the share is artificially inflated to reduce the transfer tax and the registration fee, there is a sham allocation. The tax authority assesses the economic substance and not the mere designation in the contract.

If the authority recognises an inflated or incorrect attribution, it can attribute the relevant part back to the property and claim back the levies. Depending on the arrangement, further tax consequences come into question. The incidental costs saved then bear no proportion to the risk.

Keep the values realistic and able to be substantiated, for example through invoices, photos or an estimate. The allocation is a legitimate structuring tool as long as it corresponds to reality. A first assessment of the risks of your contract is offered by the purchase contract risk check.

Attribution at a glance

What counts as inventory and what as property

This overview shows typical items and their tax attribution.

Distinction of movable items from components of the property with the consequence for the basis of assessment
Item Classification Consequence for the levies
Freestanding furniture Independent movable item Can be excluded with a realistic value
Detachable fitted kitchen Generally a movable item Exclusion possible with a realistic value
Heating system Firmly connected component Remains part of the basis of assessment
Glued floor covering Component of the property No exclusion possible
Inflated inventory value Sham allocation Attribution to the property and back-claim

The attribution follows the economic substance, not the designation in the contract. In case of doubt, a careful review of the individual case is required.

Caution with inflated values: An artificially inflated attribution to the inventory counts as a sham allocation and can lead to a back-claim of the transfer tax and the registration fee. Apply only realistic, substantiated values. Booking an initial consultation (72 euro) clarifies the permissible arrangement.

Frequent questions

Allocating the purchase price to the inventory.

Does attribution to the inventory really save tax? +

Yes, but only within permissible limits. Genuine movable items are not subject to the real estate transfer tax and the registration fee. If their value is applied realistically and shown in the contract, the basis of assessment is reduced accordingly. Inflated figures, by contrast, are not permissible.

Which items count as movable inventory? +

Inventory includes independent movable items that can be separated without significant damage, such as freestanding furniture or a detachable fitted kitchen. Firmly connected components such as the heating, the sanitary installation or glued floors, by contrast, belong to the property and remain in the basis of assessment.

What is the risk with an inflated allocation? +

With an inflated or incorrect attribution, the tax authority can attribute the part back to the property and claim back the transfer tax and the registration fee. Depending on the arrangement, further tax consequences come into question. Keep the values realistic and able to be substantiated therefore.

Going deeper

Further topics around price and incidental costs

Incidental costs calculator

Estimate the transfer tax, registration fee and further incidental costs.

Review the purchase contract before signing

What to look for in the purchase contract, including the inventory list.

Purchase contract review

Our focus page on the review of the property purchase contract.

Real estate transfer tax in the glossary

Short definition of the real estate transfer tax and its basis of assessment.

Topics
InventoryFurnishingsTransfer taxRegistration feePurchase price

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