Deducting Donations from Tax in Austria: A Guide to Spenden Absetzen

The Austrian system for deducting donations from tax (Spenden absetzen) offers a generous opportunity, but it does not apply to every donation. What matters is whether the organisation you donate to is on the official list of the Ministry of Finance (BMF).

In this guide we explain how the “Spenden absetzen” system works, which details you need to provide and how to check whether your donation has actually been processed.

How are donations deducted from tax in Austria? The basic rule

In Austria, donations made by private individuals can be deducted from taxable income as a Sonderausgabe (special expense).

However, this requires the receiving organisation to have been officially recognised as “spendenbegünstigt” by the Finanzamt Österreich and entered on the BMF list.

The list covers organisations pursuing purposes such as charitable work (mildtätig), development and disaster relief, education and science. Some institutions, such as universities, museums and volunteer fire brigades, are named directly in the law.

How to check the BMF list (Liste begünstigter Spendenempfänger)

The check takes a few minutes and is free of charge:

1. Open the BMF list of spendenbegünstigte Einrichtungen.
2. Enter the name or location of the organisation in the search field.
3. In the result, check the organisation's registration number and validity start date.
4. See whether a validity end date (Gültigkeitsende) has been entered.

What do the validity dates mean?

• If the organisation appears on the list without an end date, donations to it are deductible.
• Donations are only deductible from the start date shown on the list.
• If an end date has been entered, donations made after that date are not deductible; earlier donations remain valid.

The list is updated regularly. It is therefore a good habit to check it again every year, and even before a significant donation.

Why might newly founded associations not be on the list?

According to the conditions published by the BMF, an organisation must have carried out activities in line with its purpose without interruption for at least one full financial year of 12 months before it can apply to be listed. It is also expected to confirm each year, through a certified auditor, that the conditions are still met.

This is why a newly founded, trustworthy association may not be on the list in its first years. Not being on the list does not mean an organisation is untrustworthy; it only means the donation has no tax advantage.

The 10% limit: how much can you deduct?

Donations by private individuals are deductible up to 10% of that year's Gesamtbetrag der Einkünfte (total annual income). You can find this amount in your income tax assessment (Einkommensteuerbescheid).

Businesses can deduct donations as a Betriebsausgabe (business expense) up to 10% of the profit for that financial year.

Example calculation: salaried employee

Example scenario: Someone with a total annual income of €32.000 donates a total of €1.000 to listed organisations during the year.

• Maximum deductible amount: 32.000 × 0,10 = 3.200 €
• Since €1.000 is below this limit, the full amount is taken into account as a Sonderausgabe.
• Important: the €1.000 is deducted not from the tax owed but from taxable income. If your marginal tax rate is, for example, 30%, the tax saving is roughly €300.

Example calculation: donation above the limit

Example scenario: Someone with a total annual income of €20.000 donates €2.500. As the maximum is €2.000, the €500 portion is not taken into account for tax purposes that year.

Exactly how much you save depends on your personal tax situation. If you are unsure, consult a tax adviser (Steuerberater).

Automatic data transmission: which details do you need to provide?

Since 2017, donations in Austria have been processed automatically as a Sonderausgabe. You no longer need to prove the donation with a receipt, but the organisation must have your correct details.

What you need to give the organisation

• Your first name and surname — spelled exactly as on your Meldezettel (registration of residence).
• Your date of birth.

Using these details, the organisation generates your encrypted tax identifier (vbPK SA) and transmits the total of your donations for the year to the Finanzamt via FinanzOnline by the end of February of the following year.

You only need to provide these details once; subsequent donations will also be transmitted until you revoke your consent.

Note for donations by bank transfer

When donating by Erlagschein (payment slip) or bank transfer, you can write your first name, surname and date of birth in the “Verwendungszweck” (payment purpose) field. According to the BMF, these details are only transmitted if the “Zahlungsreferenz” field is left empty.

Why do spelling mistakes matter?

If your name is spelled differently from your Meldezettel (e.g. “u” instead of “ü”, a missing middle name), the match may fail. According to the BMF, the correction must then be made through the receiving organisation, not in your tax return.

Anonymous donation

If you do not want your details to be transmitted, you do not have to provide them. Anonymous donations are always possible; in that case, however, the donation cannot be deducted from tax.

Arbeitnehmerveranlagung and checking in FinanzOnline

The amounts transmitted by the organisation are automatically taken into account in your annual Arbeitnehmerveranlagung (employee tax assessment) or income tax return. You do not need to declare the donations separately.

Step-by-step check

1. Log in to FinanzOnline (e.g. with ID Austria).
2. In the Sonderausgaben section, look at the data organisations have transmitted for you.
3. Check which organisation reported which amount.
4. If an entry is missing or incorrect, first contact the organisation concerned.

Your tax assessment (Bescheid) also lists separately which organisation reported how much.

Are Zakat, Qurbani and Fitrah tax-deductible?

Tax law looks not at the religious name of the donation but at the status of the receiving organisation and the purpose of the donation. A cash donation made with the intention of Zakat or Sadaqah that goes to the charitable/non-profit (mildtätig/gemeinnützig) activity of a listed organisation is assessed under the general rules.

How donations that involve something in return (e.g. an animal being sacrificed on your behalf), such as Qurbani, are treated for tax purposes is a separate question; ask the Finanzamt or a tax adviser about this.

From a religious perspective, what matters is that Zakat reaches the right people. For this, see our articles who is eligible for Zakat and what is Zakat, and for the calculation our guide calculating Zakat in Austria.

6 common mistakes

Donations are usually not taken into account for tax because of small oversights:

• Not checking the list: relying on the wording in a brochure without looking at the BMF list.
• Spelling your name differently: differences such as writing “Celik” on the form when your Meldezettel says “Çelik” can prevent a match.
• Not providing your date of birth: data cannot be transmitted with only your first name and surname.
• Filling in the “Zahlungsreferenz” field on a bank transfer: in that case the details in the “Verwendungszweck” field may not be transmitted.
• Mixing up family members' donations: the donation is credited to the tax of the person whose details were given. A donation made in your spouse's name is their Sonderausgabe, not yours.
• Forgetting the limit: the portion exceeding 10% of income is not taken into account for tax that year.

Example scenario: correct details within the family

A couple wants to donate €600 over the year, and both are employed. If the donations are made using only one person's details, the full €600 is taken into account for that person's tax. If each donates €300 with their own details, the amount is credited to each of them separately.

Which option is more advantageous depends on your incomes; if you are unsure, ask a tax adviser.

Checklist before donating

• Is the organisation registered in the Vereinsregister (register of associations)? (ZVR number)
• If you want a tax advantage, does the organisation appear on the BMF list without an end date?
• Have you given the organisation your first name, surname and date of birth as they appear on your Meldezettel?
• Is the payment method secure, and is a donation receipt sent?
• Did you check the entry in FinanzOnline the following year?

To assess an organisation's overall trustworthiness, take a look at the 8 criteria in our guide how to choose a trustworthy charity.

Sources: BMF — Liste begünstigter Spendenempfänger · BMF — Informationen für Spenderinnen und Spender · BMF — Spendenbegünstigung neu (ab 2024) · FinanzOnline