From April, several everyday expenses in Austria are set to rise as the government rolls out the first wave of austerity measures to repair the country’s strained budget defecit. So, what's about to get pricier - and by how much?
Court fees jump by almost a quarter
One of the steepest hikes will hit anyone involved in court proceedings. Court fees across Austria are set to rise by a substantial 23 percent. This affects various fixed-rate fees, including amicable divorces, civil court proceedings, land registry entries, and company register queries.
The hefty increase isn’t random - it comes after fee hikes were suspended twice in recent years, partly due to high inflation pressures.
READ ALSO: Austria overspends by billions as pensions, wages and welfare drive up costs
Betting gets pricier
If you enjoy placing a wager now and again, expect those bets to become noticeably more expensive. The government is increasing betting fees from two percent to five percent. Officials anticipate this will generate an extra €50 million in revenue.
Smokers face higher tobacco taxes
Smokers will also feel the pinch from April onward. Tobacco taxes - including heated tobacco products - will rise, pushing up the price of cigarettes by about 20 to 50 cents per pack. Some brands have already adjusted their prices in advance. This increase is expected to deliver an additional €50 million to state coffers this year.
Electric vehicles lose their tax advantage
Electric car owners will also see new costs coming their way. Previously, electric vehicles enjoyed an exemption from Austria’s motor-related insurance tax, helping boost the appeal of cleaner transport options. Now, this exemption has been scrapped, and EV owners will pay the full rate, just like owners of petrol and diesel cars.
This tax change alone is projected to bring in €65 million for 2025.
READ ALSO: Austria’s inflation falls below 3 percent for first time in months
Solar panels become more expensive
April also brought a surprising hit to renewable energy supporters. Previously, buying and installing photovoltaic modules was exempt from VAT, but now these purchases will incur the standard 20 percent rate. The government hopes to raise around €175 million this year by ending this exemption.
Banks and electricity companies face levies
Two significant measures will affect banks and the electricity sector. Although these might seem less directly noticeable to ordinary consumers, the new bank levy is expected to bring in €350 million, while contributions from electricity businesses will add a further €200 million.
However, some other planned hikes - including increased passport and driver’s license fees - won’t be felt until mid-year.
Mobile phone and internet tariffs keep climbing
April also sees mobile and internet costs rise once again, although at a slightly gentler rate than previously. Tariffs will increase by around 2.9 percent, after already climbing 7.8 percent last year.
According to calculations from comparison portal Tarife.at, the cumulative impact of recent hikes has already increased costs by around €309 annually for an average three-person household compared to 2020 prices.
READ ALSO: Everything that changes in Austria in April 2025
Good news: rent increase halted
There is, however, a bit of relief for tenants in older buildings. A planned rent increase for certain regulated categories has been suspended. This measure benefits around 300,000 households living in pre-1945 buildings or some council flats. Future rent increases will be capped at just one percent from 2026 and two percent from 2027 onward.
However, this freeze does not affect tenants in the open market, who may still face rising rents.
Government hints at broader reforms
Salzburg’s governor, Wilfried Haslauer (ÖVP), who currently chairs the provincial governors' conference, admitted on Ö1 that austerity won't stop at federal measures.
He said that all provinces will also need to examine their budgets closely, potentially reconsidering subsidies and investments made during economically easier times.
Haslauer also openly called for tough but necessary measures like raising the retirement age, acknowledging such reforms are unpopular but urgently needed to stabilise Austria’s finances long-term.
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