In the following, Daniel W. Blum and Christiane Zöhrer analyze whether the reduced real estate transfer tax rate applicable to reorganizations constitutes state aid pursuant to Art 107 para 1 TFEU and is, therefore, incompatible with Union law. A measure constitutes state aid when it cumulatively satisfies the four criteria set out in Art 107 para 1 TFEU. While three of the criteria are arguably met, it is at least doubtful whether the advantage is conferred to specific enterprises in comparable situations and hence should be qualified as selective. Moreover, the authors carefully assess potential justifications of the distinction drawn by the legislature and weigh arguments in favor of and against the assumption that the measure can be justified by policy objectives inherent to the nature of the Austrian tax system. A great deal seems to be at stake: If the reduced real estate transfer tax for reorganizations were to be found selective, the entire Austrian Reorganization Tax Act would potentially fall within the category of state aid in the sense of Art 107 TFEU.