Buying property in Austria

Who can buy in Austria

EU citizens can purchase property in Austria without restrictions, but certain restrictions apply to non-EU citizens.

Some provinces prohibit the purchase of residential property in certain zones if the property won’t be the buyer’s primary residence.

Non-EU citizens can purchase property if they apply for a special permit from the Land Transfer Authorities in advance. The permit can be waived if the buyer establishes an Austrian-based company to purchase properties.

The buying process in Austria

• Once you’ve found the property you’d like to buy, you’ll sign the purchase offer, also known as the ‘kaufanbot’.
• This is a formal offer to purchase the property, outlining the purchase conditions – including price and terms – which both the buyer and the seller sign.
• A 10% deposit is paid to a notary who holds it in escrow.
• The buyer can sign the purchase contract in front of a notary or at any of the Austrian embassies or consulates worldwide.
• The owner or developer must then sign the contract, and the title deeds will be prepared by a notary and registered with the land registry.
• If a mortgage is required, an attorney or public notary will act as a financial intermediary between the bank and the relevant parties.

Fees and taxes in Austria

Prospective buyers should expect to pay 10% of the purchase price in fees and charges, which includes broker fees, land transfer charges, registration fees, and costs for lawyers and notaries.

• Local property taxes are charged at 0.1% of the market value per annum.
• When purchasing an investment property, consider the cost of property management fees.
• Rental income is taxed at either the income or corporate tax rate, depending on the type of ownership.
• When selling a property, a capital gains tax of 30% of the profit is usually applicable.
• If the property is transferred to a family member, it’s subject to a 3.5% real estate transfer tax.