How to buy property in Austria
Some restrictions do apply for foreign nationals seeking to purchase property in Austria, however these are easy to navigate with the help of a reputable agent.
There are some provinces that prohibit the purchase of real estate in certain zones when the property will not serve as the owner’s permanent residence.
Non-EU citizens are allowed to acquire real estate if they apply for a special permit from the Land Transfer Authorities beforehand, although individuals can set up Austrian-based companies to buy properties, meaning special permission is not required.
EU citizens can acquire property without restrictions.
Transactions where a mortgage is required will need the involvement of an attorney or public notary, who registers purchases with the land registry and is responsible for being a financial intermediary in the transaction, receiving funds from the bank and passing them on to the relevant parties.
Fees and charges
Prospective property owners should expect to spend roughly 10 per cent of the purchase price on fees and charges, which include broker fees, land transfer charges, registration fees and well as lawyer and notary costs.
For investment properties, agent fees for managing the property need to be considered, while local property taxes are charged at 0.1 per cent of the market value per annum.
Furthermore, rental income is taxed at either the income or corporate tax rate, depending on the type of ownership, at a rate of 25 per cent. The taxable portion of income can be reduced by factoring in depreciation and interest paid on the mortgage.
When a property is sold, a 30 per cent capital gains tax on the profit is generally applicable, while the transfer of a property to a family member is subject to a 3.5 per cent real estate transfer tax.
If you have any further questions, please consult our buying guide or feel free to contact us and we can provide you with any information you need.