Buyers’ FAQs for Austria

Standard buying fees are as follows:Stamp duty 3.5% Land registry fee 1.1% Agency fees 3%*

It usually takes between 1-3 months to buy a property in Austria.

The purchasing process requires you to sign a binding offer agreement after viewing or based on the information and plans in case of a new build property.

The role of an estate agent is to facilitate the sale of a property. On behalf of the seller, they will ensure the most effective advertising for each individual project or property, making sure they connect with suitable buyers.

When buying an off-plan property in Austria payments are made according to the build stages.

Developers must have the financing in place before they start construction. You will only pay for each stage payment AFTER it has been completed. New build properties in Austria also usually have a 2% guarantee that is withheld for three years after handover in the event of any snagging issues.

When you are buying a touristic rental property in Austria you can borrow around 50-60% of the value. Banks also consider the rental income that the property will generate making it relatively easy to obtain finance on these types of properties

Austrian mortgages tend to have favorable interest rates, often ranging somewhere between 2-4%. However, this can vary depending on the position of the market at the time.

For a rental property, the mortgage term is often set to about 15-20 years to run alongside the rental contracts.

The three main types of mortgages available in Austria include fixed-rate, adjustable-rate and a mortgage combination which merges two mortgage loans. Austrian mortgages are always full repayment mortgages, and no interest-only options are currently available.

In nearly all new built properties there will be a designated rental management to take care of all the aspects of the rentals for you, often for a fixed commission on the income. If you do own an existing property that has rental permission without a designated rental management, you will often find there are several companies in the area that can help rent out your property.

In Austria there are strict rules on how each property can be used. In most cases when there is permission to rent out the property touristic ally there is also an obligation to rent out the property at a profit for 20 years for tax purposes.

Because often there is the obligation to rent out the property at a profit, this limits the amount of own use to around 6-8 weeks a year from a tax perspective. In some cases, there are also conditions set by the rental management which may vary slightly from property to property.

Austria is home to some of the most popular ski resorts in Europe and has a stable property market, offering a range of excellent investment opportunities.

Austria’s economy has grown quickly after the pandemic, thanks to a lifting of COVID restrictions, supportive government measures and a surge in holidays

You can buy a property in a company name in Austria, providing the business is EU-based and that 50% of its shares are owned by EU citizens. You cannot buy an Austrian property in the name of a non-EU company.

The cost of setting up an EU company can vary on the type of company you want to set up and the country where the company is registered. We can recommend a tax advisor to help you with this process.

The benefits of buying a property in a company name in Austria include being able to purchase with multiple owners. It also allows for tax-free ownership transfers via shares. As of 2022, profits on the disposal of a property owned by a company are charged at 25% compared to 30% for an individual.

You will have to pay local property taxes in Austria, although this varies depending on the region. The government’s local tax calculator can help you find out the exact amount.

As of 2022/23, rental income tax rates in Austria sit between 20% and 50%. How much you pay will depend on the tax band you fall into.

You will need fill annual VAT returns and aim to make a ‘profit’ for tax purposes over a 20 year period.

Capital gains tax for real estate in Austria stands at 30% as of 2022/23.

If you rent out your Austrian property to guests, they will need to pay a daily tourist tax to the local council. Villages impose this tax in order to raise revenue on properties registered as holiday homes – if your property is registered for permanent residency, the tax will not be payable. 

Residency permits in Austria are available to people who wish to work or study in the country. You will have to be present in the country for a minimum of 183 days a year to be eligible to apply.

If you are planning an extended stay in Austria, you will need a visa which will allow you to remain the country for 90 days in any 180-day period.

All EU citizens can buy a property in Austria without restriction. Non-EU citizens would need to apply for a special permit at the Land Transfer Authorities, this is a lengthy process without any guarantees that would lock the property in a sale until the permit is either granted or denied.

Since Brexit UK Citizens are no longer EU citizens. This means that they would also need to apply for a special permit at the Land Transfer Authorities.

There are no restrictions on selling your property in Austria, although you will be liable to pay capital gains tax which stands at 30% for real estate. There will also be the usual associated costs to pay, such as estate agents fees and VAT.

There are three different types of property you can find in Austria. Find out everything you need to know about the different types.