Personal use and rental rules for ski property in Austria

Rental income in Austria can vary significantly depending on the type of property and location. In a good quality, year-round resort you can typically expect yields between 3-6%.

Generally, yields are higher in Austria than the other European alpine markets due to the well-established summer seasons which now fun from May though till October.

If you buy a commercial tourism property in Austria it will often come with a strict rental obligation which will limit your own personal use.

Each operator will have a different approach to this so it’s important to check with your agent what the current rules are and review the operating agreement with the management company. These tourism residences are first and foremost designed for commercial renting purposes which can provide you with a good steady income.

You will be expected to make a ‘profit’ for tax purposes over a 20 year period.

Of course, all of the above refers to apartments within commercial tourism residences.

If you buy an apartment or chalet where holiday renting is allowed but it is NOT part of an apart-hotel residence then your own use is much more flexible. In most cases you are simply able to ‘block’ any weeks you want for yourself with the management company. Please note however that you should still pay the touristic tax when you / your friends and family are there.

In Austria, there are strict rules on how each property can be used. In most ‘tourism residences’ there will be a strict rental obligation which has been widely implemented to avoid the ‘cold beds’ situation that is prevalent in many other parts of the Alps.

You will typically be obliged too:

• Provide an income projection over a 20-year period.
• You will need to make a “profit” for tax purposes.
• You must charge a tourism tax for all guests.
• You will need to register your ski property with the local authorities.

All of the above can be taken care of by the operator and your Austrian tax accountant so these investments can be very ‘hands free’.

In return, you can reclaim the 20% VAT on the purchase price and can expect a steady income from the operator.

To maximise rental income in Austria, focus on:

• Prime, well-known locations
• Resorts with year-round demand and an established summer season
• Professional rental management company (cutting corners and self-managing is likely to be a false economy)
• Additional luxury features such as saunas and hot-tubs will help bookings