Ruqayyah Snyder
Austria is a great place to buy property, with its charming villages, friendly people, and attractive rental income market. The property-buying process is generally quick and straightforward, but there are many regional variations that buyers may find confusing. For example, EU nationals can buy property in Austria with no restrictions, but citizens of other countries that belong to the EEA and Swiss citizens will need additional paperwork, and non-EU nationals cannot buy property in several provinces. It's important to get your finances in order before you start your house hunt, and to be aware that verbal expressions of intent to purchase are legally binding in Austria. Once you've found your dream home, you'll need to make a competitive offer in writing, and if accepted, both parties will sign a pre-sales contract. A notary is essential to the process, acting as an intermediary between buyer and seller, and preparing the title deeds and entering them into the Land Registry.
| Characteristics | Values |
|---|---|
| Property buying process | Generally quick and straightforward, but with regional variations |
| Foreign ownership | No restrictions for EU nationals; citizens of EEA countries, Switzerland, and non-EU nationals may have additional requirements and restrictions |
| Online property agencies | Rightmove, Amazing Austria, Engel and Voelkers, Savills, and Tranio |
| Local real estate agents | English-speaking staff |
| Real estate agencies commission | Typically 3% of the property's price |
| Real estate agent's fee | 3% to 4% of the property's purchase price or market value |
| Legal fees | 1% to 3% of the purchase price + 20% VAT |
| Property transfer tax | 3.5% of the property value; 2% for transfers between close relatives |
| Value Added Tax (VAT) | 20% for newly-built properties; may be saved or reduced for properties with "Tourist Residence" status |
| Registration duty | Payable to the Land Register |
| Notary fee | Notary acts as an intermediary between buyer and seller, authenticates signatures, and holds deposits |
| Deposit | 10% of the purchase price, held in escrow by the notary |
| Property registration cost | 4.5% of the property value |
| Time to register a property | 9 to 32 days |
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What You'll Learn
Online property portals and local estate agents
Online Property Portals:
Austria has a range of online property portals that cater to different needs, whether you're looking for a short-term rental or planning to buy your dream home. Here are some popular options:
- Immobilien Scout24: This is one of the most popular online property portals in Austria, offering a wide range of properties to buy or rent across the country. The website is in German only.
- AmazingAustria.com: Specialising in the Austrian property market, this website can help with short-term stays or investment projects.
- Blueground: This innovative rental platform allows you to search for properties and move in as quickly as the next day, taking care of all the necessary arrangements.
- Nestpick: Nestpick offers mid-to-long-term rental properties, from professional lets to student housing, in Austria and other countries.
- Flatio: A global online platform for furnished mid-term rentals, offering a wide selection of hand-picked, deposit-free apartments in over 300 destinations, including Austria.
Local Estate Agents:
Local estate agents can provide valuable expertise and personalised services to help you buy or sell property in Austria. Here are some things to keep in mind:
- Real estate agencies in Austria typically charge a commission of around 3% of the property's price. This is set by law and is payable by both the buyer and the seller.
- Estate agents will advertise the property, show it to potential buyers, vet them, and negotiate the sale. They act as a liaison between the buyer and the seller.
- It is recommended to find a good local agent you trust. They can help you navigate the Austrian property market and provide valuable insights.
- Some companies, such as Expat Consulting, specialise in helping expats with the sale and purchase of properties in Austria. They can also assist with relocation services.
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Making an offer and the pre-sales contract
When you have found a property you like in Austria, you need to make a formal offer in writing, either to the real estate agent or directly to the seller. This is because, in Austria, a verbal expression of intent to purchase can be legally binding. Before your offer can be considered, you may be asked for evidence of how you'll finance the purchase, such as a mortgage agreement or a letter from your bank.
Once your offer has been accepted, the next step is for both parties to sign the pre-sales contract, which is known as the Kaufanbot and is legally binding. At this point, you should contact your mortgage provider to finalise the financing for your purchase and arrange for a building survey or inspection to be carried out. You will also need to pay a deposit, which is usually 10% of the purchase price of the property, to the notary handling the sale. The notary will ensure your deposit is held in escrow until the purchase is finalised.
The contract is usually set up by a lawyer or notary and will include the parties, an exact description of the property, how any encumbrances on the property are to be dealt with, the time of the property being handed over, and the purchase price. The notary will act on behalf of both parties and is seen as an intermediary between the buyer and seller. The notary's task is to confirm the authenticity of the signatures and prepare the title deeds, entering them into the Land Registry.
If you are a non-EU citizen, you will need to apply for a permit to buy property in Austria at this stage. This is the final sales contract and should be signed by both parties in the presence of a notary. If you are not in Austria, you can sign it in front of official witnesses at an Austrian Embassy or Consulate.
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The role of a notary
A notary is an essential part of buying a property in Austria. The notary acts as a mediator between the buyer and the seller, holding any deposit and facilitating the transaction between the two parties. Civil law notaries are key players in the Austrian legal system. The notary fee typically amounts to 2% of the property value, plus 20% VAT. The exact amount depends on the size of the property.
Once the notary has been chosen or appointed, they must proceed with drafting the contract. To do this, they must gather information concerning the buyer, the seller, and the property being sold. The deed must contain the purchase price, the rights and obligations of each party, the terms of payment, any easements, and any land charges. Once finalized, the draft deed is sent by the notary to the seller and the buyer for review. As a neutral third party, the notary can advise both parties and answer all their questions. The notary ensures that the buyer has the full amount of the funds or the amount of the deposit on the day of signing.
The notary will draw up the contract, which is known as the Titel. The notary will act on behalf of both parties and is seen legally as an intermediary between the buyer and the seller. The details of when the transfer will take place and when the purchase price is due should all be included in this offer. The notary will prepare the title deeds and enter them into the Land Registry. They will also ensure that the signatures of the seller and buyer are authenticated on the contract.
In the cantons where the liberal notary system is applied, the notary takes care of registering the property in the Land Register. In other cantons, it depends on the organization of the notary's office. If the buyer is financing the property with a mortgage, it is necessary to establish a mortgage note. It is up to the notary to proceed with the formalities.
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The costs of buying property
Real Estate Agent's Fee
The fee for a real estate agent in Austria is set by law at 3% to 4% of the property's purchase price or market value, plus 20% VAT. This commission is payable by both the buyer and the seller.
Property Transfer Tax
The property transfer tax, or "Grunderwerbsteuer", is typically levied at a flat rate of 3.5% of the property value. This tax is reduced to 2% for transfers between close relatives.
Registration Duty and Land Registry Tax
The registration duty, also known as the Land Registry tax or "Grundbuchseintragungsgebühr", is payable to the Land Register and typically costs 1.1% of the property's value.
Notary Fee
The signatures of the seller and buyer must be authenticated on the contract by a notary, who acts as a mediator between the two parties. The notary fee is typically 1% to 3% of the purchase price, plus 20% VAT.
Deposit
After the contract is signed, the buyer is typically required to pay a deposit of 10% of the purchase price. This deposit is held in escrow by the notary until the sale is finalised.
Mortgage Fees
If you are taking out a mortgage to purchase the property, there may be additional fees such as a bank fee of around 1% of the loan amount and a court registration fee of 1.2% of the loan amount.
It is important to note that these are general estimates and the actual costs may vary depending on the specific property and the individual circumstances of the buyer and seller. Additionally, there may be other costs such as home insurance, which is mandatory in Austria, and any necessary surveys or inspections.
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Regional variations in the process
Austria is divided into nine federal provinces, each with its own distinct landscape and regional specifics, including dialects, customs, culinary delicacies, and local laws. This means there are regional variations in the process of buying and selling property.
For example, in the Tyrol and Vorarlberg ski regions, only EU citizens can purchase real estate. However, there are some ways around this, such as registering a purchase for a European company. It is important to check with the individual local authority for any unique requirements.
Additionally, the type of property you wish to buy can impact the process. For instance, if you are buying an off-plan or new-build property, it is important to be aware that it is a first-come, first-served system. Developers often have financing partners to assist buyers, usually a local bank familiar with the project that can offer attractive terms and speed up the process.
The costs of buying and selling property in Austria can also vary depending on the region and the type of property. For example, the real estate agent's fee is set by law at 3-4% of the property's purchase price or market value, but this can vary between agencies and locations. Similarly, the notary fee is typically 2% plus 20% VAT, but this can depend on the size of the property and the location.
Furthermore, the time it takes to register a property in Austria can vary depending on the region and the complexity of the case. On average, it takes between 9 and 32 days to complete all three procedures, but it can be as quick as two weeks or as long as a month.
Lastly, the availability of certain types of properties can vary by region. For example, most ski areas are located in Salzburgerland, Styria, Tyrol, Vorarlberg, and Carinthia. If you are interested in a "Tourist Residence", a variation on the "buy-to-let" property concept, you should be aware that these are most sought-after in regions with high tourist demand.
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