Ruqayyah Snyder
Owning a car in Austria can be expensive. The initial purchase price of a car in Austria is 30-40% higher than in many other EU countries, and insurance costs are also high. Importing a car into Austria is not worth it due to an extra tax called NOVA. The cost of owning a car in Austria is influenced by various factors, including the type of car, insurance, fuel, maintenance, and repairs. The system in Austria seems to favour diesel cars, and it is almost impossible to buy a reasonable quality petrol car. Additionally, the cost of owning a car in Austria is also affected by the Autobahn Vignette, which is required to drive on all 'A' roads, and the need for winter tires or snow chains during the winter season.
| Characteristics | Values |
|---|---|
| High insurance costs | 185 euros/month for a 200 HP car |
| High initial purchase price | 30-40% higher than other EU countries |
| High import tax | |
| High duty payable at the Finanzamt | |
| High tax rates |
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What You'll Learn
High insurance costs
Firstly, insurance costs are directly linked to the purchase price of the vehicle. A new car or a more expensive model typically attracts a higher insurance premium. This is because the insurance company will have to compensate for a higher amount in the event of a total loss or significant damage. As a result, insurance for a premium or luxury car will be more expensive than that for a standard vehicle.
Secondly, the type of engine and fuel used by the car play a role in determining insurance costs. In Austria, insurance companies tend to favour diesel cars or CNG (compressed natural gas) vehicles. Petrol cars, especially those with larger engines, often result in higher insurance premiums due to the higher taxes and duties associated with these vehicles. The vehicle's horsepower also impacts insurance costs, with higher horsepower resulting in more expensive insurance.
Additionally, the age and condition of the car are considered when calculating insurance rates. Older vehicles or those with higher mileage may be deemed riskier to insure due to potential mechanical issues or increased susceptibility to damage. Consequently, insurance for a used car may be more expensive than for a newer model.
It is worth noting that insurance costs can vary significantly between different insurance providers in Austria. It is advisable to compare prices and coverage options from multiple insurance companies to find the most suitable policy for your needs.
Moreover, the type of insurance coverage chosen will impact the overall cost. Full coverage insurance, also known as "Vollkasko" in Austria, provides more comprehensive protection and thus tends to be more expensive. On the other hand, opting for the minimum required third-party liability insurance, known as "Haftpflichtversicherung", will result in lower insurance costs.
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High initial purchase price
The high initial purchase price of cars in Austria is influenced by several factors, including taxes, import duties, and market dynamics. Firstly, Austria imposes various taxes and duties on vehicle purchases, which contribute to the high prices. One example is the NOVA tax mentioned by an expat, which specifically applies to imported cars and can significantly increase their cost. Additionally, standard value-added tax (VAT) rates are applied to car purchases, and these taxes can add up quickly, making cars more expensive.
Another factor influencing the high initial purchase price is the market dynamics within Austria. There seems to be a preference for diesel cars or CNG vehicles, making it challenging to find reasonable quality petrol cars, especially larger models. This imbalance in supply and demand can drive up the prices of petrol cars, particularly for newer models or those with desired features. Furthermore, the cost of insurance in Austria is also relatively high compared to other EU countries, which can further deter car purchases and contribute to the overall high initial purchase price.
The initial purchase price of cars in Austria is also impacted by the country's import policies. While some individuals suggest buying a car in a neighbouring country, such as Italy or Germany, and then bringing it to Austria, this option may not always result in significant savings. The reason is that Austria imposes import taxes, which can offset any potential cost advantages. Therefore, it is essential to carefully consider the total cost, including any applicable taxes and duties, when contemplating purchasing a car from another country.
Additionally, the type of car and its specifications can influence the initial purchase price. For example, cars with higher horsepower tend to have more expensive insurance rates. This relationship between horsepower and insurance costs may prompt buyers to opt for vehicles with lower horsepower, which could influence the overall demand and pricing for such cars. Furthermore, electric vehicles, which are gaining popularity in some European countries due to tax exemptions, may also impact the market dynamics and pricing strategies for other vehicle types in Austria.
Overall, the high initial purchase price of cars in Austria is a result of various factors, including taxes, import duties, market preferences, insurance costs, and vehicle specifications. These factors collectively contribute to making the initial purchase of a car in Austria a costly endeavour.
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Import tax on foreign cars
Importing a car into Austria from abroad will require you to pay the Normverbrauchsabgabe (NoVA), a one-off car registration tax. This is a standardized consumption tax that is payable upon the delivery or first registration of passenger cars, as well as motorcycles and quad bikes. The NoVA must be paid regardless of whether the car is new or second-hand, and whether it is bought from a dealer in Austria or imported from abroad.
If you are importing a car from a Member State of the European Union, the NoVA must be calculated based on the legal situation in force in Austria at the time of the car's first registration in the rest of the Union. Cars imported from third countries (countries outside the EEA) are liable for a 10% customs duty in addition to other taxes. For example, a 10% duty on the value of the motor vehicle will be assessed up to the duty limit (purchase price plus delivery costs to the EU's external border). A 20% import turnover tax will also be assessed based on the value of the motor vehicle.
If you are importing your car from the US or UK, it is recommended to contact the Landesprüfstelle in your federal state to ensure that your car meets the necessary EU criteria. Otherwise, you will need a special allowance and may need to adapt certain features of your car.
In addition to the NoVA, there are other documents that you will need when importing a car into Austria. These include the Zulassungsbescheinigung and the Typenschein. If you are importing a car from the EU, you will need the equivalent of the Typenschein, which is the EC (European Community) conformity certificate or a data extract from the approval database. This must be presented when registering a new vehicle in Austria.
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High tax rates on passenger cars
One notable tax is the NOVA tax, mentioned by an expat in Austria, which specifically applies to imported vehicles. This additional tax makes importing a car a costly endeavour, and it is only considered worthwhile for expensive luxury vehicles, as the tax amount may be offset by the lower price of such cars in other countries. For instance, an individual shared that importing a car from the United States is only financially sensible if the car is valued at 100,000 euros or more.
Moreover, Austria's system of vehicle taxation appears to favour diesel cars and CNG (Compressed Natural Gas) vehicles. It is challenging to find reasonably priced petrol cars, especially those with larger engines. This situation may push buyers towards diesel or CNG options, which could contribute to higher prices for these specific types of cars.
The impact of taxes on car prices in Austria is further evident when comparing prices across European countries. Switzerland, for instance, has the highest new passenger car prices in Europe, and this is attributed in part to tax rates set by cantons (regions). These taxes are based on criteria such as vehicle weight, powertrain, and CO2 emissions, leading to higher prices for larger, less environmentally friendly vehicles. Similarly, Norway, which ranks second in average vehicle price, has high tax rates, but electric vehicles are popular due to VAT and toll exemptions.
In summary, high tax rates on passenger cars in Austria significantly contribute to the overall expense of car ownership. These taxes apply to imported vehicles and are structured to encourage the purchase of more environmentally friendly options, which can result in higher prices for specific vehicle types. Comparisons with other European countries reinforce the relationship between tax rates and car prices, indicating that Austria's vehicle taxes play a pivotal role in shaping the country's automobile market and influencing the affordability of car ownership for residents.
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High duty payable at the Finanzamt
In Austria, a newish car attracts a high purchase price based on duty payable at the Finanzamt. This, coupled with high insurance costs, makes the overall cost of owning a car in Austria significantly higher than in many other EU countries.
The duty payable at the Finanzamt is not the only factor that makes buying a car in Austria expensive. There is also an extra tax called NOVA, which is levied on imported cars. This means that it is not much cheaper to buy a car elsewhere and import it into Austria.
The cost of insurance is also high and depends on the horsepower of the car. A 200 HP car, for example, will cost around 185 euros per month to insure, whereas an old Volkswagen Beetle with 35 HP would cost about 45 euros per month.
The type of fuel also influences the price. The system in Austria appears to favour diesel cars or CNG, and it is almost impossible to buy a reasonable quality petrol car.
Overall, the high costs of purchasing and owning a car in Austria are due to a combination of factors, including duties, taxes, and insurance costs. These costs can make car ownership out of reach for some residents, who may opt for public transportation or leasing options instead.
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Frequently asked questions
Cars in Austria are expensive due to high insurance costs, import tax, and initial purchase price, which can be 30-40% higher than in other EU countries.
In 2020, Switzerland had the highest prices for new passenger cars in Europe, with prices roughly 15,000 euros higher than the EU-28 average. While there is no data specifically for Austria, one source suggests that buying a car in Austria is more expensive than in the UK.
It is recommended to buy a used car, as new cars depreciate quickly. Additionally, consider leasing, as Austrian banks offer competitive rates. If you are importing a car, be aware of the extra NOVA tax.
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