About Austrian Properties

Austrian Properties had teamed up with some of the largest estate agents in Austria, to provide you with as much choice as possible, when looking for properties. The aim of this site is enable you to view the properties for sale, contact the estate agents directly for further details or to arrange a viewing. If however you need any further assistance please feel free to contact Austrian Properties directly using the link above (Contact).

Information - Buying in Austria

In considering an overview of the property market in Austria, the most striking fact that overall the costs associated with property in Austria is higher than any other country in Europe. In addition, the cost of living in Austria generally is higher than any other country in Europe at the present time. The additional costs associated with buying a property in Austria generally amount to 10-11% of the purchase price

With this in mind, it is also important to note that the tax rate in Austria when it comes to the buying and selling of property in that country also runs rather high. For example, any capital gains that are experienced on the sale of a property is taxed in Austria as regular income at the significant rate of 34%. There are exceptions to this taxation. First of all, a property that is used as a primary residence is exempt from this tax. Additionally, all property that is held for ten yours or more is exempt from this taxation as well. Therefore, many people, including foreign nationals, hold on to investment properties for at least ten years before turning around and selling the property for a profit.

Historically, Germans have been the primary group of foreign nationals that have taken to purchasing Austrian properties.

Austria is a prime vacation spot in the European community in this day and age. Indeed, Austria has been a haven for travelers and tourists for many, many years. With this in mind, a goodly share of the property that is trading on the marketplace at this point in time involves property that is intended for vacation and holiday purposes.

Many foreign nationals who are purchasing holiday property in Austria actually are finding these purchases to be rather lucrative. For example, these foreign nationals are buying property -- purchasing vacation properties -- that they then utilize in part for their own holiday purposes. However, in addition to using these properties for their own personal holiday purposes, many foreign nationals have commenced the practice of renting or leasing these properties to other people. It is this letting process that has proven profitable over the course of the past couple of decades for an ever growing number of foreign nationals.

Most  property experts who have spent any time analyzing and considering the property market in Austria have concluded that this trend will continue well into the future. Because buying and then renting holiday homes has proven to be a solid and profitable investment for so many people, even more foreign nationals are attracted to such property ownership all of the time. This factor, coupled with the tax benefits to be realized by holding onto property for a period of at least ten years, has rendered these investments truly sought after at this point in time.

There are some restrictions on the manner in which foreign nationals can purchase and possess property in Austria. Indeed, historically there were some more significant steps that a foreign national had to undertake in order to be able to buy and own property in the country. However, in recent years, there has been a general relaxation in regard to the laws that govern foreign ownership of property in Austria.

The most significant changes and relaxations in the laws governing foreign ownership of property pertain to foreign nationals from the European Union nations. Simply, since the formation of the EU and since Austria's reception into the EU, any foreign national within the EU can purchase in Austria with ease. Indeed, for all practical purposes, at this juncture, a citizen from the EU stands in essentially the same position that a citizen of Austria stands when it comes to the purchase and ownership of real estate in that country.

When it comes to foreign nationals from non-EU nations, there remains one rather significant restriction on the ability of these foreigners to buy and own property in Austria. In short, before a foreign national from a non-EU can purchase property in Austria, that person must obtain permission from the local authority office in the locality in which the foreign national desires to make the purchase of real estate.

Generally speaking, approval from the local authority is easy to come by and will be granted in the vast majority of instances. Additionally, this approval normally is forthcoming in a very short amount of time.

Once a foreign national has identified a property that he or she is interested in purchasing, an oral offer is made to the seller. If the seller accepts the offer -- or, if the seller puts forth a counteroffer that is acceptable as such to the buyer -- a purchase agreement is prepared. When purchasing property in Austria it is sold ’as seen’ and as you are committed to the contract from the moment that you sign the offer document you should have thoroughly investigated both the property and surrounding area before submitting your offer. In Austria, more often than not, a solicitor or lawyer (notar) handles the affairs associated with the buying and selling.

As a matter of normal routine, the buyer will post a deposit in the amount of 10% at the time the purchase agreement is executed. The deposit will be held in escrow, pending the completing of the sales transaction itself. If the sale falls apart through no fault of the buyer, the buyer will have his or her deposit returned.

When the completion date rolls around, the seller will be responsible for making certain that all contract provisions that apply to him or her have been satisfied. More often than not this primarily includes making certain that the property is free from any encumbrances that might interfere or impede the conveyance of the real estate to the buyer.

At the time of the completion date, the buyer will need to have his or her financing in place and in order. At the time set for the completion of the transaction, the buyer will pay the remaining balance due and owing on the purchase agreement. Once this payment is made, ownership of the property will transfer by operation of Austrian law to the buyer. However, the new ownership of the property will need to be registered with the Austrian Land Registry, this again is done by the Notar.

The process of fully registering the property with Austrian Lad Registry can take up to three or four months in some instances. It is not a quick process, more often than not.

When it comes to obtaining financing for the purchase of property in Austria, Austrian banks generally will lend money to citizens of that country and foreign nationals alike.