Information for potential buyers

Austria – “country near mountains, near the coast of quick river, country of fields and cathedrals”. In this way Austrian sing about their country in hymn.

In this country property market is the most stable in Europe. Growth of property cost in country does not increased 3-4% per year. In Vienna this rate is a bit higher – 8%. The number of foreign investors, who wish to become owner of Austrian property, is increasing annually. It is a sign of prestigious, respect and assurance in tomorrow.

In comparison with other Mediterranean countries, to possess property in Austria is not cheap. The most attractive apartments are in Vienna, Saltsburg, Linz, Innsbruck and Graz.

The most expensive city is Vienna. New buildings in separate regions are from 2,7 to 3,5 thousand euro per 10 sq. ft. if you want to become owner of new built property in the center of the city it will be impossible, as it forbidden to built there. Secondary elite property in the center of the city is cost about 6-10 thousand per 10 sq. ft. and higher.

It should be mentioned that possessing of 3 bedrooms apartment will cost 250 euro per month. Generally, the price of the property depends on location and condition. There are a lot of old houses, flats which require repair. So, house - 10 thousand sq. ft. with plot more than 70 thousand sq. ft. is selling for 1,2 million euro, and smaller with square with plot 40 thousand sq. ft. but which situated in more profitable place and with more original architecture, will cost 5,3 million euro.

The process of buying property by foreigners is strictly specify and well-ordered. Local authorities fixed quotas for purchase and each federal land is making its own rules of purchase the property. Potential buyer should formulate the purpose of buying the property to authorities and receive the corresponded permission from them. Traditionally this mission is for lawyers and solicitors. Realtor brings to the action selection of property, on the stage of looking at property buyer is signing the contract, where is written an address of the property, its price and cost of month upkeep. The process of buying will take 6 months, after purchasing the owner of the property is receiving a temporarily permission for staying in the country, and in 10 years could get a citizenship.

Any of transactions should be registered by local tax organization, which take a tax for transmission the right of property in 3,5% from its cost. After payment this tax you receive a certificate which allows to register the transaction in local court. For registration of land you should pay 1% from the cost. The fee for lawyer or notary services is almost equal and cost from 1,5% to 5% (often it is not more than 2,5%). Small additional expenditures are connected with necessary confirmation of signatures of transaction’s participants in the court. Commissions are 3,6% (fee + VAT) from the cost of the property is paying to the real estate agent. It is a standard number for all agencies; its size is limited by the law.

Buyers who are not from EU countries will have additional expenditures: permission of the local authority, who deals with transmission of property, could be cost from 3 thousand euro. And finally, if your property in Austria will be sold in 10 years after buying, the differences in price of sale and purchase impose income tax.