Austria (AT)
Austria is a landlocked Central European republic of nine federal states (Bundesländer), renowned for its stunning Alpine landscapes, imperial history, world-class classical music, and high standard of living.
Buying Property in Austria
The full buying process, transaction costs, mortgage, and legal requirements.
Austria has a well-regulated property market. Vienna and Salzburg are among the most expensive cities for property in German-speaking Europe. Buying property requires a Notar (notary), who drafts the binding purchase contract and handles the land registry (Grundbuch) entry. Transaction costs are high — budget 9–12% of the purchase price in taxes, fees, and commissions on top of the property price. Non-EU citizens can purchase property in most Austrian states but some restrictions apply in border regions. Foreign buyers face no general prohibition but should consult a local Notar and Steuerberater.
Rent vs. Buy
Given the high upfront transaction costs (9–12%), buying makes financial sense only for those planning to stay 7–10+ years. Vienna's property prices peaked in 2022 and have softened somewhat in 2024–2025 due to higher interest rates and the removal of the Kreditvergabe-Verordnung (mortgage lending cap) revision. For short to medium stays (under 7 years): renting is generally cheaper when accounting for transaction costs. Austria's strong MRG (tenant protection law) makes renting relatively secure. However, Vienna's Altbau market offers long-term price stability for buyers.
Buying Process — Step by Step
Define your budget and financing
4–8 weeksGet mortgage pre-approval from an Austrian bank (Erste Bank, Raiffeisen, Bank Austria, BAWAG, or specialist lender via mortgage broker Interhyp/Dr. Klein). Lenders typically require 20–30% deposit (Eigenkapital). Include transaction costs (9–12%) in your budget — these are NOT mortgageable.
Property search
4–24 weeks depending on marketSearch willhaben.at, immoscout24.at, immowelt.at, or engage an Immobilienmakler (estate agent). Visit properties. Check Grundbuch (land registry) extract (Grundbuchauszug) for encumbrances, mortgages, and easements before making an offer.
Make an offer and sign reservation agreement
1–2 weeksOffer is made in writing (Anbot/Kaufanbot). Once accepted: often a Reservierungsvereinbarung or Vorvertrag (pre-contract) is signed with a small deposit (€500–5,000). Seek legal review before signing any pre-contract.
Choose a Notar
1–2 weeksBoth parties select a Notar (notary) — or each party uses their own. The Notar prepares the binding Kaufvertrag (purchase contract). Request the draft 14 days before signing — you are entitled to review it.
Conduct due diligence
2–4 weeksOrder Grundbuchauszug (land registry extract — available online at justiz.gv.at, ~€3). Commission an independent building surveyor (Bausachverständiger) for older properties. Verify planning permissions, energy certificate (Energieausweis), building regulations.
Secure mortgage financing
2–4 weeksFinalise mortgage with bank. Bank issues a Finanzierungszusage (financing commitment). Mortgage drawn down at signing or land registry completion.
Sign the purchase contract (Kaufvertrag) at the Notar
1 dayBoth parties sign in person at the Notar. Notar reads the contract aloud. Non-German speakers: bring a certified interpreter or ask the Notar for an English summary in advance.
Payment and handover
1–4 weeksPurchase price paid (typically via Notar's Treuhandkonto — escrow account). Keys handed over. Notar files for land registry entry (Grundbucheintragung).
Land registry entry
4–8 weeksGrundbucheintragung completed by Bezirksgericht — you become the official owner. Takes 4–8 weeks from filing.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Grunderwerbsteuer (Real Estate Transfer Tax) | 3.5% of purchase price | Paid to the Finanzamt. Non-negotiable. Must be paid before land registry entry. |
| Grundbucheintragungsgebühr (Land Registry Fee) | 1.1% of purchase price | Fee for entering the ownership and mortgage in the Grundbuch. |
| Notarkosten (Notary Fees) | 1–1.5% of purchase price | Fixed by law (Notariatstarifgesetz). Covers contract drafting, escrow management, and registration. |
| Maklercourtage (Agent Commission) | 3% + 20% VAT (3.6% effective) of purchase price | If buying through an agent. Both buyer and seller typically pay 3% each. Some transactions are provisionsfrei (no commission). |
| Mortgage Arrangement Fee | 0.5–1.5% of loan amount | Bank processing fee. Some banks waive for preferred customers. |
| Property Valuation | €300–700 | Required by mortgage lender. |
| Building Survey (Bausachverständiger) | €400–1,500 | Optional but strongly recommended for older (Altbau) properties. |
| Total transaction costs (typical) | 9–12% of purchase price | Include in budget from day one — not covered by mortgage. |
The Notary — Mandatory for All Purchases
The Notar (notary) plays a central and legally required role in Austrian property transactions. The Notar drafts the Kaufvertrag, reads it aloud at signing, manages the Treuhandkonto (escrow), pays Grunderwerbsteuer on your behalf, and files for the Grundbucheintragung. The Notar acts as an impartial official — they do NOT represent either party exclusively. You are entitled to the contract draft 14 days before signing. Notar fees are fixed by law and cannot be negotiated.
Mortgage
Austrian mortgage market (Hypothekarkredit / Wohnbaukredit) is competitive. Major lenders: Erste Bank, Raiffeisen, Bank Austria, BAWAG, Hypo banks (regional), Wüstenrot. Mortgage brokers (e.g. Interhyp, Dr. Klein, ING Austria) compare lenders. Variable and fixed-rate mortgages available. Fixed rates (5-, 10-, 15-year) are popular for predictability.
20–30% minimum deposit (Eigenkapital) typically required. Banks rarely lend above 80% LTV for residential property. Higher deposit = better rate.
Non-Austrian residents: banks are more cautious but lending to non-residents is possible, especially for EU citizens. Non-EU residents may face higher deposit requirements (30–40%) and more rigorous income verification. Proof of Austrian income (Gehaltszettel), tax returns, and a stable visa/residence permit are essential for mortgage approval. Some lenders specialise in expat mortgages.
Land Registry
The Grundbuch (Austrian land registry) is publicly accessible online at justiz.gv.at. A Grundbuchauszug (extract) costs ~€3 per property and shows: ownership (Eigentümer), mortgages (Pfandrechte), easements (Dienstbarkeiten), and any restrictions. Always obtain a fresh Grundbuchauszug before signing any purchase contract.
Taxes
Key property taxes: Grunderwerbsteuer (3.5% at purchase), Grundbucheintragungsgebühr (1.1% at purchase), Immobilienertragssteuer (ImmoESt) on capital gains at sale (4.2% of gross sale proceeds or 30% of the actual gain — "special rate" option). Austrian residents: €250,000 Hauptwohnsitzbefreiung (primary residence exemption) after 5 years of occupation or 2 of last 5 years. Annual Grundsteuer (property tax): very low in Austria (~0.1–0.3% of assessed value — far below other European countries). No inheritance tax in Austria (Erbschaftssteuer abolished 2008) but the Grundbucheintragungsgebühr applies on inheritance transfers.
New Build vs. Existing Property
New build (Neubauwohnung): subject to VAT (20% included in purchase price of developer apartments). Tends to come with MRG-free (Freier Mietvertrag) rental terms if rented out. High energy efficiency. Longer build-out waits. Existing (Altbau): charming, central, often subject to MRG rental protection if rented. May need renovation. Lower VAT implications (3.5% Grunderwerbsteuer only — no 20% VAT layer). Older buildings: check Baugenehmigung and any planned Sanierungen (building refurbishments) in the minutes of the Eigentümergemeinschaft.
Selling Property
Capital gains on property sale: Immobilienertragssteuer (ImmoESt) at 4.2% of gross proceeds or 30% of net gain. Exceptions: primary residence (Hauptwohnsitz) lived in for 5 of last 10 years, or 2 consecutive years immediately before sale — exempt. Self-built homes meeting criteria: exempt. Notary required for sale too. RLBO (Real Estate Agent Obligation) — seller's agent commission is 3% + VAT standard.
Useful Links
Property Buying
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