Real Estate Austria: A Guide to Buying and Renting Property

Austria is an attractive destination for real estate investment due to its strong economy, stable property market, and high quality of life. Whether you are looking to buy a home, invest in rental properties, or lease a residence, understanding the legal framework and market dynamics is essential.

This guide provides a comprehensive overview of the process for renting or purchasing property in Austria as a foreigner.

Renting Property in Austria

Finding a Rental Property

1. Online Listings – Websites such as ImmobilienScout24, Willhaben, and DerStandard Immobilien are widely used.
2. Real Estate Agents – Hiring a local agent can help with negotiations and legal processes.
3. Networking – Word-of-mouth recommendations can help, especially in competitive rental markets.

Rental Agreements

1. Lease Duration – Standard leases are either fixed-term (usually 3-5 years) or open-ended.
2. Security Deposit – Typically 3-6 months’ rent.
3. Utilities and Additional Costs – Clarify if rent includes heating, electricity, or maintenance fees.
4. Documentation Required –
   • Valid passport or residency permit
   • Proof of income or employment
   • Creditworthiness certificate (KSV report)

Rental Costs by City

• Vienna: €800 – €2,500 per month for a two-bedroom apartment
• Salzburg: €700 – €2,000 per month
• Innsbruck: €900 – €2,200 per month
• Graz: €600 – €1,500 per month

Buying Property in Austria

Can Foreigners Buy Property in Austria?

Non-EU citizens face restrictions on property ownership, as each Austrian province sets its own regulations. Some require government approval, while others limit purchases to those with residency or economic ties to Austria.

EU/EEA citizens generally have fewer restrictions and can buy property under the same conditions as Austrian nationals.

Steps to Buying Property

1. Choose a Location
   
   • Vienna: High demand, strong rental market
   • Salzburg & Innsbruck: Popular for luxury and vacation homes
   • Graz & Linz: Affordable with growing markets
2. Hire a Real Estate Agent and Lawyer
   
   • Real estate agents help navigate the market and negotiations.
   • A lawyer ensures compliance with provincial regulations.
3. Conduct Due Diligence
   
   • Verify ownership through the Austrian Land Register (Grundbuch).
   • Ensure there are no outstanding debts or legal issues.
4. Sign a Purchase Agreement
   
   • This contract must be notarized and includes terms of sale.
5. Secure Financing (If Necessary)
   
   • Austrian banks may finance foreign buyers, but loan terms are stricter for non-residents.
6. Register the Property
   
   • The transaction must be recorded in the Land Register.

Costs of Buying Property

• Property Transfer Tax: 3.5% of purchase price
• Land Registration Fee: 1.1% of purchase price
• Notary and Legal Fees: 1.5% – 3% of purchase price
• Real Estate Agent Fee: 3% of purchase price (plus VAT)

Mortgages for Foreigners

Austrian banks offer mortgages to foreigners, but the requirements can be strict.

• Minimum 20-40% down payment required
• Proof of stable income or assets
• Higher interest rates for non-EU citizens

Current mortgage rates range from 3.5% to 5% annually, depending on the lender and borrower profile.

Residency and Property Ownership

Buying property in Austria does not automatically grant residency. However, property ownership can support an application for a residence permit under specific conditions, particularly if you establish business or financial ties in Austria.

Frequently Asked Questions

Can non-EU citizens buy property in Austria?

Yes, but restrictions vary by region, and approval from local authorities is often required.

Is it better to rent or buy property in Austria?

For short-term stays, renting is preferable due to strict ownership regulations for foreigners. Buying is more suitable for long-term residents or investors.

What taxes do property owners pay in Austria?

• Annual property tax: 0.1% to 0.2% of assessed value
• Rental income tax: Progressive tax rates up to 55% for high earners
• Capital gains tax: 30% if selling within ten years of purchase

Can I get a mortgage as a foreigner?

Yes, but Austrian banks require a high down payment and proof of stable income.

What is the average property price in Austria?

• Vienna: €5,000 – €10,000 per square meter
• Salzburg: €4,500 – €8,500 per square meter
• Innsbruck: €4,000 – €7,500 per square meter
• Graz: €3,000 – €5,500 per square meter

Conclusion

Austria offers a stable real estate market, but foreign buyers face varying regulations depending on the region. Renting is more accessible, while purchasing property requires careful legal and financial planning. Working with local real estate professionals is recommended to navigate Austria’s market successfully.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.