Buy a House in Austria - Legal Advice at Affordable Costs

Purchasing a Property in Austria

Updated on Wednesday 03rd May 2023

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Purchasing a Property in Austria
Local and foreign citizens who want to buy a house in Austria can benefit from the support provided by one of our Austrian lawyers. The procedures and the formalities implicated can be entirely managed by our specialists. In this article, you can find information about buying a property in Austria helped by our experts who can also represent you with a power of attorney if you cannot be present during the process.

Real estate legislation regarding purchases by foreign nationals

Foreign nationals of European origins face fewer restrictions, leading to the current ease in purchase being comparable to that of a citizen of Austrian nationality. The case is different for foreign nationals from non-EU nations, since, upon deciding on a property one would wish to purchase, permission from the local authorities must be obtained before moving further with the purchase of real estate.
There are exceptions, as well as exemptions regarding local permission available in certain situations to buyers from outside the European Union; our lawyers in Austria will make sure to thoroughly investigate each aspect of the process for you. On the other hand, our immigration lawyers in Austria can provide legal support for relocating to this country in a safe and rapid manner.

Steps in buying a property in Austria

When you decide to buy a house in Austria, it is recommended that you consider the legal support offered by one of our specialists. With the help of an Austrian lawyer, you can get an idea of how to purchase a property in this country and what are steps to follow. Let's review some of them:
  • Offer and negotiation – Once you have found the property you want to buy, you can talk to a real estate agent who will help you in this endeavor. Thus, you can make an offer and even negotiate the price before the final decision. Normally, it can be reduced by around 5%-10% of the price.
  • Verification of the property - Real estate due diligence is recommended before buying the desired property, and one of our lawyers can explain this process to you. Thus, rigorous checks can be made to see if the respective property is in order from a legal point of view.
  • Documents verification – Our attorney in Austria can take care of verifying the history of the chosen property, and if legal problems are discovered, they can be solved in time.
  • Pre-sale agreement – If the price has been set, you can go on to sign the pre-sale contract, as well as pay a deposit of 10% of the property price. This deposit represents a guarantee that the house in question is reserved to be sold.
  • Signing the contract - The transaction takes place between buyer and seller, in front of the notary. At this moment, the sale-purchase contract is signed, and the persons who cannot appear can be represented with a power of attorney.
So, these are some of the stages for buying a property in Austria, helped by our local specialists. On the other hand, if you want to apply for residency in Austria, one of our immigration specialists can help you.

How to buy a house in Austria? Some essential recommendations

If you are a foreign citizen looking for a property in Austria, we recommend that you collaborate with a specialist in the field. A real estate agent can provide you with the necessary support in this endeavor. In addition to this aspect, we advise you to consider the following things when you want to buy a house in Austria:
  • You must know that prices are negotiable in Austria, so you can take this into account when you want to purchase a property in Austria.
  • Make sure that the chosen property is in order from all points of view, namely that it is connected to utilities, has a good structure that does not require urgent work, has a good history, etc.
  • If you want to buy a property in Austria through a mortgage, make sure you can afford it. There are many banks that ask for a deposit before obtaining a mortgage loan.
  • You can also access the Austrian land registry for more information about the property you want to buy, with the help of our lawyers in Austria.

Mortgages for buying a property in Austria

You have the possibility to purchase a property with the help of a mortgage in Austria. Fixed-rate mortgages are the most common in Austria and thus those interested can be financed around 70% of the price of the respective property. Such a loan can extend over 15-30 years. On the other hand, you can also access adjustable-rate loans with lower initial rates, because you also have this option available from many banks in Austria. You may contact us for additional information if you want to buy a house in Austria.
We recommend those interested in a mortgage for buying a property in Austria contact our legal representatives who can take care of the involved formalities and all legal aspects.

Taxation for buying a property in Austria

When the buyer and seller manage to reach an agreement, the following step is to prepare the contract and sign them in front of a public notary. This task can be handled by our lawyers in Austria up to the point of finishing the transaction.
As a general rule, legal fees add up to amount to approximately 10.5% of the offer. These fees vary from province to province, but generally include:
  •  property transfer tax of 3.5 %;
  •  registration fee of 1.1%;
  •  notary fees between EUR 300 and EUR 600;
  •  20% VAT rate only for newly-built properties, 
  •  authentication fee and expenditures to the notary;
  •  broker’s commission fee of 3% or 4%, plus 20% VAT.
  •  Stamp duty on the purchase of 0.5 – 1%.
We suggest the legal support of our local specialists if you want to buy a house in Austria and understand the taxation matters after the transaction. 
Those interested in immigration to Austria can contact our lawyers and benefit from the legal services offered. We can guide you on the formalities involved, as well as prepare the necessary documents. We mention that it is important to have health insurance prepared to cover expenses in case of emergency medical treatments. Also, the authorities have the right to ask for a clear criminal record at the time of relocation to Austria and visa application.

For all other aspects of the process, please contact our law firm in Austria to assist you in buying a property in Austria.