Purchasing a Property in Austria
Purchasing a Property in AustriaUpdated on Monday 12th December 2016
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Austria, with its rich history and culture and stunning landscapes, is understandably a very popular travel destination; add to all this a flourishing economy and reasons to purchase a property in Austria immediately become apparent.
Given all the attractive features the country has to offer, it is understandable that the local government would try to regulate the property market in order to maintain the standards high. It is for this reason that we recommend that you contact our Austrian lawyers to assist you with advice and legal recommendations regarding the Austrian legislation.
Real estate legislation regarding purchases by foreign nationals
Since Austria has become part of the European Union, 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.
This should not scare anyone since it is generally easy to be granted permission in a rather short amount of time. 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.
Purchase agreement and expenses
This leads to the sale agreement being initially in the form of an oral offer to the seller. When the buyer and seller manage to reach a consensus, a purchase agreement is the next step in the process. This will be handled by our Austrian lawyers 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, which are legally set on a scale between 1-3% + VAT;
- VAT (20%);
- authentication fee and expenditures to the notary;
- broker’s commission fee of 3% excluding VAT;
- 1,2 % pledge registration fee.
For all other aspects of the process, please contact our Austrian law firm to assist you in buying or selling property in Austria.