Fees and taxes
Costs of buying property in Austria
Besides the price itself, buying property in Austria can incur a significant amount of taxes and fees. Make sure you know what they are before committing to any purchase.
Potential buyers need to keep in mind the following taxes when setting their budgets:
- Property tax - Charged to the buyer at 0.4% to 0.9% of the property value
- Wealth tax – 1% of the buyer's net worth
- Capital gains tax - 50%
The capital gains tax is only applicable if a property is sold within 10 years of purchase for a profit. Sellers who have used the property as a primary residence of who have owned the property for over 10 years are exempt from paying the tax.
Property transaction fees
Besides tax, you will also have to pay a range of fees on your property purchase. These include:
- Property transfer fee -3.5%
- Notary fees – 3%
- Ownership registration – 1%
- Stamp duty - 1%
- Real estate fees - 3% of the property value + VAT
- Land registry fees - average cost of €400
- VAT – 20%
Mortgages
Financing can be obtained in Austria regardless of citizenship. Banks usually finance 70% of a property's value for 20 or 30 years - buyers can suggest to the bank the duration of their mortgages. Interest charges range from 2.85% to 3.5% (2011).
Banks offer monthly or quarterly repayments, and it's also possible to pay off the mortgage early.
Also in this section
- Overview: The Austrian property market
- Types of property available: What can you buy?
- Finding a property: Internet, classifieds and estate agents
- Legal requirements: Documents needed to buy a house
- Fees and taxes: Costs of buying property in Austria
- Purchase process: Making an offer and signing the contract