St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Austria

The sale of real estate to foreigners is limited in Austria: you must obtain permission from a municipality for the purchase. The possibility and conditions of purchase depend on the region. In the Alpine federal states of Tyrol and Vorarlberg, one must be an EU citizen or register a purchase for a European company to buy a property.

Statistics confirm the liquidity of investments: residential real estate prices grow by an average of 2% every quarter. Five years ago, an apartment of 100 m² cost an average of €313,000, and today it is sold for €461,000.

€4,611 Average price per 1 m²
of housing in Austria
2% Average price per 1 m²
increase per quarter
5—11% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Austria

€4.7 million

Penthouse in the historical centre of Vienna, the Inner City district

€1.2 million

Apartment in Vienna,
in a 10-minute drive from the centre

€500,000

Apartment 25 km away from Vienna or in Graz

What do investors buy?

The most expensive real estate is in Vienna, its suburbs, and the resorts of Kitzbühel, Salzburg, Zell am See, and Lake Constance.

Apartments

  • attic apartments, lofts, penthouses
  • apartments with terraces
  • flats

Houses

  • city mansions and townhouses
  • Alpine chalets
  • castles, palaces, and estates

Austria residence permit or citizenship by real estate investment

Obtaining an Austria residence permit or citizenship is not connected with purchasing real estate. On the contrary, you must get a residence permit to buy a property.

The Austria residence permit obligates its holder to live in the country for at least 183 days a year. After five years, a resident can get a permanent residence permit and apply for Austria citizenship after another three years.

Austrian residence permit
How to get a residence permit in Austria

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a transfer tax and special fees. The associated costs range between 5% and 11% of the purchase agreement value. When buying an apartment for €500,000, the investor will spend €555,000, including associated costs.

5—11% Of the contract value are related costs for the purchase of housing in Austria
Purchase expenses
Transfer
of ownership
3.5%
Registration fee
1.1%
Legal support
1.2%

VAT included

Agency fee

When buying through an agency

3.2—4.8%

VAT included

Notary fee

VAT included

€360—600 
Purchase authorisation 

If the buyer is a foreigner

€1,000 

Taxes

Austria doesn’t have a property tax, only a land tax. The owners of apartments in multi-apartment buildings pay land tax for the plot on which the building stands. The tax is included in monthly utility bills: for an apartment of 80 m², it is about €10 per month.

Income tax is payable on rental income. Austria has a progressive income tax rate of 20% to 55%, depending on annual income. The average rate is 25%.

Communal payments

Utilities. Water, electricity, and gas are paid by meters. Apartment heating can be individual or central. If the heating is individual, there is no separate fee: only the energy source like gas or electricity for the boiler is charged.

The fee for the building maintenance, including the elevator, cleaning, repairs, and security, depends on the management company and the building equipment.

Internet, TV and telephone connection cost from €20 to €50, depending on the tariff and locality.

€5,220 Approximate annual costs for maintenance of an apartment
Electricity, gas, water, heating, and garbage collection
120—350 

per month

Building maintenance

Elevator, cleaning, repairs, and security

100—300 

per month

The property seller pays capital gains tax on the difference between the sale and purchase prices. Income tax is not paid on the sale of real estate.

If the owner sells the property through an agency, the buyer usually pays a commission. Legal support of the transaction costs approximately 1.2% of the sale amount, which are optional expenses.

30% Capital gains tax on the sale of
real estate in Austria

Frequently asked questions

Can foreigners buy property in Austria?

Yes, foreigners are allowed to buy real estate in Austria. If they don’t have a residence permit in Austria, they need to obtain a permit for buying real estate. A resident of the country — a foreigner with a residence permit or permanent residency — can purchase real estate to live in. Citizens of EU countries, Switzerland, Iceland, Norway and Liechtenstein buy real estate without restrictions.

Is property expensive in Austria?

The average real estate price in Austria is €4,611 per 1 m². The lowest prices for Austrian residential property are in Burgenland and Styria, and the highest are in Vorarlberg and Vienna.

Can I get residency in Austria if I buy a house?

No. On the contrary, to buy real estate in Austria, you need to get a residence permit. To do that, you must live in the country for at least 183 days a year. After five years, you can get permanent residence status, and after another three years — apply for Austrian citizenship.

Where is the cheapest place to live in Austria?

The lowest prices for Austrian residential property are in Burgenland and Styria.

How much tax do I pay in Austria?

Buyers of real estate in Austria pay a 3,5% transfer tax. Landlords pay an income tax based on their annual rental income. The rate is progressive: 20%—55%

There is no real estate tax in Austria, only a land tax. Apartment owners of apartment buildings pay land tax for the plot on which the house stands. The tax is included in monthly utility payments: for an apartment of 80 m², it’s about €10 per month.