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

2%

Average price growth per quarter

5—11%

Associated costs, of the property value

How the residential property price index is growing in Austria

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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

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.

Taxes and associated costs

Lyle Julien

Material prepared by Lyle Julien, Investment programs expert

Updated:
April 26, 2024

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.