Austria Real State - Austria Bank Account

Finding your dream home or the right place to live is tough, especially in a new country.
Austria has some of the highest property prices in Europe. As the demand for properties continues to increase, prices are unlikely to lower in the foreseeable future.

Contrary to many other property markets in Europe, Austria has proven to be resistant to global recessions so far and is seen as one of the most stable and steadily developing property markets worldwide.
This is good news for investors, but expats hoping to buy a house might find that real estate prices are higher than in their home countries. There is a steady demand for accommodation, so current home owners have no problem selling their houses at higher prices.
While people from all nationalities purchase real estate in Austria, Germans are the largest group of foreign property buyers, followed by Italians.
Prices vary depending on quality and location, but you can roughly count with the following cost:
Studio apartments: from €70,000
Small apartments: from €80,000
Larger apartments (120 square metres): from €130,000
Detached homes: from €300,000
Keep in mind that in larger cities like Vienna, property prices are usually significantly above the national average.

Accommodation located in the mountains is valued according to the quality of the local skiing and its rent potential. Even if you don't plan on renting your property, buying in a popular resort area is more expensive than elsewhere.

Foreign residents mainly consist of Germans and some Italians, with the principle language being German.

Capital gains made by residents are taxed as ordinary income at 34%. Your principal home will be exempt unless you sell within five years. All property is exempt after 10 years.

There have been restrictions on Foreign Ownership, with permission to buy property required from the local authority office, with restriction also on buying holiday homes in certain areas. Since joining the EU, Austria will be obliged to change these laws so that they apply equally to Austrian and EU citizens.

Real Estate Prices in Austria

Range Varies, for example:
From £50,000 / $75,000 for a studio apartment
From around £60,000 / $87,500 for a small apartment
From £100,000 / $145,000 and up for a larger apartment
Detached homes from £250,000 / $365,000

Locations to buy real estate in Austria

Ski resorts are popular areas for outside buyers. Summer holiday homes for activity and outdoor pursuits are also well supported during the summer season. Vienna is rich in culture.

Living Costs in Austria

The cost of living in Austria is higher than most other EU countries. Austria also enjoys a high standard of living. EU membership will start to reduce the price of imported goods.

Buying real estate in Austria





A deposit of lO% is usual but not necessary in Austria, returned if the sale falls through. Property sales are usually handled for both parties by a solicitor/lawyer. The purchase agreement and the documents can be signed before an official at an Austrian embassy abroad and translated if required. When the purchase contracts are signed the funds are deposited in a trustee (escrow) account until completion takes place. The owner details will then be registered in the land registry and can take a few months. The taxes and fees are then paid by the solicitor/lawyer and the agreed purchase price paid to the vendor.

Solicitor / Lawyer

An Austrian solicitor/lawyer would normally be employed to handle the sale and buying contracts.

Fees

Your total fees should be around 8-9% of the buying price and will include property transfer tax of 3.5% and notary fees around 3-4%. The ownership registration should be 1% with stamp duty 0.5-1%, the land registry fees averaging a payment of around £300 / $450.

Property Tax

Should be between 0.4-0.9% of the properties assessed value and should be lower than the market sale value.


Mortgages

Can be arranged from Austrian banks for both residents and non-residents with variable interest rates and payment terms.

For more information on buying property in Austria, please contact the Real Estate Agent or visit the Austrian Governments website:

www.bmaa.gv.at