General advice on buying property in the various provinces of Austria.

General Advice and Our Services

Euroburo Ltd does not sell property - it advertises properties for sale by our sister company ,Delta Immobilien, and a range of other selected estate agents in Austria and other countries.

Delta Immobilien GmbH www.deltaimmo.com is based in Bad Ischl ,about 40 minutes drive to the east of Salzburg, and is run by members of our family. Half the directors at Delta Immobilien GmbH are Austrian and the others are from the UK. All of them speak German and English fluently. This means that, together, we are in the unique position to help you as there is nothing there that we cannot handle on a professional basis in either language. As far as we are aware, we are the only company offering property for sale there with this kind of professional set-up.

As with all new property markets there are companies entering the property market there with a view to selling you a property. In Austria the activities of estate agents are very tightly controlled and that is why Euroburo Ltd charges you no fees whatever. Beware of companies who want to charge you fees over and above those set by law there. It is expensive enough anyway as both buyer and seller pay the agent 3% (6% in total) which is more than adequate for them to provide you with a proper service. Estate agents there are not allowed to charge you extra for a "viewing service" or for "finding" you a property. You should not pay such fees if asked.

If you buy property there and especially if it is a business, there are many important commercial considerations that simply cannot be handled by agents who are not actually based and licensed in Austria and you are strongly advised to make use of the services provided by our many professional agents.

They will deal with

All the contracts and fully translate them. They will accompany you to the lawyers and to the notaries' office when documents require signing.
Carry out full abstract of title searches as they have authorised computer access direct to the Austrian land registry.
Make local enquiries with the Gemeindeamt and with the Bezirkshauptmannschaft to make quite sure that there are no unexpected problems with your intended purchase. This is particularly important for the sale of businesses.
Advise you on how to register with the authorities there.
Assist with getting 'set up' i.e. electricity connection, phone, and similar matters.
Be available to you in future for any ongoing support that you may require.
Arrange bank accounts, property insurance, car insurance, and business insurance as well as mortgages with local banks.

You are welcome to discuss your requirements with Delta Immobilien GmbH at any time but they do require adequate notice please as they are usually very busy. They like to ensure that you are given full and proper attention. Please contact them from the contact us page on this website.

What to buy.

If you are going to buy property there as your permanent home and are going to live there, then after taking proper advice, you can buy whatever takes your fancy. Subject to the following.

Where to buy

Most of our customers first visit Austria with a UK package tour company. These companies undoubtedly take them to lovely locations which have broad appeal. However, you should remember two things.

Package tour companies need resorts with easy access to airports with big hotels capable of accommodating jumbo jets full of people. These factors are essential when dealing with large numbers of guests.
Austrians understand tourism. There are tourism schools there and training is compulsory. As a result, you will always enjoy your first visit there, but more importantly, you will want to go back. That is why they study tourism and get it right. They thrive on repeat visitors. Therefore we see endless letters from clients who have never been anywhere else other than the resort that they first visited.

Accordingly, we say that you should take a wider look at this wonderful land. There are breathtakingly beautiful resorts for both summer and winter all over the country. We strongly advise you to do some research and look further afield than your favourite package tour destination. After all, this type of resort often offers facilities that have been tailored to mass tourism. We have been to mountain restaurants which are so large and have such long queues, that you would be as well visiting a U K motorway service station for a very similar experience without the cost of getting here. Far better to visit a small resort and have your lunch in a little mountain hut where grandma does the cooking, and the smoked meat and cheese were produced on their own farm.

The Austrians say that there are two types of resort. Insider resorts, and outsider resorts. They don't visit the latter. Your enjoyment of this lovely country will be much greater if you choose more selectively and really get to know the Austrians - even if your German is a little rusty.

So if you are to buy a property there, then buy it in a truly Austrian location and get to know your neighbours. Your life will be the richer for it.

Owning property in mountain areas has special
needs associated with it.

Think carefully before buying a detached house if you aren't going to live there. In winter it can snow very heavily and snowfall of 1-2 metres is not uncommon.

Winters are hard and long, and unless you can afford to have someone visit your property regularly and clear the snow, check the central heating, clear the post (Austria is the junk mail capital of the world) you may run into problems. If it snows and you don't clear it, then once the temperature rises and it re-freezes, you have a glacier all round the house and you attempts to open your garage door will be futile. The temperature can fall to minus 20 - 30ºC.

Your neighbours will not like it either if you leave the garden untended. If you are going to actually live there, then - no problem.

However, we do have contacts in the Salzkammergut area who will arrange to do whatever is necessary and may also be able to rent out your property for you. We will put you in touch on request.

The myth about buying in ski resorts that are high and have longer seasons.

Terrified that they will be unable to ski because the resort is 'too low' and in the belief that the only snow sure places are glaciers we are constantly bombarded with requests such as "the property must be at least 1500 metres high" or in a "snow sure resort".

The truth is this. If there is no snow by some whim of nature then there is nothing you can do. Having a ski-able glacier nearby is actually no help at all because thousands of hopeful skiers from miles around and who are also on holiday at the time and who are also disappointed will all head for the same spot. We made the same stupid mistake one Christmas and passed most of the day in traffic jams and lift queues with half of Europe all heading the same direction and sharing the same hopes. Never again !

Ski resorts need income. They don't run lifts and pay expensive wages if they have no visitors. When it snows in mid November they will often open one or two lifts which are usually adequate for the minimal number of skiers. They do not open the whole resort. As the season draws to a close they often only open at weekends and close during the week simply because there is no-one there. You may dream of empty pistes available to just you and your best friend but paying 200+ staff in a typical ski resort is not viable for the lift operators so shed those delusions right now !

The other factor is jobs. Most people in mountain areas have two jobs - one for summer and one for winter. Our friend is a ski technician at a ski school all the winter but drives a ready-mixed concrete lorry all the summer. Many are farmers and need to get their livestock ready for summer in the alpine pastures and others have committed themselves to starting dates for their summer jobs a long time in advance. Please think again !

Controls on who can buy property.

Austria has now been in the EEC for many years. Prior to that
there were rules preventing foreigners from buying property there. These have eased somewhat.

Many property purchases still have to be approved by the appropriate "Grundverkehrsbehörde" - part of the local authority. If you are an EEC citizen and hold an EEC passport then you can buy a property here without difficulty, depending in which Bundesland it is situated, but they may still have to approve it. Tirol and Vorarlberg provinces are somewhat difficult.

They are not keen to have too many properties unoccupied with badly tended gardens and no flowers in the window boxes. Tourism is all they have and they do not want it spoiled. So, they try to strike a balance.

If you are not an EEC citizen then buying property there is still possible as the laws were eased somewhat in 2002. Basically, you would need, under the guidance of the estate agent, to find a suitable property and then make a formal offer for it. The agent can then approach the authorities for their authorisation, but only with a formal offer in his hand. If, however, your spouse has an EEC passport then it's normally OK.

Making an offer etc.

We will guide you through the general process of buying property there and we are happy to answer your general questions, but we are not lawyers and if you feel the need to obtain professional advice, then you should seek it.

That said, things there are rather simpler than in many countries, and our advice is usually quite enough coupled with that of the agent.

When you find a property that you hope to buy, it is best to discuss what might be an acceptable offer with the estate agent at the outset. They usually know what the buyer will accept. You then have to make an offer in writing. What the agent will do, is to prepare an offer document, on which he will detail all the costs involved in buying the property. i.e. the legal fees, land registry costs, agents fees, Stamp duty, vat etc. This usually amounts to about 8% - 10% on top of the offer being made. This will all be detailed on the "Kostenaufstellung" form which accompanies the offer document. Currently, "property transfer tax" is 3.5%, entry in the land registry 1%, the estate agent costs 3%, the lawyer's fee is set down on a scale of fees by law. There is then VAT to add to some of those items.
Any fixtures and fittings/furniture will be split from the total purchase price, so that stamp duty etc is only levied on the actual price of the building.

You then sign the offer. He then takes it to the vendor who, if he is happy with the price, will countersign it. He is given a fixed number of days to accept or reject it after which your offer lapses. Then that's it - deal done ! Neither purchaser nor vendor can back out and you can't be gazumped. You know EXACTLY what the property is going to cost you before you sign. However, you must have your finance in place before you make an offer. It is NOT "subject to contract" and sale of your own property. Completion date is agreed between the parties and you must transfer sufficient funds to complete the purchase, or have a local mortgage agreed, together with the amount needed to cover the purchase costs, to the clients account of the lawyer about 10 days before completion.

The papers are then passed to a lawyer who draws up the sale contract on behalf of both parties. You must transfer the purchase funds to the lawyers clients (trustee) account before the agreed completion date and when both parties have signed, he passes the money over to the vendor, but only after ensuring that the property is correctly recorded in the land registry as yours, and that you have unencumbered title. Time frame - from one week to six weeks depending on the wishes of both parties.

It is slightly different if buying a business. Certain other clauses are inserted into the contract to ensure that the vendor has settled bills with suppliers so that no debts from the previous owner are lingering after the date of sale.

Properties there are built like air raid shelters and valuations are not usual, because no-one there is allowed to build a house except a master builder. There are no cowboy builders, so you can generally assume that the property is in good structural order and rely on the advice of the agent.

Transferring funds

You may well be faced with transferring a large sum of money to complete the sale. If so, we have a good contact with an international foreign exchange company who will probably save you money. Please ask.

Austrian banks tend to be small and somewhat regional and are not big players on the world stage. As a result when money is transferred it often reaches them via one or more other banks who add forwarding charges. This can amount to several hundred euros so you should ensure that you give your bank instructions that charges should be borne at your end otherwise when you transfer funds to the lawyers' account he may be somewhat short of what is required. Even so it still arrives there a bit short on occasions.

The Rental Market

The rental market is more of a free market and you can pretty much rent what you like, whoever you are.
Leases are flexible, and it depends on what you agree with the landlord. Leases are generally simple documents. Rents are reasonable, and fixed to a housing price index. You normally have security of tenure, but can leave by giving three months notice. You usually have to pay a "Kaution" - a deposit - which is three months gross rent including the service charges.
( "Bruttomonatsmiete" ) You sometimes have to pay the cost of drawing up the lease. The Kaution is deposited in a bank account and the passbook is then held by the landlord. Provided you pay the rent and then give proper notice it is returned to you. That is the general idea of how it works..

There are lots of super holiday flats in nice developments with the benefit of them not freezing up in winter as common central heating is provided. They are available both to rent and to buy.

Estate Agents Fees

These are controlled by law. It will typically cost you 3% and both seller and purchaser pay. The Notary will also charge you a fee. Vat (20%) is also payable on those fees. You need to check all this with the agent, but it will all be clearly set out on your offer document.

This information is intended only as a guide and you need to find out exactly what is involved for each purchase / rental.

Capital gains tax.

Austria is not a speculators paradise. There are controls on the housing market which largely remove major price fluctuations. These are coupled with controls on what property can be used and for what purpose. i.e. a holiday flat or a permanent residential dwelling.

If you buy a property and sell it within ten years at a profit, then 50% CGT is payable but only if you are tax resident in Austria. Businesses only pay 35% but you need to take advice on this point. The capital gains tax that you pay will depend on the tax rules of the country in which you are domiciled and where you are tax resident. These rules may have been changed by the time you come to sell anyway !
A government report in 2003 did predict a slow rise in house prices but they have only been rising by about 2% per annum since then.

The best skiing in Europe.
If you need more info download this . . .

http://www.help.gv.at/Content.Node/HELP-FC.html

Konzession

If you are planning to set up in business there, you will need a Konzession ( permission to trade) from the Austrian Authorities. They will need to be satisfied that you are capable of running your business properly. Sometimes this can be handed down from the previous owner or you can work under the terms of his/her Konzession. Sometimes you will have to be interviewed, sometimes you may need an exam, sometimes the Burgermeister will weigh in on your behalf. You are advised to bring with you any relevant examination certificates, written references, balance sheets from your existing business, and supporting evidence in writing that you are capable of doing what you plan to do. Being able to produce a workable business plan which a bank here will accept is very important.

And finally...

We are not business advisers although we will do our utmost to assist you. If you feel you need professional advice you should seek that advice independently. With common sense, you should be able to succeed in a land which is a full EEC member, and where the administrative systems have been harmonised with those of other member states. Remember, that you have exactly the same rights there, as in any other member state. The fundamental difference here, is that they do it all in German !