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All you need to know about apartments and apartments in Austria

All you need to know about apartments and apartments in Austria

Features of buying and renting apartments in Austria - legal and procedural features of transactions, types of contracts, cost.

December 15, 2020

Like any developed European country, Austria has everything you need not only for a comfortable life, but also for doing business. Convenient working conditions attract entrepreneurs from all over the world to the country.

However, a foreigner needs to live somewhere. It can be either a rented place or a personal apartment. How to rent or buy an apartment, and what nuances you should pay attention to, you can find out from this article.

Why renting an apartment in Austria

As it turned out, only a quarter of the capital's population lives in their own apartments. Everyone else is renting property. Moreover, we are talking not only about newcomers, but also about the indigenous population.

Foreigners decide to rent an apartment in Austria because of the simplicity and convenience of the procedure, as well as rather reasonable prices in comparison with other countries. Often for foreigners, renting an apartment is an ideal option, it allows you to live in comfortable conditions, while at the same time remaining mobile and not spending all your savings.

How to rent an apartment in Austria

Wanting to rent an apartment in Austria, a foreigner will have to go through the following steps:

Search for housing. You can search both independently, through websites, or entrust this process to professionals.
Inspection of the object. It is important to pay attention to all the shortcomings of the home, especially if it is rented for a long time.
Conclusion of a contract and payment of a deposit. The document should reflect the rights and obligations of the parties as much as possible. A well-drafted contract will protect both the tenant and the lessor.

Types of contracts

The main document governing the relationship between the parties is the contract, which must be drawn up in accordance with the Law and the Civil Code. If errors are found in the document, it may be invalidated.

When planning to rent an apartment in Austria, a foreigner should be aware of the types of lease agreements. There are three main options:

Short termIt

Is concluded for a period of up to six months. Most often, it is drawn up by those persons who come to the country during their holidays. The legislation does not regulate the conditions for concluding such contracts.

Long termIt

Is concluded for several years. The minimum rental period is three years. Such an agreement usually prescribes the conditions for increasing the payment, the frequency of payments, the features of the notification of the termination of the contract. The amount of the deposit is indicated, as well as interest. The extension of such a contract is possible as a result of a written agreement, which must be signed three months before the end of the contract.

Unlimited time

This option is most beneficial for the tenant. It is most often signed in the event that they plan to rent an apartment in Austria in an old house. The peculiarity of the contract is the absence of interest on the deposit.

Regardless of the type of contract chosen, the process of concluding it follows the standard rules. Knowing them, the tenant will be able to avoid a number of pitfalls. The lease agreement is concluded according to the following scheme:

A draft contract is being drawn up.
The contract is signed by the parties.
A rental deposit is paid.
The tenant can move into the rented apartment.
A month after signing the contract, the participants receive copies of it, registered with the tax office.

Why contact realtors

If you want to avoid problems when renting an apartment, it would be better to entrust the process of finding it to professionals. Contacting specialists will allow you to get the following benefits:

Employees of a specialized company have extensive experience in the Austrian market.
Availability of their own database. Every experienced broker has their own sources that are not publicly available.
A specialist can advise on the characteristics of the selected area.
Knowledge of all the bureaucratic and legal subtleties is one of the main advantages of a professional.

Rental prices in Austria

The Austrian real estate market is very diverse, and therefore prices here can vary significantly. The rental price depends on the following criteria:

City and region

‍Of course, renting an apartment in Austria in large cities will be more expensive. The same goes for the prestigious areas located in the center.

Type of property

‍The cheapest option is a small apartment. The most expensive is the villa.

Area

‍The area of the smallest studio apartments can start from 35 m2.Consider the average cost of real estate in Vienna. An apartment with one bedroom in the central area will cost you from 710 euros per month, on the outskirts of the city - from 530 euros.

Why buying an apartment in Austria

Despite the fact that renting an apartment in Austria is legally easier than buying it, buying it has its undeniable advantages.

Buying real estate in such a stable country as Austria is always a profitable investment. Apartments here do not get cheaper even during periods of crisis, prices are always stable. Thus, by investing money in an apartment in Austria, you will not only not lose it, but most likely you will also earn from the subsequent sale.

In addition, choosing an apartment in Austria as a "second home", you can rent it out during periods when you yourself do not live there, and have a good income from this.

How can a foreign citizen buy an apartment?

The main difficulty in acquiring real estate in Austria by citizens of non-EU countries is the need to substantiate their intentions, including confirmation of the legality of the origin of the buyer's funds.

Austria is divided into nine federal states, and each of them has its own requirements for home buyers, as well as laws and regulations. In particular, they are the most stringent in the "tourist regions", where the purchase of real estate in Austria is allowed only to those foreigners who are going to live there permanently or rent out their houses and apartments to the Austrians, but not to "casual tourists", and even more so not through internet platforms for daily rent.

The situation is further complicated by the fact that their own rules for the implementation of purchase and sale transactions apply not only in the federal states as a whole, but also in individual settlements, and these features can only be clarified directly on the spot.

In most cases, real estate firms specializing in working with citizens of other states can help in solving this issue, but it should be borne in mind that in such lands as Voralbeg, Tyrol and Carinthia, the acquisition of Austrian real estate by foreigners is possible not for physical, but exclusively for legal a person (for example, a firm), and not all forms of organization of such firms will meet the established conditions.

A win-win option is the participation in the transaction of an Austrian citizen who will own a controlling stake (at least 51%).

If the bureaucratic issues have been successfully resolved, you can proceed directly to the selection of the object. It is best to do this with the help of a realtor, lawyer and notary who are familiar with all the intricacies of local legislation and have many years of experience in the local real estate market.

Registration of a sale and purchase transaction, starting from the moment of making an advance (which is not required in all cases), can take from one and a half to three months. This period may include not only the direct execution of the sales contract, but also the resolution of controversial issues, the implementation of bank transfers and registration of ownership.

It also takes a certain amount of time to sign the final sales contract with a notary in the presence of all interested parties (and, if necessary, a sworn translator). After signing, the agreement will be sent for verification to a special commission, where the term for its consideration will take from 3 weeks to 2 months, and in case of a positive decision, the transaction will be registered in the so-called "Land Register".

How much cost an apartment in Austria

The cost of apartments, as well as rent, is highly dependent on the region in which you are considering buying.

If we talk about the capital of Austria, the cost of housing here is one of the reasons why foreigners decide to buy an apartment here. Although real estate prices in the Austrian capital are among the highest in the country, even elite apartments in the center are several times cheaper than in other European cities of a similar level.

For example, a new apartment in the prestigious Wieden district of Vienna will cost 5.4 thousand euros / m2, in Munich the same apartment will cost 8 thousand euros / m2, and in Zurich - 10 thousand euros / m2. The most expensive apartments in Vienna are sold in the Inner City. Prices here start at 1 million euros.

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