How do you inherit property in Austria?

There are three forms of a property inheritance in Austria: by deed, by succession agreement or by law. The last option shall enter into force if the first two documents have not produced or If only a part of the inheritance is bequeathed.

The deed is written and signed in the presence of an attorney either by the testator himself or by a third person if the testator signs the will in the presence of three witnesses adding that this is his or her last will. It may be written on any piece of paper by hand or by any other means.

There is another option known as legacy or testamentary gift in which listed individuals inherit only a personal property or its cash equivalent, or specified amount of cash.

The inheritance law applies to real and personal property, plots of land, precious metals and gems, including jewelry, money saving. Apart from that, licenses and housing tenure (Wohnrecht) may also be transferred through succession.

EU Law on Inheritance of Real Estate

For foreign citizens, who buy real estate in EU countries, the inheritance rules were determined by law of the country where the real estate is located. In 2015, a law on inheritance was passed in the European Union to resolve transboundary succession. According to the law, the transfer of a property to successors is held under the rules of the owner's country of permanent residence. Moreover, the new law allows the property owner may write beforehand his or her testament and resort to the legislation of the country of which he or she is a national.

A fundamental condition of making a valid will is the presence of a notary or an attorney to document that a testator is a competent individual during the declaration of will.

The procedure for the inheritance of foreign assets in the form of real estate in Austria shall be held according to the EU Inheritance Law. The making of a will allows property owners to choose the law of the country of their nationality, whether it is a member of the European Union or not. In the absence of a testament, real estate in Austria is transmitted to the legitimate heirs under the law of the country of permanent residence of the testator.

The changes in the Law on Inheritance do not affect any taxation rule. The inheritance tax will be paid in the country where the property is located.

The order of succession in Austria

In addition to the EU law, in 2017 Austria has reformed the inheritance law. Registration of inheritance rights is produced in the interests of forced heir (children, spouses and qualified cohabitants). The law set a certain order of succession. Testator's children have the top priority inheritance rights. Parents, brothers and sisters of the whole blood have inheritance rights of second importance. Grandparents have low-priority inheritance rights.

By law, the succession process for the benefit of one of the spouses goes under the following rules:

1. The spouse gets 1/3 of a property, provided it is inherited together with minor children.
2. The spouse gets 2/3 of a property, provided it is inherited together with parents, brothers and sisters of the whole blood and without children
3. The spouse gets full ownership of property, provided it is inherited in the absence of other legitimate heirs.

The surviving spouse also gets the marital part of the property.

Additionally, the inheritance law in Austria has been revised as follows:

• Any gift in favour of testator's former spouse is revoked (the divorce itself does not revoke the testament)
• In case of the termination of adoption, the testament in favor of foster children is revoked. It could happen due to the refusal to implement parental obligation or based on the interest of children who have reached the age of 14.
• Legally same-sex married couples can now inherit and bequeath property according to the inheritance law.