In order to ease the burden, Austrian politicians have been considering making some changes to the financial side of the real estate purchase. In particular, the Finance Minister; Magnus Brunner, offered to cancel or at least reduce the land transfer tax, as well as the land register entry fee for first-time homebuyers, with a maximum property value of EUR 500,000.At the moment, the real estate transfer tax amounts to 3.5% of the purchase cost, while the land registry entry fee is 1.1%. If the property is mortgaged, then another 1.2% is added to the fee of the land registry entry. This is a considerable sum on top of the property cost itself.
The idea to abolish or reduce the real estate taxes
has been flying around for a long period of time. For instance, last summer the State Secretary for Youth; Claudia Plakolm said that young people should stop paying property transfer tax when it comes to the purchase of their first home. This suggestion was supported by many OVPs, among which was the Vorarlberg Governor, Markus Wallner.