Austria has a transparent taxation system and a clear payment scheme for building maintenance. After purchasing a home, the owner must pay tax and make deductions for maintenance without fail. Amounts depend on the nature of the property and the tariffs set by Austrian municipalities.
Real estate taxation in Austria
Tax collection is carried out based on the law of 1955 and is collected by the municipality where the property is located. For calculation, the estimated (cadastral) cost taken, which the local finance department determines. In contrast to the market price of real estate, it is much lower, as its formation does not take into account external factors and the current exchange rate. Tax liability imposed on owners of real estate, land, and agricultural lands. For owners of apartments, the tax payment is included in the monthly maintenance payments, and the amount of the tax may be shared equally between the owner and tenant when renting. The amount of the residential development tax calculated based on the following principle. So, for example, the area of the building and the area with landscape design are calculated differently.
Control measurements to determine the tax amount in ppm (1/10 percent):
For a single-family home with an estimated value of 40,000 EUR, the approximate land tax calculation is as follows: 3650 EUR * 0,5 % + 7300 EUR * 1 % + 29 050 EUR * 2 % = 67 EUR (4 616 RUB).
Only the local tax authority can calculate the final amount of land tax, as additional parameters can be taken into account.
Austria has a Federal Financial Compensation Act, according to which municipalities can increase the tax by applying a rate of 500%. Thus, the approximate tax amount for a single-family house of 67 EUR can be increased by 500% and will be about 335 EUR (23 079 RUB).
The procedure for paying land tax in Austria provides for the payment of amounts 4 times a year: by the 15th of February, May, August, and November. If the amount of land tax does not exceed 75 EUR, then the payment must be made by 15 May.
Some Austrian municipalities temporarily exempt from taxation owners who have bought housing in new buildings, in the construction of which the state participated.
Utility bills in Austria
The maintenance of real estate in Austria is made by paying monthly fees and utility bills. The amount is negotiated in the contract and includes the following items:
- Land tax (for owners of apartments);
- Insurance;
- Service fee of the management company;
- Garbage removal;
- Use of engineering systems (elevator, water supply, sewerage);
- Renovation fees
On average, the amount of maintenance fees is 100-200 EUR. If it is necessary to carry out a major overhaul, the general meeting shall decide on taking a loan, payment of which shall also be included in monthly payments.The collection of payments is handled by the management company, which is elected at a general meeting of residents. The collected funds are used to maintain the house in good condition, and to improve the adjacent area.
Utilities - water, heating, electricity are paid separately according to the meters by the tariffs established by local municipalities. On average, utility costs range from 150 to 250 EUR per month, moreover, payment made quarterly. Despite the presence of special metering devices, a fixed amount is set, which is subsequently adjusted depending on the consumption model.
Real estate in new buildings requires less utility and maintenance costs than secondary housing.
Real estate insurance
Insurance protects the real estate from financial loss in case of an emergency. There are 2 types of insurance.
- By living space in sq. m.
- Insurance through the inventory of valuable movable and immovable property
According to the data of the Austrian Chamber of Labor, the most advantageous insurance is the insurance with annual payments, with discounts from 10% to 30% for long-term agreements.Austrian insurance companies offer 3 insurance packages, the main one is Basic, which includes the following services.
- Fire
- Burglary
- Water breakthrough
- Natural disasters
- Personal responsibility
- Repair and cleaning services
The other packages - Classic and Premium, include services from the Basic Package with additional services at the discretion of the policyholder. The average cost of insurance depends on the nature of the property and can range from 100 to 300 EUR per year.
Repair services
Regular repairs are required to keep the house in good condition. In Austria, payment for the repair of general household needs is included in the monthly maintenance fee.
Conclusion
- Property owners are charged annually, the amount of which is calculated from the estimated (cadastral) value of the property.
- The actual tax amount is calculated by the local tax authority.
- For owners of apartments in multi-story buildings, the tax amount is included in the monthly maintenance payments.
- Austria has an additional tax rate of 500%.
- Owners of land areas with private houses are required to pay tax by 15 May, if the amount does not exceed 75 EUR, otherwise, payments are required by 15 February, May, August, and November.
- Repair services are included in the monthly maintenance fee and utilities are paid separately.
- In Austria, it is widely accepted to insure real estate to avoid financial losses in case of emergencies.
