Why to buy property in Austria can not do without a lawyer

What kind of property is able to purchase

Commercial real estate types are hotels in tourist areas, mini-hotels, tenement houses, guest houses in thermal resorts, premises for offices and retail establishments in the city limits. Before making a final purchase decision it is recommended to involve a local expert who specializes in working with foreign clients.

Note: you can purchase real estate in equal shares together with another person that is not your relative.As well as all the other countries of the Old World, Housing in Austria has its own characteristics.

There are a lot of old buildings – monuments of architecture. Austrians are extremely careful about their historical heritage and try to preserve it and integrate it into modern life.

In Vienna and other major cities, there is a large selection of luxury housing in houses with a history. The facades have been restored and preserved in their original form while the engineering communications, redevelopment (in accordance with the law) and the decoration inside the buildings are made with the latest technology. Thus, it is possible to buy apartments or penthouses/lofts on the roofs or the upper floors in this kind of houses.

New dwelling is mostly built on the outskirts, in the central areas of major cities construction is spot-on, there is not much of it. According to the construction regulations, all new buildings should complement the overall appearance of the city and have a similar architecture, so here you will find stylish and functional buildings rather than faceless typical high-rise buildings.

For those ones who are going to invest in Austrian real estate from a developer and receive income from an annuity it is useful to know that the purchase will not be subject to 20% value added tax.

It is possible to use the installment payment option when purchasing a property during the construction phase. The usual scheme is as follows: make an advance payment of 10-15%, then pay 30% during construction and the remaining part either after commissioning or 3 years after that. The buyer is insured against risks: during the construction process he transfers money only after receiving the official Commission report on acceptance at each stage. In addition, according to the law if the developer goes bankrupt, the amount paid will be refunded in full.If possible, it is recommended to order a commercial real estate or secondary housing audit before reserving the object. The procedure is not cheap, but the identified shortcomings can be a reason to bargain and bring down the price.

If you are going to buy a land plot, make sure to check it in the municipal land registry at the location of the plot: what is the purpose of the land, what types of constructions are allowed on it, are there any communication routes, channels, bridges, etc. on the territory and what kind of restrictions are set in this regard. According to the law, water, gas and electricity must be connected to the land plot.

Territory restrictions and foreign buyers' rights

All real estate transactions with foreigners are considered by the land Commission on an individual basis. The exception is only 4 very small localities where one can buy real estate for an individual and do not request permission from the Commission.

• In Upper and Lower Austria, Burgenland, Salzburg and Styria, in addition to the General requirement of the authorities for buyers of real estate, foreigners can buy certain objects for a physical entity but this will require the approval of the authorities. If you invest in commercial real estate in these regions, as well as in Carinthia and some Vienna areas, you can expect to get a residence permit
• Styria is a region famous for its thermal springs and spas. This is a place with the easiest procedure for buying real estate for foreigners. Just 20 km from Vienna but the prices are much lower. Graz, the provincial capital, is a home to many universities. Foreign students who have a student residence permit can buy housing at the place of study, by the way.
• Vienna, which is the capital of Austria and the Federal state of the same name, is a place where non-EU citizens are allowed to purchase real estate with a residence permit through a legal entity, or on a student visa.
• Carinthia is famous for both summer resorts on the lakes number of which counts about 200, and winter ski complexes that cost less than in the Tyrol and in Salzburg. The procedure for purchasing real estate is complex, among other restrictions there may be required different forms of organization of a legal entity.
• Tyrol and Vorarlberg are regions of prestigious ski centers with inexhaustible potential. In winter, this means skiing - and the closer to the glaciers, the longer the season lasts. In summer time they turn into ecotourism. 95% of the housing stock belongs to the Hauptwohnsitz (main residence category), which means that only EU citizens can purchase real estate, and non-residents, respectively, only through legal entities.

The stages of the purchase

First of all, you need to determine what status you can make a purchase in. In order to organize this, you have to register a legal entity in Austria to buy through it. According to the law, only residents can own real estate so the company registration for non-residents is conducted by a lawyer who is a citizen of the country and he will own 51% of the company. Another option is to buy through a company that is registered in another EU country. To legalize your status by obtaining a residence permit is also an option.

After that it is necessary to select an object, check it and you can proceed to the direct procedure of registration of the transaction:

1. Sign the purchase offer and right after that the object will be officially assigned to you.
2. Transfer the payment to your lawyer's trust account, where the money will be stored until the land Commission makes a decision. Absolutely all the legal transactions are conducted in this way through licensed lawyers, so there is nothing to worry about.
3. After receiving the Commission's approval, pay the transfer fee of 3.5%, sign the sales contract and notarize it.
4. Finally, the property is assigned to the new owner in the land register and he becomes full ownership.

Conclusions

1. Buying real estate by foreigners in Austria is protected by law and absolutely transparent.
2. Each municipality sets its own requirements for non-residents and for the acquisition procedure. There are different schemes in different Federal States.
3. A single mandatory condition for all is to obtain a permit from the land Commission.
4. Only Austria citizens can become the owner of real estate – so you might need the lawyer's help to find the most appropriate form to interact with the authorities.