Taxes on the purchase of property
When purchasing real estate in Austria, it is necessary to pay the transfer of ownership tax. The tax rate for the buyer constitutes 3.5% of the property value, plus the buyer must pay a fee for the registration in the land registry to the amount of 1.1% of the purchase price. The fee for the services of a realtor constitutes 3% + 20% VAT. The cost of a lawyer's services is 1-2% + 20% VAT.
Grundbuch is the Austrian Land Register or the Land Cadastre, in which the rights to real estate are registered. This register is maintained by the judicial authorities and includes information about the location, boundaries, size of the real estate object, as well as its owner, the document confirming ownership, all existing encumbrances on this property, and any related financial obligations.
Kaufanbot is an agreement between a buyer and a seller on a real estate purchase transaction. This can be concluded in writing or orally, but the first option is preferable. The property is withdrawn from sale and is considered reserved after signing the agreement, which then means the buyer has no right to refuse the transaction without a valid reason. The Kaufanbot agreement protects the interests of both parties involved in the transaction. The cost of a lawyer's services is 1-2% + 20% VAT.
Kaufvertrag (Kaufverträge) is a sales contract which is drawn up by a notary or lawyer. The document contains information about the real estate, the terms and purchase price agreed by all participants involved in the transaction, as well as taxes and fees that must be paid when making the transaction.
ImmoESt is an income tax on real estate, which is levied by the profits from the sale of private properties. In this case, the capital gains tax includes the difference between the profit from the sale of the asset, and the cost of buying it. Immoeast is subject to 30% tax, and all income from the sale of real estate has been subject to unlimited tax since April 1, 2012. If the sale of a house/condominium or land serves as the taxpayer's principal place of residence, no tax is due.
Treuhandschaft is a trust management or trusteeship in real estate transactions. The essence of the service is that the purchase amount isn’t transferred directly to the seller, but to a lawyer who will keep these funds and will transfer them to the seller only after all the conditions of the purchase and sale agreement are met. This service guarantees security for both sides of the deal.
Grundverkehr is a permit for the purchase of a land plot in Austria by a foreign citizen, which is regulated depending on the relevant federal land. The permit must be obtained from a special commission called Grundverkehrsbehörde. Foreign nationals are citizens of all countries except the EU and the European Economic Area.
Mietvertrag - lease contract
Miete - Rent
Mietengesetz - rent law
Mieter - renter
Miethaus - rental house
Mietzins (Pachtzins) - rent
Miteigentum - collective property
Miteigentümer - co-owner
Mietanbot - rental offer
Mietrecht - housing law
Mietwohnung - rental apartment
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