Taxes on real estate in Austria: buying, selling and owning

One-time expenses

When buying real estate, the buyer first of all pays a tax on the transfer of ownership in the amount of 3.5% of the cadastral value and 1.1% for registration in the cadastre. In addition, you will have to pay for the services of a lawyer in the amount of 1-3%, as well as the work of a realtor, whose fee is 3% of the purchase price, if the price of the object exceeds 48,448 euros. The broker's fee rises in percentage terms up to 4%, if the property has a value of up to 36,336 euros. The agent receives a flat fee of 1,453 euros, provided that the value of the property falls between the ranges indicated above.

The costs of drawing up a sales contract depend on the tariff of the creator, the type of property and the purchase price. They are paid with the addition of certification overheads and stamp duties ranging from 1% to 2.5% of the value of the property. The amount of payment for communication to the authorities and the independent calculation of tax on income from the sale of real estate by representatives of the parties is determined by agreement within the framework of the tariffs of the drafter. The procedural costs and administrative fees for obtaining a permit from the land supervisor are calculated depending on the specific municipality in Austria. If you apply for a loan, then you need to pledge about 2% of its amount for this.

Buying a private house

When buying a private house, it will also be necessary to take into account the possible costs of preparing the land plot according to the order of the local municipality (Land), preparing the site for construction and operation, as well as fees for connecting to utilities and other fees (electricity, gas, water, sewage , telephone, etc.).

Taxes and new buildings

Determining for yourself what kind of real estate will be purchased. It is important to understand that when buying a home in a new building (with all the transparency of this definition, there are still cases when new housing is confused with one that went through the renovation process), it is necessary to lay down 20% VAT, which is refunded after three years, provided that the owner used real estate itself, rather than leasing. But as a rule, VAT is already included in the price.

Many new buildings have different price lists: for example, a price list with VAT for ordinary buyers and a price list without VAT for investors. The authorities strictly control how the further use of the apartment meets the stated goals - checks always happen unexpectedly. Inspectors can also monitor this by observing transactions in the landlord's invoices.

Fixed costs

When using real estate, the tax on the apartment will be included in the monthly rent, and if we are talking about a house, then its size will be calculated based on the cadastral value of the land. Gas, water, electricity, internet, telephone and, quite unexpectedly, a TV set are paid separately from the rent. Utility costs are usually calculated in the amount of 2-3 euros per 1 square meter per month (depending on the federal state, type of house and apartment). Heating and electricity bills depend on the economy of the owners and the time of year.

Every apartment owner is required by law to pay a deduction to cover future expenses. The amount of regular payments of co-owners depends on the work to be done, and as a measure of ordinary administration, it is usually determined by the management company.

Features for Russian citizens

A citizen of Russia (however, citizens of all countries outside the EU zone) is not entitled to register real estate in Austria for an individual, with the exception of special zones in resort regions. Real estate in Austria is purchased by a legal entity that must pay income tax, which is 25%. However, this tax is not levied on all rental income, but only on the company's profits. The following are deducted from the tax base: utility costs, depreciation of the real estate itself, depreciation of purchased furniture and interest on a mortgage loan.

When buying a new apartment for investment purposes (that is, for the subsequent leasing of the object), the investor is entitled to a partial VAT refund. Taking into account all these and other possible benefits and deductions, the taxation on renting in some cases may end up being quite small.

Sales taxes

When selling real estate, the seller pays value added tax - he bought at a cost of 100,000 euros, sells for 130,000 euros, respectively, income tax is paid from 30,000.

Rental income taxes

If the income from renting out your own real estate object is lower than 11,000 per year, then the tax is not paid at all, and if higher, it is 25%, provided that the income does not exceed 18,000 euros, 35%, - with income of 18 000 to 31,000 euros, 45% - on income over 60,000 euros.

Other features

There is no regular tax on buildings and structures in Austria. There is only land tax (Grundsteuer), which is calculated based on the assessed value - which is much lower than the market value. For apartment owners, this tax is small and is included in the monthly rent. For example, the owner of an apartment with an area of 70-80 sq.m. in the municipality of Salzburg pays for it about 100 euros per year.

In Austria there are no inheritance and gift taxes, but there is another one - the property transfer tax (Grunderwerbsteuer). In the case of a gift or inheritance, the rate is lower than in the case of buying real estate, and it depends on the degree of kinship between the donor and the recipient of the gift, as well as on the assessed value of the property.

Thank you for your help in preparing the material:

Elena Marinichev, vice - president of Moscow Sotheby's International Realty

Anna Bogner, real estate consultant at Wgcm - Real

Irina Dugantsova, expert at RENTSALE