One of the objectives of the “CrownConsulting” company is to ensure favorable conditions for mortgages, and customer support in the documentation procedure, to achieve positive results, thanks to a relationship of trust with Austrian banks on issues of financing.

Mortgages in Austria

In Austria, you can buy a property with a mortgage. Russian citizens can also exercise this right, what important is to confirm the connection with Austria and financial solvency.

It is compulsive to pass the test of “lawfulness” of the money. This is a common practice in Austria: a foreign buyer must submit documents that prove that the money for purchase of real property has been legally obtained. Without such documentation, the amount can be “frozen” in an Austrian bank, even if the purchase agreement has already been signed.

A good credit history at an Austrian bank when you move to Austria to relocate is a big advantage when you arrange for a residence permit.

When buying property in Austria is done for the purpose of leasing, the loan gives tax advantages because the costs for loan arrangements and loan interests can be deducted from the tax base, reducing or nullifying the amount of income tax.

Leading banks in Austria: ErsteBank  Group, BankAustria, BawagP.S.K., OberbankAG, Immo-Bank, ING-DiBaDirektbankAustria, RaiffeisenGroup.


Requirements to the borrower

Citizens, who are not residents of the European Union, also have the right to receive a mortgage. Requirements to the borrower are different depending on a selected bank. As a rule there are no common criteria as to a revenue amount, the client can be assured of a positive response, if he will have not less than 2,000 Euros in revenue left after deduction of a monthly payment (assuming that he has no dependents). The age of the borrower on the loan repayment date shall not exceed 65 years.


Mortgage terms

Mortgage terms in Austria are beneficial.

Loan interest rates are low – from 1.8% to 3.5% per annum (Euribor + 1.5%), with a possibility of early repayment without penalty. A loan is given for a period of 1 to 25 years.

The initial installment of the buyer should not be less than 30%. In this case the real property is entered as collateral; the property is issued immediately, but with an encumbrance, until a full refund of the mortgage. If the buyer already owns property in Austria, the mortgage may be taken under the security of the existing property, and then there is a chance that the initial payment is not needed.



In order to obtain a mortgage loan in the Austria, a citizen of the Russian Federation is required to present the following documents:

– International passport and its copy

– a copy of the signed sale and purchase agreement

– Confirmation of the borrower’s income: earnings record or confirmation of company income

If the borrower is the owner of the company, it is better to provide a translation of the Tax on Individual Person’s Income form 2 into German

– extract from the trade register of the Austrian company registration (if the company takes the loan)

– if the apartment is purchased for renting: calculations of profitability from a tax consultant or a management company

– other evidences of the ability to pay, for example, a sales agreement on expensive real property or a bank statement, from the bank where the buyer has savings

Russian documents need to be translated into German at a professional translation agency and should be notarized.

If the property is acquired by a legal entity registered in Austria specifically for that purchase, then such a newly created company is likely to not have considerable profits. In this case, the owner of the company, need to provide documents on his other income. It is also possible to obtain a credit for future projects of the new company; a bank will require a detailed business plan for a new project.

The application for a loan is usually considered within 2-3 weeks.


Additional expenses

a one-time bank fee for a loan – 1-3%, depending on the loan amount and complexity.

Financing agents also have the right to additionally take up to 3% of the credit amount from the client

entry of credit conditions in the Land Register – 1.2%

some banks charge a fee for assessment of real property which amounts to 0.5-0.8% of the loan amount