Russian and CIS citizens can buy residential or commercial property in Austria on condition of having European residence permit or a legal entity, opened in the country.
In the case when the property is purchased by a legal entity, it has to pay not only the cost of the purchased property, but also additional fees and taxes.
Extra expenses when buying property in Austria are the following:
|Registeration of the real property transaction, including payment of the tax for property transfer and subsequent obtaining of a certificate authorizing registration of the transaction in the local court||3.5% of transaction value|
|Land registration||1.1% of the value of the property|
Payment for services of a notary or a lawyer
1.5 -2% of the value of the property
Payment for services of a real property agent
(standard for all agencies, it is limited by the law)
3.6% (3% + VAT)
Extra costs when buying property
(according to accepted standards)
10% of the official value of the property
In the case the buyer is a citizen of the country outside of the European Union must pay a fee for the permission issued by the local authority that is in charge of the transfer of property. Its size is about 1000 Euros.
ADDITIONAL COSTS FOR RENTING PROPERTY IN AUSTRIA:
|Deposit for accommodation||3 – 6 monthly prices for the leased property|
|The rental transaction fee to the Financial service authority||1% of the total amount paid for the rental period.|
|Payment for services of a real property agent (standard for all agencies, is limited by the law)||2 – 3 monthly prices for the leased property, depending on the lease term|
|The fee for registration of a lease agreement||Upon agreement with the leaseholder or a service company|
|Investment Fee||repurchase of the furniture if there is any at the time of the lend-lease of the property (by agreement of the leaseholder)|
The real property tax in the country is calculated according to the following principle: the calculated cadastral value of the property and the general federal rate, multiplied by the municipal factor. Its size does not exceed 300 Euros per year, and the land tax is not more than 100 Euros per year.
It is necessary to take into account the fact that in the case of sale of real property within the period of 10 years after the purchase, the positive difference between the price of sale and purchase will be subject to income tax calculated by a progressive taxation scale.
Utility payments for the property in Austria:
The total monthly cost of gas, electricity, heating, internet, television, radio will depend on how efficiently all this is used and the operators of the signed service agreements.
Also, once a year, additional fee can be charged for electricity and gas, if you have spent more than it is envisaged. Once a year, you must pay for cleaning of the heating pipes.
Advice from the company: it is common practice in Austria to insure the property in the case of its lease/purchase. Sometimes it is a requirement. Thus, you avoid the risks of liability in case of property destruction/damage
Income tax on leased property
The property rental income is taxed under the following scheme:
Inheritance duty and gift tax
The inheritance duty and tax for the deed of gift committed after July 31, 2008, is not charged. At the time of introduction of exemption from this tax the duty was implemented to report on the deed of gift to the tax authorities at the place of residence. This obligation is void in the case of:
Failure to comply with the duty to report on the deed of gift to the tax office can result in a fine of up to 10% of the amount of gift.