Property taxes

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)

 

Property tax

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:

  • Utility bills (payments for water, trash pickup, lighting, use of a lift, housecleaning) – 2-3 Euros per sq/m;
  • Electricity – 0.14 Euros/kWh;

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:

  • The tax rate for revenues up to 10 thousand Euros is zero;
  • From 10 – 25 thousand Euros – 38.333%;
  • From 25-51 thousand Euros – 43.596%;
  • Over 51 thousand Euros – 50%.

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:

  • a deed of gift between close relatives, not exceeding the value of 50,000 Euros, and the value of all gifts during a year is summed up;
  • a deed of gift between individuals up to the amount of 15,000 Euros, and the value of all donations over the past five years is summed up;
  • a deed of gift of real property in Austria and abroad.

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.