Costs of buying and selling property in Austria
Elizabeth Bagwell, Saturday, 16 May 2015
This article is part of a series of 8 articles about buying property in Austria. The other articles in the series cover the following topics:
The Austrian government recommends you reserve 10% of the purchase price of a property to pay taxes and fees. This estimate covers the charges associated with purchasing a property but not those involved with maintaining or selling it. It's important to get the full picture before purchasing a property.
There are costs to both buying and selling a property in Austria, and taxes and charges relating to ownership. Find out more about the relating to property in Austria.
Buying a property
The main costs involved when buying a property are:
The costs are usually paid by the buyer, with the exception of the estate agent's fees. An estate agent acting for the seller should be paid by the seller. However, it is not uncommon for a buyer to hire an estate agent in Austria as a buyer's agent or search agent. In this case, the agent will be representing the buyer and will normally be paid by them.
That said, there are no regulations mandating which party pays for which charge, so this could be part of your negotiation.
Property transfer tax
The property transfer tax in Austria is set at a national level, and thus is standard across almost all properties sold in Austria. It is 3.5% of the sale price of the property or the assessed value, if the sale price is low or non-existent. It's important to be aware that the property transfer tax in Austrai applies even in cases where the property is given as a gift or inherited. This means that if you plan to own the property for the rest of your life, you should budget for the property transfer tax when planning your estate. Read more about .
Registration fee
Certain deeds must be registered in Austria in order to be valid, and this includes the deed of sale for property. The cost of registration is set at a national level and is therefore standard across the country.
Estate agent's fees
As in most countries, the amount charged by estate agents can vary widely, as can the payment structure. With VAT at 20%, it's important to ensure that you get a quote that includes this figure. Most agencies take a percentage of the sale price, typically 1-2%, however, some agencies prefer a fixed fee, particularly for low-value properties. Agencies should not normally charge up front if they are acting as a seller's agent. Buyer's agents or search agents may charge an up front fee and may charge a percentage on top of this. There is no requirement to use an estate agent, and it is possible to find properties without one.
Legal fees
A notary (Notar) or court is required to witness the signatures of buyer and seller to create a legally binding sale contract when buying real estate in Austria. The notary's fee is typically around EUR 120 per signatory if they simply witness the contract. However, some notaries provide more services, including drawing up contracts. There will be an additional charge for extra services.
In addition to the notary, it is common to have a lawyer (Rechtsanwalt) representing each party. Whether you're the buyer or seller, it's best if your interests are being represented, and if you select an English-speaking lawyer, they can provide assistance if you do not speak German fluently. Legal fees are not fixed and lawyers may charge a percentage (typically 1-3%) or a fixed fee.
The services offered vary, and it's important to be clear as to whether the fee includes the costs of registering the deed and/or paying the property tax. A notary or lawyer may do some or all of the following:
This article is part of a series of 8 articles about buying property in Austria. The other articles in the series cover the following topics:
The Austrian government recommends you reserve 10% of the purchase price of a property to pay taxes and fees. This estimate covers the charges associated with purchasing a property but not those involved with maintaining or selling it. It's important to get the full picture before purchasing a property.
There are costs to both buying and selling a property in Austria, and taxes and charges relating to ownership. Find out more about the relating to property in Austria.
Buying a property
The main costs involved when buying a property are:
- Property transfer tax 3.5%
- Registration fee 1%
- Estate agent's fees 3%
- Legal fees 1-3%
The costs are usually paid by the buyer, with the exception of the estate agent's fees. An estate agent acting for the seller should be paid by the seller. However, it is not uncommon for a buyer to hire an estate agent in Austria as a buyer's agent or search agent. In this case, the agent will be representing the buyer and will normally be paid by them.
That said, there are no regulations mandating which party pays for which charge, so this could be part of your negotiation.
Property transfer tax
The property transfer tax in Austria is set at a national level, and thus is standard across almost all properties sold in Austria. It is 3.5% of the sale price of the property or the assessed value, if the sale price is low or non-existent. It's important to be aware that the property transfer tax in Austrai applies even in cases where the property is given as a gift or inherited. This means that if you plan to own the property for the rest of your life, you should budget for the property transfer tax when planning your estate. Read more about .
Registration fee
Certain deeds must be registered in Austria in order to be valid, and this includes the deed of sale for property. The cost of registration is set at a national level and is therefore standard across the country.
Estate agent's fees
As in most countries, the amount charged by estate agents can vary widely, as can the payment structure. With VAT at 20%, it's important to ensure that you get a quote that includes this figure. Most agencies take a percentage of the sale price, typically 1-2%, however, some agencies prefer a fixed fee, particularly for low-value properties. Agencies should not normally charge up front if they are acting as a seller's agent. Buyer's agents or search agents may charge an up front fee and may charge a percentage on top of this. There is no requirement to use an estate agent, and it is possible to find properties without one.
Legal fees
A notary (Notar) or court is required to witness the signatures of buyer and seller to create a legally binding sale contract when buying real estate in Austria. The notary's fee is typically around EUR 120 per signatory if they simply witness the contract. However, some notaries provide more services, including drawing up contracts. There will be an additional charge for extra services.
In addition to the notary, it is common to have a lawyer (Rechtsanwalt) representing each party. Whether you're the buyer or seller, it's best if your interests are being represented, and if you select an English-speaking lawyer, they can provide assistance if you do not speak German fluently. Legal fees are not fixed and lawyers may charge a percentage (typically 1-3%) or a fixed fee.
The services offered vary, and it's important to be clear as to whether the fee includes the costs of registering the deed and/or paying the property tax. A notary or lawyer may do some or all of the following:
- Draw up the contract
- Review the contract and advise their client on its contents
- Provide translation services
- Negotiate the price
- Register the contract
- Handle the paperwork for the property transfer tax
- Pay the property transfer tax
- Hold the buyer's deposit in escrow
On our Dutch website Affidata.com you will find all types of property for sale in Austria by private sellers and estate agents. Find a property in the Austrian Alps, Tyrol, Innsbruck or Vienna.
Choosing where to buy a property is critical, particularly if you plan to spend time in it yourself. Austria is famous for its winter sports but warm
summers make it a popular holiday destination in the warmer months, and cultural events happen year-round. So where should you choose? Read our guide
to find out more.