Every year, Austria is ranked among the top 15 countries in the world in terms of living standards in various rankings. These rankings consider the level of income, the environment, education, safety, health care and even the happiness index of the population. For this reason, many people want to move to Austria, start a business or buy a property in Austria.
As a rule, any natural person or legal entity (including foreign ones) can acquire real estate in Austria. It should be noted, however, that the rules for acquiring real estate in Austria differ depending on the nationality of the natural/legal person.
The following persons are considered foreigners in Austria:
- individuals who do not hold Austrian citizenship;
- legal entities having their registered office, head office or principal place of business abroad;
- legal entities with their registered office in Austria in which foreigners predominantly hold shares;
- associations with their statutory seat in Austria whose voting members are predominantly foreigners or whose management body is predominantly composed of foreigners;
- foundations and similar legal entities whose assets or earnings are exclusively or predominantly allocated to foreigners in accordance with the purpose of their articles of association.
Among foreigners, a distinction is made between:
- Citizens of states that are members of the European Union (EU) or the European Economic Area (EEA);
- Citizens of other states (so-called third countries).
Citizens of EU or EEA countries have the same rights to purchase real estate as Austrian citizens.
However, third-country nationals (including Ukraine) must obtain an official permit to purchase real estate in Austria.
The procedure for obtaining such a permit may differ depending on the federal state. In this article, we will discuss the most general rules.
A permit for the acquisition of property by foreign nationals is granted if there is a cultural, social or economic interest in entering into such a legal transaction and provided that Austria’s national political interests are not affected.
Cultural interest
Austria is a country with a rich history and cultural heritage. When purchasing real estate in Austria, cultural interest can play an important role. It arises when the applicant brings cultural benefits to the municipality or federal state in which the property is purchased (for example, he or she is a conductor).
Social interest
A social interest exists when the potential acquisition of real estate is intended to satisfy the applicant’s personal need for housing or when the acquisition of real estate is a manifestation of a bequest or gift from a close relative.
Economic interest
An economic interest exists when the potential acquisition of real estate serves the purpose of establishing or expanding a business or when the intention is to acquire an existing business. In addition, an economic interest exists when funds are invested in real estate for the purpose of obtaining a profit in the future.
National political interests
Before granting a permit, the authority checks whether the acquisition of property does not threaten national political interests. To determine whether this is the case, an advisory opinion will be requested from the state police department and, in each case, the military command.
One of the grounds for refusing to grant permission to acquire real estate is the establishment of a company that serves as a cover for money laundering.
Required documents:
- application for approval;
- contract or draft contract – copy;
- declaration of use of the property;
- site plan;
- current extract from the land register (in German can be viewed at court, at the notary’s office and on the internet);
- passport.
If the property is acquired by a legal entity, additionally:
- a current extract from the commercial register;
- articles of association;
- business license.
If the property is acquired by an association, additionally:
- extract from the trade register;
- articles of association
- proof of citizenship of the members of the governing body of the association;
- proof of income (on a case-by-case basis).
The official fees for obtaining a real estate permit are also regulated differently in the individual provinces of Austria. In Vienna, for example, an administrative charge of EUR 76.30 per applicant is levied for a permit to acquire property or co-property, and an administrative charge of EUR 47.23 for a permit to acquire a personal easement.
After receiving the permit, the foreigner can register the acquired real estate.
For a successful real estate acquisition in Austria, we recommend contacting professional lawyers and real estate agents. VigoImmobilien team will be happy to advise you on the possibilities and conditions of purchasing real estate in all federal states of Austria and help you to acquire it at the most favorable conditions!
