Authored by the expert who managed and guided the team behind the Austria Property Pack
Everything you need to know before buying real estate is included in our Austria Property Pack
Buying property in Austria as a foreigner involves navigating complex provincial regulations, with EU citizens enjoying full rights while non-EU nationals face significant restrictions requiring special permits.
Austria's property market offers diverse opportunities from Vienna's stable rental yields of 4-6% to alpine tourist properties, but foreign buyers must understand the strict categorization of property types (permanent residence, tourist residence, or second homes) and budget for total costs of 10-15% above the purchase price.
If you want to go deeper, you can check our pack of documents related to the real estate market in Austria, based on reliable facts and data, not opinions or rumors.
EU citizens can buy property freely in Austria like locals, while non-EU nationals face provincial restrictions and need special permits, with some regions completely closed to them.
Foreign buyers should expect total costs of 10-15% above purchase price including taxes and fees, can access mortgages with 20-50% down payment at rates around 2-2.25%, and must use a notary for all transactions.
| Aspect | EU/EEA/Swiss Citizens | Non-EU Citizens |
|---|---|---|
| Property Access | All types without restrictions | Limited, varies by province |
| Permit Required | No | Yes, from Land Transfer Commission |
| Mortgage Down Payment | 20% standard | 30-50% typically required |
| Purchase Costs | 10-15% of price | 10-15% of price |
| Rental Yield (Vienna) | 4.12% average | 4.12% average |
| Capital Gains Tax | 30% on profits | 30% on profits |
| Popular Regions | All areas accessible | Vienna, Graz most accessible |
What types of properties can foreigners buy in Austria, and are there restrictions compared to locals?
Foreign property buyers in Austria face a complex system where EU citizens enjoy the same rights as locals, but non-EU nationals encounter significant restrictions that vary dramatically by province.
Austria categorizes properties into three main types: Hauptwohnsitz (permanent residence) requires you to register as a tax resident and isn't suitable for holiday homes, Touristische Vermietung (tourist residence) is designed for buy-to-let investments where you can use the property 4-12 weeks annually while renting it out the rest of the year for net yields of 4-6%, and Zweitwohnsitz (second homes) allows unrestricted private use but is extremely rare and tightly regulated.
Non-EU citizens face severe limitations in provinces like Tyrol, Vorarlberg, and Salzburg where they often cannot buy property at all, with some rare exceptions for second homes in small Salzburg villages. EU/EEA and Swiss citizens have enjoyed unrestricted property purchasing rights since 2001, treating them exactly like Austrian citizens.
The most accessible property type for foreign investors is tourist residence properties, particularly in Vienna and other major cities, though access to prime alpine regions remains restricted for non-EU buyers.
It's something we develop in our Austria property pack.
Do rules differ for EU citizens versus non-EU nationals when purchasing property?
The difference between EU and non-EU property buying rights in Austria is stark, with EU citizens enjoying complete freedom while non-EU nationals face a complex approval process.
EU/EEA and Swiss citizens can purchase any type of property in Austria without restrictions, permits, or special approvals, enjoying the same rights as Austrian citizens since 2001. They can buy permanent residences, tourist properties, or second homes in any province without limitation.
Non-EU citizens must obtain official approval from the local Land Transfer Commission before any purchase, with requirements varying significantly by province. Some provinces like Tyrol essentially prohibit non-EU purchases entirely, while others like Vienna are more accessible but still require permits demonstrating "social interest" such as permanent relocation or having an existing residence permit.
Non-EU citizens with legal residence in an EU/EEA country who transfer purchase funds from there may receive automatic approval in some cases. The approval process typically takes 2-3 months and isn't guaranteed, making it crucial for non-EU buyers to secure permits before committing to any purchase.
Do you need residency, a visa, or minimum time in Austria to buy property?
Austria doesn't require any residency, visa, or minimum stay to purchase property, but ownership doesn't grant any residence rights.
You can buy property in Austria as a complete non-resident without ever setting foot in the country, though non-EU citizens still need provincial approval regardless of residency status. Property ownership provides zero immigration benefits - you cannot use it to obtain a residence permit or extend your stay beyond normal tourist visa limits of 90 days in 180 days.
To live in Austria long-term, you must apply for a separate residence permit through standard immigration channels such as employment, study, or as a person of independent means showing sufficient financial resources. For some property types like permanent residence (Hauptwohnsitz), you'll need to register as an Austrian tax resident after purchase, which has significant tax implications.
Having an existing residence permit can significantly help non-EU citizens obtain property purchase approval, as it demonstrates genuine ties to Austria and satisfies the "social interest" requirement many provinces demand.
Can foreigners get mortgages in Austria, and what are typical rates and requirements?
| Mortgage Aspect | EU Citizens | Non-EU Citizens |
|---|---|---|
| Down Payment Required | 20% minimum | 30-50% typically |
| Interest Rates (2025) | 2-2.25% fixed | 2-2.25% fixed |
| Maximum Term | 30 years | 30 years |
| Income Requirements | Standard proof | Higher scrutiny |
| Additional Requirements | Clean credit history | Local guarantor often needed |
| Processing Time | 4-6 weeks | 6-10 weeks |
| Maximum LTV Ratio | 80% | 50-70% |
Foreigners can access Austrian mortgages, with EU citizens finding the process straightforward while non-EU nationals face stricter requirements and higher down payments.
As of June 2025, fixed mortgage rates hover around 2-2.25%, significantly lower than the prime lending rate of 4.2%, making financing attractive for qualified buyers. Banks typically offer terms up to 30 years, though 20-year mortgages are most common.
Required documentation includes proof of income (Austrian or foreign), clean credit history from your home country, valid passport, property sale agreement, and proof of down payment funds. Non-EU buyers often need a local guarantor or additional collateral, and banks may require proof of ties to Austria such as employment or existing residence permits.
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What are the exact steps and documents needed to buy property as a foreigner?
The Austrian property purchase process involves multiple steps with mandatory notary involvement and, for non-EU citizens, obtaining provincial approval before proceeding.
- Check eligibility and provincial rules - Non-EU buyers must verify if they can purchase in their desired province
- Property search - Use real estate agents, online portals, or direct searches to find suitable properties
- Due diligence - Hire a surveyor for inspection as sellers aren't obligated to disclose defects
- Make an offer - Sign a purchase offer (Kaufanbot) with typically 10% deposit held in escrow
- Apply for permits - Non-EU buyers must obtain Land Transfer Commission approval (2-3 months)
- Sign deed of sale - Execute before a notary with certified signatures (can be done at Austrian embassy if abroad)
- Transfer funds - Pay full amount including taxes and fees to notary's escrow account
- Land registry - Notary registers the property; ownership transfers only upon registration
- Property handover - Receive keys and possession after registration completes
Essential documents include valid passport, proof of funds, proof of address, draft and final sale agreements, land register extract, purpose of use declaration, residence permit (if applicable), energy certificate, and Austrian tax number.
The entire process typically takes 2-4 months for EU citizens and 3-6 months for non-EU nationals due to permit requirements.
Is hiring a lawyer or notary mandatory, and what role do they play?
Notary involvement is absolutely mandatory in Austria for property transactions, while lawyers are optional but highly recommended for foreign buyers.
Austrian law requires a notary to certify all signatures on the deed of sale and register the transaction in the Land Register - without this, ownership cannot legally transfer. Notaries act as neutral parties serving both buyer and seller, handling escrow services to ensure secure fund transfers and clear title delivery.
While notaries are mandatory, they don't represent your specific interests, making independent legal representation valuable. Lawyers can review contracts, conduct enhanced due diligence, negotiate terms in your favor, and guide you through provincial regulations - particularly crucial for non-EU buyers navigating permit requirements.
Notary fees typically range from 1.5-3% of the purchase price, while lawyer fees add another 1-2% but can save significantly more by avoiding costly mistakes or unfavorable terms.
It's something we develop in our Austria property pack.
What taxes, fees, and hidden costs should you expect when buying and reselling?
Buyers in Austria face substantial transaction costs totaling 10-15% above the purchase price, making it crucial to budget accurately from the start.
The main costs include real estate transfer tax at 3.5% of purchase price, land registry fee of 1.1%, notary fees ranging from 1.5-3%, and real estate agent commission up to 3% plus 20% VAT if applicable. Additional costs include court and administrative fees of €150-400, property valuation fees of €300-500, translation costs for non-German speakers, and mortgage arrangement fees if financing.
For new construction, buyers pay 20% VAT which can be reclaimed if renting out the property. Ongoing annual costs include Grundsteuer (property tax) of a few hundred euros based on assessed value, building insurance, maintenance reserves, and utility connections.
When reselling, you'll face capital gains tax of 30% on profits unless it's your primary residence for at least two years. Seller costs include agent fees again, notary fees, and potential early mortgage repayment penalties, typically adding another 5-7% to transaction costs.
How do property prices compare across major Austrian cities and regions?
As of June 2025, Austrian property prices vary dramatically between regions, with alpine areas commanding premium prices while eastern regions offer better value.
| City/Region | Apartment Price (€/m²) | House Price (€/m²) |
|---|---|---|
| Vienna | 5,254-5,500 | 7,369 |
| Tyrol | 13,567 | 15,392 |
| Salzburg | 5,250-5,570 | 5,247 |
| Vorarlberg | 4,399 | 5,849 |
| Upper Austria | 4,256 | 3,400 |
| Carinthia | 7,514 | 4,243 |
| Styria | 3,567 | 1,793 |
| Burgenland | — | 2,169 |
Vienna's city center reaches €10,000-30,000/m² for luxury properties, while suburban districts offer better value at €4,000-6,000/m². Tyrol's ski resort areas command the highest prices nationally due to tourism demand and limited supply.
Rural areas and smaller towns in Styria, Lower Austria, and Burgenland offer significantly lower prices, often 50-70% less than major cities, making them attractive for buyers seeking value or larger properties.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Austria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which Austrian areas are most popular with foreigners and expats?
Vienna dominates as the top choice for international buyers, offering cosmopolitan lifestyle, excellent infrastructure, and the most accessible market for non-EU nationals.
The capital attracts 60% of foreign property buyers due to its status as a UN city, strong rental market with 4.12% average yields, extensive public transport, and vibrant international community. Districts 1-9 are most sought after for their historic charm and central location, while outer districts offer better value.
Salzburg ranks second for its UNESCO heritage status, proximity to Alps and Germany, and more affordable prices than Vienna at €5,250/m². The city offers excellent quality of life with strong cultural offerings and year-round tourism supporting rental demand.
Innsbruck and wider Tyrol attract winter sports enthusiasts and those seeking alpine lifestyle, though non-EU buyer restrictions limit access. Graz appeals for its university town atmosphere, tech sector growth, and prices 35% below Vienna, while Linz and Klagenfurt offer industrial job opportunities and affordable entry points.
Expats particularly value Austria's excellent healthcare, low crime rates, efficient public services, and central European location enabling easy travel.
What are the best regions for rental yield, appreciation, tourism, and liveability?
Different Austrian regions excel in various investment metrics, requiring buyers to prioritize their objectives between yield, growth, and lifestyle.
Rental Yields: Vienna leads with 4.12% average yields, with some districts achieving 6.87% for small units under 40m². Salzburg follows at 3.18-4.25%, while Graz offers 2-3.13%. Tourist areas in Tyrol can achieve higher yields through short-term rentals, but access is restricted for non-EU buyers.
Long-term Appreciation: Vienna, Salzburg, and Innsbruck show consistent 3-5% annual growth due to limited supply and steady demand. Central locations in these cities outperform suburbs, with properties near public transport showing strongest appreciation.
Tourism Demand: Tyrol, Salzburg, and Vorarlberg dominate tourism with world-class ski resorts and summer hiking. Tourist residence properties in these areas achieve premium rents during peak seasons, though foreign buyer restrictions limit access to the best locations.
Liveability: Vienna consistently ranks as the world's most liveable city with excellent public services, healthcare, and culture. Graz offers university town charm with lower costs, while Salzburg balances culture with outdoor access. Smaller cities like Klagenfurt provide lakeside living with Italian influence.
For balanced investment combining yield, appreciation, and liveability, Vienna and Salzburg emerge as optimal choices for foreign buyers.
What mistakes do foreigners commonly make when buying Austrian property?
Foreign buyers frequently underestimate Austria's complex provincial regulations, leading to failed purchases and lost deposits.
- Ignoring provincial restrictions - Non-EU buyers often commit to properties in Tyrol or Vorarlberg only to discover purchase approval is impossible
- Not securing permits first - Starting the purchase process before obtaining Land Transfer Commission approval wastes time and money
- Skipping professional inspection - Austrian sellers have no obligation to disclose defects, making independent surveys essential
- Confusing property types - Buying "permanent residence" property thinking it's a holiday home creates unwanted tax obligations
- Assuming ownership grants residency - Many buyers mistakenly believe property purchase helps with visa applications
- Underbudgeting for costs - Forgetting the 10-15% transaction costs causes financing shortfalls at closing
- Using only the notary - Relying solely on the mandatory notary without independent legal advice risks missing important contract issues
- Not checking property liens - Failing to verify clear title through proper land register searches
Avoid these pitfalls by consulting local lawyers before viewing properties, securing financing pre-approval including all costs, obtaining permits before signing anything, and conducting thorough due diligence with professional help.
It's something we develop in our Austria property pack.
What are the fiscal implications of owning property in Austria?
Property ownership in Austria creates ongoing tax obligations for both rental income and eventual capital gains, with different rules for residents and non-residents.
Rental income faces progressive taxation at 20-50% rates depending on total income. Non-residents using the property less than 70 days annually enjoy a €3,000 tax-free threshold, while residents receive €11,000. You can deduct mortgage interest, maintenance costs, property management fees, and depreciation (1.5% annually for buildings) from rental income.
Annual property tax (Grundsteuer) runs only a few hundred euros based on historical assessed values, making it negligible compared to many countries. Owners can pass this cost to tenants in rental agreements.
Capital gains tax hits at 30% on profits when selling, but important exceptions exist. Primary residences occupied for two continuous years escape this tax entirely, as do properties held over 10 years if not used for rental. The taxable gain equals sale price minus purchase price and improvement costs.
Austria maintains double taxation treaties with most countries, preventing duplicate taxation on rental income and gains. Non-residents should declare Austrian property income in their home country but receive credits for Austrian taxes paid.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Austria's property market in mid-2025 offers compelling opportunities for EU citizens who can access all property types freely, while non-EU nationals must navigate provincial restrictions but can still find valuable investments particularly in Vienna and Graz.
With mortgage rates at historic lows around 2-2.25%, rental yields of 4-6% in major cities, and a stable legal framework, Austria provides a secure investment environment for foreign buyers willing to understand its unique regulations and commit to the 10-15% transaction costs that ensure proper legal protection.
Sources
- Domus Global - Austrian Property Types Explained
- Investors in Property - Non-EU Citizens Property Rights
- Global Property Guide - Austria Buying Guide
- Expatica - Austria Mortgage Guide
- Domus Global - Costs of Buying Home in Austria
- Statistics Austria - Average Property Prices
- Vigo Immobilien - Austrian Real Estate Market Trends 2025
- Global Property Guide - Austria Rental Yields
- Immorist - Real Estate Taxation in Austria
- Investropa - Austria Real Estate Guide