The Comprehensive Guide to Luxury Property in Austria

Austria encompasses roughly 83,855 square kilometres (32,380 square miles) and consists of nine states with around 8.5 million inhabitants. It is an alpine nation brimming with culture, gastronomic delights, unique traditions, and customs, with each area possessing its own distinctive qualities. From the Alps to the plains of Vienna, Styria and southern Burgenland include lakes with water so pure that it is safe to drink. Along the banks of Austria's glittering rivers, the country's awe-inspiring landscape is also manifested.

The remarkable architecture of Austrian cities ranges from Gothic to Renaissance, Baroque to Gründerzeit, not to mention Art Nouveau and Postmodern. Austria is an ideal location for both cultural activities and upscale shopping. In addition to stylish and renowned Vienna, significant towns in Austria include Innsbruck, Bregenz, Linz, Salzburg, and Graz Kitzbühel is one of Europe's most prestigious and elite winter sports destinations.

The apartment luxury real estate market in Austria, particularly in Vienna, has grown rapidly. In contrast to the majority of other European nations, residential real estate prices in Austria have climbed in recent years. Real estate values in Austria have climbed significantly in the past decade with locations with a large concentration of luxury houses seeing above-average growth. The office market in Vienna is among the most stable in Europe, and Vienna is one of the most attractive real estate markets for investors from all over the globe, particularly those from the former Soviet Union seeking hotel and luxury property investments.

How can one get a luxury home in Austria and How to purchasea chalet or ski apartment in Austria?

Austria is a picturesque country with classic alpine communities, towering snow-capped peaks, and kind, hospitable people. It is also a nation that, compared to many of its alpine neighbours, provides strong rental income markets and affordable homes for sale. Consequently, Austria is a terrific area to acquire a second home, whether you're doing it for sentimental or financial reasons. However, despite Austria's robust legal structure and relatively uncomplicated property-buying procedure, there are several regional variances that purchasers may find puzzling.

LuxuryAbode.com's luxury real estate agents and luxury real estate brokers assist purchasers in acquiring all types of luxury properties in Austria, from investment ski flats to vacation chalets and hotels. The Austrian luxury property guide will help you step-by-step throughout the whole process, ensuring that you are up-to-date on the country's premium real estate market.

Identifying suitable luxury houses in Austria

Austria is split into nine federal provinces, each of which is distinguished by a unique terrain and regional characteristics, ranging from linguistic varieties to culinary specialties, traditions, and local laws. The majority of Austria's ski areas are situated in Salzburgerland and Styria in the east, Tyrol and Vorarlberg in the west, and Carinthia in the south.

Ski area - The infrastructure for skiing is excellent across the nation, so your preference will depend on whether you want a big ski area with hundreds of kilometres of slopes or a smaller, more private resort. Be receptive to new places when you hear about them; you may be pleasantly surprised. Although only a handful of Austria's resorts with 40 to 100 kilometres of ski runs are well-known internationally, the country is home to countless small and medium-sized resorts with 40 to 100 kilometres of ski runs. Although some people are more interested in glacier or high-altitude skiing, snow-making infrastructure has vastly improved in recent years and is sometimes better than in the French and Swiss Alps. As a result, ski seasons at lower-altitude resorts tend to be quite lengthy.

Property pricing - Tyrol and Vorarlberg are home to some of the world's most renowned ski resorts, such as Kitzbühel, Lech, St. Anton am Arlberg, and Solden, where you will discover some really breathtaking luxury homes with equally jaw-dropping price tags. Throughout general, prices are cheaper in the remainder of the nation. However, there are exceptions to every rule. Regardless of your budget, you should be able to discover an appropriate solution.

Distance to airports - In any global luxury real estate market the distance to the airport is a key factor. International buyers and investors looking at luxury real estate in Austria can note that Klagenfurt in Carinthia and Ljubljana in Slovenia are also near to resorts in southern Austria and have developing links to European cities. You can also easily avail a vehicle or use public transit to reach your Austrian vacation property. Due to Austria's strong rail system, the majority of significant resorts are readily accessible.

Seasonality of resorts - Although it is best renowned for its winter offerings, Austria offers year-round appeal. Fresh air, mountain peaks, and flower-filled meadows provide the ideal setting for any outdoor activity, including hiking, mountain biking, swimming in alpine lakes, and golfing. In contrast to many of its Swiss and French neighbours, however, Austrian resorts have gone to great pains to encourage year-round tourism.

Currently, every resort provides a summer card with a variety of activities for both children and adults, including theme parks, themed walks, spas, tennis and golf courses, culinary classes, and more. In the majority of resorts, important lifts remain operational to transport summer guests to the mountain summits, where they may enjoy the thick network of trails. 

What distinguishes an Austrian home as an investment property as opposed to a vacation home?
The permissible uses of each parcel of land in Austria are governed by the land's legal classification. Frequently, properties fall into one of the following categories:

A "Permanent Residence" is a kind of property suitable for persons who choose to make Austria their permanent residence. Property owners are required to register as permanent residents and become tax residents of Austria. A long-term renter who plans to seek for permanent status may also rent such a residence. These stringent rules render permanent residences unsuitable for the vast majority of non-citizens who just want to use the property for infrequent vacations.

"Tourist Residence" - A variation of the Anglo-Saxon "buy-to-let" home, this kind of property offers a great combination of investment property and vacation home and is the most desired by international buyers. In the owner's absence, these residences are rented to tourists for a number of weeks (generally four to twelve) for private use (usually four to twelve). Due to rental revenue, owners may often get a net rental return of between 4 and 6 percent every year. This notion is well-developed in Austria, where local governments are attempting to encourage tourism while avoiding the emergence of "ghost towns" due to foreign purchasers who only come for a brief period of time each year. A management business will handle everything from guest management and check-in/check-out to cleaning and upkeep when you employ them. Purchasing a "Tourist Residence" in Austria also provides large tax benefits.

"Second Home" (German: "Zweitwohnsitz") - this kind of property offers unrestricted usage freedom. The owner is permitted to utilise the property as they see fit, sublease it for long or short periods of time, or not sublease it at all. This legal position is quite uncommon, particularly in Tyrol and Salzburger Land. Since 2018, the number of Second Homes in Salzburgerland has been limited, and municipalities with more than 16% of existing Second Homes cannot accept new builds. The luxury property professionals in Austria listed on LuxuryAbode offer a wide variety of apartments that are suitable for use as a second home.

Whether you want an investment property or a flexible second home is the single most important decision you must make about the property you want. Consider that if you choose the later option, your options will be substantially limited.

What exactly is the Austrian Tourist Residence?
As described above, a "Tourist Residence" is a kind of property that is suitable for both investment rental and private use. However, it is likely that the functioning of these amenities may vary from property to property. I'm seeking guidance on what to prioritise when deciding to invest in a property of this kind.

Management company - In the great majority of new-construction projects, the developer will choose a single management company to oversee all of the apartments in the building; accordingly, unit owners will be required to sign an Operating Agreement with this company upon purchase. Typically, the duration of the contract is between 10 and 25 years. The agency is responsible for advertising, reservations, guest management on-site, property maintenance, and owner reporting. The average cost for such services is between 20 and 30 percent of the agency's monthly rental revenue.

Your property's annual net rental yield will be remarkable. In order to keep you up-to-date on occupancy rates, prices, and outcomes, the agency will regularly supply you with detailed information. The typical net rental return ranges from 3 to 6 percent. "Guaranteed yield" is a word used to define the guaranteed profit that can be anticipated from certain activities; this amount is often lower than would be expected otherwise. Earnings from all flats are pooled and then dispersed fairly to owners using a distribution key that is often dependent on the initial purchase price of each unit. Each owner gets the same proportion of the income, regardless of how much or little their unit was leased in comparison to the other units.

Limits on private usage, ranging from four to eight weeks per year (including last-minute bookings), are in place to safeguard the property's value and possible rental revenue. There may be intrinsic characteristics that aid with adaptation. During various seasons of the year, the private usage of certain facilities may be prohibited. It is customary in complexes that contain a pool system and are intended to maximise rental revenue to charge owners a reduced fee to remain in certain residences. The agency's website may often be used to make reservations in advance.

Numerous holiday rentals are either brand-new or recently refurbished houses, making them eligible for a VAT refund. This page offers further details.

Austrian landlords are required to pay income tax on rental income on an annual basis. Nevertheless, a substantial portion of the tax may be returned. Properties that are leased out may be eligible for a very significant tax benefit. Interest on a mortgage used to fund the property's purchase may be deducted from rental income. Also available is a personal tax exemption of around €2,000. Therefore, if you are purchasing a house with a friend or significant other, you may each borrow up to double the amount. The tax burden is modest, based on average net rental revenue.

Considerations besides price and location when selecting a home
The option between an investment property with rental income and a second house with many purposes is merely the beginning.

Due to the difficulties of locating a parking spot in most regions, it is normal practise in Austria to offer ski flats that include a parking space, whether it be a garage, carport, or surface lot. When you lease an apartment, you will have access to storage space in the basement or elsewhere on the property, ideal for storing your bicycles, kayaks, and other recreational equipment. If the property includes a communal reception area, restaurant, pool, spa, or playground, that's excellent, but keep in mind that everyone pays a portion of the operating expenses, which might significantly reduce your return on investment.

Austrian Property Purchase Procedure details

Foreign buyer restrictions
EU nationals may buy property in Austria since 2001. EEA and Swiss citizens may buy property in Austria with additional paperwork.

Vorarlberg, Tyrol, and Salzburger Land restrict non-EU homebuyers. In certain regions, non-EU residents may need a foreigner's buy authorization or the property must be advertised for a specific period before being sold to a non-EU national, making the transaction difficult. Non-EU nationals should consult an attorney to understand each situation's requirements.


The Austrian property purchase guide comes handy when you have viewed numerous luxury homes and found the right one.

The paperwork for buying properties in Austria and also while buying a new building in Austria is straightforward and quick.

Provide: First, sign a buying offer ("Kaufanbot"). This agreement outlines the property, agreed-upon price, payment schedule, and taxes and fees. The residence is withdrawn from sale.

This contract requires no deposit, but you should have the money on hand (make sure you have a valid mortgage offer in hand or funds ready to access in case you pay in cash). Your Austrian property agent and the seller prepare the offer.
After both parties sign the Offer, the notary prepares the Deed of Sale ("Kaufvertrag") and accompanying papers. This takes 2-4 weeks. The Deed of Sale contains a Land Registry extract, property details, and escrow instructions ("treunhandkonto").

Real estate deals commonly employ escrow accounts for secure payments. It ensures that the buyer's cash are safely held in the lawyer's or notary's account until the property is transferred.

KYC certifications, a PEP form, and any other local documents will be needed. If you buy a "Tourist Residence," you must also sign a "Operating Agreement" ("Betreibervertrag") with the professional management agency, which outlines the terms and conditions of their services and the use of the property (including the agency's commission, the contract's duration, restrictions on private use, etc.). A "Building Administration Agreement" ("Verwaltungsvertrag") with the building manager/caretaker defines operational concerns in the building (e.g. management of common areas, utilities, owners' meetings, etc.). In apartment buildings, a contract forms the condominium (Wohnungseigentumvertrag). 

The buyer must sign just the Deed of Sale. This means you may sign in Austria at a notary's office or at the Austrian Embassy or Consulate.

After signing the Deed of Sale, the owner has two weeks to put the money (including taxes and fees) into the attorney or notary's escrow account. For off-plan houses with a progressive payment schedule, an escrow account is used, and each payment date is communicated. The attorney/notary will next finish the Land Registry registration, which may take two to three months. After registration, the Notary sends the Buyer just one original Deed of Sale.

Buyers may arrange a formal property transfer after payment and notarization. It's important to comprehend everyday operations, utilities, private bookings, etc.
Austrian property purchase costs.
Austrian property purchase fees and taxes are calculated depending on the property's gross price (sometimes the notary fees are also added in the calculation basis).

Buying a home with a mortgage.

Austrian mortgages are available. Your home country's banks may or may not provide an Austrian mortgage. You may also receive a mortgage from an Austrian bank. Sometimes developers have a financial partner to aid buyers; frequently, this is a local bank familiar with the project that may provide favourable terms and a rapid closing.

Typical mortgage terms are up to 60% of the property price (excluding acquisition expenses) and up to 20 years for principle and interest. Banks impose mortgage arranging and evaluation fees. Land Registry registration fees are 1.2%. As interest rates remain low compared to historical standards, yearly rates are between 2% and 3%.

Before signing the Offer to Purchase, chat to your bank about the mortgage so you won't be charged for notary's fees if the mortgage offer falls through.

Buying new or pre-construction

Buying an off-plan or new-construction house requires some research.

Before starting construction, developers must sell at least 50% of their units to their financing bank. This means the development may be sold out by completion. If interested, purchase now. First-time residents have more housing alternatives, and developers may accommodate special needs (apartment layout, extra features, etc.). When a product gains momentum and sales accelerate, developers boost prices.

New homes have a 20% VAT. If your home qualifies as a "Tourist Residence," you may save all or a portion of this amount, based on your annual private consumption (i.e. you can claim tax rebate for all the periods when your apartment is offered for rent to visitors).

Paying VAT

You'll pay full VAT upon purchase and get it refunded within 2 to 6 months. In other cases, developers have negotiated an easier option for buyers, so they simply pay a small fraction of VAT (1-2%) or none at all. 

Off-plan purchases provide progressive payment options. This means you'll pay for your apartment in stages. Each payment is transferred into a notary's escrow account, assuring the protection of your finances, and is only delivered to the developer once an impartial surveyor reviews the development.