Investing in Property in Austria: What to Watch Out for Before Signing a Contract

Austria is becoming an increasingly popular destination for people looking to invest in real estate – whether for the beauty of its locations or the investment potential. A stable economy, quality infrastructure, and a secure legal environment attract foreign capital -and Czechs are no exception. But before signing a purchase agreement, it’s important to understand the specific features of the Austrian market – from differences between federal states to tax obligations. Experts Jan Rejcha from the real estate agency Rellox s.r.o. and Zuzana Nötstaller from the law firm FAIRSQUARE share their insights.

In this article, you’ll learn:

✔ Who is allowed to buy property in Austria
✔ What the rules are for residential and recreational properties
✔ How to finance a purchase and what fees to expect
✔ Why due diligence is essential
✔ Which areas in Austria are the most attractive for property investment

Who can buy property in Austria?

For EU citizens, the basic conditions are the same as for Austrian nationals – no special permit from the land commission is required. Still, it’s crucial to take regional rules into account, as they may affect the transfer of ownership.

As Zuzana Nötstaller from FAIRSQUARE explains: “When it comes to buying property in Austria, EU citizens are treated the same as Austrians. This equal status is formally stated in the purchase agreement, referencing specific provisions of the applicable land law. From a tax standpoint, Czech buyers who don’t yet have a local tax number or social security number must apply for one with the Austrian tax office. This is usually handled by the attorney and takes just a few days.”

Residential vs. recreational properties – what are the rules?

The contractual terms for residential and recreational properties are the same, but what matters most is the regulation of secondary residence in tourist-focused municipalities (Vorbehaltsgemeinden). The option to establish secondary residence in these towns is tightly controlled, increasingly restricted, and this is naturally reflected in higher property prices. The goal of these rules is to keep local communities alive year-round – not just on weekends or during holiday seasons.

In some parts of Austria – especially in highly touristic regions such as Tyrol or Salzburg – strict rules apply to the use of properties for recreational purposes. Simply registering a secondary residence does not make such use legal. At the time of signing the purchase agreement, buyers are usually required to sign a declaration stating the property will not be used as a holiday home. This declaration is often a precondition for entry into the land registry (Grundbuch).

In practice, there is often a grey area – properties are used for recreation despite the restrictions. But this carries legal risks. The Austrian Reporting Act (Meldegesetz) sets strict requirements, and breaches can result in substantial fines. In some cases -especially in Tyrol – unauthorized recreational use can even lead to expropriation.

It’s also important to note that without permanent residence, you cannot claim exemption from the land registry fee, which increases the total acquisition cost.

How to finance a property purchase in Austria

Mortgage through an Austrian or Czech bank

A mortgage is one of the most common financing methods – whether through an Austrian bank or a Czech one. Each option has its specifics, and it’s important to evaluate them before signing anything.

“Most Austrian banks only lend to clients whose primary income is in euros. However, some regional banks have started offering mortgage loans to Czech buyers earning in CZK. In our experience, Oberbank is the only bank that can take the Austrian property being purchased as collateral. More commonly, Czech banks provide either purpose-specific or non-purpose mortgage loans, using a Czech property as collateral,” says Jan Rejcha from Rellox.” He adds: “We’ve seen purpose-specific mortgage loans granted by Oberbank and ČSOB Mortgage Bank. Other banks tend to offer non-purpose loans. Interest rates are always individual, but they’re typically a bit higher than standard mortgage rates for property purchases in the Czech Republic.”

Additional costs and fees (GrESt, commission, land register)

In addition to the mortgage, buyers should budget for the property transfer tax (GrESt 3.5%), the fee for an attorney or notary (1-3%), and the broker’s commission (about 3%). There’s also a land register entry fee (Eintragungsgebühr) of 1.1% of the purchase price. In case of a mortgage, this registration fee is 1.2% of the loan amount.

TIP: As of 1 April 2024, a time-limited exemption from this fee is available (currently through 1 July 2026), provided the buyer demonstrates urgent housing need – i.e., registers permanent residence at the property and gives up their previous permanent residence. This exemption is capped at EUR 500,000. For the portion of the purchase price exceeding this amount, the 1.1% fee must still be paid. It cannot be applied to properties with a total price over EUR 2,000,000. The permanent residence must be maintained for five years; otherwise, the fee will be charged retroactively.

Legal aspects of the purchase: what to be aware of (due diligence)

Zuzana Nötstaller from FAIRSQUARE advises: “Before signing the contract, we recommend a thorough legal review (due diligence)  to uncover any hidden risks and ensure a safe transaction. For Czech buyers, we strongly recommend hiring a local attorney who will perform full due diligence on the entire transaction, including potential risks and future complications. This includes examining the zoning plan, building regulations, and the land registry, as well as checking any existing rental agreements.”

The legal review should include:

• examining liens, easements, pre-emption rights, and Superädifikate
• verifying tenancy rights and related disputes
• reviewing building and trade permits, as well as any risk of expropriation in the public interest
• accounting for specific regulations, such as forestry law or cultural heritage protection

She also notes that in Salzburg, Styria, and Tyrol, a tax may apply to long-term vacant properties – meaning those with no registered residents for more than 26 weeks.

Best locations for real estate investment in Austria

In the past year, demand for Austrian real estate has surged again. Investor interest now outweighs purchases made purely for private use. The most attractive areas remain the popular ski regions of Tyrol, Salzburg, and Styria. Investors prefer glacier resorts and high-altitude areas, or dual-season destinations that offer activities both in summer and winter.

Rejcha adds: “Czech investors usually go for apartments, since they’re easier to maintain than houses. Ideal choices are units within hotel complexes intended for tourist rental. Not only can owners spend their own holidays there, but such properties also come with professional management and rental services – making them a hassle-free, income-generating investment.”

According to Rellox s.r.o.: “If we’re talking about new-build properties in tourist hotspots, average prices per square meter typically range from EUR 7,000 to 10,000. In premium ski resorts like Sölden, Ski Arlberg, or the Kitzbühel area, prices can easily go over EUR 11,000 or even 12,000 per m². On the other hand, more affordable options can be found in Styria, in Gröbming near Schladming, or in the Eastern Alps – such as Semmering. Prices there are currently around EUR 5,300 to 6,300 per m².”

Why work with professionals?

Hiring a bilingual law firm experienced in the Austrian market brings significant advantages – eliminating language barriers and allowing for tailored contracts instead of generic templates. Your attorney should represent you independently, even if the other party already has a lawyer or notary.

A professional service also includes detailed analysis of land registry records, the ability to request additional information directly from the relevant district court, and ongoing monitoring of any private or public legal limitations.

Summary and recommendations for investors

Thinking of investing in property in Austria but unsure of your next step?
Reach out to trusted professionals. Rellox s.r.o. can help you select the right property and provide full support – from the initial search to ongoing management. Meanwhile, the FAIRSQUARE law firm will carry out thorough due diligence, prepare a secure purchase agreement, and handle the land registry process. Together, they will guide you through the entire purchase – from start to finish, ensuring a smooth, secure, and successful investment.