Potential buyers need to keep in mind the following taxes when setting their budgets:
- Property tax - Charged to the buyer at 0.4% to 0.9% of the property value
- Wealth tax – 1% of the buyer's net worth
- Capital gains tax - 50%
The capital gains tax is only applicable if a property is sold within 10 years of purchase for a profit. Sellers who have used the property as a primary residence of who have owned the property for over 10 years are exempt from paying the tax.
Property transaction fees
Besides tax, you will also have to pay a range of fees on your property purchase. These include:
- Property transfer fee -3.5%
- Notary fees – 3%
- Ownership registration – 1%
- Stamp duty - 1%
- Real estate fees - 3% of the property value + VAT
- Land registry fees - average cost of €400
- VAT – 20%
Mortgages
Financing can be obtained in Austria regardless of citizenship. Banks usually finance 70% of a property's value for 20 or 30 years - buyers can suggest to the bank the duration of their mortgages. Interest charges range from 2.85% to 3.5% (2011).
Banks offer monthly or quarterly repayments, and it's also possible to pay off the mortgage early.