Acquisition costs |
Real
estate sales commissions in Austria average 3-5% for residential sales
and is slightly lower for commercial transactions. Real estate sales
commissions are typically paid by the Seller. There is also a 1% notary
fee and a 4.5% registration fee. Approximately 35% of all real estate
transactions involve agents. |
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Real estate trade association |
Bundesinnung der Gebaeudeverwalter, Realitaetenvermittler und Inkassoburo |
License requirements |
A
real estate license is required to engage in real estate brokerage.
Applicants must meet a minimum age requirement, have experience and be
absent of criminal convictions and bankruptcy before they can take the
examination. |
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Rights and interests in land |
The
Austrian government retains certain rights in real property such as the
right to levy property taxes, the right of escheat and the right to
control the use of private property through zoning. |
Forms of ownership |
Corporations
and partnerships may acquire, hold, and convey title to real property
in Austria. There are two main types of corporations: the
Aktiengesellschaft or joint stock company, and the Gesellschaft mit
beschränkter Haftung or limited liability company.
Partnership forms existing in Austria include Offense
Handelgesellschaft or General Partnership; Kommanditgesellschaft or
limited partnership: and a special type of partnership, Stille
Gesellschaft which is a partnership only between the partners and does
not operate as such against third parties. In a Stille Gesellschaft
there is a dormant partner who is not liable to creditors for
partnerships debts. |
Transfer of title |
Deeds
in the common law sense ware unknown in Austria. Title to real property
is transferred and becomes effective by a declaration of both the
grantor and grantee before a notary or recording judge. Transfer of
title must be entered in the land register or Grundbuch.
Conveyance after death can be made by will. If a property owner
dies intestate, property will be distributed among his or her heirs at
law. The transfer of real property in rural areas is subject to the
approval of a local real property transfer commission. |
Recordation and transfer of title |
Title
to land and all real property is recorded in the Land Register. Land
Registers are kept open to the public and can be relied upon under
Austrian law. |
Contracts |
Austrian
civil code contains essential provisions relating to contracts. In
general, all continents in order to be valid must be for a lawful
purpose. Contracts can be oral or written, Austria has no statue of
frauds provision. Contracts for the use of real property are subject to
local laws in effect where the property is situated. |
Mortgages |
Real
property can be mortgaged as security for a debt in Austria. Mortgage
deeds must state the exact consideration and must be entered in the
land register. Priority of mortgages depends upon their date of
registration. Mortgages may be foreclosed under Power of Sale
provisions. |
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Property taxes |
Ad
valorm land taxes are levied based upon the standard tax value of the
property. This tax is approximately .8% but may vary according to
jurisdiction. Additionally land value taxes of approximately 1% may be
levied on vacant land.
Land transfer tax is assessed on all conveyances of real property. This tax is usually 3.5% of the price paid for the property.
A tax on income is levied in Austria and there are special provision for capital gains taxes. |
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Land use control |
The use of private property is restricted by zoning and subdivision regulations in Austria. |
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