[BUYING AND SELLING REAL ESTATE IN AUSTRIA]
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the “Baurecht”). Example: Someone rents/leases a plot of land on a lake and builds his own bathing hut on it. This so- called “Superädifikat” is one of the exceptions to the principle that the landowner automatically also owns everything that is built on his land plot. In this case, therefore, ownership of the land and ownership of the building are separate. before mentioned Tax Effects The purchase of real estate is subject to Austrian Real Estate Transfer Tax (“Grunderwerbsteuer”) at a tax rate of generally 3.5% of the purchase price. Furthermore, a court registration fee of 1.1% of the purchase price is charged for the registration of new ownership rights in the land register. On March 20, 2024, the Austrian government passed a resolution to temporarily waive the fees for registering ownership rights and liens in the land register when purchasing residential property. The fee exemption is limited to two years (until 2026) and can only be claimed under certain circumstances. In particular, the purchased property must serve to satisfy an urgent housing need of the purchaser. The prerequisite for the registration of the ownership right in the land register is, in addition to the already mentioned documents, the proof that the real estate transfer tax has been paid to the responsible tax office (so-called clearance certificate). The processing with the financial authorities is regularly conducted by the trustee (attorney-at-law or notary public) who draws up the purchase contract. Since April 1, 2012, earnings from the sale of private real estate are subject to the Austrian Real Estate Income Tax
(“Immobilienertragsteuer” - ImmoESt). The taxation is not based on the regular income tax rate, but on a special 30% tax rate (there are exceptions to this taxation, for example if the own residence is sold). For the purposes of real estate income tax, the term "property" refers to land and buildings, condominiums, and rights equivalent to real estate property, such as building rights. Additional Costs If a broker was involved, the broker's fee; Attorney and/or notary fees: the purchase contract is usually drawn up by a lawyer or a notary who normally also applies for the registration in the land register. In most cases the attorney / notary also acts as trustee. The amount of the lawyer's or notary's fees is approximately 1-3% of the purchase price. In addition, it is possible to agree a lump sum. Costs for authentication of signatures: In order to register the new ownership in the land register, it is necessary that the signatures on the purchase contract and (if applicable) on the mortgage deed for the mortgage loan are certified by a court or notary public. EU and other countries In general, EU/EEA citizens and entities are allowed to freely purchase and sale real estate in Austria, while non-EU/EEA citizens and entities may only purchase Austrian real estate with the permission of the competent government office. In this case, a corresponding application must be made to the authority that approves the acquisition. In tourist zones there may be further restrictions for the purchase of real estate property.
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ILN Real Estate Group – Buying and Selling Real Estate Series
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