When it comes to real estate purchase and sales, there are additional costs and fees beyond the purchase price that are often overlooked. In this article, we will outline the various ancillary expenses associated with buying or selling a property in Austria. Typically, the buyer bears the majority of these costs, unless the contract specifies otherwise (rough estimate: around 9 to 11% of the purchase price). The real estate transfer tax (Immobilienertragssteuer or ImmoEst) is exclusively the responsibility of the seller.

Ancillary Costs in Real Estate Purchase in Austria

In addition to the purchase contract, the following items are generally the responsibility of the buyer:

• Real Estate Transfer Tax (3.5% of the consideration, usually the purchase price).
• Land Register Entry Fee for the registration of property rights (1.1% of the purchase price).
• Costs for contract drafting (according to the agreement with the lawyer or notary, depending on complexity and liability risk).
• Costs for notarizing the purchase agreement and possibly the mortgage deed.
• Application fees for the land register application and potentially at the land authority, etc.
• If applicable, land register fee for the registration of the mortgage (1.2% of the mortgage amount).
• If applicable, credit agreement fees according to the credit agreement with the financing bank.
• If applicable, broker's commission (usually 3% of the purchase price plus 20% VAT).

Ancillary Costs in Real Estate Sale in Austria

Sellers may also incur ancillary costs in connection with a real estate transaction in Austria. The following costs may apply:

• Real Estate Transfer Tax (ImmoESt): When selling a property at a profit, ImmoESt is applicable unless the sale is exempt (e.g., main residence exemption). The amount of any ImmoESt depends on when the property was acquired and is either 4.2% or 30% of the sales proceeds.
• Legal/ tax advisor costs for calculating and remitting ImmoESt.
• If applicable, lien release: If the property is encumbered with a lien, right of residence, etc., and the buyer does not assume this burden, the seller must arrange for lien release or engage a lawyer at their own expense.

Not an Austrian or EU Citizen?

Watch out if you are not an Austrian or EU Citizen. Special rules apply! We have summarized what you need to know when buying property in Austria as a foreigner.

Do you have more questions about real estate purchase or sale?

Explore our real estate law services for any additional questions about property purchases or sales. We specialize in managing real estate contracts. We can also draft a bilingual agreement, ensuring you understand all clauses regarding ancillary costs. Giving you peace of mind against unforeseen surprises.

Please reach out to our law firm under office@geuer.at or by phone at +43-1-4380072. We look forward to your inquiry.