Austria: Guide to Buying Costs and Procedures
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Buying costs are high in Austria
How high are realtors’ and lawyers’ fees in the Austria? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Legal Fees | 1% - 3% (+ 20% VAT) | buyer |
| Property Transfer Tax | 3.5% | buyer |
| Registration Duty | 1% | buyer |
| Notary's Fee | €120 per signature (+ 20% VAT) | buyer |
| Estate Agent's Fee | 1.5% - 2% (+ 20% VAT) 1.5% - 2% (+ 20% VAT) |
buyer seller |
| Costs paid by buyer | 7.50% - 10.32% | |
| Costs paid by seller | 1.80% - 2.10% | |
| ROUNDTRIP TRANSACTION COSTS | 9.30% - 12.42% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in the Austria?
There are no restrictions on foreigners buying properties in Austria.
When a property has been selected and an offer agreed upon, a purchase agreement is drawn by an Austrian solicitor/notary. When the contract is signed, the buyer is not unusually expected to pay 10% of the price as deposit, which is put in a trustee or escrow account until the completion takes place. Upon completion your lawyer will register transfer detail at the local registry office and pay transfer and registration duties.
Property registration costs around 4.5% of the property value. It takes an average of 32 days to complete all the three procedures needed to register a property in Austria.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Legal Fees :
The contract is usually set up by a lawyer or a notary, at 1% - 3% of the purchase price (+ 20% VAT).
Property Transfer Tax:
Reduced to 2% for transfers between husband and wife and close relatives.
Registration Duty:
To be paid to the Land Register.
Notary Fee:
The signatures of the seller and buyer have to be authenticated on the contract. That can be done by notary or by court for a max of €120 per person (plus 20% VAT); the fee of the court may differ slightly to the notary's.
ESTATE AGENT'S FEE |
|
| PURCHASE PRICE | ESTATE AGENT'S FEE |
| Up to € 36,336 | 4% of the selling price plus 20% VAT |
| From € 36,336 to € 48,448 | max. € 1,453 plus 20% VAT |
| From € 48,448 | 3% of the selling price plus 20% VAT to be paid by both parties (seller and buyer) plus 20% VAT |
Austria - more data and information
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Your Comments
posted by Alexandr | 2007-08-23
Sales manager (In a financial magazine), Russia, Moscow
Is there a mistake in Transaction costs table? I guess costs paid by buyer should be 7.50% - 10.5%, not 7.50% - 10.32%: 3.6 (3%+ VAT 0.6)+3.5+1+2.4(2%+ VAT 0.4) = 10.5 Costs paid by seller: 1.80% - 2.40% Therefore ROUNDTRIP TRANSACTION COSTS: 9.30% - 12.9%