We are continuously expanding the offer of apartments in Austrian ski resorts. These apartments usually have a short-term lease with the company as part of the transaction. The investor will therefore have regular rental income according to the occupancy of the apartments and at the same time can book his apartment for himself on pre-agreed dates.
- Austria is a country with a stable financial and political environment.
- Stable and solid real estate market without extreme fluctuations, but with constant growth.
- No mass development of projects, but strong regulation that balances supply and demand.
- Any mortgage payments can be deducted from your rental income in Austria.
- Austria has no inheritance, gift tax or property tax.
According to Austrian law, such apartments must already have a special status in the approval decision. In some cases it is possible to buy apartments only for your own use and in other cases their commercial rental is mandatory. This always depends on the specific project. In the case of acquisition for the purpose of commercial rental (with the possibility of personal use usually 4-6 weeks a year, also depends on the specific project) the buyer will be refunded VAT on the price of the apartment. Prices of investment apartments are advertised without VAT.
Part of our services is also securing financing, for example in the form of a mortgage from an Austrian bank or a bank in the Czech Republic with the possibility of guaranteeing real estate both in the Czech Republic and acquired real estate in Austria. With each purchase of real estate in Austria, the additional fees are about 10% of the purchase price, incl. VAT (3.5% tax, 2% legal service, 3.5% commission to an Austrian seller, 1.1% cadastral fee for real estate transfer). In some cases, Invest & Design does not charge you a commission if we are paid by the seller, or we charge a standard commission for mediation in the amount of 3.5% of the purchase price + VAT. You will find this information in every menu.
In all cases, the price of our services includes continuous assistance in the Czech language in the entire purchase process from the selection of a suitable property to the handover of the property, we will arrange a translation of the contract documentation into Czech or assessment by an Austrian lawyer in case of interest, which we recommend. Personal assistance in the territory of Austria in the Czech language is provided.
Types of real estate approval in Austria:
Real estate in Austria has, in a given form of approval, a clearly defined way in which property owners can use it. Below are the usual types of approvals:
Permanent residence – (Hauptwohnsitz) this type of building approval is intended for long-term residence. At least one of the owners is obliged to register as a permanent resident of the property and also become an Austrian tax resident. Permanent residence must be reported to the Municipal Office, the property is also required to use the property more than 183 days a year and to file a tax return in Austria. It is also possible to rent this property on a long-term basis to someone who will then register as a permanent resident. Due to these strict requirements, permanent residences are not a very suitable solution for most foreigners, especially if they want to use the property only occasionally for a holiday stay.
Tourist residence (investment type) – (Touristische Vermietung), the most common variant of the type of approval, suitable for investors, referred to in English as “buy-to-let”, which is an attractive combination of investment and recreational real estate and is most affordable and sought after. This type of approval usually allows its owners several weeks of private use (usually 4 to 12) and then these properties are leased to visitors through a professional agency in the absence of the owner. Property rental is mandatory. Thanks to rental income, landlords can achieve an attractive net rental income, usually between 4-6% per year. This concept is very well developed in Austria, as regional authorities try to support the tourism sector and prevent the creation of so-called “ghost towns”, ie places where foreigners would buy real estate and use it only a few weeks a year. Rental management is hassle-free for property owners, as the management agency covers all operations from guest bookings, check-in and check-out, through cleaning to maintenance. There is also a significant tax advantage for “tourist residences” in Austria, when the full amount of VAT is refunded. The real estate offer therefore usually includes the price without VAT, which must be paid, but will then be refunded.
Leisure housing (second home) – (Zweitwohnsitz (or Ferienwohnsitz) this type of property approval offers in some cases complete flexibility of use. Real estate with this type of approval is extremely rare, especially in Tyrol and Salzburg.In Salzburg, the number of properties with leisure status has even been reduced since 2018, and municipalities with more than 16% of such types of approval can no longer allow new projects of this type However, some properties with such a status can be used for their own purposes only up to 183 days a year. In Austria, they are in favor of spatial planning and thus regulation holiday homes of the responsible Länder. Therefore, there are nine different state laws on spatial planning. In practice, it has been found that, in particular in some regions of the western federal states of Vorarlberg, Tyrol and Salzburg, there are special restrictions on the purchase of holiday homes.
Deciding whether you prefer the investment type of real estate or so-called leisure housing is one of the key things. Keep in mind that if you opt for the second option, your choice will be significantly more limited.