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Briefly yes. More approval checks to be done.
Approval Procedure for Third-Country-Citizens
If foreigners purchase a right to a property or an apartment, a mandatory approval is required. Citizens of an EU- or an EEA-member state are excluded from the approval and enjoy equal status as local citizens. The approval procedure only has to be done by third-country-citizens.
Since more detailed requirements for the acquisition of property by foreigners are provided in the Acquisition of Property by Foreigners Act of the individual provinces, only an overview of the procedure is given at this point.
You should directly contact the competent office for the acquisition of real estate where they can obtain all the information on province-specific terms and precise details ( e.g. deadlines). You can also learn whether the demand for approval should be submitted to this very office or rather to the competent municipal authorities (e.g. in Vorarlberg).
Requests are approved if the transaction is of cultural, social, or macroeconomic interest and no national interests are negatively affected.
https://www.help.gv.at/Portal.Node/hlpd/public/content/163/Seite.1630000.html#Approval -
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@stevepatriaca – certainly in Vienna that is the case (as per the page: https://www.oesterreich.gv.at/themen/bauen_wohnen_und_umwelt/grundstueckskauf/1/Seite.200041.html) but there seem to be some interesting variations from one province to the next (e.g. the same page cites that there is no permission required for third country nationals in Graz…)
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Tyrol and now Vienna recognise the Property Purchase rights of British Citizens who are Withdrawal Agreement beneficiaries and should be treated the same as Austrian/EU Nationals. The UK Embassy and Brexit Hotline are clarifying the situation with the other regions. Anyobdy arriving after 1st January 2021 will be treated like a 3CN.
Property Lawyers may be unfamiliar with the rights of Withdrawal Agreement beneficiaries and should be referred to
Articles 9,10, 12 and possibly 23 of the Withdrawal Agreement -
UPDATE 16/7/2021
Tyrol, Carinthia, Upper Austria, Vienna and Vorarlberg have now confirmed to the British Embassy in Vienna that British Citizens who are in scope of the Withdrawal Agreement are to be treated like EU citizens in terms of property purchase rights. For the other regions it is currently with their legal departments and they are working on a response! -
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Thanks, I had no problem with the Article 50 card despite the somewhat bizarre situation that the Austrian authorities declared that an Anmeldebescheinigung they issued in 2008 did not mean what it said (ie “Sie ist zugleich das Dokument zur Bescheinigung des Daueraufenthalts”). It seemed to be just a means to extract the €70 from me. The card was issued fairly promptly.
There is no indication that the authorities will try to extract additional fees for property ownership. But where the Government has not made it transparent to the federal and local governments then naturally every time your lawyer has to ask a question then quite understandably he expects to be paid! So we must hope the EU will ask member states to ensure that where appropriate the terms of the WA are properly communicated to their devolved governments.
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There is a fee for going through the Ausländer Grundbuchverkehrs Kommission and it is based on the property value. I know of at least one person who was charged for this earlier in the year and it takes times too. I also know someone who just had to go through the motions and get a Negativbestätigung and were not charged. Yes, you are right lawyers love to charge fees and a lot of them are unfamiliar with the Withdrawal Agreement.
The Withdrawal Agreement is not explicit about lots of things and property rights is one of them. There are now multiple legal opinions on this issue for Austria and both the British Embassy and Austrian Government are aware of the issue and are working on it. With regards the EU, here is a link published by the EU on Enforcement of Individual Rights: https://ec.europa.eu/info/sites/default/files/enforcement_of_individual_rights_under_the_withdrawal_agreement_v5_en.pdf . Given the recent communication from the Embassy re. property rights I am hopeful that it can be resolved without having to escalate the issue. Unfortunately it is going to take time.
Steve, where are you buying exactly? -
Thanks for your detailed and thoughtful responses. We are now at the Grundbuch stage but so far there are no indications of problems, although they asked for our marriage certificate (my spouse is Austrian). Our lawyer seems well informed and we had no problem with the Erklärung to the local authority in Bad Sauerbrunn. They were polite and quick and were not concerned with nationality, only that we did not use the house as a “holiday” or “weekend” home. It suits us that the local council does not want the town taken over by weekenders who will undermine its long term financial and cultural stability. My only concern is whether the federal Government communicates effectively with the provincial and district governments and whether they understand the implications of the WA for property rights. For long term security I like to know that I own half a property in my own right and not only because my spouse is Austrian. Above all it is critical that there is clarity, as I stated in my first post if your lawyer or Notar has to seek answers from the authorities then you have to pay for his time.
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Many thanks for all the follow up. Property purchase outside the city flat belt needs a lot of patience and money – but as long as you do not move too often it bears fruit, the rise in property values covering the immense costs of buying in Austria (up to 20% of the purchase price). If you are also selling then you may need a bridging loan which has also become even more difficult after Brexit. For us the major banks were unhelpful but we found an excellent regional bank wiling to work with us and at normal interest rates and costs. I am not sure if I am allowed to name the bank here but there are not so many small banks in Austria and easy to find if you need it.
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Sorry Zoran, I am not sure what or who you are referring. The main thread refers to British Citizens and partners buying property in Austria following Brexit. There are 9 provinces in Austria including Vienna and they all have their own property rules.
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Yes sorry. I did not want to deter people buying flats in the cities. The process is naturally simpler and the legal and administration costs are lower. Many of the issues which concern an independent homeowner are handled by the Hausverwaltung. When I bought a flat in Vienna the process seemed much simpler, quicker and easier. Nevertheless there are still pitfalls and I would still recommend a good lawyer. Some Makler are better than others and some will try to take advantage of a foreigner. Many are excellent of course.
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Thanks Steve. My aim is to buy myself a place to live in, so hopefully will not have to sell any time soon. Do you have recommendations for a good lawyer, and any particular estate agencies?
Is there such a thing in Austria as leasehold vs freehold like there is in England and Wales for example? Some people tell me to avoid post war buildings and to either go for newbuild or pre-war. Do you know anything about that?-
Hi Zoran, I can’t comment on Vienna but the concept of leasehold does exist in Austria. A lot of lakeside/holiday home properties in Burgenland are on leasehold land and typically there is an annual fee. Fees seem to be negotiated on a fixed 10 year basis. Sometimes you will see properties that are on leasehold land owned by the church or council in some areas (e.g. I have seen some in Klosterneuberg). In terms of flats/apartments you probably may also need to check if they are social housing blocks as there may be other restrictions in place (e.g. you can only rent them out for a fixed fee). For flats sometimes you also have to pay extra for a kitchen or alternatively the kitchen is not included in the sale.
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Hi Zoran,
There is not the same leasehold/freehold system here as in the UK when buying a flat in Vienna. One slight quirk is that you buy effectively the insides of the walls of the flat in a house made up of multiple dwellings, so if you wanted to add a balcony, you need the house owner and the other owners agreement to do so. Once of the biggest issues on new and old places will be the Reparaturfond (repair/maintenance fund) which covers the communal parts of the building. I regularly ended up having to top up ours. Also always worth checking how lift use is calculated. Similar Betriebskosten have a coefficient that increases by floor…
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Hi Zoran, the best option in terms of buying is to try and get a Private sale in that you don’t have to pay Estate Agent fees. Unlike the UK the buyer AND seller have to pay Estate agents fees in Austria and they are not small. The moment you contact an Estate agent about a property you are liable for the fees. If you have not done so already I would check this website for properties: https://www.willhaben.at/iad/immobilien/.
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Dear all, firstly many thanks for the support from British in Austria. We just had confirmation that we are entered in the Grundbuch in Mattersburg so we are now the official owners. Finally! It has taken just over a year because of delays in the probate court after the death of one of the owners. These are just the unpredictable issues which make it worthwhile to have a good lawyer.
The private market is a mixed blessing. Some people are lucky; some less so. Many private vendors are expecting unrealistic prices. Estate Agents have access to software which allows them to search for similar properties and to identify the real sale prices (often very different from the asking prices). These are jealously guarded secrets but you can ask the Makler for evidence to support the asking price. The m² price is only a very rough guide.
I would definitely avoid leasehold. I looked at properties tot he north east of Vienna – Florisdorf to Bismaberg, Korneuberg etc. The lease rental was generally between €500 and €1000 per month (ie up to €12,000 a year). Unless you feel that you want to spend the rest of your life supporting the monks of Klosterneuberg in the comfort they are accustomed to (for absolutely nothing in return) then I would steer well clear.The second district is very varied with areas between the Prater and the canal quite sought after, whilst others are less so. When I bought my flat in Vienna I began with fairly clearly defined locations but soon realised the best value and opportunities might be in areas I had not considered. A good estate agent will be aware of this. He or she may also put you on the books so you get details before a property reaches Immonilien.net. Many of the best flats sell without being advertised on the Internet at all. Companies which specialise in the luxury market like Engel and Volkers also have a portfolio of clients looking for buy to let at the lower end of the market. But they tend to focus on the quality properties.
There is a reason why the Makler gets his 3%. They are supposed to represent both parties and help facilitate the sale.- Again some are better than others. But they are regulated by law and will be required to disclose any relevant information about the property and also to explain fully your legal commitment when you make an offer (an offer is legally binding in Austria so if your offer is accepted you are bound to it). In some cases the property may be bought as a shell and the kitchen and maybe some cupboards or other furniture bought privately for cash. Then you only pay tax on the property part.
In my experience new build tends to be more expensive and just like a car it can be worth buying a couple of years older so you don’t have such high depreciation (and the snags have been fixed!).
On the question of age it is certainly true that immediately post war building was lower quality in general – though with exceptions and sometimes it depends on the sector. the main issue with older property is insulation, windows and heating. Fernwärme has its advantages but you are at the mercy of some central thermostat to decide when you can have your heating on in the cool days in summer. If the building is not insulated then this cost will have to be borne sooner or later. Are the windows up to the modern standard. Also check current health and safety regulations especially for balconies, French balconies etc.
You can check the Grundbuch entry for a small fee to see who the owner is and whether there are any liens on the property. If you buy through a Makler he will provide you with a copy free of charge. He should also of course provide the Energieausweis, accurate plans and details of the Betriebskosten.
Finally check the property at different times of the day, check for late evening noise (rooftop parties etc.) and check open areas for dog poo. Look at the state of neighbouring properties and ask the Hausverwaltung what % of the flats are owner occupied. Tenants tend to look after them less well and a constant flow of different tenants may make for an unfriendly environment. Ask for the minutes of the last few Hausversammlung.
Good luck!
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Thanks Keith. Now the hard work begins getting builders and tradesmen to commit to schedules and prices! But generally we have found that outside Vienna people have more time for us. A lot of professionals (interior designers, architects etc) will give their time largely free of charge in the hope that they will get the contract. At least the preliminary meeting is free (and can be several hours). This would be unheard of in UK!
It has been difficult to find a small town or village which is still alive and has facilities like restaurants, supermarkets, doctors, dentists and hotels. We also wanted somewhere out of the Vienna basin (and the fog) but not in the mountains so the Rosaliengebirge is a good compromise. I have trouble enough with German so I also did not want to face learning Croatian, so we tended to avoid the Burgenland Croatian settlements. The Magyar communities seem to have always been German speaking – hence Deutsch Westungarn.
We look forward to becoming Burgenländer in the first year of its new century!
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Thanks Steve, this is great insight. And congratulations on your ownership 🙂
Another place I am looking is the 3rd District, near Radetzkyplatz and up to Rochusgasse. There was a flat I saw on Willhaben in Loewengasse just opposite the Liverpool pub. By the time I showed the link to some friends, same day, they told me it was not there anymore so I presume sold already.
I know a few Maklers now but I think I need to establish a better relationship with them as they keep emailing me offers that I already saw myself on Willhaben. Or just approach new ones.-
Dear Zoran, I am sure you have thought of this but in very built up areas be aware that the flats can be very dark. When I bought my flat I did not fully appreciate that the garden would see no sun from November to mid March. Not such a problem unless you want to grow anything which needs an early season. The notorious Vienna echo is determined by the size and shape of the Hof and the height of the buildings around you. It is better than clanking trams but the guy on his Handy in the flat across the Hof may be telling his life history to the world. Worse still maybe a child learning the recorder. 🙂
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Forgot to provide this update, sorry!:
In the Embassy Q&A Outreach Event on 23rd September 2021, the Embassy confirmed the following:
“Only 2 regions have not yet confirmed that UK nationals in scope of the Withdrawal Agreement will be treated as equal to EU nationals when buying property. We expect their confirmation shortly”
The two outstanding regions are Lower Austria and Salzburg Land! -
Hi all. I am in the process of trying to buy a property in Tyrol with my husband. I am English, he is German, and we live in Salzburgerland. I have previously been advised that as I am no longer an EU citizen, I am not able to buy in Austria, and especially not Tyrol. Upon reading this thread (which has been super useful) it seems apparent that this advice is incorrect, and that I can in fact buy in Tyrol since Tyrol announced their stance on UK citizens in July. Great news! I am have my main residence in Salzburgerland, am employed, and have my Article 50.
I am however trying to find the official document that states this so that I can send it to my lawyer in Salzburgerland who is putting together the property purchase contract. Does anyone have a link!
This is the comment on this thread that I am referencing:
“Tyrol and now Vienna recognise the Property Purchase rights of British Citizens who are Withdrawal Agreement beneficiaries and should be treated the
Property Lawyers may be unfamiliar with the rights of Withdrawal Agreement beneficiaries and should be referred to
Articles 9,10, 12 and possibly 23 of the Withdrawal Agreement.”
Thanks in advance! -
Hi,
I am not a lawyer or an expert and only respond form personal experience. I think your post raises a number of quite complex issues some of which we have encountered. Firstly, it was never the case that there would be an absolute ban on non EU citizens buying property in Austria, rather that they are covered by different rules and may need to apply for permission. The exact criteria vary from one province to another even from some Gemeinde and even within a Gemeinde. As I understand it if you are covered by the WA you are now treated as if you were still an EU citizen, which effectively means the same as an Austrian citizen. In areas where there are strict limitations on property purchase you would have no fewer rights than an Austrian from Vienna. However that does not mean you have a right to buy, and certainly not if it is not intended to be your Hauptwohnsitz. We had to sign a declaration at very local level (ie in Bad Sauerbrunn not Mattersburg) that we would be using the property as our main residence. On the other hand there are houses a couple of Km away near the swimming lakes which are specifically intended as holiday or weekend homes. If you intend to keep your main residence in Salzburg then you will need to know how that may impact on your property purchase in Tirol and it may differ from one Gemeinde to another. If you are married to an Austrian then you are exempt from the third national requirements but still of course subject to any limits set on your husband’s right to buy. I am assuming that all EU citizens should be treated as Austrians here. Oddly enough although I was covered by the WA we were also asked to produce my marriage certificate although it is not recorded in the Grundbuch. We found that our competent Vienna lawyer had a good grasp of the issues, but they are not always understood by Makler or a provincial Notar. Your lawyer will certainly know where to find the relevant documentation – and if he doesn’t then you need to change your lawyer!
The main take here is the fact that many areas are taking steps to try to limit the weekend, holiday home business. Rightly so in my view. It has already destroyed many towns by removing so many all year residents that infrastructure and commerce cannot be supported. This has happened in some areas around the Neusiedlersee which are packed in summer and desolate in winter. I believe this is also a big concern in Tirol and therefore although Brexit should not now be an issue for those with long term residency covered by the WA, there will be other restrictions which will apply equally to EU citizens and even other Austrians. We found the gemeinde itself very approachable and we had a direct discussion with them and we took our Erklärung personally at the suggestion of our lawyer. That gesture seemed to be appreciated and it was processed very quickly.
Hope this is helpful.
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@stevepatriaca Hi Steve, thank you so much for your reply, it has been incredibly useful. The advice we were previously given about not being able to buy property post Brexit seems to have been misinformed, so I am so relieved that we questioned the information given by our local authorities. It seems as though the rules are ever changing, and officials in one state don’t particularly keep abreast of rules with regards to the Withdrawal Agreement in other states. Of course understandable to an extent given things are constantly changing at present, however, we were quite surprised to have to point officials in the right direction based on the incredibly useful information in this thread. As a result, the purchase of the property we are interested in is moving in the right direction once again. Fingers crossed there are no more hurdles. Thanks once again, and to all of you have shared information on here!
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Hi BecS, I don’t check this forum all the time but your lawyer in Tyrol should take a look at Section § 3 of the Landesrecht konsolidiert Tirol: Gesamte Rechtsvorschrift für Grundverkehrsgesetz 1996, Tiroler. Specifically he should look at the section referencing Artikel 50 EUV. Hope that helps!
The British Embassy has all the details re. the other regions. Salzburg Land and Lower Austria are still a work in progress!
PS: If you don’t yet have an Article 50 card you should get one!
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Hi all, just joined the conversation. We bought a ‘Fereinhaus’ in Salzburgerland 2013 and registered it as our ‘Hauptwohnsitz’ 20/1/20. Following the sale of our UK property in December ‘20 we moved to live permanently in the Austria. We are now looking for a larger house, but are being told by our Notar that we cannot buy another as our ‘Hauptwohnsitz’ because Salzburgerland is still ‘work in progress’ as you state regarding ratifying the purchase of main residences for non EU Brits. Does anyone have an update on this, or should we contact the Embassy directly ?
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Hi Mike,
Hot off the press this afternoon from the Embassy:
“Lower Austria have confirmed to the embassy that UK nationals in scope of the Withdrawal Agreement enjoy equal treatment to EU nationals when purchasing property.
Salzburg is the only region yet to confirm.”
Basically Salzburg Land is still a work in progress!
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Dear Mike,
Firstly if you have an Article 50 card and are therefore legally long term resident in Austria covered by the WA then you may buy and own property in Austria on the same terms as an Austrian or EU citizen. This does not of course mean that you can necessarily buy a second property in a holiday area where there are restrictions on all such purchases. When we bought in Bad Sauerbrunn we had to make a declaration that it would be our Hauptwohnsitz. Of course this is also in our interests as we do not want to see properties around us bought up as holiday homes. The last thing anyone wants is an Airbnb neighbour!
There seemed to be an understanding that you cannot necessarily move instantly from one house to another (in that respect the system here is quite unlike the English buying and selling “chains”).
That said, not all Notar are well informed. Nor are those in local government. At one point we were asked by one local official if the UK was a member of the European Union. There also seemed confusion about whether it was still necessary to produce evidence of marriage to an Austrian and we were asked for our marriage certificate even though this was not strictly a requirement.
As a general point I would not rely on a Notar. They can be Dickensian. We depended very heavily on a good lawyer. You will need a Notar for some stages of the purchase but generally speaking I would strongly advise you to find a good lawyer who is experienced in working with the international community. That can’t be very difficult in Salzburg. The right lawyer will know that you do not need to ratify the purchase as a Brit if you are covered by the WA. Many lawyers will offer you a global rate (about €5,000 + costs) rather than an hourly one. Then you just pay the Notar the very specific costs for notarising certain documents and these costs are all set out in legislation and are relatively small. But in my view you should NOT rely on a Notar to look after your own interests.
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The Embassy Consulate team advised us this week of the following:
“The UK government has recently raised the issue of property purchase in Salzburg with the European Commission and directly with the Austrian regional and national authorities. We very much hope that Land Salzburg will soon confirm equal treatment for UK nationals in scope of the Withdrawal Agreement.”In addition to that it has been reported that there have been a few successful property purchases in Zell am See, Salzburg Province using the notary Dr. Lorenz Reitstätter M.B.L. – https://www.notar-zellamsee.at/. I believe that these were for Hauptwohnsitz.
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Hi there,
I am an Australian citizen and working / living in Leoben Steiermark. In the web-link below it cites that there is no permission required for third country nationals in Graz…). I have seen this in the threads above. Does this only apply to Graz? Or does it apply to the entire Steiermark Region (including Leoben for example). Also who do I email? To find out? If anyone has experience in buying a property in Steiermark as a 3CN pleaes can you give me some tips.https://www.oesterreich.gv.at/themen/bauen_wohnen_und_umwelt/grundstueckskauf/1/Seite.200041.html)
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Hi Jovan, I did see that link a while back but have been unable to verify the situation in Graz. I did ask the Österreichische Notariatskammer and was advised to speak to a local Notary. I think the first meeting is free. Steiermark does have quite a few localised property laws, so you would be advised to speak to a local Notary or property lawyer. You could also try in this Facebook Group: https://www.facebook.com/groups/english.styria. For Notaries this might help https://www.notar.at/notarfinder/. In general 3CN’s need prior approval to buy in Austria, with a few exceptions (e.g. married or Civil partner to an Austrian). The process in general is more costly AND they can refuse.
PS: British Citizens with an Article 50 residency permit are treated differently and Steiermark have confirmed that equal treatment to EU/Austrian Nationals apply.
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We have now put an overview of the current situation on the website – https://www.britishinaustria.net/the-guide/property-buying-overview/
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