Ski Property Buyer’s Guide

 

Explore our Ski Property Buyer’s Guide and learn how to buy a ski chalet or apartment in Austria. If you are looking for personalised advice, call our ski property experts on: +44 (0)20 7486 9419 – five minutes on the phone can save a lot of time on wasted research. Alternatively, feel free to email us at enquiries@lindforth.com

 

Why buy a ski property in Austria?

People buy a ski property in Austria as a lifestyle investment. A mountainside chalet or apartment is an exciting addition to your property portfolio, enabling year-round Alpine adventures for the family.

Dual-seasonality
When you buy a ski property in Austria you can enjoy your mountain home all year-round. Winters in Austria are cold and snowy,  but also enjoy lovely warm summers. Ski resorts like Kitzbuhel are equally popular in the summer months, boasting beautiful lakes for swimming and sailing, and many other activities. Here you can enjoy biking, hiking, golf, rock-climbing, and much more. As such, almost all Austrian ski resorts are authentic villages, home to locals year-round, and never close. This is not the case across the Alps – in some countries, resorts are ‘purpose-built’ and close for the spring, summer, and autumn when they are not fit for use. Dual-seasonality is desirable and why many of our clients buy a ski property in Austria.

Rental income and investment opportunity
Austrian ski properties make excellent rental investments that earn you an income all year round. Most ski properties in Austria have dedicated rental management teams in place who will maximise your rental income and provide a hassle-free experience for you. They will advertise your property, schedule your bookings, meet your guests, and handle all laundering and cleaning of your property. New-build properties in particular have even been designed with rental income in mind, offering amazing spa facilities and services for you and your guests to enjoy. Rental income and investment potential is an exciting reason to buy a ski property in Austria.

Modern infrastructure
Austrian ski resorts have the most modern lift infrastructure in the industry, having invested over 7 billion euros since 2000. Austrian lift companies continue to invest into their facilities and some resorts even boast luxurious equipment, such as heated chairlifts and gondolas, Wi-Fi on the slopes, and advanced snowmaking facilities. Resorts are also connecting-up between themselves, to create larger areas to explore on skis. Austria now accounts for a highest number of very large ski resorts. This includes resorts like Saalbach-Hinterglemm, and also The Arlberg. Modern infrastructure and investment is important and a good reason to buy a ski property in Austria.

Soft-skiing
As well as investment in ski infrastructure, Austrian ski resorts invest into soft-ski and summer facilities that are becoming ever more popular. Almost 25% of annual visitors to the Alps are non-skiers and Austrian ski resorts offer something for everybody. Soft-ski options include activities like winter walking, ice-skating, tobogganing, sleigh rides, snowshoeing, and much more. No skiing, no problem!

Straightforward purchase process
Buying a property in Austria is simple and straightforward and we will guide you through every step.

More about Austria

Austria is a beautiful and traditional Alpine country and is the perfect place to buy a ski property. It is home to some of the best ski and summer resorts in the world. Austrian villages maintain their authentic Alpine charm and still feature beautiful chocolate box chalets, old-world barns, and onion domed churches. Austria borders Switzerland, Liechtenstein, Germany, Czech Republic, Slovakia, Hungary, Slovenia, and also Italy, so makes a great base from which to explore the whole of Europe.

Austria is divided into nine federal provinces, four of which enjoy a mountainous landscape where you can buy ski property. The provinces which offer world-class skiing are Tyrol, Vorarlberg, Salzburgerland, and Carinthia. The individual ski resorts within these provinces have their own ‘personalities’, so depending on whether you are looking for a family-friendly resort, or fancy something with a kicking après ski scene, our expert advisors are here to help you find your dream home. Contact us now for some professional guidance.

What type of ski property can I buy in Austria?

There are many different types of ski property you can buy in Austria. Each village and ski resort has its own unique style. You can find traditional chocolate box chalets for sale, chic new-build apartments, as well as apart-hotels and investment opportunities. We have a large portfolio of carefully selected ski property for sale in Austria and can guide you through your property search. Whatever your requirements, we can offer you personalised suggestions to tick all the boxes! Search our listings or contact us for a private consultation.

What are the advantages of buying a new build ski property?

There are many advantages of buying a new build ski property in Austria. In terms of financial benefits, a big advantage is that most new build ski properties are rental investment opportunities. Unlike traditional chalets, these properties are built with rental income in mind and often offer additional facilities for owners and guests alike. For example, leisure and spa facilities, and even private lockable storage for owners ski gear. Rental management teams are set up to handle everything for you, making this a hands-free investment. Additionally, you can reclaim all or part of the 20% VAT back on your purchase.

Other considerations are that new-build properties tend to have larger windows than traditional chalets, letting in more light and wonderful views. Also, maintenance costs will be low in the early years. New build properties tend to be more energy efficient so your running costs could be less.

Most excitingly, a new build property is built-to-order, exactly to your wishes. So you can choose the fixtures, fittings, and style throughout your mountain home. The developer will work with you, usually across just one summer, to build your perfect mountain home. All new build properties have construction guarantees, too. Learn more about how your chalet will be built here.

Are there restrictions when selling my ski property?

There are no restrictions when selling your property in Austria. You can sell your ski property whenever you like.

If your property is a rental investment and has a rental management team in place, the new buyer can simply continue the rental agreement. This is desirable, because it is even easier for the new buyer to purchase a rental investment that is already up and running.

Selling your ski property

We are ski property experts and would love to help you sell your ski property. If you would like to learn more about our services and how we can help you, please contact us.

How do I arrange my property inspection trip?

Thinking of visiting Austria? Organising your trip to view property in Austria is an exciting adventure. Research the market and seek advice on the perfect ski resort to suit your requirements. Speak to our Ski Property experts as we know all the villages extremely well and are here to help. We have the largest portfolio of ski properties for sale in Austria and cover all the main resorts.

Tailor-made itinerary

Once you have chosen your ideal ski resorts and would like to view some property or plots of land, we will coordinate with you to arrange a suitable date for your appointments. We will ensure that you can visit all the properties you want to see without feeling rushed. Once we have organised your appointments, we will send you an itinerary with a link to Google Maps so you can see your journey. We will also recommend a hotel for your stay and some good restaurants to check out. Here are some tips and suggestions to make sure it goes as smoothly as possible:

Flights
Flights to Austria are inexpensive and frequent and all of our developments are within an easy drive of Salzburg, Innsbruck, Munich or Zurich airports. It is also possible to fly to Klagenfurt or Memmingen airports as an alternative.

Car Hire

Hiring a car is the best way to see your chosen properties as it gives you the freedom to explore the surrounding area and get a true feel for the region.

If you hire a car from Germany or Switzerland to drive to Austria, be sure to buy a vignette from a petrol station as you approach the Austrian border. The vignette is a little sticker which costs around 8 euros and needs to be stuck on your windscreen like a tax disc. If your car does not display one you could be given a fine.

During the winter season it is compulsory for car hire companies to provide winter-tyres in Austria, Switzerland, and Bavaria, but other countries such as Italy do not have these same rules. Please make sure if you pick up your car from Italy that you specify winter-tyres. They safer and a legal requirement for driving in Austria.

Useful Tips

Children under 12 or 150cm tall must sit in a child seat. Car headlights must always be on, regardless of the weather. Speed limits in Austria are 130kph on motorways, 100kph on normal roads and 50kph in villages. Watch out for speed cameras!

Don’t Forget!

If you are visiting the Austrian Alps to view properties, make sure you have sensible footwear. In winter you will need waterproof shoes with good grip and a rubber sole. In summertime, bring a pair of flat shoes, as stilettos are not great for walking across plots of land. Winter temperatures in the Austrian Alps can get very chilly so bring warm clothes to ensure that you won’t be cold. It is also useful to bring sunglasses and spf as the sun is strong at high-altitude.

For More Information

Thinking of visiting Austria? Please feel free to give us a call on +44(0)20 7486 9419 or email us at enquiries@lindforth.com if you have any questions or would like to discuss any of our properties.

Who can buy property in Austria?

Austria has been a member of the EU since 1995. Although EU-citizens are allowed to buy and live permanently in any house they wish in Austria, these rules do not apply when it comes to buying a holiday home or investment property. Austria is divided into nine self-governing Federal Provinces and each of these Provinces has their own rules. So you must bear these rules in mind when considering who can buy property in Austria:

EU-Citizens:

If you are an EU citizen you can buy a holiday property in any of Austria’s nine Provinces and the process is very straightforward.

Non EU-Citizens:

If you are a non-EU Citizen then there are restrictions on what you can buy in Austria. This may vary from province to province, but generally speaking, in the Tyrol, Salzburg and Vorarlberg provinces it is only possible to buy a property with a special ‘second home’ status.  In other less touristic provinces however, it may be possible to buy not just ‘second home’ properties, but additionally rental investment properties.

EU Companies:
If you are the owner of an EU company then it is possible to buy anywhere in Austria, through your company.

What is the purchase process for a new-build or an off-plan ski property?

1. Consultation with a Ski Property Expert

The new build purchase process in Austria is very straightforward and secure. Once you have chosen your new mountain home, our ski property experts will hold your hand throughout the purchase.

2. Visit Austria for a property inspection trip 

Once we have shortlisted a selection of options for you, it is time to visit Austria and put on your hard hat! We can sometimes ‘place an option’ on a property or plot of land for 14 days before you view. This is where the developer blocks a property for you, if you have already booked flights to visit, thereby taking it off the market for a short period. This ensures the property is not sold to someone else before you arrive.

Visiting Austria for a property inspection trip is an exciting adventure in your new build purchase process. We will meet you and show you around the properties or plots you are interested in and answer all your questions. There is still plenty to see if your property is off-plan. We can take you to see some completed properties by the same developer as well as showrooms. We will also recommend hotels, restaurants, and activities to do so you can really explore everything the region has to offer.

3. Reserve your property

Once you have chosen the right property, we will secure a reservation on the property for you either through one of our partner agents, or directly with the developer. Whilst the property is reserved, we will help answer any questions you have and ensure the perfect design for your floorplans.

4. Sign your purchase contracts

The notary will draw up your purchase contracts and all the documents required to transfer the legal ownership. This usually takes four to six weeks. Then, you can visit the notary’s office in Austria to sign your contract. Alternatively, you can sign and legalise your purchase contracts in the Austrian Embassy in your own city. For a list of Austrian representations in your country click here to take a look.

5. Pay in stages and choose your interiors

Once approved and signed, you will pay for your new-build or off-plan property in stages, in line with the construction progress. To learn more about stage payments, click here. As your ski property is tailor-made to your wishes, you will choose all the fittings, fixtures, and furniture throughout the build. To learn more about furnishing your property, click here.

What is the purchase process for an existing ski property?

1. Consultation with a Ski Property Expert

We work with the best agents throughout Austria and can help you to find the perfect resale chalet or apartment. The purchase process in Austria is very straightforward and starts with speaking to one of the ski property experts. We will understand your wishes and requirements and send you personalised property recommendations that tick all the boxes. Once we have shortlisted a selection of options for you, it is time to visit Austria.

2. Visit Austria for a property inspection trip 

Visiting Austria for your property inspection trip is an exciting adventure! We can usually ‘place an option’ on a property for 14 days before you view. This is where the seller blocks a property for you, if you have already booked flights to visit, thereby taking it off the market for a short period. This ensures the property is not sold to someone else before you arrive.

We will meet you and show you around the properties are you interested in and answer all your questions. We will also recommend hotels, restaurants, and activities to do so you can really explore everything the region has to offer. Learn more about each region in our Ski Resort Guides.

3. Reserve your property 

Once you have chosen the perfect ski property or rental investment opportunity, we will ensure our partner agents secure a reservation on the property for you. Whilst the property is reserved, we will answer any detailed questions you might have and the notary to draw up your purchase contracts to sign. You can also organise your mortgage at this stage. This usually takes around two weeks.

4. Sign your purchase contracts 

The notary will draw up the deed of sale and all the documents required to transfer the legal ownership. You can visit the notary’s office in Austria to sign your contract. Alternatively, you can sign and legalise your purchase contracts in the Austrian Embassy in your own city. Once approved and signed, the buyer pays full purchase amount within 14 days. For a list of Austrian representations in your country click here to take a look.

5. How do I pay for an existing ski property?

It is very simple to buy a ski property that is already built-in Austria. Once you have signed your purchase contracts, the notary simply takes payment for the ski property into their escrow account, ready to be transferred to the seller. They usually request payment within 14 days of signing the purchase contract. There is no deposit or staged payments when you pay for an existing ski property.

The payment process is different when buying a new-build property. Read more here.

What are the purchase costs in Austria?

Purchase costs for buying a property in Austria work out at approximately 9.6% of the property price. If you buy a tax-back property, the purchase costs are calculated on the gross property price. You will be required to pay the notary fees after the contract of sale has been signed. Fees are calculated as follows:

  • Purchase Tax ‘Stamp Duty’ – 3.5% of the gross price
  • Registration in the Land Registry – 1.1% of gross price
  • Notary’s fees – between 1.5 and 2% of gross price +VAT
  • Local agents fee – 3% of the gross price + VAT
  • Court costs, administration fees – approx. 150 euros

 

Buying Austrian property with a mortgage

Can I buy with a mortgage? Yes, and if you buy with a mortgage it is possible to borrow up to 60% of the purchase price. Banks will not lend across boarders, so if you want to buy with a mortgage in Austria then you will need to borrow from an Austrian bank. Variable interest rates are around 2%, and it is possible to take fixed rate mortgages for up to 20 years. We can recommend banks in all ski resorts as we have contacts throughout Austria.

Tax advantages
There may be tax advantages to taking a mortgage to buy your ski property. If you rent your property it is possible to offset the interest on your mortgage payments against profits on your rental income. You can also write off up to 10% of the costs of your furniture as depreciation against your rental income each year, reducing your tax liability.

What are the costs for taking a mortgage?

Banks will charge a set-up fee and this is usually around 2% of the value of the loan. They also charge an appraisal fee of 0.5%. You will also need to pay the notary a 1.5% fee of the amount of the mortgage to register the mortgage lender in the land registry.

Other financing possibilities
There may be other options available to you to finance buying a ski property in Austria. For example, you could borrow against an existing property you own and then make your purchase as a cash buyer.

International transfers and foreign exchange dealings

When you are buying a ski property in Austria and making international money transfers, fluctuating exchange rates can make a difference to the final amount you receive in your bank account. 

We work closely with a leading currency exchange expert for all of our client’s money transfers, international payments & foreign exchange dealings. Our contacts consistently provide bank-beating exchange rates to help both companies and private individuals achieve significant savings. To find out more please contact us.

How do I pay for a new-build ski property?

New build ski property in Austria is paid for in payment stages and all payments are made through the notary who acts as trustee for your money. The instalments are made into a client account and the payments for each stage are only released from the client account when an independent surveyor has inspected each stage and officially signed it off with the notary. The purchase payment stages will typically be something like this:

  • 15% at start of building works
  • 35% on completion of the shell and roof
  • 20% on completion of plumbing and electrical installations
  • 12% on completion of the façade & windows
  • 12% on completion of the property
  • 4% on hand over of keys
  • 2% after three years (or after developer providing a bank guarantee or insurance to the purchaser)

How do I make international payments?

When you are buying a ski property in Austria, or own a ski property and receive rental income in Austria, you will need to make international payments and money transfers. Fluctuating exchange rates can make a sizeable difference to the final amount you receive in your bank account. So you need a dependable company to handle your transfers.

International money services with XE

We work closely with XE, which is a leading independent currency exchange expert. We always recommend them for all of our client’s international transfers and foreign exchange matters. Our contacts provide bank-beating exchange rates. We always hear good feedback from our buyers who have achieved significant savings working with XE. If you would like to find out more about how XE save you time and money please click here.

When will my chalet be built?

Buying an off-plan or new-build chalet is an exciting and often once in a lifetime experience. Construction in the Alps only takes place in the summer months, as during the winter the ground is frozen and covered in snow. Because of this, Alpine developers optimise their build schedule and often build several chalets or an apartment building in one summer season. Your property will be built quickly and built-to-order. So you can choose your layout, fittings, and fixtures, to really personalise your home in the mountains.

The advantage to buyers is that during the winter you can sign your purchase contract to secure your property but will not have to start making stage payments until construction starts in the spring.

Projects always run to a tight construction schedule and are almost never delayed. We only work with the best developers in Austria with excellent track records. The developer will be onsite to manage the construction of your ski chalet exactly to your wishes. We carefully select all the properties we advertise and you will be in the safest hands.

Are there construction guarantees in Austria?

Yes. All new build Austrian properties are covered by a 30 year building guarantee. This covers all building defects. Additionally, property developers will usually guarantee building fixtures for two years. We work with the best developers and real estate agents in the Alps and only advertise carefully selected properties on our site.

How do I furnish my chalet?

Buying an off-plan or new-build ski property is an exciting adventure and has many advantages, and finishing and furnishing your chalet exactly to your tastes is one of them! You can choose from an extensive range of bathroom fittings, flooring, wall tiles, and much more to really personalise your chalet.

Interior design service

Once you have chosen your construction fittings it is time to choose your kitchen and also furnish your property. We work with top interior designers and bespoke fitting companies who can help you to complete your property.

Turn-key furniture collections

Additionally, many new-build apartments and chalets offer furniture collections included in the price. The developers for these properties offer a ‘turn-key’ service which means they provide every comfort for you so that your property is completely ready as soon as you pick up your keys.

Where furniture is not already included in the purchase price, our selected designers can also still provide a ‘turn-key’ solution. Ranges are available to suit every taste ranging from romantic traditional styles, to ultra-modern chic furnishings. The furniture choices are flexible and include everything you need, like sofas, wardrobes, beds, cutlery, crockery, and linen etc. For more information on which properties already include furniture please contact us or see individual property brochures.

Can furniture be included in my mortgage?

Although the cost of the furniture collections are included in many of the properties we sell, for mortgage purposes this cost must be deducted as banks will not lend on furniture. As an example, furniture collections for a 2-bedroom property would usually range somewhere between €25,000 to €40,000 (net).

Rental obligations in Austria

Do I have to rent my property in Austria? There are rental obligations in Austria to be aware of. Most holiday homes in Austria are obliged to be rented when their owners are not using them. This is because the tourism industry forms an important part of Austria’s economy accounting for over 15% of its GDP. So the Austrian government does not want owners to leave their chalets or apartments empty for large parts of the year. Owners who do not live permanently in the mountains are encouraged to make sure that their property is regularly visited by holidaymakers. This flow of visitors and tourism is great for the local economies and property prices.

What are the advantages of the rental obligations?

The advantage of the rental obligations in Austria to owners is that they can benefit from their property earning an income for them. Most apartment buildings will have a dedicated rental management team in place to handle everything for you making it a completely hands-free experience. Also, most international owners use their ski chalets or apartments for a few weeks per year, so they find it makes sense to rent their ski property during the rest of the time, to earn an income. There can also be some great tax advantages to buying a rental investment property in Austria. For example, in some cases you can reclaim the VAT back on your purchase. This can be a big 20% saving on the gross property price.

Prefer not to rent?
If you prefer not to rent your property, we are able to offer a small selection of properties that have a rare “second home” permission, which means you have no rental obligations. If you are you looking for a second-home status property click here to take a look.

What are the rental options in Austria?

Depending on which property you buy there are several rental options. One option is using a large professionally managed tour operator who will efficiently handle all of your rentals. Alternatively you can rent your property yourself with the help of a local rental manager or perhaps even make your own website to advertise your property. Rental companies typically charge between 20% and 30% commission for their services. Whichever option you choose a dedicated management company can deal with the hand over of keys to your guests and the laundering and cleaning of your property when guests have departed. Rental options broadly fall into three categories:

Guaranteed Income Option
If you are looking for a ski chalet or apartment with investment in mind and the security of a guaranteed income, we have handpicked some great investment properties for you. Rates are guaranteed for a set period, offering you piece of mind especially when combined with a fixed-rate mortgage. It is also sometimes possible to have options such as three-year rolling contracts which are index-inked. For some excellent options which offer a guaranteed income click here to take a look.

Fully Managed Rental Option
If you are looking for a hands-free investment, then we would recommend a fully managed rental service. This is where the developer teams-up with a large tour operator who will efficiently handle all of your rentals and then pay you a regular income. As an owner you simply book your forthcoming winter and summer dates in advance and the tour operator will do the rest. Many fully managed chalets and apartments for sale also offer extensive additional facilities including restaurants, spas and swimming pools. If you are you looking for some fully-managed rental options click here to take a look.

Flexible Rental Option
If you are looking for complete flexibility, then a property with a flexible rental option is perfect. In this way you can either rent your property through a local tour operator, or rent privately. If you chose a tour operator, they will advertise your property, manage your online bookings, meet and greet your guests, and deal with the laundering and cleaning of your property when your guests have departed. Alternatively, if you chose to rent privately, you can make your own website to advertise your property, or advertise on a holiday rental portal, and we can put you in touch with chalet-maid services to meet and greet your guests. If you are you looking for a property that offers flexible-rental click here to take a look.

Second Home Status – Prefer not to rent
If you prefer not to rent your property, we are able to offer a small selection of properties that have a rare “second home” permission, which means you have no obligation to rent. Second-home properties are also available for non-EU citizens to buy. If you are you looking for a second-home status property click here to take a look.

How much rental income will my ski property earn?

There is excellent potential to earn ski property rental income in Austria. Depending on which weeks you rent out and which weeks you use yourself, owners earn approx. 3 to 6% ROI.

Many ski property owners live outside of Austria and therefore also rent their chalet or apartment out throughout the year. This is an efficient way to earn an income and covers the costs of your ski property. You can also make a profit!

Austria is a particularly good place to buy a ski property as a rental investment, due to its perfect dual-season altitude. The summer season is just as popular as the winter season in many Austrian resorts, so owners can rent out year round, rather than just in the ski season. Additionally, Austria’s rental obligation system has developed some wonderful rental management companies who will take care of your property for you. So renting your ski property is very easy. They will advertise your property, schedule your bookings, and meet & greet your guests when they arrive. Your rental manager will also deal with laundering & cleaning your property, and much more. They are tourism experts and are dedicated to maximising you ski property rental income.

How much are ski property running costs?

It is important to have a rough idea of your ski property running costs. If you buy in an apartment building, or in a chalet village, the costs of maintaining communal areas will be divided between the owners. These costs are divided fairly and proportionately, according to the size of each ski property.

Running costs are often calculated on a price/m2 basis. A ski chalet or apartment will cost approx. 3-5 EUR/m2/month. This will cover snow clearance, rubbish removal, water rates, building insurance, local property taxes, cleaning and lighting for any communal areas, maintenance of the gardens, and much more. If you buy a ski property with spa facilities, e.g. swimming pool, the running costs could increase to approx. 7-11 EUR/m2/month. However, these expenses don’t include your personal usage of gas and electricity. This will vary depending on how much energy you use.

Most ski property owners live outside of Austria and therefore also rent their property out throughout the year. This is a great way for you to earn additional income. There are rental obligations in Austria and different types of rental properties you can buy.

Is Austrian ski property a good investment?

Austrian property offers superb long-term investment for buyers. One of Austria’s main benefits is that it offers two high seasons in one year: winter for ski holidays, and also summer for hiking, cycling and swimming in the warm lakes. Austrian property has consistently increased in value year on year, and is considered a safe investment. Austria’s ski resorts invest more into their mountain infrastructure, like fast ski lifts, than any other country. Read more about ski property investment potential here.

Tax Advantages

Purchasing a new-build property can have tax advantages as it is possible to reclaim part, or all of the VAT on your purchase giving a discount of up to 20%. To be eligible for a VAT discount you must rent your property professionally and show an overall profit over 20 years.

How do I reclaim VAT back on my ski property?

Are there tax advantages to renting?
Renting your new-build property in Austria can have tax advantages. It is possible to reclaim part, or all of the VAT on your purchase giving a discount of up to 20%. Eligibility to reclaim VAT back on your ski property purchase requires you to rent your property professionally when you are not using it. You will also need to show an overall profit over a period of 20 years. You can reclaim all the VAT (the full 20%) if you rent your property commercially and do not use it yourself. If you declare in advance that you will be using the property partly for your private use then the amount of VAT you can reclaim depends on the ratio of personal use to rental use.

To reclaim the tax you will need to register for VAT, pay the gross property price, and then claim the tax back. This usually takes two to three months and you will be appointed a tax advisor to help you with this. It is possible to obtain a bridging-loan for this if required. However, in some cases, this is not necessary as the developers will have pre-arranged everything for you. So, in this case, you will only need to pay the net price.

If you would like further information on this subject please contact our Ski Property Experts on: +44(0)20 7486 9419 Alternatively, feel free to email us at enquiries@lindforth.com and we will send you our specific Tax-Back Guide.

What taxes will I have to pay?

If you decide to take advantage of the VAT rebate and rent your property to holiday-makers you will be required to pay income tax on your rental income. Much of these taxes can be offset and there are a number of ways to reduce the tax you pay on your rental income. For example, the interest you pay on your mortgage can be written off against rental income profits and you can also write off up to 10% of the costs of your furniture as depreciation against your rental income.

If you rent your property to holiday-makers and pay the income tax for these rentals in Austria then it is possible to receive a tax free allowance of between 2,000 – 11,000 euros per person per year, so if two people purchase a property together the allowance could be up to 22,000 euros per year.

VAT
If you claim the VAT back on your purchase you will also be required to become VAT registered with the tax authorities for 20 years, and you will need to charge VAT at a rate of 13% on your rentals. We can recommend local tax advisors to help with your tax returns. The tax advisor will charge a one-off fee to set up your registration (please contact advisors directly for prices) and annual tax returns thereafter usually cost in the region of 700 euros per year.
Income tax rates

Profit Percentage Income Tax payable
0 euros – 11,000 euros 0%
11,001 euros – 18,000 euros 25%
18,001 euros – 31,000 euros 35%
31,001 euros – 60,000 euros 42%
60,001 euros – 90,000 euros 48%
90,001 euros – 50%

Income tax obligations in your own country
Your income tax obligations in your home country also have to be considered so please inform your tax advisor that you are renting out a vacation apartment in Austria, as he will also need to see what profits you have made over the year and make sure that you do not pay tax twice on the same income. If you need help finding a tax advisor, we can put you in touch with Austrian tax advisors specialising in rental property.

Tourism tax
When you rent your property you will need to charge your guests tourism tax for the nights they spend in your property. These rate of tax varies from resort to resort but as a rough guide it is somewhere between 1 and 3 euros per night per person for each guest over the age of 14 years.

Capital gains tax
The housing market in Austria has been subject to a number of controls in order to keep house prices within reach of locals, especially in the tourist areas. Capital Gains Tax of 30% will apply to any profits you have made on your property (effective since Jan 1, 2016).

Inheritance tax
Inheritance tax has been abolished in Austria (effective since August 1, 2008)

 

Disclaimer: Whilst we make every attempt to ensure the accuracy and reliability of the information we provide, we are not tax advisors or lawyers. We are reliant upon information provided by third parties and therefore, the company, its employees and agents will not be responsible for any loss however arising, from the use of, or reliance upon this information. Legal advice or tax advice must be received by a professional Lawyer or tax advisor and we are happy to put you in touch with companies if you would like further information. These particulars and the company website do not form part of any offer or contract and must not be relied upon as statements or representations of fact. Registered Office: 19 Gloucester Place Mews, London W1U 8BF, Registered in England. No. 12829586.

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