The rules and regulations about property transfer in Austria are particularly relevant for non-Austrian citizens who plan to acquire real estate in Austria.

Property transfer in Austria

The acquisition of real estate in Austria is restricted by property transfer law. The different Property Acquisition Acts of the nine federal states regulate property transfer in Austria. They differ in terms of system and implementation. However, they are all based on similar principles. Below you will find an overview of property transfer rules and regulations with main focus on the Vienna Foreign Property Acquisition Act (Wiener Ausländergrunderwerbsgesetz).

Regulated types of property transfer

There are several different types of regulated property transactions. Firstly, there are so called “green” property transactions, which regulate the acquisition of property used for agriculture or forestry. For the acquisition of this kind of property, approval from the property transfer authorities is generally required in all federal states – except for Vienna. Furthermore, approval is necessary if foreign nationals acquire property in Austria. In some federal states there are also property transfer regulations that restrict the acquisition and construction of secondary residences.

Legal transactions requiring approval

Legal transactions concerning the acquisition of real estate, in particular purchase and transfer agreements, generally require approval. The contract only becomes effective if the approval of the property transfer authority is granted. If this is not the case, the legal transaction was invalid from the beginning. Depending on the federal state, the acquisition of rights in rem or tenancies may also require approval. Acquisition of property by auction generally also requires the approval of the property transfer authorities. The acquisition of real estate by inheritance is generally exempt from property transfer law, as far as legal heirs are concerned.

Entries in the Land Register

If the underlying legal transaction requires approval, entries in the Land Register may only be made after submission of the legally binding approval from the property transfer authority. In some cases, negative confirmation is also sufficient. The negative confirmation confirms that the individual legal transaction is exempt from the approval requirement. If the legal transaction does not require approval at all, usually confirmation of that is required. If confirmation of the legally binding decision from the competent authority is not available, the Land Register Court may not (yet) make the entry.

Acquisition of real estate by foreigners

The acquisition of real estate by foreigners generally must be approved by the property transfer authorities. Non-Austrian citizens are considered foreigners in property transfer law. The acquisition of real estate or other rights in rem by foreign nationals is usually granted if there is a certain economic, cultural, social or political interest in concluding the transaction. The Foreign Nationals’ Property Acquisition Acts of some federal states provide reasons for refusal of approval. In some federal states, there are facilitations for foreigners when purchasing residential property.

Equal treatment of EEA and EU citizens

Nationals of EU (European Union) and EEA (European Economic Area) Member States generally do not need approval of the property transfer authority to purchase property in Austria. The fundamental freedoms granted in the European Union, like the free movement of capital as well as the freedom of establishment and the free movement of workers, may not be restricted by Austrian property transfer law. The Foreign Nationals’ Property Acquisition Acts of the federal states therefore contain regulations that take the fundamental freedoms into account. In some federal states, EEA and EU citizens are fully equates to Austrian nationals. The Vienna Foreign Property Acquisition Act (Wiener Ausländergrunderwerbsgesetz) allows EEA and EU citizens to acquire real estate like nationals in the exercise of the fundamental freedoms.

Legal entities

The regulations on the approval of property transactions for foreigners also apply to legal entities. Legal entities are considered foreign if they do not have their registered office, operational headquarters or principal place of business in Austria. In addition, legal entities established in Austria may also be considered foreign under the Austrian property transaction law, if their management body and/or voting members are mainly foreigners. Special regulations apply to legal entities from EEA or EU states. They are treated equally to Austrian corporations when exercising the fundamental freedoms (freedom of establishment, freedom to provide services and free movement of capital).

Requirements for approval under the Vienna Foreign Property Acquisition Act

According to the Vienna Foreign Property Acquisition Act (Wiener Ausländergrunderwerbsgesetz), approval is granted if certain economic or social interests are met. The satisfaction of the personal housing needs of the applicant is considered a social interest. Economic interest requirement is met if the acquisition serves the purpose of establishing or expanding a business. If married couples or registered partners acquire a property together, they do not need approval, if one of them is an Austrian citizen.

Property transfer authority

The competent authority is determined by the respective Property Acquisition Act. In Vienna, the Immigration Office (MA 35) is responsible for property transactions involving foreigners. Applications can be submitted in person, in writing (by post or email) or online. If the requirements are met, negative confirmation can also be applied for. The negative confirmation is relevant for beneficiaries of state treaties or certain legal entities as well as employees of some international institutions.

No liability is assumed for the correctness and up-to-dateness of the legal contents of this website. In particular, the presentation of the information does not constitute legal advice or is suitable to replace legal advice in case of concrete questions. If you have any questions, please do not hesitate to contact attorney MMag. Maximilian Höltl.