Obtaining a residence permit in Austria by buying a property

Confiscation of properties means any discrimination of the government in the destination country towards the foreign investor in which governments don’t do anything to compensate for the damage and the foreign investor’s capital will be taken. In the definition of this index, in addition to the risk of property confiscation, any inequality and discrimination of governments, changes in the constitutions of countries and also changes in the performance of legal centers of the government which will damage the foreign investor in the destination country will be assessed. Based on this, countries are categorized ranging from 1 to 7, of which 1 is the least risky and 7 is the riskiest.

In order to have a successful and profitable investment, it is better for you to take a look at the economic indicators in the destination country. GDP rate, inflation and property price index are some of the factors that we will address in this article.

This rate shows the economic growth in Austria. GDP shows that whether domestic production has increased or decreased over a period of one year. Generally, the average economic growth for countries with healthy and growing economies is 2-3% in a year. If economic growth is 5% or more per year, the economic condition is good. Now, if this rate is 7-8%, the economic growth is perfect (extraordinary).

Austrian inflation rate data are available from 1961 to 2019. The average inflation rate in Austria was 3.27%, the lowest rate was related to 1966 with a rate of 0.99% and the highest inflation rate was recorded in 1974 with a rate of 10.43%.

Different countries have their own rules and regulations for investing and buying a property. Fortunately, Iranians will be allowed to buy property in this beautiful and safe country according to Iran’s agreement with Austria. But keep in mind that if your goal is to get a residence permit by buying a property in Austria, as mentioned earlier, buying a property in Austria does not lead to getting a permanent residence permit. If you want to get a residence permit in Austria, you should invest in real estate or apply through self-employment method or present a business plan in Austria. Buying a property in Austria is a good option if your goal is to make money in a safe way. If you own a property in Austria, you can also get an Austrian tourist visa much more easily.

The applicant who want to get a residence permit through buying a property in Austria must be informed of the conditions of the purchase under an initial contract. The price and value of the property, how to pay the amount of the contract, general and partial conditions of the property in question are among the information which need to be addressed in the contract.

The applicant who want to get a residence permit in Austria must then be able to pay 10% of the price and value of the property in order to make the necessary inquiries for the final purchase. Taxes based on the value of the property must be paid and they (the buyer and the seller) can finally enter into a contract, and this purchase will also be registered in a notary in Austria, and then the buyer will legally own the property. If you are not in Austria, you may not be able to easily find out about all of the rules in in this country, so we recommend that you get help from an Austrian or international lawyer in this regard and reduce the risk of possible fraud.

When a property has been selected in Austria, make a formal offer in writing via a real estate agent, and attached to the offer document is an itemized list of related transaction costs such as legal fee, property transfer tax, registration duty, notary fee, and real estate agent´s fee. As mentioned, first a purchase agreement or sale contract is prepared. After signing the contract, the buyer is expected to pay 10% of the purchase price as deposit, which will be putted in a trustee account until the completion of this process. 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.  On average, the whole process takes 9 to 32 days to be completed.

The round trip transaction costs include all the costs of buying and reselling a property, lawyers’ fees, notaries´ fees, registration fees, taxes, agents´ fees, and so on.

The legal fees of the contract are usually set up by a lawyer or a notary, at 1% to 3% of the purchase price plus 20% VAT.

Property transfer tax is usually set at 3.5% of the property value. Transfer tax is reduced to 2% for relatives.

VAT (Value Added Tax) is payable for newly-built properties. Property owners can get back the 20% VAT if they lease the property. However, the rental income will be liable to VAT in this case plus a tourist tax of around €0.10 per person per night.

Registration fees

Notary fees

The signatures of the seller and the buyer must be authenticated on the contract. This can be done by a notary public or by a court for a maximum of 120 euros per person plus 20% VAT. The fee of the court may vary slightly from notary fees.

Real Estate Agent´s Fee

Real estate agent´s fee is set by law at 3% to 4% of the property´s purchase price or market value.

The cost of buying an apartment in Vienna, the capital of Austria, is more expensive than in other Austrian cities, and of course the price of properties located outside of the city center is less than in the city center.

The average cost of an apartment in Vienna is 6,000 euros per square meter, and for properties located around Vienna is 3,000 euros. Renting a property in the city center is also more expensive than in the suburbs. The minimum rent for a one-bedroom apartment in Vienna is € 600, and € 400 in the suburbs of Vienna. For around € 400,000 you can buy a great new apartment in the center of Vienna.

If your goal is to get a residence permit in Austria by buying a property, you should consult a lawyer. You will need the help of a real estate lawyer in Austria to sign a contract. Your lawyer can prepare the initial contract for you and inform you about the details of the contract and related legal issues. You should also register the purchased property in Austria with the help of your lawyer. Try to choose a lawyer who is fluent in the official language of this country and can translate and read the clauses of the contract for you, and also a person who is fully acquainted with the laws of Austria.