Concept
Austria has the most heavily regulated entry among the eight countries in our review, and it is structured unusually: the right of a foreigner to buy housing is regulated not by the federation but by each of the nine federal states through its own land transfer law—Grundverkehrsgesetz. Citizens of the EU, EEA, and Switzerland are treated as Austrians and pass without questions. A buyer from a third country is almost everywhere required to obtain approval from the regional land commission before registering title.
Geography decides everything. In Vienna, the permit is issued by the magistrate if there is a "social interest"—a real need for one's own housing, which in practice almost always means an Austrian residence permit—or an economic interest. Styria, Carinthia, and Lower Austria have moderate regimes with working chances for self-occupation. Tyrol, Salzburg, and Vorarlberg are practically closed to buyers from third countries, and strict restrictions on "weekend homes" apply there, hitting even EU citizens: buying a chalet in Kitzbühel "for vacation" is impossible regardless of passport.
How the Transaction Works and What Entry Costs
The mechanics are as follows: the contract is signed subject to a suspensive condition, an application with justification for the purchase purpose goes to the regional land commission, after approval payment passes through a trust account of a notary or lawyer, and only then is the title registered in the land register. Timelines depend on the state—from a couple of months to three quarters.
The entry taxes themselves are modest and predictable: real estate acquisition tax 3.5%, registration fee 1.1%, lawyer or notary with trust support—one and a half to three percent plus VAT, agent—up to three percent plus VAT from each side. Together with an agent, it comes out to about ten to twelve percent on top of the price.
For transactions through companies, a reform effective from July 1, 2025 is important: the threshold for taxable transfer of shares has been lowered from 95 to 75 percent, and the sale of shares in a "real estate company" is now taxed at the same 3.5%—but based on the market value of the property. The classic optimization "sell shares instead of the building" is closed.
What the Purchase Gives
Nothing—there are no golden visas in Austria and never have been. The only passive route is a quota-based settlement permit without the right to work: passive income of approximately €2,600 per month per person, German at A1 level even before application, and—most importantly—tiny annual quotas by state that are snapped up in the first days of January. One's own apartment satisfies the housing requirement and in Vienna simultaneously helps justify that very social interest for the land commission. Without status, the Schengen regime of ninety out of one hundred eighty applies.
Ownership and Rental
The annual property tax is symbolic—it is still calculated from 1972 valuations and for an ordinary apartment amounts to hundreds of euros per year; reform has been discussed for a long time, but by summer 2026 it has not been adopted. There is no wealth tax. Rental income of a non-resident is taxed on a progressive scale with an unpleasant feature: a fictitious addition (€11,077 in 2026) is added to the base for calculating the rate, due to which a non-resident pays noticeably more than a resident with the same income.
An investor in Vienna's old housing stock needs to know about the rental law MRG: in pre-war buildings, rental rates are legally capped, which compresses the yield on classic Altbau apartments. Short-term rental in Vienna since July 2024 is permitted for a maximum of ninety days per year, and no exceptions are issued in residential zones.
Structures, Exit, Inheritance
The basic scenario is personal ownership. A GmbH makes sense only for a large rental portfolio: corporate tax is 23%, but taking into account dividend tax, the total burden approaches forty-four percent, and foreign control over the company does not remove the permit regime. A private foundation—Privatstiftung—became more expensive from 2026: the entry tax was raised to 3.5%.
On exit, ImmoESt applies—a flat thirty percent on capital gains for individuals, including non-residents; for properties purchased before 2002, a preferential calculation applies with an effective rate of about four percent of the price. The main residence exemption is practically unavailable to non-residents.
Inheritance is an unexpectedly pleasant part: there has been no inheritance tax in Austria since 2008. When real estate passes to heirs or as a gift, only a preferential acquisition tax is paid on a graduated scale from half a percent to three and a half percent of the assessed value. The compulsory portion—Pflichtteil—exists but is structured more softly than the French one: it is a monetary claim against the estate, not a right to the object itself. Choice of applicable law is governed by Regulation 650/2012.
Russian Passport
There is no national ban for Russian citizens in Austria—unlike, for example, Finland. But the permit system itself gives commissions broad discretion, and without an Austrian residence permit, chances are low: a realistic plan is first status or a preliminary inquiry to the commission of a specific state, then searching for a property. Plus the standard European set: a €100,000 limit under Article 5b and scrutiny from banks and trust agents regarding the source of funds. Payment routes are in the hub.
This material is for reference purposes and does not constitute individual legal advice.