Costs of selling real estate in Austria
What are the costs of selling a property in Austria?
In principle, in Austria the main burden of the additional costs when buying/selling real estate, and that is about 10% of the purchase price, is borne by the BUYER and not the seller. We will now go through which costs typically affect the seller and which are negotiable:
Broker commission
Costs: 3.6% of the purchase price incl. VAT; negotiable.
Important: Only due on sale. Includes services such as price estimation, advertisements, customer inquiries, viewing appointments.
Details: If you commission an estate agent with the sale, you will normally be charged 3.6% of the purchase price including VAT. This is a matter of negotiation and many estate agents will be a little more accommodating in terms of price. Important: This commission is only paid in the event of a successful sale and covers all the estate agent's expenses and work such as price estimates, advertisements, customer/prospective buyer inquiries, viewing appointments, etc.
Energy certificate
Costs: From approx. 200 EURO.
Important: Must be presented in the advertisement or before the purchase contract is concluded. Normally paid by the seller, but can be passed on to the buyer by contract.
Details: You must actually hand over the energy certificate to the buyer in the advertisement or at the latest before the purchase contract is concluded. The costs for the energy certificate vary widely. However, some can be ordered on the Internet from around 200 EURO. These costs are usually borne by the seller. However, the purchase contract may stipulate that the costs must be reimbursed by the buyer or these costs may simply be included in the purchase price.
Purchase contract obligations
Costs: Variable depending on obligations (repairs, clearing out, decluttering).
Tip: Costs usually deducted from the purchase price; seller typically responsible.
Details: If you commit to improvements, repairs or clearing out and decluttering in the purchase contract, the costs will of course be incurred. However, these are usually simply deducted from the purchase price so that the buyer is responsible for all repairs. In practice, it is advisable to stipulate in the contract what is to remain or be removed and who will bear the costs (typically the seller), especially for clearing out and decluttering.
Notary and purchase contract
Costs: Notary, trustee, drawing up the purchase agreement.
Common: Escrow costs are often split between buyer and seller.
Details: The costs for the notary, trustee and drawing up the purchase contract can be passed on to the buyer by contract. However, it is common for the escrow costs to be split equally in the amount of a few hundred euros.
Real estate transfer tax
Note: Is usually paid by the buyer and is therefore not incurred by the seller.
Real estate income tax
Costs: 30% of the gain achieved; with exceptions.
Exception: No tax for main residence or reduced tax for properties acquired before 2002
Details: This tax is generally 30% of the gain realized. However, there are some exceptions and exemptions: The most important of these is if you have registered your main residence in the property sold for 5 years continuously in the last 10 years or 2 years continuously from the purchase of the property, then this tax does not apply. In addition, a reduced tax rate of only 4.2% of the purchase price applies to properties purchased before 2002.
Release from encumbrances in the land register
Costs: A few hundred EURO for the deletion of existing mortgages.
Responsible: Usually to be borne by the seller.
Details: For the deletion of existing mortgages on a loan by a trustee, costs of a few hundred euros are incurred. These are to be paid by the seller, as they are to be carried out in his interest.
Mortgage loan
Possible: Extra costs for early loan termination.
Tip: Consider whether a loan termination can be avoided in order to avoid additional costs.
Details: If you have taken out a fixed-interest loan or fixed-rate loan and have encumbered the property with a mortgage, you may have to expect extra costs for the early termination of the loan. The financing bank may charge a so-called early repayment penalty if it has suffered a loss of interest due to the early termination of the loan.
Our tip: You should therefore consider foregoing a loan repayment, which incurs additional costs and does not result in a higher sales price. Instead, use the loan for the next property to be financed after the property sale.
Every real estate sale is unique and requires an individual approach. For comprehensive advice tailored to your specific case, I recommend that you contact us.
Disclaimer: Please note that the information provided here does not constitute legal advice and I assume no liability for the accuracy, completeness or timeliness of this information.
