Guide for buyers
Buying property: costs, taxes and the process, honestly calculated
In Austria, around 10 percent in costs come on top of the purchase price, and whoever first learns about them at the notary has budgeted badly. Here is the full calculation with an example, what changed in 2026, why a purchase offer is not a reservation slip and how the road to the land-register entry really runs.
The purchase costs at a glance
| Property transfer tax | 3.5 % | Of the purchase price. Within the family, the tiered rate (0.5 / 2 / 3.5 %) on the assessed property value applies instead. |
| Land-register entry | 1.1 % | Of the purchase price, plus an 81-euro filing fee. Only the entry makes you the owner. |
| Mortgage lien (with a loan) | 1.2 % | Of the registered lien, which usually exceeds the loan amount (collateral surcharge). |
| Contract drafting & escrow | 1 to 3 % | Lawyer or notary, including certifications; flat fees are negotiable and often at the lower end. |
| Agent commission | max. 3 % + VAT | So 3.6 percent gross per side. The buyer-pays principle only applies to rentals; when buying, you still pay as the buyer. |
Worked example: a flat for 400,000 euros
| Transfer tax (3.5 %) | €14,000 |
| Land-register entry (1.1 % + €81) | €4,481 |
| Contract drafting (1 to 3 %) | €4,000 to €12,000 |
| Agent (3.6 % gross) | €14,400 |
| Total without a loan | ≈ €37,000 to €45,000 (9 to 11 %) |
With a loan, the lien registration (around 4,300 euros for a 300,000-euro loan including the collateral surcharge) and bank fees come on top. Important for the budget: banks usually do not co-finance the purchase costs, they come out of your own funds.
The transfer tax in more detail
The normal case is simple: 3.5 percent of the consideration, that is, the purchase price including assumed encumbrances. Legally all parties are liable, contractually the buyer side practically always takes it over; it is usually remitted directly by the contract drafter via FinanzOnline.
Within the family (spouses and registered partners, cohabiting partners with a shared main residence, relatives in the direct line, siblings, nieces and nephews), the acquisition always counts as gratuitous for tax purposes, even if money flows: the tax is then computed at the tiered rate on the assessed property value, 0.5 percent for the first 250,000 euros, 2 percent up to 400,000, 3.5 above. For transfers within the family this is usually much cheaper.
The purchase offer: binding, not a reservation slip
The most common expensive mistake when buying: a signed purchase offer is legally binding. If the seller accepts, the purchase is concluded; backing out without cause can cost damages, and the agent commission is due anyway. So sign only once price, financing and condition are truly settled.
One important exception protects quick deciders: if you submit the declaration on the day of the first viewing and the property serves your urgent housing need, consumer law lets you withdraw in writing within one week. But do not rely on it, the conditions are narrow.
Financing: what applies since the end of the KIM regulation
The strict KIM regulation expired on 30 June 2025, but its rules were not scrapped: the financial market authority continues them as guidance banks orient themselves by: at most 90 percent loan-to-value, at most 40 percent of net income for debt service, at most 35 years. Practically that still means: bring around 20 percent of your own funds plus the purchase costs, even if banks may be more flexible case by case than before.
From offer to land register: the process
- 01
Offer & acceptance
The written offer is binding (see above). With the seller's acceptance the purchase is fixed; the purchase contract formalises it.
- 02
Contract & escrow
A lawyer or notary drafts the contract, signatures are certified. The purchase price goes into escrow, not directly to the seller, which protects both sides.
- 03
Tax & priority notice
The contract drafter self-assesses the transfer tax and registers a priority notice in the land register so nobody can jump ahead of you.
- 04
Clearing encumbrances & entry
The seller's old liens are deleted, then your ownership is entered. Only that makes you the owner; only then is the price released. In practice the whole process takes 6 weeks to 4 months.
Condominiums: the five extra checks
- The owners' association reserve
- Since 1 January 2026 the minimum reserve is 1.12 euros per square metre per month. Ask for the reserve balance: an empty reserve plus a building needing renovation is a surcharge waiting to happen.
- Annual statement & resolutions
- Request the service-charge statement and the minutes of the owners' meetings: renovations already resolved are paid by you after the purchase.
- Utility values & parification
- The utility-value report determines your co-ownership share and thus your service-charge key; briefly check that cellar, balcony and parking space are correctly assigned.
- Energy certificate
- The seller must present and hand over an energy certificate no older than 10 years; HWB and fGEE belong in the listing already.
- Read the land register yourself
- Encumbrances, liens, easements and pre-emption rights are in the land-register extract, available online for a few euros, to be read before the offer, not after.
Common questions about buying property
How high are the purchase costs in Austria?
With an agent and a loan, around 10 to 12 percent of the price: transfer tax 3.5 percent, land register 1.1 percent, lien 1.2 percent, contract drafting 1 to 3 percent, agent 3.6 percent gross. Without agent and loan it is about 5.5 to 7.5 percent.
Who pays the transfer tax?
Legally all parties are jointly liable; contractually the buyer side practically always takes it over. It is usually remitted via self-assessment by the contract drafter through FinanzOnline.
Is a purchase offer really binding?
Yes. Your signature binds you; if the seller accepts, the purchase is fixed. The key exception: if the declaration was made on the day of the first viewing and the property serves your urgent housing need, you can withdraw in writing within one week (consumer protection law).
How much equity do I need?
The FMA guidance (successor of the KIM regulation that expired in 2025) foresees at most 90 percent loan-to-value; practically, banks usually require around 20 percent of your own funds plus the purchase costs, which are normally not co-financed.
Does the land-register fee exemption still exist?
No. The temporary exemption for owner-occupied homes expired on 30 June 2026; since 1 July 2026 the full 1.1 percent entry and 1.2 percent lien fee apply again. Those who used it must still be able to prove five years of main-residence use.
Will the transfer tax for first homes be abolished soon?
It is a review mandate in the government programme, but not a law (as of July 2026). Until further notice, 3.5 percent applies; within the family, the cheaper tiered rate.
When do I become the owner of the flat?
Only with the entry of your ownership in the land register, not with the contract signature. Between contract and completed processing, 6 weeks to 4 months are customary.
Do I need a notary or is a lawyer enough?
Both may draft the purchase contract and act as escrow agents; the signatures must be certified in any case. Costs run at about 1 to 3 percent of the price and are negotiable.
Read on
- Vienna property prices: €/m² by district →
- Houses in & around Vienna: where to search? →
- For the seller side: selling a property →
As of July 2026 (land-register exemption expired 30 June 2026, FMA guidance after KIM, 2026 minimum reserve) · Orientation, not legal or tax advice