Austria is a Central European nation with a robust economy and a developed housing market. Office buildings, retail establishments, industrial properties, and hotel assets are just a few examples of the many property kinds that may be found in Austria’s broad commercial real estate market. In general, there is a high demand for real estate in Austria, and there is a good balance between local and foreign investors. Property investment from outside has increased recently in the nation, mainly from China, Germany, and the US.
Austrian commercial real estate
Vienna, Graz, Linz, and Salzburg are the most active cities in Austria for commercial real estate, offering a variety of investment options and having a significant need for office and retail space. Investors are drawn to the nation because of its hospitable business climate, high level of life, and strategic position within Europe. The Austrian government has put in place some policies to promote investment in the Property sector, including subsidies for certain kinds of development and tax breaks. Investors should be aware of these benefits and consult a local property expert or attorney to help them negotiate Austria’s legal and regulatory framework.
Establishing and registering a commercial real estate company
You must do the following actions to establish and register a property firm in Austria:
Decide on a corporate structure
The form of business structure that is most appropriate for your firm must be chosen. A single proprietorship, a partnership, or a limited liability corporation are a few alternatives. Before choosing a choice, it is crucial to take into account your unique company objectives and goals since every sort of business structure have benefits and drawbacks.
Pick a name
The name of your firm must be original and unclaimed by any other companies. By searching the Austrian Trade Register’s online database, you may determine if a name is available.
Register your business
You must submit the relevant papers to the Austrian Trade Register to register your business. This will contain records like bylaws, a company strategy, and evidence of the ownership of any assets.
Obtain the appropriate authorizations and licenses
You may be required to get certain licenses and permissions depending on the sort of property company you are running. For instance, you must get a tourist license if you run a hotel or another kind of hospitality establishment.
Open a bank account for your company
To handle your firm’s funds, you must create a business bank account. Any Austrian bank is a good place to accomplish this.
Sign up for taxes
You must file taxes in Austria and pay any necessary taxes on the revenue from your firm. Value-added tax (VAT) and income tax are included in this.
Austrian taxes on real estate
Real property acquisition tax, which is 3.5% of the purchase price, is a tax that is applied on the transfer of property. In the event of a share transaction, the real property purchase tax is often not assessed. However, this tax is also owed in the event of a share sale if a firm with real estate ownership has 100% of the shares united in one hand. The admission of the right into the Land Register is subject to an additional cost equal to 1.1% of the purchase price (only in case of an asset deal). Sales of property are fictitiously excluded from the turnover tax under the Turnover Tax Law (UStG). The buyer does have the option to classify the transaction as tax-payable, however. This is advised if input tax charges are to continue being deducted or if rectification of already-asserted input tax charges is to be avoided. It should be noted, nevertheless, that the addition of the turnover tax (20%) raises both the purchase price and the real estate acquisition tax. In the private domain, income taxation is also applied to the sale of properties. Essentially 25% of the profit (selling price less purchase cost) is taxed as income. The tax rate rose from 25% to 30% as of 2016. People who resided in the sold property for two years continuously before the sale or for five years within the 10 years before the sale are free from the tax.
