What additional costs arise when buying a property?
Besides the purchase price there is property transfer tax, land register entry, contract drafting and usually agency commission – in total often around 10 per cent.
What additional costs arise when buying a property
Besides the purchase price itself, several additional costs arise when buying a property in Austria. In total they often amount to around ten per cent of the price. Anyone who plans for them from the outset avoids unpleasant surprises with the financing.
The main items
You should budget for these costs in addition to the purchase price:
- Property transfer tax: 3.5 per cent of the purchase price
- Entry of ownership in the land register: 1.1 per cent
- Contract drafting and escrow by a notary or solicitor
- Agency commission, where an agent is instructed
- With financing: registration of the charge (1.2 per cent of the secured sum)
Taxes and fees are fixed by law
Property transfer tax and the land register entry are set by law and arise on every purchase. They cannot be negotiated. The rates given reflect the current legal position, but you should have them confirmed in each case, as rules can change.
Variable costs
Unlike taxes, contract drafting and agency commission are negotiable or depend on the work involved. With contract drafting a comparison is worthwhile; with commission what counts above all is the service behind it. You can read more in the article on agency commission.
Why planning matters
Banks generally do not finance these additional costs. They must therefore be available from your own funds. How much of your own money is needed overall is covered in the article on that subject. An honest calculation from the start prevents the financing from failing at the last moment.
An example for orientation
An example makes it tangible: on a purchase price of 300,000 euros, property transfer tax and the land register entry alone come to around 13,800 euros. On top of that come contract drafting and, where applicable, commission. The additional costs quickly add up to a five-figure sum that you have to find on top of the purchase price. That is precisely why it is important to plan these items into your financing from the beginning and not discover them shortly before signing.
We work it through with you
We set out the expected additional costs for your particular property transparently, before you make an offer. That way you know exactly what is coming. Arrange a conversation without obligation and we will go through your figures together.