Frequently asked questions

The main advantage of investment apartments in the Alps is the year-round tourist rental that generates regular income ranging from 4 to 7% of the property purchase price. The local operator takes care of all management and guest care, so the owner of the apartment has no rental worries. The Austrian model of professional management and apartment rentals is also one of the most developed in Europe.

The value of investment apartments in Austria grows long-term at 8% per annum, and in some areas even at 15% per annum. The primary reason is the limited or completely halted construction of new apartments, which leads to a rise in prices for existing properties.

Austria as a country with stable legislation, high enforceability of law, and political neutrality provides a safe investment environment. Investing in Euros also helps diversify the portfolio and protects part of the assets from fluctuations in the Czech koruna.

Unlike the Czech mountains, in the Austrian Alps, there is no risk of snow shortage and related income losses from guest accommodation. Apartments here generate consistent returns throughout the year.

The combination of all these factors makes investment apartments in the Alps one of the most reliable ways not only to protect but also multiply the value of your financial investment.

EXAMPLE OF PROPERTY PRICE INCOME AND APPRECIATION

The returns from an investment apartment with a purchase price of €200,000, which generates a net rental income (after deducting operating costs and the operating agency fee) of 6.5% per year, and whose value increases by 8% per year:

Total appreciation over 5 years:

Total apartment value increase: 93,865 €

Total net rental income: 65,000 €

Total: 158,865 €

​Investing in an apartment in the Alps also brings you something no other form of investment can - unforgettable experiences.

Perhaps after a day on the slopes or in the bicycle saddle, enjoying a glass of Aperol on the balcony of your apartment, watching the sunset over the mountains. Because it's not just an investment in property, but also in beautiful experiences in your own piece of Alpine paradise.

There are three main types of properties in Austria, each with different usage conditions. The most common are investment properties for tourist rental, which our company also offers:

Tourist rental property (Touristische Vermietung):

• This is the most common and popular type of investment property.
• The property purchase is exempt from VAT.
• The owner is obliged to rent the property for tourist purposes.
• Rental and apartment management are provided by professional management companies.
• The average net rental yield ranges from 4 to 7 % per annum, depending on the location.
• The owner can use the apartment for private purposes, typically 4 to 8 weeks per year.

Leisure use property (Zweitwohnsitz):

• Offers maximum usage flexibility.
• The owner does not register as a permanent resident of Austria and can use the property for personal use up to 183 days per year.
• It's possible to rent the property to third parties for the rest of the year, or not to rent it out at all.
• This status is rare and less than 5 % of properties in Austria have it.

Permanent residence property (Hauptwohnsitz):

• Intended for long-term or permanent residence, suitable for those wishing to move to Austria.
• The owner must use the property for personal use more than 183 days per year.
• It's obligatory to register for permanent residency and become an Austrian tax resident, which means filing an annual tax return and paying tax on worldwide income in Austria.

Investment apartments in Austria offer several fundamental advantages over properties in other European countries:

High level of professional management:

The Austrian model of professional management and rental of apartments is among the most advanced in Europe, characterized by high professionalism. Specialized management companies ensure the complete operation of accommodation facilities, which includes offering on online accommodation platforms, reservation planning, reception operations, guest check-in/out, cleaning, repairs, and insurance.

Stable price growth:

In 2023, the real estate market in most European countries stagnated or declined, but property prices in Austrian tourist areas grew on average by
8%, in the highest demand tourist areas even by double-digit values, which significantly outperformed the inflation rate. This stable growth and resilience to external fluctuations are caused by the law regulating the use of residential properties in Austria and targeted restrictions on the construction of new development projects.

Year-round utilization:

Apartments in Austria are rented year-round, ensuring a stable income. Unlike properties in Croatia or Bulgaria, which are used only during the summer season, apartments in Austria have an annual occupancy ranging from 160 to 250 days per year.

Secure investment environment:

Austria is a politically neutral country with a high enforceability of law and stable legislation. Your money is safe here. Moreover, acquiring properties in euros enables portfolio diversification.

Thanks to these factors, Austrian apartments become an attractive choice for investments providing a stable and profitable income all year round.

The amount of commission and who pays it varies depending on the developer's project.

In some cases, the seller pays the commission. In such situations, we provide standard consultations and administrative services related to purchasing the apartment for free. We only charge for additional services such as translation verification or postage.

If the buyer pays the commission or a part of it, our fee for mediation and consultation ranges between 1 to 3% of the purchase price. The exact amount depends on the scope of services provided.

We always ensure full transparency. You will know our commission amount and how it is paid upfront, before deciding on a specific investment. Don't expect any hidden fees from us. We are here to help you acquire an apartment on fair terms.

In view of the fact that rental income is earned in Austria, it is necessary to register for both income tax and value-added tax, and to submit tax returns. We are happy to recommend trusted Austrian accounting firms that communicate in Czech or Slovak. Processing accounting statements and tax returns is straightforward and not overly costly.

Rental income also becomes part of the worldwide income in the country where the apartment owner is a tax resident - usually in the Czech Republic or Slovakia. Thanks to double taxation agreements, it is then possible in the country of tax residency to deduct the income tax paid in Austria from the worldwide income tax.

Accounting and tax issues related to purchasing and operating an apartment are a common part of the consultations we provide to our clients.

The management of an investment apartment in Austria, known as "buy-to-let", is in the hands of specialized management companies you can rely on. These companies provide complete operation of the accommodation facility, including your apartment. After signing the operating agreement with the operator, you no longer have to worry about managing the apartment - everything is arranged for you.

The management includes:

• advertising the apartment on accommodation portals (Booking, Trivago, Airbnb, etc.)
• presentation on their own websites
• complete care for the guests (bookings, reception operations, check-in/out)
• cleaning of the apartment and common areas
• repairs
• insurance

All costs associated with acquiring an apartment are known in advance. Beyond the basic property price, the buyer always incurs the following costs:

• property transfer tax (3.5% of the property purchase price)
• property registry registration (1.1% of the purchase price)
• notary fees (approximately 2% of the purchase price)

The amount of tax and fees is calculated from the price of the apartment, including VAT, even though the sale of apartments for tourist accommodation purposes is otherwise exempt from VAT.

In most cases, our brokerage commission is paid by the seller.

In other cases, where we charge our commission to the buyer, its amount fluctuates between 1 and 3% of the purchase price, depending on the range of provided services. 

The operator, as part of their services, carries out regular monthly, quarterly, or annual billing. The frequency of billing depends on the conditions of the particular project. After deducting operational costs and the fee for management services, the rent for the apartment lease is sent to the owner's bank account.

Usually yes. Most of the projects and apartments on our website are intended for tourist rentals, which is directly derived from the building permit and zoning decision in a given location. This system ensures Austria maintains a high occupancy rate of apartments in tourist resorts, keeping the expansion of accommodation capacities within reasonable limits. Consequently, renting the apartment for tourism purposes is typically required. However, you can use it for personal needs for a few weeks per year.

Owners cannot use their apartment indefinitely - like their own cottage or cabin. Typically, the property is available for personal use for 4 – 8 weeks a year, with the exact length of time depending on the specific project. Personal use is usually free, with the only charges being a local tax and a cleaning and linen change fee.

Reservations need to be made in advance as the apartment will not generate income for you or the operator when you are using it for personal purposes. For this reason, personal use is more common outside the main season (Christmas, January, February). The owner's relatives or friends can usually also use the apartment.

In some projects, personal use may be charged. In such cases, the owners can reserve the apartment as if they were regular hotel guests, except, they are entitled to a discounted price (e.g., 50% of the regular price). It's important to note that, in these situations, the owner is primarily paying for the accommodation themselves.

In larger accommodation complexes, the owner can use any available apartment for their personal stay, not just their own. This allows for flexibility in both finding a date for private stay and the number of guests accommodated.

When purchasing an apartment, the buyer is required to pay a 3.5 % property transfer tax of the gross price (including VAT).

Rental income and operating costs include VAT, therefore the owner is obliged to register for VAT and submit quarterly tax returns. The amount of VAT is taken into account in revenue calculations, so the net rental income is not influenced.

Czech and Slovak individuals or legal entities are also subject to tax in Austria on income earned on Austrian territory:

Legal entities: 24 % (min. €43,750)

Individuals: progressive tax with an income exemption up to €11,700, rate 20 % on incomes from €11,700 to €19,100. 

The following are factored into the costs associated with rental income:

• operating costs
• operator's fee
• accounting and tax consulting costs
• depreciation ranging from 1.5 – 4.5% of the purchase price annually 

Thanks to deductible costs, effective taxation is very low, often zero.

When selling an apartment, the difference between the acquisition and selling price is taxed at a rate of 30 %.

Acquiring an investment apartment, which is further rented to third parties for tourism purposes, in Austria is exempt from VAT, specifically:

• mostly in full
• or to the extent corresponding to the ratio of the apartment's use for tourist rental in comparison to personal usage over the year (in such a case, typically 90 – 95 % of the total VAT of the apartment price is exempt)

Despite the exemption, it is sometimes required in practice for the apartment price, including VAT, to be deposited into a notary custody. Subsequently, after the next quarterly VAT declaration, the tax authority refunds the VAT to the buyer.

In the majority of cases however, the seller offers the possibility of transferring the tax obligation (so-called USt. - Überrechnung), where the seller, instead of the buyer, pays the VAT and deducts the tax against his own input tax claim. In such a scenario, the purchase price is settled without VAT.

This depends on several circumstances and your needs. Generally, we suggest that a property should not be owned by an individual or an entity whose assets might be threatened by business or personal risks. Typically, the most suitable alternative is to purchase an apartment through a company that does not carry out other business activities.

Moreover, making a purchase through a company could yield savings when transferring assets between generations.

While there is no inheritance tax in Austria, a change of ownership is once again linked with the obligation to pay the property transfer tax (3.5% of the purchase price) and the fee for recording the new ownership right in the land register (1.1%).

However, you should bear in mind that:

• setting up, managing, and maintaining accounts for the company come with additional costs
• The company is not subject to the tax exemption for income up to 11,700 EUR as in the case of individuals

Our firm will provide you with expert consultation and propose the most suitable mode of property ownership. If interested, we also offer a full service related to establishing and managing a property company, maintaining accounts, preparing tax returns, and fulfilling due diligence obligations.

Yes, of course. The management and equipping of the apartment are independent of the owner, removing worries about moving, selling belongings, etc.

Should the owner decide to sell the apartment, our company is ready to assist:

• we will coordinate with one of the real estate agencies in the region to incorporate the apartment into their portfolio
• we will provide consultation services and assistance to the apartment owner throughout the sale process

You should be aware that in Austria, the difference between the selling price and the purchasing price is subject to a tax of up to 30%. Given this tax obligation and the costs incurred when buying a property, it is generally advisable to hold an investment apartment for a longer period of time (5 years or more).

If you can't find a suitable project in our offer, just let us know your requirements and we'll prepare a custom-made proposal for you. Based on your subsequent feedback, we can refine and supplement it until we find the right apartment for you. Thanks to our market knowledge and local contacts, we can make the whole process as efficient as possible. 

 We'll be glad to discuss your requirements in person. Alternatively, you can provide us with the following information via email or phone call for the purpose of creating an offer:

• budget size (i.e. price range of the apartment)
• favourite region or locations
• layout or size of the apartment (number of people)
• preferred scope of use for personal purposes

Don't hesitate to reach out to us. If we don't uncover any hidden flaws, we'll connect with the developer, gather the necessary information, and guide you through the sales process as if the project were in our offerings.

We usually do not focus on such projects. If you wish to manage and rent the apartment yourself, it is necessary to consider the type of property and project you are investing in.

In the larger accommodation complexes that we primarily offer, this option is not available. The entire project falls under one management company that ensures comprehensive management of all apartments.

Self-management and rental are more appropriate for individually acquired apartments, flats or houses designated for residence or unrestricted use by the owner (so-called Zweitwohnsitz) and for some smaller mixed-use projects.

Our services are designed to provide you with a worry-free and long-term profitable investment without the need for personal involvement in daily management and rental of the apartment. However, if you have specific requirements, we will be happy to discuss potential alternatives, even if they may not be part of our usual portfolio.

Even if you don't speak German or English, purchasing an apartment is not a big issue. Throughout the acquisition process, we represent you in communications with the seller, operator, and attorneys who ensure the transfer of ownership and lawyer's deposit.

All contractual documents are in German, but upon request, we are happy to provide a machine or certified translation into Czech or Slovak.

For handling accounting and tax matters, we recommend Austrian accounting firms that communicate in Czech or Slovak as well, so you won't encounter any language barriers here.

The only phase where a basic knowledge of English is inevitable is in communication with apartment managers. Here, it is advisable to have someone who can assist you with communication. The reservation of your own stay usually takes place through an online reservation system on the accommodation's website, which can be managed with the help of an online translator.

So, not knowing German or English is not a hindrance to investing in an apartment in the Alps. We are here to facilitate the entire process for you, even with potential language barriers.

Purchasing an apartment typically takes 2 to 3 months. The decision to change the ownership of the apartment and the process of registering its property rights in the land registry takes
4 to 6 weeks.