Regulations for vacation homes in Austria

Regulations for renting vacation homes in Austria

Acquiring and managing a second home in Austria can be a complex process. The purchase of a property is subject to strict laws and regulations. Additionally, there are several legal and practical considerations when buying a second home, including permit requirements, tax implications, and financing options. But how do these aspects relate to each other? We are happy to explain.

Permit requirements

In Austria, there are three main types of property zoning: Zweitwohnsitz, Hauptwohnsitz, and Gewerbliche. All Romex properties are zoned Gewerbliche, which means that a rental obligation applies to all our projects. This requires that all properties must be rented out year-round.

Zweitwohnsitz or Freizeitwohnsitz

For Zweitwohnsitz properties, there is no rental obligation; both renting out the property and permanent residence are allowed. You may also use the property solely for your own vacations. It is important to note that Romex does not offer Zweitwohnsitz properties, but only properties with Gewerbliche zoning.

Hauptwohnsitz

Hauptwohnsitz is intended for permanent residence and is not for rental purposes. Registration of a Hauptwohnsitz in Austria is a legal requirement for residents. It is important to note that Romex also does not offer properties with this zoning.

Gewerbliche

For Gewerbliche properties, we have a permit that requires investors to rent out the properties. These permitted properties are primarily located in tourist areas. Investors are allowed to use the property for 4 to 6 weeks per year for personal use, but for the remainder of the year, the properties must be rented out.

Recovering Austrian VAT

During the application process, you are considered a business owner because you are renting out a vacation property. This makes it possible to reclaim the Austrian VAT on the purchase price. This is only applicable if the property is rented out. To reclaim the VAT, you must obtain a VAT number from our Austrian Finanzamt.

However, the Finanzamt sets several conditions for reclaiming VAT:

The property must be rented out for a minimum of 20 years.
During periods of personal use, the owner cannot claim VAT benefits. This is assessed annually based on personal use compared to the actual rented weeks.
Taxable profit must be generated during the period of property ownership.

Financing options

The method of financing your investment depends on your financial and tax position and may include:

Using your own funds
A second mortgage on your Dutch property
A personal loan in the Netherlands
Financing through a project developer
Mortgage based on securities lending in the Netherlands
A mortgage from an Austrian bank

At Romex, we maintain solid relationships with banks in Austria, ensuring that you benefit from favorable mortgage conditions and other advantages that are important for financing your investment.

Please contact us

Do you have questions or would you like more information about our projects or investment opportunities? Our team is here to assist you personally and answer all your questions.

Request a Brochure Call us: +31 (0)79 361 59 27