Probably the most important question and bill that hits everyone in real estate buying. If you want to know exactly the additional costs before closing - read this article!
Costs when buying a property or land
- When acquiring a plot of land or real estate, the land transfer tax (GrESt) of 3.5% must be paid. The basis of calculation is the purchase price.
- The land registration fee of 1.1% of thepurchase price is fixed. If you are a member of a family with preferential tax treatment, you can still claim three times the standard value. (The standard value is determined by the tax office upon application with a notice. This is usually significantly below the market value).
- If the purchase is made through a real estate agent, a broker's commission of 3% of the purchase price plus 20% VATwill be added.
- The notary and contract feeis on average 1-2% plus 20% VAT.
- If a part or the whole object is financed with credit, the bank or building society loan charges 1.2% of the pledge amount and a bank processing fee or brokerage commission of 1.5-3%for the so-called pledge registration .
- Real estate transfer tax 3.5%
- Land register entry fee 1.1%
- Broker commission 3% +20%USt.
- Preparation of contract 1-2% +20%USt. (depending on notary/lawyer)
if applicable, in the case of bank financing/building saving loans:
- Lien registration 1.2% (or ranking 0.6%)
- Intermediation commission/bank processing fee 1.5-3%.
So you should expect incidental purchase costs of 8-12%.
Additional incidental expenses may include:
- Costs for the notification and self-calculation of the real estate income tax (short: ImmoESt) approx. 350€ - only for the seller
- Procedural costs and administrative charges for land transfer procedures (varies from province to province)
- Subsidised loans for WEO and owner-occupied homes or takeover by purchaser
- Any payments made by residents (development, connection fees, etc.)
If you have any questions on the subject of ancillary purchase costs, our team will be happy to advise you by telephone on: +43 1 890 38 10 or contact us at firstname.lastname@example.org or via the contact form.