AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
2.10 Taxes Applicable to a Transaction When buying and selling real estate in Vienna as part of an asset deal, a land transfer tax of 3.5% and a land registry entry fee of 1% of the pur - chase price usually apply. Notary and legal fees are added and are usually borne by the buyer, although the distribution of costs is generally negotiable. A share deal (purchase of shares in a company that owns property) can also incur land transfer tax if at least 95% of the shares are transferred to a buyer or a group of com - panies – in this case, a tax rate of up to 3.5% also applies. Capital gains tax on capital gains affects the seller. Real estate transfer tax can also be triggered in the case of partial ownership transfers, such as a change of ownership in a partnership of over 95%. Tax exemptions and relief are available for transfers within the family or for reorganisations within corporate groups. 2.11 Legal Restrictions on Foreign Investors Austrian investors can generally acquire real estate in the United States without nationwide restrictions. However, the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018 expanded the authority of the Commit - tee on Foreign Investment in the United States (CFIUS), allowing it to review real estate transac - tions even without foreign control, particularly if properties are near military sites, ports, air - ports or critical infrastructure. Such “Covered Real Estate Transactions” may trigger reporting requirements, even for leases or usage rights. CFIUS can block or unwind transactions that threaten national security. Exceptions exist for private residential properties outside sensitive areas and for investors from designated partner countries.
suspected sites registers – is therefore essential before purchasing property. In summary, while the polluter is primarily liable, property owners can face responsibility, mak - ing due diligence and clear contractual terms crucial. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law To determine a property’s permitted use in Aus - tria, local zoning and land use plans must be reviewed, as they define whether a site is zoned for residential, commercial, industrial or mixed use. The Land Register ( Grundbuch ) reveals any restrictions or encumbrances. For detailed questions or updates on zoning changes, the Municipal Department for Urban Development and Planning (MA 21) can assist. Urban develop - ment contracts, introduced by the 2014 Vienna Building Code, allow stakeholders to support rezoning or major projects while sharing infra - structure costs. Legal advice and due diligence are recommended before purchase to ensure regulatory compliance. 2.9 Condemnation, Expropriation or Compulsory Purchase In Vienna, expropriation is legally permitted but strictly regulated. It requires a public interest, such as infrastructure projects, and must be a last resort after attempts at voluntary purchase. If negotiations fail, formal proceedings begin, allowing the owner to be heard and to appeal. Approved expropriations grant owners market- value compensation, with courts available to resolve disputes. Owners are well protected by procedural rights and judicial review.
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