AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Investors can choose from various corporate structures to hold real estate, the most com - mon being limited liability companies (GmbH) and joint stock companies (AG). A GmbH is often preferred, especially for larger real estate portfolios or commercial real estate, as it offers a flexible structure and limited liability. Another common structure is the Offene Gesellschaft (OG) or Kommanditgesellschaft (KG), especially when several investors work together, as these offer tax advantages and flexible participation models. Real estate funds or trusts are also used, especially by institutional investors or in larger transactions. In certain cases, such as the establishment of real estate projects, partner - ships or limited liability partnerships (LLP) may also play a role, particularly if there is an interna - tional dimension. The choice of company often depends on tax aspects, liability issues and the planned structure of the investment. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity In Austria, common legal forms for real estate investments include: • stock corporations (AG); • limited liability companies (GmbH); • general partnerships (OG); and • limited partnerships (KG). AGs and GmbHs offer limited liability and flex - ible capital structures, requiring minimum capital of EUR70,000 and EUR35,000 respectively. In contrast, partners in OGs and general partners in KGs have unlimited personal liability.
government or a specialised appeal authority. In addition, judicial review is possible before the administrative courts if the applicant considers the decision to be unlawful. Third parties, such as neighbours, may also, under certain condi - tions, lodge an appeal if they are directly affect - ed by the decision. 4.6 Agreements With Local or Governmental Authorities In Austria, development projects often require agreements with local or state authorities and utility providers, in addition to official permits. These may cover building rights, infrastruc - ture use and municipal development contracts. Larger projects may need agreements on traffic, environmental measures or utility connections to ensure smooth implementation. In certain cas - es, transferring development rights may also be necessary if specific conditions apply to the development area. 4.7 Enforcement of Restrictions on Development and Designated Use In Austria, land use and development are reg - ulated by building codes and public laws at federal, state and municipal levels. Municipal codes define permitted uses, building heights and setbacks, and determine whether a permit is needed. Authorities enforce these rules through inspections and can impose fines, usage bans or demolition for violations. Environmental and conservation laws may also apply. Non-com - pliance can lead to compulsory demolition and other penalties.
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