AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
ings, which can vary depending on the size and structure of the company.
cific legal regulations for residential leases that are set out in the Tenancy Act ( Mietrechtsgesetz – MRG). These primarily concern rents for apart - ments, which are regulated in certain cases by rent caps and rent regulations. For commercial leases, on the other hand, the rental conditions are largely freely negotiable, although there are some legal requirements that may affect, for example, the notice periods or lease term. In certain industries or regions, voluntary codes of conduct may also exist but, in general, commer - cial leases are more flexible and can be tailored to the needs of the parties. 6.4 Typical Terms of a Lease Commercial lease agreements in Austria are primarily governed by the ABGB and the MRG. Lease terms typically range from five to ten years, with options for renewal or termination under agreed conditions. Open-ended leases are legally possible but less common in practice. Maintenance responsibilities are usually divided: tenants are responsible for the upkeep and repair of the interior areas they use, while landlords handle major structural elements like the roof or facade. These details are often specified in the lease contract. Rent is generally paid monthly in advance, though quarterly or annual payments can also be agreed. Payments are commonly made via bank transfer or direct debit. 6.5 Rent Variation Whether the rent amount remains the same for the entire duration of a rental contract depends on the contractual agreements. As a rule, rental contracts in Austria often involve indexation, especially in the case of commercial leases. This means that the rent may be linked to the CPI (consumer price index) and adjusted regularly to reflect inflation. There is also the option of renegotiating the rent after a certain period of time (eg, every five years) or agreeing a fixed rent
6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Austrian law allows temporary use of real estate without ownership through various rights. These include rental contracts for a fixed term and price, lease agreements that also transfer income, and loans granting free use for a set time. Housing and usufructuary rights permit use or occupation, often for life or limited periods. These legal forms enable property use without purchase. 6.2 Types of Commercial Leases There are different types of commercial leases in Austria, which vary depending on the type of use and the agreed conditions. The most common types are the lease for business premises, used for commercial or office space, and the lease - hold agreement, in which the tenant is granted the right to use a property and to profit from the income (eg, gastronomy or agriculture). Further - more, there is the leasing contract, which is used primarily for the rental of business equipment or machinery. In addition, a distinction is made between fixed-term and open-ended leases, with the rent in the case of long-term leases often being linked to an index (eg, the consum - er price index). Another type is the combination contract, which integrates elements of rental and lease and is used in specialised business cases such as retail or hospitality. 6.3 Regulation of Rents or Lease Terms In Austria, leases and rental conditions are gen - erally freely negotiable. However, there are spe -
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