Blog

Buying a property is one of life's biggest investments. But the dream of owning your own home can quickly turn into a nightmare if you forget about the additional costs. But don't worry! We'll help you keep track of the additional costs and explain the small print in plain language. 

Which additional costs are incurred when buying an apartment? 

When buying an apartment in Austria, there are numerous additional costs on top of the actual purchase price - above all taxes, fees and duties. You also have to reckon with costs for drawing up the contract, for financing and for the estate agent's commission. All additional costs should be calculated before the purchase in order to avoid unpleasant surprises.
 

Who pays the additional costs?

When purchasing a property, the buyer usually bears the majority of the additional costs.

How high are the additional costs?

The amount of the additional costs depends on the value of the property to be purchased and amounts to up to 10 per cent of the purchase price.We only list the estate agent's fee here for the sake of completeness, as this is not applicable with Glorit.

• Land transfer tax: 3.5 per cent of the purchase price
• Land register entry fee: 1.1 per cent of the purchase price or 1.2 per cent of the mortgage including ancillary fees for the lien
• Costs for drawing up and processing the purchase contract: usually approx. 1 to 3 per cent of the purchase price - with Glorit 1.5 per cent of the purchase price (plus notary certification costs, cash expenses & VAT)
• Brokerage fees: up to 4 per cent of the purchase price (not applicable with Glorit)

ATTENTION: Since 1 July 2024, entries in the land register up to an assessment basis of 500,000 are free of charge for a limited period of two years. Beyond this, the fee is only payable for the difference to the total price. If the purchase price is over 2 million euros, the fee exemption does not apply.

You can find further information here.
 

All additional costs when buying a home in detail 

• Real estate transfer tax is a so-called transaction tax that is due when a property is purchased. In principle, both the seller and the buyer are liable to pay the tax, but it is usually agreed that the buyer pays the tax.
   
• The land register entry fee, also known as the registration fee, confirms ownership of the property and amounts to 1.1 per cent of the purchase price or 1.2 per cent of the lien value. For property purchases made from 1 April 2024, this fee will be waived for the first EUR 500,000 of the purchase price for a limited period of two years. The exemption applies per entry (= per owner), whereby the land register entry must be made between 1 July 2024 and 30 June 2026.
   
• Costs for the purchase contract: A lawyer or notary is usually commissioned to draw up a legally valid purchase contract. The costs for this are around 1 to 3 per cent of the purchase price, depending on the chamber tariff. It is also possible to agree an apartment fee. In addition, costs may be incurred for the notarisation of signatures, which are necessary for the registration of the title. Furthermore, the purchase price is usually paid via an escrow account, for example at a notary bank.
   
• Agency fees: If a real estate agent is involved in the purchase process, brokerage fees are incurred. In Austria, these fees are regulated by law and can amount to up to 4 per cent of the purchase price. The situation is different for Glorit properties: Here you can confidently do without estate agent fees!
   
• Financing of additional costs: When financing a property, it should be noted that the additional costs are not usually covered by the bank loan. The loan amount usually only relates to the net purchase price of the property. The additional loan costs are paid by the buyer. In addition to the additional costs, processing fees and any costs incurred for the property valuation by the bank should also be taken into account.