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Austria to cancel the real estate transfer tax for first-time home buyers

In order to make ownership more affordable, Austria plans to abolish the real estate transfer tax for those who buy their first home.


As Austrian Chancellor Karl Nehammer mentioned during his speech on Friday, the property transfer tax (at 3.5% of the purchase price) should be cancelled. The chancellor further proposed the expansion of subsidized mortgages and rent-to-ownership programmes.


Rising interest rates and long-term property price growth have caused ownership unaffordable for a large part of the population of Austria. Also, the stricter regulation of mortgage loans introduced last year contributed to the decline in the housing market. The new mortgage rules require borrowers to pay at least 10% of the purchase cost of the home up front. Also monthly interest payments are not allowed to exceed 40% of household income.


Additional costs associated with the purchase of real estate - i.e. real estate transfer tax, land registry deposit fee, notary fee, bank fees, together with the real estate agent commission can increase the cost of buying a property by up to 10%.


ZDROJ:

Bloomberg: Austria to Cancel Property Tax for First-Time Home Buyers (10.3.2023)

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