What now for property in Austria?
Well, the main property market has gone a little price crazy, which for Austria is so unusual. This has been fed by locals putting their money into property as the zero interest % at the banks depletes their funds! So, prices have been rocketing this past few years, but no doubt there will be a correction at some point.
With the UK becoming a Non Eu country, the rules of property ownership have all been changing.
How is this impacting holiday property owners or those British who still have the dream of the wooden chalet in the mountains.
For the British the problems started a few years ago, with the Basel 111 financial agreement for debt and financng in the EU.
The British earning in Sterling found the access to mortgages drying up. Then the government added to the scenario by requiring all borrowers to have income in Euros to repay any mortgage debt. This then became that you needed a taxed income in Austria! Effectively meaning you either moved to Austria to work, or bought a holiday business ( eg, an apartment house or chalet with an existing rental income) the income from which would be in euros and therefore feeding the mortgage.
Now with the UK no longer an EU country, the only 2 possibilities for a mortgage on that wooden chalet and that is a business mortgage or one of the development projects that have mortgages in place. The business mortgage means setting up an Austrian company. Lots of paperwork and regulations, but it does have it’s benefits in lower profit tax and tax deductions. So, if you remain tempted for a property in Austria, we are here to help and advise.
For more about mortgages here is our financing page: