Land transfer law in Austria - an overview I MYHOME.AT

When buying a property, there is a lot to consider from a legal point of view. This not only applies to the purchase contract, but land transfer law also often plays a major role. Viennese notary Markus Kaspar explains what this is all about.

What is land transfer law?

Land transfer law regulates who may acquire land in Austria by purchase, exchange or gift and under what conditions. However, land transfer law can also apply to existing and lease agreements as well as other contracts relating to land.

Its aim is to preserve rural structures, but also to ensure sufficient affordable living space for the population. “This means that, under certain circumstances, real estate transactions must be approved by the land transfer authority or at least notified to it,” says Viennese notary Markus Kaspar. As a rule, the authority of first instance is the respective district authority; in Vienna, MA 35 is responsible.

However, given Austria’s federal structure, there is no uniform land transaction law. “Instead, each federal state has its own and very different laws. This makes the issue very complex,” says Kaspar.

What types of land transactions are there in Austria?

In Austria, a distinction is made between so-called “green” land transactions, which include agricultural and forestry properties, “gray” land transactions (developed and undeveloped properties) and foreigner land transactions. The latter restricts the acquisition of rights by foreigners, irrespective of the type of property involved.

Specifically, a distinction is made between legal transactions that do not require approval and those that do. Legal entities or partnerships that have their registered office abroad or in Austria, but the majority of the shares in the legal entity are held by foreigners, are considered foreigners according to the land transfer laws of the federal provinces.

“EU citizens are not considered foreigners, they are largely on an equal footing with Austrian citizens,” explains the notary. Third-country nationals, on the other hand, are often subject to extensive authorization requirements. It should be noted that there are various country-specific exceptions for “basic foreigner traffic”. As a rule, permits are only issued in the area of basic traffic for foreigners if there is a social or economic interest.

Who needs a permit under land transfer law?

Whether the acquisition of a property or rights to it requires a permit depends on various factors. On the one hand, it depends on the federal state in which the property is located, and on the other hand on the zoning. “But the fact of who wants to acquire the property and how it will be used in the future also play an important role,” says Kaspar.

Green land transactions require approval under certain circumstances in all federal provinces except Vienna. If agricultural or forestry use continues to be guaranteed, this permit is usually granted.

The gray land transfer is of great importance in some federal states, especially with regard to second or vacation homes. In Tyrol, for example, land transfer law must even be observed in some cases of inheritance.

Does land transfer law also apply to Austrians?

In principle, yes, as long as no exceptions are specified.

What happens if the land transfer law is not complied with?

“If the land transfer law is not complied with, the contract in question is ultimately invalid,” says Kaspar. This is because the land registry court may not approve the entry in the land register without the approval of the land transfer authority. The same applies to the priority notice in the land register.

Does land transfer law also apply to secondary residences?

Yes, there are very specific regulations in some federal states.

How does a land transfer procedure work?

“As a rule, a notary or lawyer notifies the land acquisition to the land authority or applies for approval before the purchase contract is executed in the land register,” explains the notary. The respective parties to the legal transaction have party status. Processing by the competent land transfer authority can take several weeks. Incidentally, the land transfer laws do not stipulate a procedural maximum duration. If approval is not granted, an appeal can be lodged.

FAQ: Land transfer law

What does “Grundverkehr” mean?

Land transactions can be defined as the acquisition of rights to land in various forms. It is irrelevant whether this acquisition is for consideration or free of charge.

What is meant by land transfer law?

Land transfer law regulates who may acquire rights to land in Austria and under what conditions.

To whom does land transfer law apply?

Land transfer law applies to residents and non-residents.

Do I have to adhere to the basic traffic rules?

Yes, otherwise the real estate transaction is invalid.

What happens if the land transfer authority does not approve the legal transaction?

If the acquisition of a property is not approved by the land transfer authority, a complaint or appeal against the decision can be lodged with the competent provincial administrative court.