Ancillary costs when purchasing apartments and property

Financial assessment

For the purposes of estimating housing expenditure as a proportion of the household budget, the general rule of thumb is that the apartment should not cost more than one third of your net income.

Agent commission

As a rule, both the buyer and the seller of the apartment or property must pay a commission for mediating a purchase agreement, which is negotiable. The maximum commission is calculated on the basis of the purchase price, with the current statutory VAT of 20 percent to be added:

Real estate transfer tax

In principle, real estate transfer tax amounts to 3.5 % of the purchase price. In certain cases, the assessment basis may differ from this amount, for example in the case of gratuitous transfers or acquisitions within the family.

Land register fee

A fee of 1.1 percent of the purchase price is to be paid for entering the ownership title in the land register (registration). If you intend to mortgage the object of purchase, a further 1.2 percent of the value of the right of pledge is due for its entry in the land register. On top of this is the registration fee of  81 Euro. The loan is settled through the relevant financial institution at the customary bank fees.

Lawyer or notary fees

As the purchase agreement is generally drawn up by a lawyer or a notary, who also submits the application for entry of the ownership title in the land register (registration), the buyer must budget for additional costs. The lawyer or notary fees amount to approximately 1-3 percent of the purchase price and are fixed in line with the fee schedules of the respective chambers. It is also possible to agree on a flat-rate fee.

Signature certification fees

Signatures affixed to the purchase agreement or the certificate of pledge in the case of a mortgage must be certified by a court or by a notary in order for the ownership title to be entered in the land register (registration).

Further links

• Real Estate Transfer Tax (→ USP)^{German text}
• Incorporation or Deletion^{German text}
• Register of notaries (→ ÖNK)^{German text}
• Register of lawyers (→ ÖRAK)^{German text}
• Entering the profession of property trustee (→ WKO)^{German text}

Legal basis

Standes- und Ausübungsregeln für Immobilienmakler (Professional ethics and code of conduct for estate agents)