Question 1

Are foreigners allowed to acquire land in Austria?

Accepted Answer

The free movement of capital means that foreigners can acquire land in Austria just like Austrian nationals. This also applies to non-EU foreigners.

Question 2

What is the obligation to build requirement?

Accepted Answer

Acquiring undeveloped building land in Austria — and in particular in Tyrol — typically requires construction within five or ten years. This period may be extended once for special reasons.

Question 3

Can Chinese companies acquire land in Austria?

Accepted Answer

The free movement of capital means that no one can be prevented from acquiring land in Austria on account of their nationality or the registered seat of their company.

Question 4

Do German nationals receive equal treatment with Austrian nationals in land acquisition?

Accepted Answer

Under EU law, nationality or a company's registered seat cannot serve as grounds for refusal in the area of free movement of capital. In practice, however, German nationals appear to face discrimination in Tyrol.

Question 5

Does European Union law apply in Austria and Tyrol?

Accepted Answer

EU law formally applies in Austria, including Tyrol. The free movement of capital provisions apply automatically and take precedence over conflicting domestic law.

Question 6

Is a home used seasonally automatically classified as a prohibited holiday home?

Accepted Answer

No. Property use does not depend on frequency or year-round occupation. What matters is whether use is exclusively for holiday and recreational purposes.

Question 7

Can setting up a GmbH and a "work residence" help with unlawful holiday-home use?

Accepted Answer

In principle no. Under the most recent case law of the Administrative Court (VwGH), the concept of a "work residence" (Arbeitswohnsitz) does not even exist. Establishing a GmbH with its registered seat at the property likewise does not simply mask unlawful use as a holiday home.

Question 8

What is the Land Transaction Board?

Accepted Answer

The Land Transaction Board (Landes-Grundverkehrskommission) functioned as a second-instance tribunal. Following serious objections raised as to its independence, it was abolished and its functions transferred to the Independent Administrative Senate.

Question 9

Must I establish my primary residence in Austria to acquire real estate?

Accepted Answer

No, this is not necessary. Establishing a primary residence is not a requirement under land transfer law.

Question 10

Can Italians and South Tyroleans acquire land in Tyrol?

Accepted Answer

Under EU law, Italian nationals — including South Tyroleans — are treated identically to Austrian nationals and may acquire land in Austria by reason of the free movement of capital.

Question 11

What does free movement of capital mean regarding real estate?

Accepted Answer

Any person and any company can acquire land in Austria regardless of nationality or the registered seat of their enterprise.

Question 12

If I acquire a farm in Tyrol, am I required to cultivate it myself?

Accepted Answer

Following the ECJ ruling in Ospelt v Austria, neither living on the farm nor self-cultivation is required of a purchaser relying on the free movement of capital.

Question 13

Is it possible to leave a property vacant instead of using it as a holiday home?

Accepted Answer

Under an amendment to the Tyrolean Vacancy-Charge Act on Holiday Homes, owners must pay a vacancy charge to the municipality when a property stands empty. Vacancy is therefore not prohibited by law but triggers a charge.

Question 14

Is confirmation needed for joint ownership of agricultural land?

Accepted Answer

When acquiring co-ownership of agricultural or forestry land, provided the other conditions are met, the purchaser is not even required to declare that proper cultivation is secured — a privilege the firm regards as unjustified.

Question 15

What does the ECJ say about cultivation requirements?

Accepted Answer

The ECJ held in Ospelt v Austria that proper cultivation is a sufficient condition for acquiring agricultural land. Self-cultivation is not required.

Question 16

Can a foundation acquire agricultural land?

Accepted Answer

Yes. By reason of the free movement of capital, any EU national — regardless of citizenship, corporate seat, or other conditions — may acquire agricultural and forestry land in Austria, provided proper cultivation is ensured.

Question 17

What is an evasion transaction?

Accepted Answer

An evasion transaction arises where parties attempt to carry out a legal transaction under a different legal label or name.

Question 18

What are the main grounds for refusal in agricultural land transactions?

Accepted Answer

The principal remaining ground for refusal is that the purchase price must not exceed the market value of the land by more than 30 per cent.

Question 19

What is the civil law effect of non-filing under land transfer law?

Accepted Answer

Automatic nullity for failure to notify threatens transactions subject to approval requirements. The ECJ held in Burtscher v Austria that this automatic nullity breaches the free movement of capital.

Question 20

What is an "award" in enforcement proceedings?

Accepted Answer

In Austrian enforcement proceedings, the acquisition of real estate at auction is called the "Zuschlag" (award).

Question 21

Can a property be forcibly auctioned for unlawful use as a holiday home?

Accepted Answer

Following an amendment to the Land Transfer Act, forced auction of a property has been provided for again by law since 1 September 2022. Whether the new regime applies must be assessed on a case-by-case basis.

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