What is the obligation to build requirement?
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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.
When acquiring undeveloped building plots in Austria — and particularly in Tyrol — purchasers are typically required to commence construction within five or ten years. This period may be extended once for special reasons by a further five or ten years.
The firm takes the view that this obligation to build (Bauzwang) is unconstitutional and has filed a number of complaints before the Austrian Constitutional Court (Verfassungsgerichtshof) on behalf of clients on this issue.