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Austria – Property Financing

Mortgages for Foreign Nationals in Austria

Foreign nationals interested in purchasing property in Austria often inquire about whether local banks or lenders provide mortgages to non-residents. Austria, known for its picturesque landscapes and historical cities, does offer mortgage options for foreign buyers. In this article, we will delve into the possibilities and details of acquiring a mortgage in Austria as a foreign national.

Local Lenders Providing Mortgages

Austria boasts a stable and well-developed banking sector, which includes several banks and financial institutions that offer mortgage services to both residents and foreign nationals. These lenders may have specific mortgage products tailored to the needs of foreign buyers. Some well-known local lenders in Austria that provide mortgages to foreign nationals include:

  • Erste Bank: Erste Bank is one of Austria’s largest and most reputable banks, offering mortgage solutions for both residents and non-residents.
  • Raiffeisen Bank: Raiffeisen Bank is another prominent Austrian bank that provides mortgage options for foreign investors interested in the Austrian property market.
  • UniCredit Bank Austria: UniCredit Bank Austria is part of the larger UniCredit Group and offers mortgage services to foreign nationals looking to invest in Austrian real estate.

Foreign buyers should explore the websites of these banks, contact them directly, or visit local branches to learn more about their mortgage products, understand eligibility criteria, and initiate the application process.

Required Deposit When Buying Property

The deposit required when purchasing property in Austria can vary based on several factors, including the property’s purchase price, location, and the lender’s policies. In Austria, the typical deposit amount is around 20% to 30% of the property’s purchase price.

However, foreign nationals may encounter different deposit requirements, and it’s crucial to consult with the chosen lender to determine the specific deposit amount needed. Some lenders may request a higher deposit from foreign buyers, potentially up to 40% of the property’s value or more. Additionally, the deposit amount may be influenced by the buyer’s financial situation and creditworthiness.

Foreign buyers should be prepared with the necessary funds for the deposit, taking into account the property’s price and any additional costs associated with the purchase, such as property transfer taxes, legal fees, and registration fees.


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Responsibility for Outstanding Debts

When purchasing property in Austria, new property owners generally do not inherit the previous owner’s outstanding debts associated with the property. However, it is essential to conduct thorough due diligence to ensure a smooth and debt-free property transaction.

One crucial step is to obtain a land register extract (Grundbuchauszug) or a property title search, which provides information about the property’s ownership, any encumbrances, and any outstanding debts, such as mortgages or liens. This search helps confirm that the property is free from any financial obligations that could affect the buyer.

Additionally, it’s advisable to work with a qualified real estate agent and a legal professional (notary or attorney) who can assist in conducting the necessary checks and ensuring a clean property transaction. The sales contract should also include provisions that protect the buyer’s interests and specify the responsibilities of both parties regarding outstanding debts or financial obligations related to the property.

In conclusion, foreign nationals can obtain mortgages in Austria, but the terms and eligibility criteria may vary among lenders. Prominent local lenders offering mortgage solutions to foreign buyers include Erste Bank, Raiffeisen Bank, and UniCredit Bank Austria. The required deposit when buying property in Austria is typically around 20% to 30% of the purchase price, although foreign buyers may face different deposit requirements. New property owners in Austria are generally not responsible for the previous owner’s outstanding debts on the property, but due diligence and professional guidance are essential to ensure a smooth and debt-free property transaction.


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