Fee exemption for real estate purchases from April 1st, 2024

In general, when purchasing real estate, a fee of 1.1% of the purchase price and 1.2% of the loan amount (for a registered lien) is incurred for the entry of ownership rights in the land register (registration).

In the plenary session of the National Assembly on March 20th, 2024, a federal law was passed as part of the Construction and Housing Pact presented by the government at the end of February, which amends the Court Fees Act (2497 of the annexes XXVII. GP – Committee Report National Assembly). This has now established a temporary instrument – at least until June 30th, 2026 – which is intended to benefit purchasers when acquiring or building a home to satisfy their urgent housing needs from April 1st, 2024.

Who benefits from the fee exemption?

The aforementioned registration fees do not apply when registering the acquisition of ownership or building rights (TP 9 lit b nbs. 1, 2 and 3) for a property with a building (already constructed or yet to be constructed) that serves to satisfy the purchaser’s urgent housing needs, up to an assessment basis of EUR 500,000.00 as well as for the registration of liens (TP 9 lit b nbs. 4, 5 and 6) to secure loans that are taken out to acquire or renovate such a property including buildings.

For a property value or mortgage amount exceeding EUR 500,000.00, the fee is to be prescribed for the amount exceeding this threshold.

However, if the assessment basis exceeds EUR 2 million, no fee exemption exists (not even for the portion below EUR 500,000.00).

The urgent need for housing must be proven by a declaration of primary residence, along with proof that the residential rights to the previous residence have been relinquished. This declaration must be submitted either simultaneously with the land register application – if the residence has already been occupied – or within three months of handover (in the case of acquiring a move-in ready residence) or completion of the residence (in the case of a residence yet to be constructed or renovated), but no later than five years after the land register entry.

When does the purchaser benefit from the fee exemption?

The registration fees for the acquisition of a property that serves to satisfy an urgent housing need are waived up to a purchase price of EUR 500,000.00 for purchase contracts concluded from April 1st, 2024, onwards and applied to the land register between July 1st, 2024, and June 30th, 2026. Inherited or donated properties are not covered by the fee exemption.

Can the fee exemption be revoked retroactively?

The acquired property must serve as the primary residence continuously for five years from acquisition. In the event of an earlier abandonment of the residence, the fee may be retroactively levied by the land register court.

Our experts Daniela Huemer and Anna Follrich from the Real Estate Law team will be happy to answer any further questions you may have on this topic and will support you with the execution of the purchase contract.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.

 

22. March 2024

 

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