Investing in Austrian Property in 2026: Zweitwohnsitz Rules, Vienna's 90-Night Cap and Alpine Yields

Austria combines some of Europe's most reliable Alpine tourism demand with some of its strictest second-home rules. Investors who understand the Zweitwohnsitz (second residence) and touristische Vermietung (tourist letting) designations find a stable, dual-season market with low running costs; those who do not can end up owning a chalet they are legally not allowed to rent.

The zoning question comes first

In Tyrol, Salzburg and Vorarlberg, most residential property may only be used as a primary residence (Hauptwohnsitz). Buying it as a holiday home is prohibited unless the unit is designated as a Freizeitwohnsitz (leisure residence), a scarce and expensive category. The investor route is the touristische Vermietung designation: apartments in serviced developments that must be rented to tourists (often through a mandatory operator) and where owner use is limited to a few weeks per year. Carinthia, Styria and Lower Austria are more permissive, and Vienna has its own city rules.

Vienna: 90-night cap in residential zones

Since July 2024, short-term letting of apartments in Vienna's residential zones (Wohnzonen) is limited to 90 nights per year unless the property has a commercial designation. Investors targeting Vienna's year-round city-break demand therefore look for commercially zoned units or mixed-use buildings, or accept a long-term letting model with 3–3.5% net yields.

Acquisition costs: about 10%

• Grunderwerbsteuer (transfer tax): 3.5%

• Land registry fee (Eintragungsgebühr): 1.1%

• Agent commission: typically 3% + 20% VAT, paid by buyer and seller each

• Contract drafting and trusteeship (lawyer or notary): 1–2% + VAT

• Mortgage registration, if financed: 1.2% of the registered amount

Rental income tax

Rental income is taxed at Austria's progressive income tax rates (0% up to about €13,300, then 20% to 55%). Non-residents are taxed only on Austrian-source income, with a notional €10,486 added to the base, which generally means a 20–30% effective rate on typical rental profits. Depreciation (1.5% per year on the building share) and all operating costs are deductible. Tourist letting is normally subject to 10% VAT on accommodation, which allows input VAT recovery on purchase in some serviced developments — a significant advantage that requires a tax adviser to structure correctly.

Running costs and tourist tax

Annual property tax (Grundsteuer) is low — typically €200–600 per year. Ortstaxe / Nächtigungsabgabe (tourist tax) is €1.50–3.50 per person per night, collected from guests. Betriebskosten (building running costs) in Alpine developments run €3–5/m² per month and often include heating, snow clearance and a maintenance reserve.

Realistic yields

• Managed tourist-letting apartments in Tyrol/Salzburg resorts: 3–4.5% net, with guaranteed-return models offered by some operators (read the exit clauses)

• Carinthian lake properties (Wörthersee, Millstätter See): 3–4% net, strong summer season, limited winter

• Vienna commercial-zoned STR: 3.5–4.5% net; residential-zoned long-term: 2.5–3.5%

• Styria and Lower Austria rural chalets: 4–5% net at lower entry prices but thinner resale liquidity

Non-EU buyers need approval

EU and EEA citizens buy on equal terms with Austrians. Non-EU citizens (including UK and Swiss nationals in most provinces) need approval from the provincial land transfer authority (Grundverkehrsbehörde), which can take months and is routinely refused for pure holiday use in Tyrol and Salzburg.

Checklist

1. Confirm the property's designation: Hauptwohnsitz, Freizeitwohnsitz or touristische Vermietung

2. In Vienna, check whether the address is inside a Wohnzone (90-night cap)

3. Read any operator or management contract for minimum letting obligations and owner-use limits

4. Ask a Steuerberater about VAT recovery on purchase

5. Model 10% acquisition costs and progressive income tax, not a flat rate

Terrivio applies Austrian transfer tax, registration fees, progressive income tax and the Vienna Wohnzone status for any Willhaben or ImmoScout24.at listing, and flags the zoning designation in the risk score.