Austria has tightened its real estate legislation governing foreign property ownership, with changes effective from January 2025. Non-EEA investors and certain EEA-based corporate structures now face stricter approval requirements before any property transfer can proceed. Missing these requirements blocks registration in the land register and can nullify a transaction already under contract.
Austria's updated real estate regulation introduces enhanced prior-approval obligations for non-EEA nationals and foreign-controlled entities acquiring residential and agricultural property. Transactions that do not satisfy the new due diligence and disclosure conditions will be refused entry in the Grundbuch (Austrian land register). Affected buyers must obtain administrative clearance before the notarial deed is executed.
This alert identifies who is affected, what the compliance thresholds are, and which immediate actions foreign owners and investors should prioritise.
What changed and when it takes effect
Austria's updated property acquisition rules build on existing regional legislation that has long restricted non-EEA buyers. The 2025 changes extend those restrictions in three material ways.
First, the beneficial ownership threshold for corporate buyers has been lowered. A foreign-controlled entity is now subject to prior approval if a non-EEA national holds – directly or indirectly – a qualifying interest in the acquiring vehicle. The qualifying level is lower than under previous rules, capturing holding structures that were previously outside scope.
Second, the categories of property requiring approval have expanded. Agricultural land and forestry plots have always required clearance. The 2025 changes add a category of designated residential zones in urban and peri-urban areas. Buyers must confirm in writing that the property will serve as a primary residence or qualifying investment use.
Third, the conveyancing process now requires earlier disclosure. The notarial deed – the Notariatsakt (notarised public deed under Austrian law) – cannot be executed until the approving authority confirms compliance. Previously, disclosure could occur after signing. This shift places the compliance burden squarely at the pre-signing stage.
The effective date for all three changes is 1 January 2025. Transactions signed before that date but not yet registered in the land register remain subject to the prior rules, provided the notarial deed was authenticated before the cutoff. Transactions in progress as of that date require legal assessment on a case-by-case basis.
Who is affected and which thresholds apply
The new rules apply to the following categories of buyer.
- Non-EEA nationals acquiring any residential, agricultural, or forestry property in Austria.
- EEA-based legal entities in which a non-EEA national holds a qualifying beneficial interest, whether directly or through an intermediary structure.
- Non-EEA entities – including holding companies and funds – regardless of where they are incorporated.
- Trusts and fiduciary arrangements where the ultimate beneficiary is a non-EEA person.
EEA nationals who are tax resident in Austria and acquiring a primary residence are generally outside the approval requirement. However, they remain subject to standard due diligence obligations, including title deed verification and land register searches.
A common misconception is that holding property through an Austrian or German subsidiary insulates the buyer from these requirements. Under the updated beneficial ownership rules, the regulator looks through the corporate layer. A non-EEA shareholder at any level of the chain triggers the approval obligation if the qualifying threshold is met.
Compliance deadlines depend on the transaction stage. For new acquisitions, approval must be obtained before the notarial deed is executed. For restructurings that result in a change of beneficial owner of an existing Austrian property – without a direct property transfer – the obligation to notify arises within 30 days of the triggering event. Failure to notify within that window can lead to administrative penalties and, in serious cases, a forced divestiture order.
For a detailed overview of how these rules interact with Austrian tax obligations on property transfers, see our analysis of tax law matters in Austria.
To receive an expert assessment of your property acquisition or restructuring in Austria, contact us at info@ferrazwhitmore.com.
Immediate actions for foreign owners and investors
Foreign property owners and prospective buyers in Austria should treat the following as priority items.
- Audit existing holdings. Review all Austrian property held through corporate or trust structures. Confirm whether the beneficial ownership chain now crosses the qualifying threshold under the updated rules. The land register entry alone does not reveal whether a notification obligation has been triggered by a recent restructuring.
- Verify land register status before contracting. Any buyer entering a purchase agreement should commission a full land register search before signing. Encumbrances, easements, and existing approval conditions are recorded in the Grundbuch and must be resolved before a clean title deed can be issued.
- Sequence the notarial deed correctly. Do not execute the notarial deed until administrative clearance is confirmed in writing. A deed authenticated before approval is obtained exposes the transaction to challenge and can delay or prevent registration.
- Assess structures involving intermediate EEA entities. If the acquisition vehicle is an Austrian or EU company with non-EEA ultimate ownership, obtain a legal opinion on whether the entity falls within the new corporate buyer definition. This analysis must precede any heads of terms or letter of intent.
- Document the intended use of residential property. The new residential zone category requires a written declaration of intended use. Buyers should prepare this declaration early and confirm it aligns with planning law restrictions applicable to the specific plot.
International investors who previously relied on a simplified conveyancing process should note that the 2025 changes add at least one additional procedural stage. Build additional time into transaction timelines – typically several weeks – to accommodate the approval process.
Our real estate practice in Austria advises foreign buyers, corporate investors, and restructuring teams on all stages of property acquisition and compliance under Austrian property legislation. For a comparable regulatory update in a neighbouring civil law jurisdiction, see our alert on real estate regulation changes in Portugal.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our real estate practice covers property acquisition, conveyancing, due diligence, and compliance for foreign buyers operating in Austria and across 15 practice areas spanning civil law and common law systems. The firm combines Portuguese civil law expertise with English common law tradition. Our attorneys have advised on cross-border property transfer matters in both EU and non-EU jurisdictions, working with international entrepreneurs, institutional investors, and in-house legal teams. As an international law firm in Austria and across Europe, Ferraz & Whitmore provides results-oriented counsel to clients who need a lawyer in Austria with cross-border expertise. To discuss your situation under the updated Austrian real estate regulation, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.