How business transactions are conducted in Austria

1. BASIC TRANSACTION INFORMATION

   Commissions:

   The seller pays the 3-5% commission. Additionally, there is a 1-% notary fee and a 4.5% registration fee.

   Property, ownership, title insurance:

   • Title of ownership, transfer of title, and mortgages are recorded in the Grundbuch (land register, public access).

   Transaction information systems:

   N.A.

   Real estate trade associations:

   Bundesinnung der Gebaeudeverwalter, Realitaetenvermittler und Inkassobueros

   License requirements:

   A license is required.

   Forms of ownership:

   Private persons, corporations and partnerships may hold title to real estate property. Forms of corporations AG (joint stock company) GmbH (Ltd.), KG (limited liable and unlimited liable partners), OHG (general partnership).

   Contracts:

   Contracts must be signed before a notary and enterd in the land register.

   Mortgages:

   Mortgaged real estate property may secure a debt. This must be recorded in the land register. In case of mortgagor failure, the receivers will iniate a foreclosure process.

   Financing and lending practices:

   N.A.

   Taxation:

   Real estate property is charged with a 0.8% tax. A 1-% tax applies for vacant land. A 3.5% tax is charged on transactions. Special provisions are levied on capital gains.

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2. BASIC BUSINESS CULTURE

   Fashion:

   Traditional clothes are verypopular in Austria.

   Basic cultural skills:

   A handshake is common for gretting and parting. People are addressed with their titles and surname.

   Visiting:

   Appointments are made in advance. A small gift is customary. Punctuality is important.

   Restaurants:

   A service charge is included in the bill. Rounding up to the next Schilling is common.