Following the launch of a project about Airbnb apartments investments in Austria and Germany, below is important information regarding this topic.
Vienna, Austria, has held the honor of having the highest quality of living out of every city in the world for over a decade. This is just one of the many factors that make Austria appealing for individuals and families who are looking to relocate.
Tourists are also attracted to the country. The number of tourists who visit Austria annually continues to increase, with people traveling to Austria primarily from other countries in Europe and the United States.
With newly relocated employees and tourists flooding Austria, now is a great time to invest in Airbnb apartments. By letting a space on Airbnb, you can earn a profit above the cost of your unit. However, Austria has several regulations that impact where you can (and cannot) operate an Airbnb apartment.
What to Know Before You Invest in Airbnb in Austria
Consider these five things before investing in an Airbnb apartment:
- Anyone from the European Union can buy an apartment
In Austria, it is relatively easy for an EU citizen to purchase a property under the EU’s equality principle. However, investors from the U.S. or elsewhere outside the EU may encounter more difficulty buying an investment property.
- Prices can vary widely from one district to another
Be thorough in your search for the perfect investment property, as prices per square meter can vary dramatically by going just a few streets over. Reviewing rental property information on AirDNA can help you get a good feel for what types of rates investors are able to charge per night with their units in any neighborhood. For example, in Vienna, you can expect to pay around €360,000 for a one-bedroom flat overlooking Prater park and €1.4m for a one-bedroom flat near the Innere Stadt.
- Pay attention to zones, especially in Vienna
In Vienna, stricter regulations have led to commercial and residential zoning ordinances. As of 2018, sublet units from Airbnb cannot exist in residential zones. Review the guidelines of what constitutes a residential zone before investing in a property.
- Buyers need to pay taxes
Austrian Airbnb investors typically pay 10 – 13 percent of a property’s value in transaction fees. Also, the income you earn from a rental property is considered taxable income. Starting in January 2021, Airbnb will automatically report your data to the Austrian Finance Ministry for the previous year.
- Investors need a business license
Whether you operate as an individual or business, if you intend to profit from your Airbnb investment, you will need a business license. In Austria, trade licenses are available at no cost. You may incur some fees, though, to go toward the Chamber of Commerce and cover social security.
Eventually, subletting an apartment on Airbnb can be a lucrative business operation, as long as you follow the laws. Investors who want to invest in Austria need to be aware of where they can and cannot own a rental property and should review all tax guidelines prior to making an investment.