BREXIT: UK Citizens can continue to buy ski property in Austria
After the EU referendum, our UK buyers are asking what effect Brexit will have if they want to buy a ski property in Austria. Below we have outlined the answers to the most common questions we have received and you can rest assure your dream Austrian ski property is not out of reach.
Can I still buy a ski property in Austria?Yes, you can still buy a ski property in Austria, as the UK is currently still a member of the EU. Once Article 50 has been triggered by the UK government it will take at least two years to exit, and any purchases made up until this time are entered into the official land registry and cannot be affected retrospectively (your ownership cannot be reversed).
Could I still buy a property after Brexit?Yes, once the UK has left the EU, you would be able to buy a ski chalet or apartment in the same way as all our other non-EU citizens, which is to buy through an EU limited company. This is a very straightforward process and there is no need for the shareholder to be an EU citizen. We can recommend companies who can help guide you through this.
Can I still get a mortgage to buy in Austria?Yes, this is no problem so long as you are buying a property and renting it for touristic use – either flexible rental property, fully managed rental property, or property with a guaranteed rental return. In this case the banks are happy to lend up to 60% of the purchase price as your property would be classified as a ‘small business’ and the income you earn from your rentals may be used to cover the loan.
If you take a mortgage and rent your property it is possible to offset the interest on your mortgage payments against any profits on your rental income – something which will no longer be permitted for buy-to-let property in the UK from April 2017.
What happens to my property ownership when the UK leaves the EU?Your property will remain your property, and as a freehold owner your name is officially registered in the land registry and cannot be affected retrospectively (your ownership cannot be reversed). See our buyers guide for more information on purchasing a chalet or apartment in Austria.
Will I have to pay tax TWICE on my rental income?The UK has international dual-tax treaties with many countries across the world, and the dual-tax treaty with Austria will remain unaffected so you will not have to pay tax in both countries. Alpine Marketing works with various tax advisors in Austria specialising in rental properties. If you decide to reclaim the vat – giving you a saving of up to 20% on your purchase price – the tax advisors will help guide you through this process.
Alternatively we can also put you in touch with a UK Tax Advisor who specialises in British clients buying ski property in Austria. If you would like more information please do not hesitate to contact us.
Is Austrian ski property a safe investment?Austrian ski property is a safe investment. Over the past decade capital returns have steadily risen by approx. 4% per annum. This is because there is no over-building in these mountainous areas where planning permissions are lengthy and difficult to obtain. Demand outweighs supply, and that is what drives the prices up.
Income is also excellent because of the dual-seasonality of Austria. This is another pull for investors as unlike other holiday investment properties, the Austrian Alps has two rental high-seasons in one year. In the winter your investment generates income from skiers and holidaymakers enjoying Christmas and New Year in the mountains, and in the summertime your investment is a desirable holiday location for hikers and cyclists. In fact many Austrian Alpine regions get more tourists in the summertime than winter.
Austria also offers tax incentives if you rent your new-build property, as it is possible to reclaim the VAT element of your purchase price giving a discount of up to 20% on the gross price. When you are not using your property a professional tour operator will rent it.
We are completely independent sales agents working with all the top developers in the Austrian Alps. As we do not develop any property ourselves we can offer unbiased, independent advice. We also do not charge a buyer’s fee which most local agents charge saving you another 3%.
We have an exciting portfolio of ski property for sale to suit your requirements – ski property in Austria has different permissions for owners usage:
Guaranteed Income – If you are looking for a ski chalet or apartment with investment in mind and the security of a guaranteed income, we have handpicked some great investment properties for you. Rates are usually guaranteed for a three-year period on a rolling contract which is index-inked offering you piece of mind especially when combined with a fixed-rate mortgage.
Fully Managed – Many of our properties offer a fully managed rental service where the developer teams-up with a large tour operator. The tour operator will efficiently handle all your rentals when you are not using your property and then pay you a quarterly or monthly income. As an owner you simply book your forthcoming winter and summer dates in advance and the tour operator will do the rest. Many fully managed chalets and apartments for sale also offer extensive additional facilities including restaurants, spas and swimming pools.
Flexible Rental – If you want to maximise the personal use of your property and are looking for complete flexibility, then a property with a flexible rental option is perfect. In this way you can either rent your property through a local tour operator, or rent privately. If you chose a tour operator, they will advertise your property, manage your online bookings, meet and greet your guests, and deal with the laundering and cleaning of your property when your guests have departed. If you chose to rent privately, you can make your own web site to advertise your property, or advertise on a holiday rental portal, of you can rent privately to friends and family. Either way, we can recommend companies who will arrange all these services for you.
Second Home – If you prefer not to rent your property, we are able to offer a small selection of properties that have a rare “second home” permission, which means you have no obligation to rent.
Disclaimer: Whilst we make every attempt to ensure the accuracy and reliability of the information we provide, we are not tax advisors or lawyers. We are reliant upon information provided by third parties and therefore, the company, its employees and agents will not be responsible for any loss however arising, from the use of, or reliance upon this information. Legal advice or tax advice must be received by a professional Lawyer or tax advisor and we are happy to put you in touch with companies if you would like further information. These particulars and the company website do not form part of any offer or contract and must not be relied upon as statements or representations of fact. Registered Office: Bentinck House, 12 Bulstrode Street, London W1U 2JF, Registered in England. No. 06423236.