Limitations to Foreigners
1. Are there in your national system any limitations to foreigner citizens or foreign companies/companies controlled by foreign citizens regarding the acquisition of immovable properties? If yes:
The legal responsibility is up to the regional (provincial) parliaments. If necessary (determined by the regional regulations), the entitled administrative authorities have to proof and to decide and file an administrative decision accordingly. This decision (set in force) is a precondition for the application to the Landbook court.
1.1. Which legal regulations regulate in your country the prohibitions or limitations for foreigners’ acquisitions in case of transfer of property? Please specify the legal regulation and/or the range of the regulation that contains the prohibition.
Regional regulations.
1.2. What do these limitations consist of?
The limitations (mostly) consist of restrictions on legal transactions concerning ownership, construction rights, ownership on super edifices, right of usufruct, right of use, right of residence.
The administrative approval is necessary only if these rights are to become intabulated as a right in rem into the Austrian Landbook.
1.3. Do these limitations apply to any foreign citizen, regardless their nationality, or only to non-EU Members national citizens?
In general, to EU-citizens have the same legal status as Austrian nationals. In most cases they do not need any administrative pre-approvals.
Foreign husbands to Austrians as well as adopted children face the national status too.
Some Areas like Kitzbühel (famous alpine city in Tirol) do have some more restrictive regulations on local level – mostly related to questions of residence and acquisition of real estate.
1.4. Do these limitations have?
- A defensive/protective purpose
- An economic purpose
- «Both economic and defensive/protective purposes»
- Other purposes (please specify)
2. To which kind of land registry unit do these limitations apply? (Example: only land plots, only rural areas, only foreign borders, dwellings and homes, other buildings?
Depending on the regional regulations the limitations may apply to (more or less) to all rights in rem.
3. To which kind of transfers or burdens do these limitations apply? (Example: to every transfer, non-free transfers, differently in case of inheritance than in case of purchase, mortgages in favor of foreigners….)
In general, the limitations apply to every “non-national (and non-EU-) citizen” – exception appear for spouses, inheritance cases, adoption …).
4. Apart from the previous limitation to acquisition of property by foreigners, are there any other measures at your country relevant for this topic? (Example: pre-emption rights in case of purchase un favor of a foreigner, social or residential measures bases on nationality and non in residential permits….)
Pre-emptions rights are not mentioned in the regional regulations – you may have a pre-emption right that does not help you out in case of refusal of the ownership by the administrative body.
5. To what extent the land registrars’ controls in a deed of transfer the prohibitions imposed to foreigners to acquire land and buildings in your country?
The “Diplomrechtspfleger” do not check the deed itself on the imposed prohibitions – the incoming owner has to forward the necessary administrative decision (in force) as an asset to the application for ownership.
5.1. Do you only check if the transfer administrative authorization requirement is met, or do you also confirm that the authorization is valid? For example, do you consider property type, like rural or forestry classification, which might limit foreign transfers? Or do you verify the percentage of foreign land ownership in a specific area, especially if there are restrictions on the number of buyers or land size?
The administrative authorisation (decision) has to meet (cover) the property (parcel) classification in the Landbook (A-section).
5.2. What would happen if an authorization were needed, and it does not come with the title submitted for registration?
The application would be rejected by the decision organ at the District Court – Diplomrechtspfleger.
5.3. What would happen in case a deed of inheritance in favor of a foreigner transfers property over land or buildings subject to limitations for foreigners’ acquisitions in your country?
In general inheritance cases are excluded from the need to submit an administrative authorisation. Exception apply only for heirs of countries where Austrian citizens are excluded from inheriting properties.
5.4. If the states have preemption right in case of transfer, would you reject the registration if no notification to the state to enhanced it right is done?
The states do not hold a preemption right.
6. Do you expect any legal modifications on this issue?
No.
