The hills really are alive Prices in some of Austria’s better-known ski destinations are considerably cheaper than in their French or Swiss equivalents, and there are signs that the country is finally loosening some of the rules that have hitherto made it difficult for foreigners to buy.
British buyers unable – or unwilling – to pay the far higher prices in French and Swiss resorts are increasingly turning to Austria. Austrian properties are still undervalued, and in the current economic climate the stability of this market is also appealing. Prices haven’t inflated, as in the rest of Europe, and three in four properties in ski resorts are still owned by Austrians, who keep their homes for life.
The Salzburgerland, in the middle of the country, has been the biggest hit with British buyers because of its accessibility and affordability. Most of its resorts are within an hour’s drive of Salzburg airport – served by flights from most of Britain – and it also has Austria’s largest ski area, the Sportwelt Amadé.
The province is also fairly welcoming to foreign buyers: officially, second-homers must make their properties available for rent, but according to Ash-down, this is something of a formality. You are obliged to register your property with the local tourist office because they are worried about ‘cold beds’ – too many empty holiday homes, but nobody checks that you are actually renting it.
People who have bought property in Austria hope to visit three or four times a year, mostly for skiing, and make £15,000 to £25,000 per annum from the managed rental scheme.
Prices tend to be higher in the Tyrol, in the west of the country, which has 119 ski resorts, among them Kitzbühel, St Anton and Innsbruck. Historically, foreigners have not been allowed to buy a second home in this region – unless they live there full-time – but a few exceptions are emerging.
Jäger, an Austrian developer has persuaded the Tyrolean authorities to develop properties on four sites to sell to foreigners as second homes. The Alpin Resort Apartments is a development of 53 ski-in, ski-out flats. Of these, 32 are designated holiday flats and must be made available for rental, but the remaining 20 have second-home status and can be kept for private use. Two-bedroom flats start at £315,000, three-bedders at £358,000.
Buying in Kitzbühel itself, a medieval town with candy-coloured listed buildings and boutiques full of Louis Vuitton and Prada, is difficult, because those rare properties with holiday-home status that come onto the market are snapped up immediately. There are ways for nonAustrians to register as residents. This is a legal grey area.
In Pass Thurn, 20 minutes’ drive from Kitzbühel the 20 Panorama Chalets – prices range from £164,600 for a one-bedroom property to £618,900 for a three-bedder – are due to be completed by the end of the year and will be right next to a new chairlift up into the extensive Kitzbüheler Alpen ski area, which is undergoing ambitious redevelopment.
The Panorama project, at 1,275 metres, is 400 metres higher than Kitzbühel, which means those buying will enjoy more snow – although they won’t have the benefit of the town’s restaurants without getting into a car. The developers say the flats will be ideal for letting, and the 20% Vat levied on new-builds can be claimed back if you do.
Wherever you buy in Austria, the process is straightforward, with the deeds of sale signed by both parties – or power of attorney – at a notary’s office. Buying costs are about 6% and local mortgages are relatively easy to obtain, although they typically carry a 3% setup fee. Investors should note that Austrians are keen to deter a buy-and-sell culture that will overheat prices for locals, so capital-gains tax of 50% is payable on any profits if you sell your property within 10 years.
