When a foreign company — such as a GmbH from Germany, a Swiss AG, or a company from an EU member state — wishes to purchase a property in Austria, questions arise that go beyond a standard real estate purchase. The Land Transfer Act (Grundverkehrsgesetz), questions about legal representation, examination of business registers, and entry into the Austrian land register — all of this requires care and knowledge of the Austrian legal landscape. Many transactions are delayed because these special considerations are underestimated.

Bring your founding documents, shareholder structure, and questions about representation authority — Simon Immobilien will help you classify the requirements and structure the process. However: this article does not constitute legal advice. For binding information, consult a notary or lawyer.

The Key Points at a Glance

Foreign companies in Austria are subject to the Land Transfer Act, which under certain conditions requires approval from the district authority (Bezirkshauptmannschaft).
The authority to represent the company must be proven through certified documents (commercial register extract, power of attorney).
Before concluding a contract, you must verify that the company is properly registered in the commercial register of its home country and that there are no registration obstacles.
The notary checks whether approval is possible and submits an approval application if the Land Transfer Act applies.
Entry into the Austrian land register occurs after approval and notarization — timelines can span several weeks.
Typical errors (missing powers of attorney, incomplete register extracts, incorrect legal form) lead to delays and additional costs.

When Does the Land Transfer Act Apply and Who Needs Approval?

The Austrian Land Transfer Act regulates who may acquire land and real estate. Foreign individuals and foreign companies face restrictions that vary depending on their country of origin and the purpose of the purchase. The core rule: foreigners generally require approval from the district authority to acquire land in Austria. However, there are exceptions and exemptions.

For companies from EU and EEA countries (such as Germany, Switzerland, Italy, Poland), a simplified regulation has applied since liberalization in 2015: they may purchase property without approval if they meet an operational establishment principle — meaning they have a genuine place of business in Austria or the EU. A purely financial investment without a place of business requires approval. Companies from third countries (such as the USA, China, Turkey) generally require approval regardless of whether they have a place of business or the purpose of the purchase.

Approval is granted by the district authority in whose district the property is located. The notary typically submits the application. The review typically takes 4 to 8 weeks but may take longer depending on complexity. Important: without approval, the purchase contract cannot be notarized. A purchase without required approval is void.

Fundamentals: Place of Business, Legal Form and Register Review

To understand whether approval is required, three concepts must be clarified: place of business, legal form, and register review.

Place of Business and Purpose of Purchase

A place of business is a fixed establishment from which a company conducts its business activities. This can be an office, a shop, a factory, or even a lease for office space. If a German GmbH purchases a property in Vienna to open an office there or operate a branch, it meets the place of business principle. A purchase for investment or speculation purposes alone does not meet it.

The district authority reviews this based on documents such as business plans, lease agreements, founding documents, or extracts from the commercial register of the home country. If it is unclear whether a place of business exists, the notary or lawyer should clarify this with the authority in advance.

Legal Form and Legal Capacity

Companies can have various legal forms: GmbH, AG, cooperative, partnership, sole proprietorship. Not all legal forms are the same in all countries. A German GmbH is comparable to an Austrian GmbH, but a British Limited has different rules. Before the purchase, it must be clear that the foreign company is legally capable and permitted to acquire real estate — some companies are restricted by their bylaws or founding documents to certain business activities.

Proof is provided through a current extract from the commercial register (or equivalent) of the home country. In Germany, this is the commercial register entry with the district court, in Switzerland the commercial register entry with the canton, in Italy the Registro delle Imprese. These extracts must be certified or apostilled (apostille is an international certification certificate).

Register Review and Registration Obstacles

Before concluding a contract, the notary or advising law firm must check whether there are registration obstacles in the foreign register — such as bankruptcy, liquidation, insolvency, or deletion. A company in liquidation may not acquire new assets. Garnishments or seizures can also be an obstacle. This review is time-consuming because registers in different countries are accessible in different ways.

Some registers are accessible online (such as the German commercial register), while others require written inquiries or engagement of a local lawyer. The notary will conduct this review or arrange for it — this should be clearly agreed upon and may incur additional costs.

What Matters in Practice: Checklist of Review Points

Before a purchase contract is concluded, several points must be clarified:

Country of origin and place of business: Which country is the company from? Does it have a place of business in the EU or Austria? If not, approval is required.
Current register extracts: Are the commercial register documents from the home country current (no older than 3 months) and certified?
Managing directors and authority to represent: Who is authorized to represent the company? Are there entries in the register that indicate restrictions (for example: managing directors only jointly)?
Shareholder structure: Who are the owners of the foreign company? Are there restrictions or approval requirements at this level?
Bylaws or founding documents: Do these contain restrictions on the acquisition of real estate?
Powers of attorney: If the managing director does not sign personally, a notarially certified power of attorney is required.
Financing and creditworthiness: Does the company have the financial means? Banks scrutinize this more closely for foreign companies.

The following table shows which documents are typically required and where they come from:

Document	Source	Currency	Certification Required?
Commercial register entry	Home country	max. 3 months old	Yes, apostille or certification
Founding documents/bylaws	Home country	current	Yes, certified
Shareholder list	Home country or notary	current	Yes, certified
Power of attorney of managing director	Issuer (company)	for the transaction	Yes, notarially certified
Certificate of register review	Local lawyer or register	current	Yes, if from abroad

Step by Step: The Process When Purchasing Through a Foreign Company

The purchase process differs from the standard process through additional review steps and approval procedures:

Initial consultation and document collection (1–2 weeks): The broker or advising law firm clarifies with the buyer which documents are available and which still need to be obtained. Register extracts are requested, powers of attorney prepared. The notary is brought in.
Register review and approval capability review (2–4 weeks): The notary reviews whether the company is properly registered in the commercial register of its home country, whether there are registration obstacles, and whether the Land Transfer Act applies. If approval is required, this is determined.
Approval application (parallel to contract negotiations): If required, the notary prepares an approval application and submits it to the competent district authority. The buyer must submit documents regarding the place of business or the purpose of the purchase. This phase takes 4–8 weeks.
Contract negotiation and notarization (1–3 weeks): In parallel or after approval, the purchase contract is negotiated and notarized. The notary reviews all documents and the approval once more. Without approval (if required), the contract cannot be notarized.
Payment and land register entry (2–6 weeks): After notarization, the buyer pays the purchase price. The notary submits the registration applications to the land register office. Entry of the foreign company as owner occurs after review by the land register authority.
Completion and transfer (after registration): After successful land register entry, the transaction is complete. Transfer of the property typically occurs after or in parallel with payment.

Contact persons in the individual steps are: the broker (coordination), the notary (notarization and approval application), the district authority (approval), the land register office (entry), and optionally a lawyer or tax advisor (advice on taxes and corporate law).

Case Example: German GmbH Purchases Office Building in Vienna

A German company, Muster GmbH from Berlin, wants to purchase an office building in Vienna-Favoriten. The expected purchase price is €850,000. The company has no place of business in Austria but plans to open an office.

Scenario 1: With place of business (approval likely not required)

Muster GmbH can provide a lease agreement for an office to be used from the time of purchase completion. This meets the place of business principle. The notary reviews this, and the district authority recognizes that no approval is required. The purchase process proceeds normally: contract negotiation (2 weeks), notarization (1 week), payment and land register entry (4 weeks). Total duration: approximately 7–8 weeks.

Ancillary costs: real estate transfer tax 3.5% (approximately €29,750), registration fee 1.1% (approximately €9,350), notary fees (approximately €3,000–4,000), broker fees (if applicable). Total ancillary costs: approximately €45,000–50,000.

Scenario 2: Without place of business (approval required)

Muster GmbH has no lease agreement and does not plan to establish a place of business. It is purchasing the building as a financial investment. The notary recognizes that approval is required. An approval application is submitted (weeks 1–2). The district authority reviews (weeks 3–8). If approval is granted, the contract can be notarized (weeks 9–10). Payment and land register entry follow (weeks 11–15). Total duration: approximately 15 weeks or more.

The ancillary costs remain the same, but the time required and uncertainty are significantly higher. If approval is denied, the purchase cannot take place.

Typical Errors and How to Avoid Them

Error 1: Register extracts too old or not certified. Many buyers provide register extracts that are older than 3 months or are not certified. The notary cannot use these. Solution: Obtain current, certified extracts before the notary appointment. Cost: approximately €20–100 per extract, depending on the country.

Error 2: Authority to represent unclear or not documented. The managing director signs the purchase contract, but it is unclear whether he is authorized to do so or whether multiple managing directors must sign jointly. The contract can be challenged. Solution: Have the notary review the authority to represent in advance and document it through certified extracts.

Error 3: Approval requirement recognized too late. The purchase contract is negotiated without clarifying whether approval is required. Then everything is delayed by weeks. Solution: Have the notary check immediately after initial contact whether the Land Transfer Act applies.

Error 4: Place of business not credibly documented. The buyer claims to have a place of business but cannot provide a lease agreement or founding documents. The authority rejects it. Solution: Prepare documentation of the place of business in advance — lease agreement, business plan, founding documents.

Error 5: Register review not conducted. The notary does not check whether the company is in liquidation or bankruptcy. Later it turns out that the transaction is void. Solution: Explicitly instruct the notary to conduct a register review and request a report.

Error 6: Power of attorney not notarially certified. The managing director cannot sign personally and authorizes a representative. The power of attorney is not notarially certified. The notary does not accept it. Solution: Always have powers of attorney notarially certified, ideally in the home country or by an Austrian notary.

Checklist: Preparation for Purchase by a Foreign Company

Commercial register entry of the home country (current, certified, apostille if required)
Founding documents or bylaws (certified, in German or with certified translation)
Shareholder list or organizational list (current, certified)
Power of attorney of the managing director (notarially certified, if not signing personally)
Place of business documentation (lease agreement, business plan, register entry in Austria, if applicable)
Bank confirmation or financing commitment (for creditworthiness)
Register review conducted (bankruptcy, liquidation, insolvency review)
Notary engaged and approval capability clarified
Broker informed that foreign company is buyer (for marketing and communication)

Frequently Asked Questions

Must a foreign company always obtain approval?

No, not always. Companies from EU and EEA countries require approval only if they have no place of business in the EU or if the purchase is purely for financial investment. Companies from third countries generally require approval. The notary reviews this on a case-by-case basis.

How long does the approval process take?

Typically 4 to 8 weeks, depending on the completeness of documents and complexity of the case. Some cases take longer if the authority has follow-up questions. There is no statutory deadline, but the district authority should decide promptly.

Can approval be denied?

Yes. The authority can deny approval if it contradicts the public interest — for example, if land and real estate would pass into large foreign hands or if national security is affected. Such denials are rare but possible. A denial is a significant risk for the buyer.

What does approval cost?

Approval itself is free. However, costs are incurred for preparation: register extracts, certified translations, notarial certification of powers of attorney, possibly lawyer fees for register review. Total budget: €500–2,000, depending on complexity.

Can the foreign company sign the purchase contract itself or does it need a representative?

This depends on the laws of the home country and the company’s bylaws. Many companies are required by their bylaws for managing directors or board members to sign personally. If this is not possible, a notarially certified power of attorney is required. The notary reviews this.

Must the company pay taxes if it sells the property later?

That is a tax question and depends on the place of business, the duration of ownership, and the laws of the home country. A German GmbH with a place of business in Austria must pay income and corporate tax. A pure financial investor may be subject to speculation tax. Consult a tax advisor.

How Simon Immobilien Supports You

In transactions with foreign companies, Simon Immobilien provides support through coordination with the notary, clarification of approval capability, and realistic scheduling. We know the typical requirements and can minimize delays. For a non-binding consultation, contact us at https://www.simon-immobilien.at/en/contact.

Further information on purchase processes and legal particularities can be found in our Real Estate Guide.

Note: This article does not constitute legal advice. For binding information on the Land Transfer Act, approval capability, and representation questions, consult a notary or lawyer.