Category Archives: Property law

Physical partition of a property means dividing it into at least two plots. Such a subdivision is permissible only if all relevant statutory requirements are met.

A municipality may impose a temporary building ban on all or part of its area when it intends to amend its zoning or development plan. This is intended to prevent building projects that would conflict with the future plans.

A building ban in the municipality where the property is located does not automatically prevent subdivision. Whether the building authority can approve the intended subdivision depends primarily on compliance with the existing development plan and compatibility with future zoning and development plans. In Vienna, this is regulated by section 8(2) of the Vienna Building Code.

However, each Austrian federal state may adopt different rules. Whether a property can be physically partitioned despite an existing building ban must therefore always be examined individually.

NEWS ON THE TAX REFORM: transfers of property within the family are becoming more expensive!

The tax reform increases real estate transfer tax. At present, the assessment basis for gifts within the family is three times the standard assessed value (Einheitswert). From 1 January 2016, however, the generally much higher market value of the property will be used to calculate the tax instead of three times the assessed value.

Conclusion: property transfers within the family will generally become more expensive. It is therefore advisable to consult a specialist lawyer about whether property should be transferred before the tax reform takes effect on 1 January 2016, to benefit from the favourable provisions still in force.

Mag. Patrick Maydell, LL.M., Attorney at Law, will be pleased to answer your enquiries.