Renting Out a Condominium Apartment in Austria

You own a condominium apartment and are thinking about renting it out? Before you sort out the rent, the contract and the taxes, there is one question you should answer first: what does your condominium ownership agreement allow? This guide shows you three typical ways of renting out. You will learn which rules apply and which option suits you.

Three ways to rent out a condominium apartment

In Austria, three typical options can be distinguished when renting out a condominium apartment. They differ in rental duration, legal requirements, approvals and ongoing effort.

Long-term rental: You rent out the apartment for an indefinite period or for several years. For the tenant, the apartment is usually their main residence. This is the classic option — easy to plan, but a long commitment.
Temporary rental: You rent out a fully furnished apartment for one to six months. Typical tenants are people who are in the area temporarily for work, are spending a semester studying, or need an interim solution while renovating.
Tourist rental of up to 30 days: With tourist rentals, guests usually stay only a few days or weeks. Whether this legally counts as renting or already as providing accommodation depends on how the arrangement is set up.

What does the condominium ownership agreement allow?

As the owner of an apartment in a multi-party building, you are part of an owners' association. You do not need the other owners' consent for every decision. For certain changes of use, that is different. Which use is permitted follows primarily from the condominium ownership agreement.

Checking the designated use

The designated use of a condominium unit determines what it may be used for. You will find this information in the condominium ownership agreement. It usually states which purpose the unit may serve. Start by looking at your purchase documents and your condominium ownership agreement. If needed, your property management company can also help.

The agreement may specify one of the following designations, for example:

Residential: This is the standard case. Renting out for residential purposes is possible. If you want to rent the apartment out to tourists repeatedly, you will usually need a change of designated use. So check your condominium ownership agreement first.
Designation for holiday or tourist use: This is less common and may offer more scope for tourist rentals.

When do you need the other owners' consent?

In principle, you may rent out your condominium apartment. The Austrian Supreme Court has clarified that a condominium owner may rent out their unit even without the consent of the other owners. If you want to change the agreed use of your apartment, the other owners' consent may be required. This applies in particular where their legitimate interests could be adversely affected. Under certain conditions, missing consent can be replaced by a court decision (change of designated use under Section 16(2) WEG). With tourist rentals, one factor is that frequently changing guests use the common areas of the building. This can affect the interests of the other owners.

Tip: Also check the house rules. They may set out rules for the use of the common areas.

Special case: subsidised condominium apartment

If the apartment was built or bought with housing subsidies, stricter rules apply. Subsidised condominium apartments may only be rented out in exceptional cases and only with the consent of the housing subsidy authority of the province. Depending on the subsidy, renting out may only become possible once the subsidised loan has been repaid in full. Privately financed condominium apartments are not subject to these subsidy-related restrictions. If you are unsure, ask the subsidy office of your province before you advertise the apartment.

What else you should keep in mind as an owner renting out

Even while the apartment is rented out, you remain part of the owners' association:

Reserve fund and refurbishment: The owners' association builds up a reserve fund for upcoming maintenance work. Even with a rented-out apartment, you bear your share of the association's costs. The minutes of the owners' meeting show which measures were discussed or resolved.
Operating costs: The property management company settles the ongoing expenses with you as the owner. Which costs you may pass on to the tenant depends on the tenancy.
Informing the property management: The management needs an address for service so that it can contact you in the event of water damage, lost keys or general questions about the house rules. An up-to-date address makes communication easier for the property management. That way it can reach you quickly if damage occurs or important questions arise.

Which rules apply depending on the rental term?

Besides the property and its use, the rental term also plays a role in determining which rules apply.

Renting out long term

With a classic rental, the MRG (the Austrian Tenancy Act) may apply in full, in part or not at all. For condominium apartments, one relevant factor is when the building permit for the building was issued:

Buildings with a building permit issued up to and including 8 May 1945: For older condominium apartments, the MRG may be fully applicable. Whether that is actually the case depends on the specific building and on further conditions. If the MRG applies in full, statutory rent limits may apply. You cannot then set the rent freely in every case.
Newer buildings: If the apartment is held in condominium ownership and the building was newly constructed on the basis of a building permit issued after 8 May 1945, the MRG generally applies only in part. The rent can then usually be agreed freely, but certain rules on fixed terms and termination still apply.

Important: Even if you can agree the rent freely, statutory requirements for the rental agreement still apply.

Short-term rental for 1 to 6 months

The MRG provides that short-term rentals are fully exempt under certain conditions. Where this exemption applies, the corresponding protective provisions of the MRG do not apply. These include the MRG rules on rent and on minimum fixed terms. The following conditions must be met:

The contract is fixed-term from the outset and ends when the contractually agreed period expires.
The contract may not run for longer than six months.
The apartment meets standard category A or B.
The tenant uses it as a second home due to a temporary, work-related change of location.
This purpose is agreed in writing.

Renting out to changing guests for tourism

Where the apartment is handed over to changing guests by the day or by the week, you need to check whether this is still pure renting or already the provision of accommodation. If your activity is classified as accommodation, additional legal obligations apply. You should check these points:

Designated use: First check whether tourist use is compatible with the existing designation. If the apartment is designated for residential purposes only, a change of designated use may be required.
Building law: Different rules apply to short-term tourist rentals depending on the province and the municipality. Check the building regulations and, if necessary, ask your municipality directly.
Trade law: Whether you need a trade licence depends on the specific rental arrangement. Relevant factors include the services offered and the scale of your activity.
Tourist tax and guest registration: Depending on the type of rental, the province and the municipality, an overnight stay levy and guest registration may be required.

Taxes at a glance

Income tax: With pure renting, your income generally counts as income from letting and leasing. With commercial accommodation, the tax classification may look different. What is taxed is not the rent itself, but the surplus after deduction of income-related expenses. Deductible expenses can include maintenance costs and certain ongoing costs.
VAT: With an annual turnover of up to EUR 55,000, the small business scheme may apply. In that case you generally do not have to charge VAT. Whether the conditions are met should be checked in each individual case.
Overnight stay levy: With short-term rentals to guests, a tourist tax or comparable levy may apply, depending on the province and the municipality.

When does it become commercial?

Whether your rental activity counts as a trade does not depend on the number of apartments alone. What matters is the overall picture of your activity. Additional services such as regular cleaning, linen changes or breakfast can play a role here.

With taxes in particular, much depends on the individual case. If you are unsure, get tax advice before you rent out for the first time.

Which option suits you?

	Long term	Temporary living	Tourist rental
Typical duration	Indefinite or several years	1–6 months	A few days or weeks
Minimum fixed term	Within the full and partial scope of the MRG: generally 3 years for non-commercial landlords, otherwise 5 years	No minimum fixed term where the full MRG exemption applies	No MRG minimum fixed term where accommodation is provided; for renting, check the individual case
Does tenancy law (MRG) apply?	Fully, partly or not at all, depending on the property	Yes. A full exemption is possible under certain conditions.	Depends on the specific arrangement. It may be renting or the provision of accommodation.
Can the rent be agreed freely?	Within the full scope of application, statutory rent limits may apply	Depends on whether the MRG applies or a possible exemption	Generally free where accommodation is provided; for renting, check the MRG
Consent of the other owners required?	Usually not, if the use matches the existing designation	Usually not, if the use matches the existing designation	Where a change of designated use is required: consent or court approval
Change of designated use required?	Usually not	Usually not, if residential use matches the designation	Where the apartment is designated for residential use, regularly yes
Official permit?	Usually not; check special rules and subsidies	Usually not; check special rules and subsidies	Depends on the province and the scale
Trade licence?	No with pure renting	Usually not with pure renting	Depends on the arrangement and the scale of the activity
Tourist tax and guest registration?	no	no	Depends on the classification and provincial law
Furnishing	Optional	Prerequisite	Typically yes
Ongoing effort	Low	Medium	High
Own use in between	Hardly possible	Very easily possible	Easily possible
Suits you if ...	You will not need the apartment for years	You want to stay flexible	You want to rent to changing guests frequently and are prepared for the higher organisational effort.

FAQ

May you rent out your condominium apartment without the consent of the other owners?

Yes, a classic rental for residential purposes is generally possible without the consent of the other owners. However, if the type of use changes — for instance with tourist rentals — consent or court approval may be required.

What do you need to check in the condominium ownership agreement before renting out?

The decisive point is above all the apartment's designated use. It determines whether the unit may be used for residential, holiday or business purposes, for example.

Which rules apply to a rental of one to six months?

Under certain conditions, a short-term rental can be exempt from the MRG. Relevant factors include the duration, the standard of the apartment and its use as a second home due to a temporary change of location for work.

What do you need to consider with short-term tourist rentals?

Whether this is pure renting or the provision of accommodation depends on the specific arrangement. In addition, requirements regarding the designated use, building and trade law, the overnight stay levy and guest registration may apply.

Does rental income have to be taxed in Austria?

Yes, rental income is generally taxable. In the case of income from letting and leasing, what is taxed is the surplus after deduction of the deductible costs.

This information is provided as a non-binding service and is intended solely as general guidance; it does not constitute legal advice in any way. The information made available on this website cannot replace individual advice tailored to the specific case. No liability of any kind is accepted for its content or accuracy.