The government will invest 2.2 billion euros in a large housing construction package in 2026. Home builders get cheap loans, tenants get a trader bonus, landlords get renovation financing and tax breaks. This should stimulate new construction – and above all create more affordable housing.
With a surprisingly large package, the government wants to save the ailing construction sector and, above all, make urgently needed affordable housing possible. A total of 2.2 billion euros should flow by 2026 – “very well invested money because the economic effects are enormous,” says Finance Minister Magnus Brunner (ÖVP), justifying his generosity.
Countries must make cheap loans possible
Many people across the board should benefit from this. Home builders should receive more and cheaper subsidized loans from the states. Up to 200,000 euros is possible per application, for which an interest of up to 1.5 percent will be charged. The states receive the money through the Federal Financing Agency, and the state contributes the difference to the market interest rate. Example: Compared to a current fixed bank loan of € 200,000, the monthly interest falls from approximately € 900 to € 600, says Christoph Kirchmair of credit advisor Infina.
Who should benefit from the housing package and how?
- Non-profit housing developers (Cooperatives) each build 10,000 subsidized rental and apartment buildings and renovate another 5,000.
- The living umbrella for Tenant (as protection against evictions or high extra energy payments, etc.) will be more than doubled this year from €60 million to €125 million.
- Private receive a craft bonus for the construction, renovation and maintenance of their apartment. 20 percent of the costs up to € 10,000 will be reimbursed. However, as with the other points, it is still unclear when this applies, i.e. when you must have a professional invoice issued and submitted.
- Landlord will receive an extra 15 percent of the costs for heating replacement or thermal insulation as a renovation bonus this year and 2025. This increases the financing rate for them to a maximum of 60 percent. Tax write-offs for landlords are tripled if the eco criteria are met. This should stimulate investments.
- Home buyer Save on land registry and lien costs when creating your first living space (construction, purchase up to 500,000 euros). That amounts to € 11,500 per case. If the purchase price or construction costs exceed €500,000, the two compensations for the excess amount must be paid pro rata. For “luxury apartments” costing more than €2 million, there are no savings at all; the costs must be paid in full.
Vacancy tax should be possible in the future
What is explosive is the plan that states will be allowed to levy high taxes on vacant housing in the future. The intention is to bring additional apartments onto the market. Currently, this vacancy tax is only possible to a limited extent under constitutional law and the amount is therefore low. This should be different in the future, but still requires the approval of the SPÖ in parliament. According to statistics, there were at least 653,000 properties without registered inhabitants across Austria in 2021.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
