A Vorsorgewohnung in Vienna: what does it really earn, and what must an investor watch?

The essentials in brief

• Vorsorgewohnung and Anlegerwohnung mean the same thing: a flat for letting, not for living in yourself.
• With a new build from a developer you can recover the input tax from the purchase price (the building share) if you let the flat subject to VAT. For property, the input-tax deduction is subject to a 20-year adjustment period: if the tax use changes during that time, the input tax is adjusted pro rata; there is no obligation to let the flat continuously for 20 years (§ 12 Abs. 10 UStG).
• Depreciation: 1.5 % a year of the building share; accelerated to up to 4.5 % in the first and 3 % in the second year; for residential new builds completed in 2024–2026 that meet the klimaaktiv standard, up to 4.5 % in each of the first three years.
• The land share — in Vienna usually 30 % or 40 % of the purchase price — may not be depreciated.
• Without an overall surplus within 25 years the tax office treats the letting as Liebhaberei (a hobby): losses then do not count for tax.
• In period buildings the Mietrechtsgesetz (Tenancy Act) usually caps the rent at the Richtwert — €6.74/m² in Vienna since April 2026, plus permitted supplements; in unsubsidised new builds a freely agreed rent is possible.
• A gain on sale is subject to 30 % Immobilienertragsteuer.

How much does a Vorsorgewohnung yield?

The yield depends on three figures: the purchase price including the incidental costs, the rent you can actually achieve, and the costs you carry as landlord. Always work with the net yield — the gross yield from listings is only the starting point.

Worked example with assumed values (not a market figure):

Why €17 net when listings in Vienna often show more than €20/m²? Listing prices are usually gross rents: they include operating costs (around €3/m²) and 10 % VAT; only the net rent counts for the yield. According to ImmoScout24, the median asking rent in Vienna in the first quarter of 2026 was €22.41/m² gross (including operating costs and taxes). Without VAT and operating costs that is around €17 net — ImmoLöwin’s own calculation, based on these assumptions: 10 % VAT on rent and operating costs, operating costs of around €3/m² net, asking rather than contract rents (22.41 ÷ 1.10 − 3 ≈ 17.4). This corresponds to a flat with a freely agreed rent; old-stock flats on the Richtwert rent are considerably below it.

These figures are a pattern, not an offer and not a forecast. For a specific flat we calculate with the actual rent from the tenancy agreement or from comparable listings, the real operating and reserve costs, and your financing. Current prices: Property prices in Vienna.

How is a Vorsorgewohnung taxed?

Four rules decide the result after tax: VAT, depreciation, Liebhaberei and property capital gains tax.

VAT and input tax. If you buy a new-build flat from a developer with VAT shown separately and let it subject to VAT, you charge the tenant 10 % VAT on the rent and recover the input tax from the purchase price from the tax office. If within 20 years (the year of first use and the following 19 calendar years) you switch to VAT-free letting or to using the flat yourself, you have to repay the input tax pro rata (§ 12 Abs. 10 UStG). Up to €55,000 of annual turnover the small-business rule applies; anyone who wants the input tax must waive it.

Depreciation (AfA). Only the building share is depreciated, at 1.5 % a year. For buildings acquired after 30 June 2020, up to three times that rate (4.5 %) is possible in the first year and up to twice (3 %) in the second. For residential buildings completed between 2024 and 2026 that meet the klimaaktiv Bronze standard, it is up to 4.5 % in each of the first three years.

Land share. The share attributable to land may not be depreciated. Without other evidence the Grundanteilverordnung sets 30 % in large municipalities such as Vienna (buildings with more than ten flats) or 40 % (up to ten flats).

Liebhaberei. The tax office recognises losses only if the letting can be expected to produce an overall surplus within 25 years from the start of letting — at most 28 years from the first expenses. High borrowing with long years of losses can fail that test; a forecast calculation before the purchase is therefore essential.

Property capital gains tax. If you later sell at a profit, 30 % Immobilienertragsteuer falls due; the main-residence exemption does not apply to a Vorsorgewohnung.

This overview does not replace tax advice; agree the forecast calculation and the waiver of the small-business rule with your tax adviser.

Which rent is permitted?

That depends on the building. In period buildings with a building permit issued before 1945 the Mietrechtsgesetz usually applies in full: the rent is capped at the Richtwert — €6.74/m² in Vienna since 1 April 2026 — plus supplements and deductions for location and fit-out. In unsubsidised new builds a freely agreed rent is possible. For the yield this is often the most important difference between two flats at the same price.

Checklist before you buy

1. Set the rent realistically. Check comparable listings and, in a period building, the legally permissible rent.
2. Calculate the net yield. With the incidental purchase costs, the reserve fund — at least €1.12/m² per month since 2026 — management, and one month of vacancy a year.
3. Have a forecast calculation drawn up. An overall surplus within 25 years, with your financing.
4. Decide on VAT. Letting a flat is in principle subject to 10 % VAT; if you are below €55,000 of annual turnover, waive the small-business rule in order to obtain the input tax; it is subject to a 20-year adjustment period.
5. Check the papers. Draft purchase contract, Nutzwertgutachten, reserve fund, minutes of the owners' meetings and, for a new build, the payment schedule under the Bauträgervertragsgesetz.
6. Check the location from a tenant's point of view. Transport links, floor plan and size for the tenants you want to attract.
7. Think the exit through. Property capital gains tax on a sale, and the input-tax adjustment if the use changes.