Buy an apartment, rent it out and let the rent work for you. That's the idea behind an investment apartment (Vorsorgewohnung). In Vienna, it has been one of the most popular investments for years. But is it still worth it in 2026? We run the numbers honestly: what you earn, what the tax office gives back and what to watch for when you buy.
What is it?
An apartment you buy to rent out long term, usually a new build in a good location.
What does it bring?
Ongoing rent plus a rise in value. In Vienna, around 2.5 to 4% rental yield a year is typical.
The tax bonus
The 20% VAT on the purchase price can come back, and the building is depreciated every year.
The ground rule
If you use the tax benefits, you're committed: the apartment has to stay rented out for 20 years.
What is an investment apartment, and who is it right for?
An investment apartment isn't a special type of apartment. It's a plan: you buy an apartment not to live in, but to rent out. The rent comes in regularly, the apartment gains value over the years, and later in life you have extra income or a debt-free apartment for you or your children.
- A good fit if you think long term (15 years or more), have your own capital and don't like the ups and downs of the stock market.
- Less of a fit if you'll need the money in a few years or want to live in the apartment yourself soon.
- Typical in Vienna: a new build or first occupancy, 2 to 3 rooms, good public transit, outdoor space. An apartment like that rents out quickly and stays rented.
What does an investment apartment in Vienna bring in? An example
According to Otto Immobilien's Vienna housing market report, new apartments (first occupancy) in Vienna cost just under €7,300 per m² in the first quarter of 2026. The average net rent is around €16.40 per m² a month. That gives you a good estimate of the yield:
| Example | Value |
|---|---|
| Apartment, 50 m², net purchase price | €300,000 |
| Net rent €16 × 50 m² × 12 months | €9,600 a year |
| Gross rental yield (rent ÷ purchase price) | 3.2% |
| Closing costs (tax, land register, contract) | around 8–10% extra |
Some costs come off the rent that the tenant doesn't pay, such as the building's reserve fund, repairs in the apartment and periods without a tenant. Realistically, you'll often keep 2 to 3% a year after costs. Then there's what many people forget: the rise in value of the apartment over the years. We've broken down all the closing costs of a purchase here: Closing costs in Austria.
Run the numbers for your own apartment: enter the purchase price, rent, costs and financing. The calculator shows you the gross and net yield, your monthly payment, the surplus, the remaining loan balance and the value in a few years.
Taxes: where the tax office helps you
The biggest difference from an apartment you live in yourself: as a landlord, you're a small business in the eyes of the tax office. That brings three advantages.
- VAT back: if you rent out with VAT (Umsatzsteuer, 10% on the rent), you can get the 20% VAT on the purchase price back from the tax office. The catch: the apartment is tied to renting for 20 years. If you use it yourself before then, or sell it without VAT, you pay part of it back.
- Depreciation: the building (not the land) is depreciated at 1.5% a year. In Vienna, 30% of the purchase price counts as land if the building has more than 10 apartments, otherwise 40%.
- Faster depreciation for new buildings: for residential buildings completed in 2024, 2025 or 2026 that meet the klimaaktiv “Bronze” standard, triple depreciation applies in the first three years: 4.5% instead of 1.5% a year.
Important: over a period of 20 years, renting has to produce a surplus overall. Otherwise the tax office treats it as a hobby (Liebhaberei), and the benefits are lost. So have your tax advisor prepare a forecast before you buy.
Rent: what you can charge in 2026
For condos in new buildings, you can generally agree on the rent freely. There's no guideline rent (Richtwert) like in older buildings. New since January 1, 2026 is the Rent Indexation Act (Mieten-Wertsicherungsgesetz): increases based on the index are only allowed once a year, on April 1, and they're capped.
- 2026: an increase of at most 1%
- 2027: at most 2%
- From 2028: inflation in full up to 3%, anything above that only by half
For your numbers, that means: plan the rent on the cautious side and don't count on big jumps. The starting rent when you rent to a new tenant isn't affected.
What to look for when you buy
- Location before features: subway, shopping and schools within walking distance. That decides how quickly you find a tenant and what you can charge.
- Layout: 2 rooms with 45 to 60 m² are most in demand in Vienna. Every square meter has to be usable.
- Outdoor space: a balcony, terrace or garden has been almost a must since Covid.
- Costs in the building: check the operating costs and the reserve fund beforehand. High costs push down the rent you can charge.
- New build or existing building: a new build means higher rent and few repairs, an existing building often a cheaper way in. Run the numbers for both.
- Financing: plan for enough of your own capital. We put you in touch with leading financing experts in Austria. You can do the first calculations with our mortgage calculator.
Our investment properties in Vienna
New developmentWohnen über den Dächern von Margareten1050 Wien4 units · from € 449,000View all units (in German) →
New developmentHerrschaftlicher Altbau in der Josefstadt1080 Wien2 units · from € 549,000View all units (in German) →
New developmentStilaltbau nahe der Schmelz1150 Wien3 units · from € 479,000View all units (in German) →What does this mean for you as a seller?
Already own an investment apartment and thinking about selling? Then timing matters twice over. If you sell within the 20 years without VAT, the tax office takes back part of the input VAT (Vorsteuer). Selling to another investor often avoids that. On top of that comes the real estate income tax (Immobilienertragsteuer) of 30% on the profit. You can read exactly how it's calculated here: Real estate income tax when selling. We'll tell you what your apartment is worth today, free of charge: Get a property valuation.
Our tip
Always calculate an investment apartment with the rent that is actually being paid today, not with wishful numbers. Compare three or four apartments in the same area and ask where the apartment sits within the building. We're happy to show you which of our apartments work as an investment and what rent they can realistically bring in.
All information without guarantee, as of October 2026. We don't grant or arrange loans ourselves and don't offer tax or financing advice. For your individual situation, please ask your tax advisor.
