Designation & Property Owner Community

Tourist Designation

The designation determines how a property may be used. It is usually documented in legal papers (e.g., condominium ownership agreements) or official regulations. Zoning laws, land-use, and development plans can also restrict usage. Before starting a tourist rental, you should make sure that the property has a tourist designation. If you're buying a property, it's crucial to check whether it can be designated for tourism purposes.

Consent of the Property Owner Community

If your property is part of a multi-unit building, a condominium ownership agreement governs the rights of use. If a reclassification for tourist purposes is required, unanimous consent from the property owner community is necessary. Approval from the property management alone is not sufficient. In the absence of consent, the property owner community could seek legal intervention.

Where to Obtain Further Information on Designation

In Austria the responsible department for zoning in the local municipality or city authority decides whether reclassification is possible. These offices can also provide comprehensive information regarding designation regulations.

Classification of Accommodation Types According to Business Law

Once you've clarified whether tourist rental is allowed for your property, the next step is to decide how you intend to host your guests. Various factors play a role here, including:

• Type of rental - e.g., room-only rental or additional services provided.
• Features of the accommodation - Furnishings, number of beds, etc.
• Type of service - Whether done personally, by family members, or by third parties.

Based on these considerations, you can determine if a business license is needed to legally operate your rental.

Private Room Rental ("Domestic Side Business") - Non-commercial Rental

Key characteristics of private room rental under business law are:

• Accommodation is within your own home or your own apartment
• No employment of non-household staff
• Maximum of 10 beds

Commercial Rental

In commercial rental, business law differentiates between "free trade" and "regulated trade" (e.g., the accommodation industry). For private individuals, both options are applicable. Key characteristics are:

Free Trade:

• Guests do not need to be accommodated in your own home or apartment
• Up to 10 beds
• Inclusion of breakfast or small snacks
• Serving of non-alcoholic drinks and packaged beer
• Employment of non-household staff is permitted

Regulated Trade (Accommodation Industry):

• Accommodation of guests
• No restrictions on food services or serving beverages of any kind

Additionally, ancillary rights dictate what services a business can offer beyond its core activities. These apply to both free and regulated trades and include:

• Selling or brokering accompanying goods (e.g., food, drinks, travel provisions, travel supplies, gift items)
• Offering and organising package deals (e.g., lodging + ski passes)
• Additional services, such as massages

Business Registration

Registration before starting operations: The accommodation business may only begin after proper registration. Potential points of contact include the Startup Service and district offices of the Austrian Chamber of Commerce (www.gruenderservice.at/kontakt) as well as the respective district administration authority.

Membership in the Hospitality Sector: Upon business registration, you will automatically become a legal member of the hospitality sector within the Chamber of Commerce, which entails an annual base fee. Membership benefits include legal services, support programs, training, and regular updates on industry-relevant topics. More information can be found under: Fachgruppen Hotellerie.

Contact Points & Additional Information

• Tourism Association / Municipality: Information on tourist designation
• District Offices / Magistrates: Responsible for business and construction law matters
• Chamber of Commerce (Hospitality Sector Group): Advice on commercial accommodation
• Tax Office: Questions on income tax and VAT
• Service Portals: (e.g., www.usp.gv.at): General information for businesses

This summary provides an overview and does not replace professional legal or tax advice, which should be sought from the relevant authorities or external consultants.

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