Building Savings Austria 2026: Bausparen Explained for Expats
How does Bausparen work in Austria? Building savings explained: state bonus, interest rates, and best providers. Complete guide for expats in 2026.
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What is Bausparen?
Bausparen (building savings) is one of Austria's most popular savings products. Over 5 million Austrians have a Bausparen contract! It combines:
- State bonus (Prämie) on your deposits
- Guaranteed interest rates
- Deposit protection (Einlagensicherung)
- Option for cheap home loans after the savings period
How Does Bausparen Work?
The Savings Process
| Phase | Duration | What Happens? |
|---|---|---|
| 1. Saving Phase | 6 years (minimum) | You deposit money monthly or annually |
| 2. State Bonus | Yearly | Government adds 1.5% to your deposits |
| 3. Interest | Ongoing | Guaranteed base interest + bonus |
| 4. Payout | After 6 years | Money is freely available |
State Bonus 2026 (Prämie)
The Austrian government subsidizes Bausparen with a bonus:
2026 State Bonus
- Bonus rate: 1.5% on your deposits
- Maximum eligible deposit: €1,200/year
- Maximum bonus: €18/year
- Eligibility: Anyone with residence in Austria
Key point: The bonus is "free money" from the government – take advantage of it!
Building Savings Providers Comparison
The 4 Bausparkassen in Austria
| Provider | Base Interest | Bonus Interest* | Total |
|---|---|---|---|
| Raiffeisen Bausparkasse | 0.50% | up to 1.00% | up to 1.50% |
| s Bausparkasse | 0.50% | up to 1.25% | up to 1.75% |
| BAWAG Wohnbaubank | 0.40% | up to 0.85% | up to 1.25% |
| Wüstenrot | 0.45% | up to 0.80% | up to 1.25% |
*Bonus interest depends on contract duration and deposit behavior. As of February 2026
Compare Building Savings →
Key Terms for Expats
| German Term | English | Explanation |
|---|---|---|
| Bausparen | Building savings | The savings product itself |
| Bausparkasse | Building savings bank | The provider/institution |
| Bausparprämie | State bonus | Government subsidy (1.5%) |
| Bauspardarlehen | Building savings loan | Cheap mortgage after saving |
| Ansparphase | Savings phase | 6-year minimum period |
| Einlagensicherung | Deposit protection | Up to €100,000 protected |
Example Calculation
Saving €100/month for 6 years
Your contributions: €100 × 72 months = €7,200
State bonus: 1.5% × €1,200 × 6 years = €108
Interest (avg 1.2% p.a.): approximately €260
Total after 6 years: ~€7,568
Effective return: approximately 1.7% p.a. (including state bonus)
Is Bausparen Worth It?
Advantages
- Safe: Guaranteed interest, deposit protected up to €100,000
- State bonus: Free money from the government
- Cheap loans: Access to subsidized mortgages
- Tax-free: Interest is tax-free in Austria
Disadvantages
- Low returns: Less than stocks or ETFs
- 6-year lock-in: Early withdrawal loses the state bonus
- Limited growth: Maximum €1,200/year eligible for bonus
Best for:
- Safety-focused savers who want guaranteed returns
- Future homeowners planning to buy property
- Families: Every family member can have their own contract
How to Open a Bausparen Account
Requirements
- Residence in Austria (Meldezettel)
- Austrian bank account for deposits
- Valid ID (passport or Austrian ID)
Process
- Choose a provider (see comparison above)
- Fill out application online or in branch
- Set up regular deposits (monthly or annual)
- Receive state bonus automatically each year
FAQ
Can expats open a Bausparen account?
Yes! Anyone with a registered address in Austria (Meldezettel) can open a Bausparen account and receive the state bonus. You don't need Austrian citizenship.
What if I leave Austria before 6 years?
You can keep the account, but you'll lose the state bonus if you withdraw early. Consider keeping it running even if you leave – you'll still earn interest.
Is the interest taxed?
No. Bausparen interest is tax-free in Austria (KESt-frei). This is one of the advantages of this savings product.
Do I have to use the money for building/buying a home?
No. Despite the name "building savings," you can use the money for anything after the 6-year period. The Bauspardarlehen (loan) option is just an additional benefit.
Conclusion
Bausparen is a solid, safe savings option for anyone living in Austria. The state bonus and guaranteed interest make it attractive for conservative savers, even though returns are modest compared to stocks.
Our recommendation:
- Ideal for safety-focused savers
- Great for families (each member can have a contract)
- Consider alongside other investments for diversification
Compare Building Savings at durchblicker.at →
Updated: February 2026 | All information without guarantee
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Information as of: November 2024. All information without warranty. Changes and errors excepted.
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