Bausparen for Expats in Austria 2026: A Plain-English Guide

Last updated 26 July 2026 · CheckEverything.at Editorial Team · 11 min read · Auf Deutsch lesen

If you have just moved to Austria and someone at your bank or your HR department mentioned "Bausparen", you probably nodded politely and made a mental note to look it up later. This is the look-it-up-later guide.

Bausparen is one of those very Austrian financial products that does not really exist in the same shape anywhere else. It is part savings account, part state subsidy, and optionally a cheap home loan years down the road. Just over 3.2 million Bausparverträge were active in Austria in the most recent series published by the Oesterreichische Nationalbank (OeNB). That is a lot for a country of nine million, though the number has been slowly falling as interest rates and other savings options shifted.

Key takeaways

• Anyone tax-resident in Austria can claim the state premium: 1.5% on deposits up to €1,200 per year, which caps at €18 per person per year.
• The minimum binding term is six years. Close the contract earlier and the premiums are reclaimed.
• Only one premium-eligible contract per person at a time, verified via your SV-Nummer.
• Four FMA-licensed providers: Raiffeisen, s Bausparkasse, start:bausparkasse (BAWAG Group) and Wüstenrot.
• If you leave Austria, new deposits stop being premium-eligible; talk to your Bausparkasse before you move.

This guide is written specifically for expats and English-speaking residents in Austria. We focus on the parts the German-language guides skip: who is actually eligible, how the German terms map to English, what the tax situation really looks like, and what happens if you eventually move away.

For a deeper Austrian-resident decision guide with full provider comparison, see our Bausparen ratgeber for Austria 2026.

What Bausparen actually is

Bausparen translates literally to "building savings". The product is:

• A fixed-term savings contract with one of four licensed Bausparkassen
• A small annual state premium (currently 1.5% on up to €1,200/year) on top of your deposits
• Coverage by Austrian deposit protection up to €100,000 per person, per institution
• An option, after the savings period, to take out a Bauspardarlehen, a loan with capped interest

The minimum binding term is six years. Touch the money before then and you lose the state premium. Stay the course and you get a small but reliable top-up that no plain savings account in Austria offers.

Worth saying out loud: the returns are modest. Bausparen is not an ETF replacement. It is a low-risk parking spot with a small sweetener from the state, and a side door to a regulated home loan if you ever want one.

State premium 2026: the actual numbers

The Bausparprämie is the headline benefit. The Federal Ministry of Finance (BMF) sets the rate each autumn for the following year, by the end of November at the latest, within a statutory range of 1.5% to 4%. The 2026 rate was fixed on 22 October 2025, once again at the legal minimum.

Source: oesterreich.gv.at: Bausparprämie. Note the distinction. A common misunderstanding, often repeated even on bank pages, is that "Bausparen is tax-free". That is only half-true. The state premium itself is paid out without KESt. The interest you earn on your own deposits is not tax-free, it is taxed at 25% just like a regular Sparbuch.

If you save the maximum €1,200 per year for the full six years, the premium adds up to €108. It is not life-changing money. It is, however, free.

Eligibility: yes, expats qualify (with one rule that matters)

You do not need to be Austrian to open a premium-eligible Bausparvertrag. Two requirements actually matter:

1. Unbeschränkte Steuerpflicht in Österreich. In practice this means you have your main residence (Hauptwohnsitz) in Austria and are tax-resident here. EU citizens, third-country nationals on a Rot-Weiß-Rot card, students, employees on Blue Card, retirees with a residence permit: all of them qualify provided they are tax-resident.
2. One premium-eligible contract per person. This is the rule that catches people out. You can technically open several Bausparverträge, but the state premium can only be applied to one at any given time, verified through your Sozialversicherungsnummer (SV-Nummer). A married couple with two SV-Nummern can have two; each child can have one in their own name.

You will need a Meldezettel (registration confirmation) and an Austrian bank account to set up the savings standing order. Most Bausparkassen handle the paperwork in branch with your house bank, so if you already bank with Erste, Raiffeisen, BAWAG, or another Austrian bank, the conversation usually starts there.

Source for the one-contract rule: s Bausparkasse FAQ on the Bausparprämie and konsumentenfragen.at on saving phase rules.

German to English: the terms you will actually hear

Who provides Bausparen in Austria

Four institutions are licensed by the Finanzmarktaufsicht (FMA) to offer Bausparen:

• Raiffeisen Bausparkasse, distributed through Raiffeisen-affiliated banks
• s Bausparkasse, Erste Group's Bausparkasse
• start:bausparkasse, a 100% subsidiary of BAWAG P.S.K. since late 2016, with a fully online product
• Wüstenrot Bausparkasse, part of the Wüstenrot group, with its own adviser network

That is the full list. Each runs several tariff variants (classic, flexible, junior, and so on), and the entry interest rates plus possible bonus interest depend on the specific tariff and the deposit pattern. Because tariffs and rates change quarterly, we deliberately do not publish a current rate table here; by the time you read it, it would already be slightly out of date. To compare current offers across all four, the simplest neutral starting point is the Arbeiterkammer's bankenrechner.at Bausparen tool or the durchblicker comparison further down.

Note for readers of older versions of this page: a previous version listed "BAWAG Wohnbaubank" as one of the four Bausparkassen. That was an error. BAWAG Wohnbaubank issues Wohnbauanleihen, which is a different product. The four Bausparkassen are the ones listed above, all licensed by the FMA.

A worked example

A simple scenario, with conservative assumptions:

For comparison, that is a higher net return than most current Austrian Sparbücher with comparable risk, but well below what you would expect from a diversified ETF portfolio over the same horizon. Bausparen is not the place to build wealth; it is the place to park money you do not want to risk.

What happens if you leave Austria

This is the question every expat eventually asks, and the German-language guides almost never address it. The short version: you have options, but the state premium is the part you can lose.

If you leave before the six-year mark and close the contract. You will receive your deposits plus accrued interest, but the state premium is reclaimed by the tax authority for any year in which you no longer met the eligibility conditions. Your interest is still subject to KESt while the contract was running.

If you leave but keep the contract running. This is allowed. You can continue paying in from a foreign bank account or simply pause deposits and let the contract run out. However, once you are no longer tax-resident in Austria, new deposits are no longer eligible for the state premium. What happens to premiums from earlier years depends on the individual case: closing the contract before the six-year mark counts as a premium-harming disposal (prämienschädliche Verfügung) and triggers repayment, which is why most savers who move simply let the contract run its full term. Confirm the details with your Bausparkasse in writing.

If your move is temporary. If you keep your Hauptwohnsitz in Austria and remain tax-resident here (for example, on a short overseas posting where you stay registered in Austria), eligibility continues normally.

Each Bausparkasse handles cross-border continuation slightly differently, particularly around how they verify ongoing eligibility. Before you move, ask your Bausparkasse in writing what they need from you, and consider speaking to a Steuerberater if the move involves dual residency or a country with no double-taxation agreement (DBA) with Austria. We are not your tax adviser, and the right answer for your situation depends on details that vary by country.

Bausparen vs other Austrian savings options

A quick orientation, not a recommendation:

• Tagesgeld / Sparbuch. Fully liquid, no state premium, deposit-protected. Top Austrian-accessible rates sit at up to roughly 2.5% as of July 2026, though promo rates come and go. Right for emergency funds.
• Festgeld (fixed-term deposit). Locks your money for a set period at a fixed rate, currently around 2.4% for 12 months at some Austrian providers. No premium, but no six-year commitment either. Right for money you can park for one or two years.
• Bausparen. Six-year lock-in, modest blended return including premium, KESt on interest, deposit-protected. Right for safety-focused medium-term saving.
• ETF or fund savings plans. No lock-in, higher expected return over decades, real volatility, KESt on realised gains. Right for long-horizon wealth building, not short-term security.
• Austrian state-supported pension products (Zukunftsvorsorge). Different product entirely, with its own tax treatment.

If you are weighing Bausparen against a regular savings account, also read our bank account comparison for Austria and our overview of the Austrian deposit guarantee. If you may eventually want a home loan, the Bauspardarlehen route is worth understanding alongside the broader credit landscape in Austria.

How to actually open one

The administrative steps, for someone setting it up for the first time:

1. Decide your monthly amount. €100/month is the typical default because it lines up with the €1,200 annual premium ceiling.
2. Pick a Bausparkasse. If you already have an Austrian house bank, ask them which Bausparkasse they distribute. Otherwise compare across all four below.
3. Bring your Meldezettel, ID, and an Austrian IBAN for the standing order.
4. Sign the Bausparvertrag and confirm the SV-Nummer for premium eligibility.
5. Set up the standing order. The premium application is automated each year by the Bausparkasse, you do not file anything separately.

Compare current Bausparen offers at durchblicker.at →

Frequently asked questions

Can a non-Austrian citizen open a Bausparvertrag and get the state premium?

Yes. What matters is unbeschränkte Steuerpflicht in Austria, which generally means you have your main residence here and are tax-resident. Citizenship is not a requirement. EU citizens, Rot-Weiß-Rot card holders, Blue Card holders, students, and retirees with a residence permit all qualify, provided they are tax-resident in Austria.

Is Bausparen really tax-free in Austria?

Only the state premium itself is paid out without Kapitalertragsteuer. The interest you earn on your own deposits is taxed at 25% KESt, just like any other Austrian savings account. The Bausparkasse withholds and pays the KESt automatically, so you do not file anything yourself. Source: bausparen.at FAQ.

What happens to my Bausparen if I leave Austria before the six-year mark?

You can either close the contract, in which case you get your deposits plus interest back but lose state premium claims for years where you no longer met eligibility, or keep it running. New deposits made while you are no longer tax-resident in Austria are not premium-eligible, but the contract itself can usually continue. Speak to your Bausparkasse before you move so they can document the change of residency.

Can I have more than one Bausparvertrag?

Yes, but only one of them at a time can receive the state premium, verified via your SV-Nummer. Couples each have their own SV-Nummer, so each can have one premium-eligible contract. Children can have their own in their name once they have an SV-Nummer.

Do I have to use the money to buy or build a home?

No. After the six-year savings phase the money is yours to use for anything. The Bauspardarlehen, the cheap home loan option, is just an additional benefit you can take or leave. Many savers use Bausparen as a general medium-term safe parking spot.

Is my Bausparen money protected if the Bausparkasse fails?

Yes. Bausparkassen are licensed banks supervised by the FMA, and Bausparguthaben is covered by the Austrian Einlagensicherung up to €100,000 per customer per institution, the same as a regular bank account.

How does the Bausparkasse pay me the premium?

Automatically. Each year, the Bausparkasse files for the premium on your behalf with the tax authority and credits it to your Bausparkonto. You do not need to apply separately or include it on your Arbeitnehmerveranlagung.

Bottom line

For an expat in Austria, Bausparen is a reasonable but unspectacular addition to a savings setup. The state premium caps at €18 per year, which is real money but not transformative. The bigger question is whether you want a low-risk, six-year locked savings vehicle in the country at all. If yes, Bausparen is the right shape for that. If you are unsure how long you will stay, keep the deposits modest and read the section on leaving Austria above before signing.

A simple rule of thumb: planning to stay at least six years, or thinking about buying property here one day? Then a Bausparvertrag earns its place, mostly because of the loan option. Here for a two-year posting with no property plans? A flexible Tagesgeld account will serve you better, premium or no premium.

For a full comparison of the four providers, current rates, and the 2026 outlook, see the Austrian Bausparen guide for 2026.

Compare Bausparen offers at durchblicker.at →

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Last updated: 26 July 2026. All information is provided for general guidance only and does not constitute tax, legal, or financial advice. For individual cases, consult a qualified Steuerberater or financial adviser.