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
Disclaimer and Legal Information
No Financial or Legal Advice: The information provided on this website is for general information purposes only and does not constitute financial, legal, or tax advice. It does not replace individual consultation with a professional expert.
No Warranty for Accuracy and Timeliness: Despite careful research, we cannot guarantee the completeness, accuracy, and timeliness of the information. Prices, terms, and services may change at any time. Please verify all information directly with the respective provider.
No Recommendations: The mentioned products, services, or providers do not constitute a personal recommendation. The selection was made for informational purposes. Every decision is your own responsibility.
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Information as of: November 2024. All information without warranty. Changes and errors excepted.
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