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What is surprisingly cheap in Austria?

Despite doom and gloom reporting about the cost of living, not everything is more expensive in Austria. Here’s what is actually cheap (or cheaper) in the Alpine nation.

Empty wallet
Pictured: an empty wallet (Photo by Emil Kalibradov / Unsplash)

For anyone living in Austria, it’s no surprise that the cost of living has skyrocketed in the past year due to high inflation. 

But is everything really as bad as the news reports would have us believe? Or are some things in Austria cheaper than back home?

To find out more we asked readers of The Local to tell us what is surprisingly cheap in Austria.

FOR MEMBERS: Water, waste collection, parking: How Vienna will get more expensive in 2023

Affordable public transport

The results from our latest poll shows that 44 percent of those surveyed consider transport in Austria to be fairly cheap – especially when compared to their home countries.

Louise from England but living in Innsbruck said: “Buses are a lot cheaper than in the UK.”

And Olivier from France specifically referenced the annual pass for the Wiener Linien, Vienna’s public transport operator. The pass costs €365, which means Vienna’s residents can access to public transport for just €1 per day.

To compare, an annual pass for Berlin’s S-Bahn network is €761, and in Switzerland an adult annual pass for all zones is €2,226 for second class.

READ MORE: Tax cuts and bonus payments: Austria’s financial measures that will benefit people in 2023

“Reasonable” rent prices in Vienna

In second place was accommodation with 22 percent saying it was or cheap – or cheaper – in Austria.

Phillip from Australia said “rent in an Altbau apartment in a central location” is affordable in Vienna. This was echoed by Sean from New Zealand who described rent in Austria as “reasonable”.

But Tomas from Lithuania said: “Housing (rents) in Vienna is not cheap but cheaper when compared to other similar cities in Europe. This is all thanks to good regulation and a large supply of social housing in Vienna which helps to reduce prices on the private rental market.”

In Vienna, the average price for a one bedroom apartment in the city centre is €915, going up to €2,000 for a three bedroom apartment, according to Expat Arrivals

“Cheaper” alcohol

Almost 17 percent of respondents said food and drink was cheap in Austria. 

Louise in Innsbruck said: “Alcohol is surprisingly cheaper here too.”

However, Louise is from the UK where alcohol is often expensive to buy due to a sliding tax rate depending on the strength.

For example, beer with an alcohol strength of 1.2 to 2.8 percent is taxed at 8.42p per litre. This rises to 19.08p per litre for 2.8 to 7.5 percent alcohol, and up to 24.77p for beer that is stronger than 7.5 percent.

Whereas alcohol in Austria is taxed differently with a flat rate of €1,200 for every 100 litres of pure alcohol. The result is cheaper alcohol with a domestically produced 0.5 litre bottle of beer in an Austrian supermarket costing on average just 99c. In the UK, the average price is £1.99.

READ NEXT: EXPLAINED: How to keep energy bills down in Austria

Is Austria actually an affordable place to live?

When asked if Austria is affordable, many respondents said yes – but only when it comes to certain aspects of the cost of living. Location also plays a factor with several respondents living outside of Vienna saying Austria is not affordable.

Olivier from France said Vienna is “cheaper than lots of other European capitals for the quality of life”. And Nikola from Serbia said there is “good purchasing power” in Austria.

Tomas in Vienna said: “Yes, but only if you also work in Austria. The earnings to costs ratio allows most people to make ends meet. And some can maintain a really high standard of living.”

But Martina from Croatia, who lives in Neuhofen an der Krems in Upper Austria, said: “Everything is way more expensive than in my native country.”

Finally, Hiro from Japan described the cost of living in Austria as “so-so”.

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MONEY

What we know so far about Austria’s new €2,000 grant for home improvements

Austria wants to heat up the real estate and construction sectors - and is offering grants to people who have had work done on their homes.

What we know so far about Austria's new €2,000 grant for home improvements

Austria’s federal government had announced plans to avoid a housing crisis in the country, with measures including cheap loans, new builds and tax deductions announced, as The Local reported in February.

One of the measures announced was a so-called Handwerkerbonus, or a “tradesperson bonus,” set up to incentivise people to do more construction work and renovations in their homes. It was announced that in 2024 and 2025, anyone commissioning tradespeople would be able to claim €2,000 in grants from the federal government. 

Even though the bonus was much publicised at the time, little was known about the application process. However, Austria’s Ministry of Economics has finalised the details and guidelines for the bonus, as Austrian media reported.

READ ALSO: How Austria’s new plans to avoid a housing crisis will affect residents

Online requests from July

From July 15th, people in Austria will be able to apply for the Handwerkerbonus online through a dedicated website that will be online “soon.” People will be able to submit invoices retroactively, and any work done by a craftsperson from March 1st will be eligible for reimbursement.

According to the daily Der Standard, the online application will be “quite simple.” For reimbursement, people will have to upload the worker’s invoice and fill in their details, such as name, address, and bank account number (IBAN). An ID-Austria registration or photo ID upload will be used for identification.

The federal government is earmarking €300 million for the bonus.

How much will be reimbursed?

Householders can claim up to a maximum of €2,000 – but you can only claim up to 20 percent of the total invoice amount, as the government had announced. People can apply twice, once in 2024 and once in 2025. 

The application is also per person, so a household with two people could apply for up to € 4,000, for example. Additionally, several smaller invoices can be combined into one – with a lower limit of €50. 

READ ALSO: How self-employed people in Austria can get a €100 bonus from social security

The grants can be claimed by anyone who has had work done, you do not need to own your own home – although tenants will need approval from their landlord for any major works.

What type of work counts for the bonus?

The applications are very broad, and many types of “craftmanship” work could be reimbursed. This includes new tiles on the terrace, renovation of the façade, or new paint in the children’s rooms, as Der Standard reported. 

Labour services in connection with house construction are also eligible for subsidies under the guidelines.

“The bonus is intended to support people who have manual work carried out and also to benefit the regional economy such as installation or electrician companies, roofing companies or builders”, said August WÖginger, a government parliament member. 

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