Austria: Recent Tenancy Law on Value Preservation Clauses

Nov 7, 2025 Benn-Ibler Rechtsanwälte

The Austrian Council of Ministers has approved a resolution to amend laws relating to index adjustments, fixed-term agreements, and the recovery of overpaid rent. The proposed Civil Law Indexation Adjustment Act aims to clarify value guarantee clauses in ongoing contracts, ensuring greater legal certainty.

Adjustments to the rent index depend on established limitations

The new Rent Value Guarantee Act will cap rent indexation for residential tenancies from 2026, including current leases. Rent can only be adjusted annually from 1 April, and tenants will pay only the part of the index increase exceeding 3% of the consumer price index.

For instance, if the inflation rate is 4%, the allowable rent increase would be capped at 3.5%, calculated as 3% plus 50% of the additional 1%.

Extended minimum rental period

The draft legislation establishes extended minimum durations for fixed-term tenancy contracts. The shortest permissible rental period is now set at five years, rather than three, for agreements involving landlords who are classified as entrepreneurs. This provision does not affect ‘micro landlords’ operating within the C2C sector, for whom a three-year minimum term remains in effect. The updated regulation applies exclusively to entrepreneurial landlords.

The Civil Law Indexation Adjustment Act (Zivilrechtliches Indexierung-Anpassungsgesetz, ZIAG)

An amendment to Section 6(2)(4) of the Austrian Consumer Protection Act (KSchG) aims to formally incorporate the OGH’s existing case law (10 Ob 15/25s). The new Section 879a of the Austrian General Civil Code (Allgemeines bürgerliches Gesetzbuch, hereinafter ABGB) clearly defines criteria for determining gross disadvantage under Section 879(3) of the ABGB, especially in cases where value guarantee agreements are linked to an index figure before a contract is signed.

BMJ, draft for review – 50/ME (25 September 2025)

BMJ, draft for review – 52/ME (2 October 2025)