Austrian Government Unveils Inflation Relief Act for Tenancy Law

Jan 29, 2026 Benn-Ibler Rechtsanwälte

The Austrian Federal Ministry of Justice recently presented the government bill for the Inflation Relief Act for Tenancy Law (Mietrechtliches Inflationslinderungsgesetz, hereinafter MILG).

Restrictions on safeguarding value

Value protection clauses are commonly included in rental agreements and have a direct impact on the calculation of the base rent. The newly proposed Rent Value Protection Act (Mieten-Wertsicherungsgesetz, hereinafter MieWeG) seeks to establish a universal cap on value protection measures within the residential sector. This initiative entails establishing a new index for residential rental properties, linked to the consumer price index, with the objective of alleviating the impact of inflation.

The MierWeG introduces a ‘rent brake’ provision applicable to residential tenancy agreements. This regulation extends to the entire scope of the MRG, including tenancy agreements that were already in effect at the time the Act was enacted.

Previously, value adjustment clauses were included in agreements; however, due to the unpredictability of future judicial interpretations, there is an increased risk that such clauses may be declared invalid, potentially resulting in reimbursement claims spanning the entire contract duration. The statute of limitations provisions is designed to mitigate this risk.

Minimum term rising

For landlords who are business owners, this term will be extended to five years. The revised regulation aims to enhance tenants’ stability and provide better opportunities for financial planning. Nonetheless, tenants retain the right to terminate a fixed-term residential tenancy agreement prior to its conclusion.

The MieWeG became effective on January 1, 2026.

Government bill, 269 BlgNR XXVIII. (22 October 2025)