Opening a guesthouse or small hotel in Austria

Private rooms, freies Gastgewerbe or hotel?

Anyone who accommodates guests is in principle running a hospitality business (§ 111 Abs 1 Z 1 GewO). There are, however, two important tiers. Renting private rooms by the ordinary members of your own household does not fall under the Trade Act at all, as a domestic side activity (§ 2 Abs 1 Z 9 GewO). According to the practice of the authorities and the Wirtschaftskammer (chamber of commerce), the limit is no more than ten beds. If you rent with employees, in buildings built specifically for the purpose or with hotel-like service, it is no longer a domestic side activity. Some federal states have their own rules on renting private rooms, and special agricultural rules apply to farm holidays.

The second tier is the freies Gastgewerbe under § 111 Abs 2 Z 4 GewO: accommodation with no more than ten guest beds, including breakfast, small snacks, non-alcoholic drinks, bottled beer and spirits as an accompaniment. No proof of qualification is needed for this, but a trade registration is. From eleven beds, or with a restaurant, bar and half board, you need the regulated hospitality trade with a proof of qualification or a managing director under trade law, see Hospitality licence in Austria.

Premises, building and fire safety

An accommodation business is a commercial facility (Betriebsanlage) within the meaning of § 74 GewO and generally needs approval, especially if a kitchen, breakfast room, spa area or parking is added. In parallel, the building authority checks use, escape routes and fire safety under the building code of the federal state. The larger the building, the higher the requirements: smoke detectors or a fire alarm system, escape route signage and emergency lighting, fire extinguishers, fire doors and escape plans in the rooms. The details are set out in the building code, in the OIB guidelines (Austrian building technology standards) in the version your state has made binding, and in the approval decision. Bring in fire safety planning early.

Meldegesetz: guest form and guest register

Anyone staying overnight in an accommodation business must register without delay, at the latest within 24 hours of arrival (§ 5 Abs 1 MeldeG). An accommodation business is any lodging intended for housing guests under the management or supervision of a host (§ 1 Abs 3 MeldeG). The data recorded are first name and surname, date of birth, sex, nationality, country of origin and address, and for foreign guests also the type, number, date of issue and issuing authority of the travel document. The guest confirms the data with their signature. For families, one guest with details of the fellow travellers is enough; tour groups of eight or more can submit a collective list.

As the owner, you keep the guest register with these data plus arrival and departure, and retain it for seven years (§ 10 MeldeG). The authorities and police may inspect it at any time. In practice this is done digitally, often via the registration system of the municipality or tourism association, which also handles overnight statistics and the Ortstaxe. Check with your municipality which system is used.

Ortstaxe and tourism levies of the federal states

Almost every municipality in Austria charges a levy on overnight stays. Depending on the state, it is called Ortstaxe, Nächtigungsabgabe, Kurtaxe or Gästetaxe, and it is regulated in the tourism acts of the federal states. Some states charge a fixed amount per person and night, Vienna a percentage of the room price. Exemptions for children, pupils or long-stay guests, maximum duration and payment dates differ as well. In several states there are also Tourismusbeiträge (tourism contributions), which businesses pay according to how much they benefit from tourism. Because the rules vary so much, ask your municipality or tourism association about the amount, reporting and payment, and show the levy transparently in your prices.

Hotel stars: voluntary, but effective

The Austrian hotel classification of the Wirtschaftskammer is part of the European Hotelstars Union. Classification is carried out at the business's request, so it is voluntary. It is assessed against a catalogue of criteria with minimum criteria, a minimum score and additional points. The classification is valid for a limited period and is repeated regularly. Hotels that only offer breakfast (garni) can reach a maximum of four stars. For small guesthouses, classification can pay off as a sign of trust, but it is not mandatory. Only advertise with stars if you are actually classified.

Direct booking instead of platform dependence

Booking platforms bring international guests but charge commission on every booking. Austria banned parity clauses early on: if the operator of a booking platform requires an accommodation business not to offer a lower price or better conditions through other sales channels, including its own website, this is an aggressive commercial practice (UWG Annex Z 32, the Unfair Competition Act). Under § 7 Preisauszeichnungsgesetz (Price Display Act), hospitality businesses set their room prices freely, and price parity or best price clauses of platforms are absolutely void. The Constitutional Court upheld the ban in 2017.

So you may offer lower prices, included breakfast or more flexible cancellation terms on your website. But this only works if the website makes it easy for guests: rooms with real photos and size, prices per night including VAT with a note on whether breakfast and Ortstaxe are included, availability or a simple booking request form, directions and contact details. Prices you state online must comply with the price display rules, see Price display in Austria.

For the legal notice (Impressum) and mandatory information, the post Legal notice in Austria helps, and for accessible online booking the post Accessibility for hospitality websites. The free legal notice generator puts together the mandatory details for your website. The general opening process is summarised in the roadmap for opening a venue.