AUSTRIA: “Perpetual” right of withdrawal for investors in closed-end real estate funds

Characteristics of a closed-end real estate fund are a limited investment volume, a few investment objects, long terms, and very limited exit options. The Austrian Constitutional Court (VfGH) confirmed that if consumers do not receive any investor confirmation or receive an incomplete one, there is an unlimited right of withdrawal; the relevant provisions in the Capital Markets Act (KMG) were confirmed as being in conformity with the constitution. (VfGH dated 25.09.2021 Ref G 130/2021-15)

For more information on the above or in other matters, please contact TAIYO Legal, Dr. Alexander T. Scheuwimmer (

This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice or as a comprehensive analysis of the matters referred to herein.