Karl Rabeder is giving away every penny of his entire fortune, including his luxury Alpine villa

Businessman Karl Rabeder, 47, said the reason for his surprising act of generosity was his fortune never made him happy.

"My idea is to have nothing left. Absolutely nothing," he told London's Daily Telegraph.

"Money is counterproductive – it prevents happiness to come."

The Austrian businessman is selling his $2.5 million villa, which has a lake, sauna and spectacular  views of the Alps, and his stone farmhouse in Provence.

Already gone are his collection of six gliders and his luxury car, as well as the interior furnishings and accessories business that made his $4.8 million fortune.

Mr Rabeder said that he would use the money to fund orphanages and other charity projects in South America.

"I had the idea on holiday in Hawaii some years ago," he said.

"My cars and plane have already gone and the rest follows very soon. I can't wait to be free of them.

"It has taken me until now to realise that I don't need money and possessions."

He added: "Since the sale of my company in 2004 I have been supporting several orphanage projects in central and South America.

"From this developed, less than a year ago, a greenhouse project which gives orphans the possibility to have agricultural training, to take up a small loan in order to make themselves independent vegetable growers."

He told Austrian television of his plan to raffle his villa by lots - with all money going to the charitable foundation he started late last year.

He now lives in a small two-room flat in Innsbruck, is divorced and survives on the equivalent of $1400 a month.

"'The worst that can happen to me is that I have to take a small job to get by," he said.