The film is set in an old suburb of Vienna traversed by the local railway line and full of dilapidated houses. In this district, an old man by the name of Rudolf Pawlik lives a quiet, contented life devoid of excitement and danger. He has never known anything different. When his neighbour dies and new tenants move in, his existence is transformed. Herbert is a small-time crook. Michaela, a young Czech woman, is his girlfriend, her daughter is called Agnes. Pawlik hates Herbert from the moment he sets eyes on him, and falls in love with Michaela. Pawlik's feelings for Michaela turn into an obsession, and the old man who was once so amiable is now ready to follow his feelings through to the very end. The one enemy who stands in the way of all his plans is Herbert ... The Neighbour tells the story of four people. Their true relations, their longings and their dependencies are all hidden behind an innocent facade which we witness gradually breaking down. A film showing how feelings can be exploited, and how love and money are interrelated.