Austria

Last update: 2026-06-09
AT EUR German
Pros
High safety levels and strong rule of law for protecting private property and individual liberty.
World-class infrastructure and central geographic position for seamless access to European markets.
Stable political environment and low corruption levels for a predictable business climate.
Cons
Burdensome tax system with high marginal rates on personal income and corporate profits.
Strict labor laws and mandatory social contributions for reduced hiring flexibility and increased overhead.
Pervasive bureaucracy and mandatory chamber memberships for hindered market entry and innovation.
Personal income
0 → 55%
progressive
Corporate
23%
flat
Capital gains
27.5%
flat
VAT (standard)
20%
standard rate
i 7.5 DIVIDEND PIPELINE
i 7.3 HOLDING
i 3.1 VERY LOW TAX
i 2.7 PRIVACY GRADE
i 1.1 CRYPTO HAVEN
i 1.1 EASY CITIZENSHIP
VERYLOW TAX 3.1/10 HOLDING 7.3/10 DIVIDENDPIPELINE 7.5/10 CRYPTOHAVEN 1.1/10 PRIVACYGRADE 2.7/10 EASYCITIZENSHIP 1.1/10
01/08

Will Austria tax what you earn?

income tax tax residency territorial system

YES, A LOT. Austria taxes personal income heavily (top marginal rate 55%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.

Personal income taxi
0 → 55%
progressive · 7 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
+55%
income above 1,000,000 EUR
Tax residence testi
16/183 days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Austria tax what you own?

capital gains wealth tax inheritance dividends interest

YES, A LOT. Austria taxes capital gains heavily (27.5% at the top), but stops short of an annual wealth charge or inheritance regime. Realisation is the trigger; until you sell, the position keeps compounding.

Capital gainsi
27.5%
flat
Dividend taxi
27.5%
flat
Interest incomei
25%
flat
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
Regime
FLAT TAX
Rate
27.5%
Since March 1, 2022, Austria treats crypto-assets as capital assets subject to a 27.5% flat tax. Crypto-to-crypto swaps are tax-neutral. Assets acquired before March 1, 2021 ('old assets') remain tax-free after a 1-year holding period, but new assets have no such exemption.
Crypto-to-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
IN FORCE
VASPs must share sender / recipient data on transfers above the threshold
Inheritance systemi
NONE
no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
03/08

Is it easy to run a company in Austria?

corporate tax criminal liability public registry VAT IP box

YES, BUT TAXED. Corporate tax in Austria lands at a moderate 23% with no IP-box softening. Standard accounting, VAT at 20, standard administrative weight. Nothing exotic in either direction.

Corporate taxi
23%
flat · +15% Large company groups with at least EUR 750 million in net sales in at least two of the last four financial years (Pillar II global minimum tax, applies if effective tax rate is below 15%)
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Breach of Fiduciary Duty
In Austria, the Supreme Court (OGH) has consistently ruled (e.g., 15 Os 151/11y) that a sole shareholder-director cannot be prosecuted for Breach of Trust (Untreue, § 153 StGB) against their own company. This is because the 'abuse of authority' required for the crime is negated by the consent of the sole owner, making it a non-punishable 'self-harm' in the eyes of criminal law. While such acts constitute a serious civil violation of capital maintenance rules (Section 82 GmbHG - Verbot der Einlagenrückgewähr) and trigger tax penalties, they only become criminal if they harm creditors during insolvency or imminent bankruptcy (§ 156 StGB).
Shareholders privacyi
PUBLIC PAYWALL
Firmenbuch
Directors privacyi
PUBLIC PAYWALL
Firmenbuch
Incorporation costi
Limited Liability Company
Gesellschaft mit beschränkter Haftung (GmbH)
Notary fees for drafting and authenticating the Articles of Association USD 1,157
Commercial Register (Firmenbuch) registration and filing fees USD 463
Professional legal and tax advisory fees for incorporation and KYC USD 2,892
Total USD 4,511
VAT standard ratei
20%
3 distinct tiers in force
10% 13% 20%
Food & drink
10%
food
10%
non-alcoholic
20%
alcohol
Print media
10%
books
Culture
13%
cultural events
13%
cinema
13%
theatre
13%
museums
13%
sports
Transport
10%
public transit
10%
rail
13%
air
Hospitality
10%
hotels
10%
restaurants
10%
takeaway
Health
10%
pharma
Energy
20%
electricity
20%
natural gas
20%
district heat.
20%
domestic fuel
Utilities
10%
water
20%
waste
Clothing
20%
kids clothing
Digital & telecom
20%
digital
20%
telecom
20%
broadcast
Construction
20%
construction
10%
social housing
Agriculture
13%
farm inputs
13%
animal feed
Personal services
20%
funeral
20%
hairdressing
04/08

Is Austria good for your holding company?

treaty network participation exemption withholding

YES. Austria is built for holding. An extensive treaty network (85 signed agreements) cuts withholding on cross-border dividend, interest and royalty flows, and a full participation-exemption regime (100% on qualifying dividends and gains) lets value flow through without a domestic layer. The classic elite-tier setup: a holding structured here travels well across borders.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
100%
10% holding · 12 months min
CFC rulesi
APPLY
Austria applies CFC rules to foreign subsidiaries if passive income is taxed below 12.5%. Low-taxed passive income is attributed to the Austrian parent and taxed locally, with some exceptions for genuine business activities.
WHT · dividendsi
23%
non-resident outbound
WHT · interest
0%
non-resident outbound
WHT · royalties
20%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
81
active
Treaties pending
3
in negotiation
Tax treaty networki
origin · AT 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with AT.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Austria?

exit tax territorial system dual citizenship

SOME. Austria taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Austria protect your privacy?

info exchange corporate registries

NOT AT ALL. Austria has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.

Multilateral reporting frameworks 5/10 active · 5 pending
CRS
2018
CARF
2024
FATCA
2014
MLI
2017
BEPS
MAAC
2014
GLOBAL FORUM
EOIR
CRYPTO-CARF
2024
CRYPTO TRAVEL RULE
07/08

Is Austria itself a liability?

blacklists FATF standing

NO. Austria is clear of every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside FATF membership. Dealing with this jurisdiction is reputationally inert: no flags follow the transaction.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Austria?

press freedom crypto CBDC EU

PARTLY. Austria is an EU member, which puts it on the trajectory of the digital euro: a programmable, traceable CBDC designed to run on the same rails as the currency itself. Under MiCA, crypto is regulated rather than banned, but the direction of travel for financial expression in the bloc is state-controlled rails by default. Press freedom may sit high (RSF rank #22); financial freedom is on a clear ratchet.

Press freedom · RSF indexi
22/180
score 78 · ↑ 10 ranks year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
DELPHI
The project explores digital bond issuance and related processes. DELPHI is also going to address the legal requirements for such a solution – with a view to assessing compatibility with applicable EU and national law. As part of this project milestone, DELPHI will highlight where the current legal framework may need to be changed to facilitate the implementation of a blockchain-based solution.
Oesterreichische Nationalbank
RESEARCH
Digital Euro
A digital euro could support the Eurosystem's objectives by providing citizens with access to a safe form of money in the fast-changing digital world.
European Central Bank
RESEARCH
Wholesale Digital Euro
Main motivations are to (i) consolidate and further develop the ongoing work of Eurosystem central banks in this area, and (ii) gain insight into how different solutions could facilitate interaction between TARGET real-time gross settlement (RTGS) services and DLT platforms.
European Central Bank
PILOT
Stella
It explores the opportunity for using DLT to improve financial market infrastructure to support payment and securities settlement.
European Central Bank
RESEARCH
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Austria. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.