Verified Facts
The tax rates in Austria range from 0% to 55% for personal income, with a corporate tax rate of 25% and a standard VAT rate of 20%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Austria has a worldwide taxation system, meaning that residents are taxed on their global income, regardless of where it is earned. Non-residents, on the other hand, are only taxed on their Austrian-sourced income. To be considered a tax resident in Austria, an individual must have a permanent home or habitual abode in the country, or spend more than 183 days in a calendar year in Austria. The tax system is overseen by the Austrian Ministry of Finance, which is responsible for collecting taxes and enforcing tax laws.
The Austrian tax system is based on the principle of tax neutrality, which means that the tax burden should be distributed fairly and evenly among taxpayers. The tax system is also designed to promote economic growth and investment, with various incentives and deductions available for businesses and individuals. Austria is a member of the European Union and has a well-developed tax treaty network, which helps to prevent double taxation and promote international trade and investment.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 11,000 | 0% |
| 11,001 - 18,000 | 20% |
| 18,001 - 31,000 | 26% |
| 31,001 - 60,000 | 35% |
| 60,001 - 90,000 | 42% |
| 90,001 and above | 55% |
| Austrian taxpayers are entitled to various deductions and allowances, such as a basic allowance of EUR 400, a housing allowance, and a family allowance. Tax returns must be filed electronically by April 30th of each year, and taxes are typically paid in four installments throughout the year. Taxpayers may also be eligible for a tax refund if they have overpaid their taxes during the year. |
Corporate & Business Tax
- The corporate tax rate in Austria is 25%, which applies to all types of businesses, including sole proprietorships, partnerships, and limited liability companies.
- Small businesses with annual revenues of up to EUR 500,000 may be eligible for a reduced tax rate of 12.5%.
- Austria has several free zones, such as the Vienna Airport Free Zone, which offer tax exemptions and other incentives for businesses that operate within these zones.
- Businesses must register with the Austrian tax authorities and obtain a tax identification number before commencing operations.
- Companies are also required to file annual tax returns and pay taxes on their profits, which are typically due by April 30th of each year.
VAT / Sales Tax
- The standard VAT rate in Austria is 20%, which applies to most goods and services.
- A reduced VAT rate of 13% applies to certain goods and services, such as food, books, and hotel accommodations.
- A zero VAT rate applies to exports, international transportation services, and certain other goods and services.
- Tourists may be eligible for a VAT refund on purchases made in Austria, provided they meet certain conditions, such as spending at least EUR 75.01 in a single transaction.
For Expats & Foreign Workers
- Expats who are considered tax residents in Austria are subject to worldwide taxation, while non-residents are only taxed on their Austrian-sourced income.
- Austria has a network of double taxation treaties with 94 countries, which helps to prevent double taxation and promote international trade and investment.
- Expats may be eligible for a tax credit in their home country for taxes paid in Austria, provided they meet certain conditions.
- Foreign workers in Austria are required to register with the tax authorities and obtain a tax identification number.
- Expats may also be eligible for a social security exemption if they are covered by a social security system in their home country.
- Remittances from Austria to other countries are subject to withholding tax, which is typically 25% for interest and dividend payments.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 25%, which can be reduced or eliminated under certain double taxation treaties.
- Capital gains from the sale of securities and other investments are subject to a capital gains tax of 27.5%, which is included in the taxpayer's income tax return.
- Cryptocurrency is considered a financial asset in Austria and is subject to capital gains tax, as well as value-added tax (VAT) on transactions.
- Taxpayers must report their investment income and capital gains on their tax return, and may be eligible for deductions and allowances related to investment expenses.