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Introduction to
Austria tax planning guide

Relocating to Austria offers expats a high quality of life, stunning Alpine scenery, and a well-organized society at the heart of Europe. Whether you're moving for work, study, retirement, or simply a lifestyle change, Austria provides a safe, culturally rich, and modern environment for expats from all over the world.โ€จโ€จ

In this guide, weโ€™ll walk you through everything you need to know about relocating to Austria from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations. โ€จโ€จ

GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure youโ€™re meeting your tax return obligations.

How you are taxed in Austria
Austria follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
Resident
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Local Income
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Foreign Income
Non-Resident
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Local Income
Icon of an X Image of a checkmark
Foreign Income
Your resident status in Austria
Youโ€™ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 183 days in Austria during the tax year.

Business

Physical presence

Vital interests

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Ties

if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.

Home

if your main residence is located in Austria during the tax year.

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

Nationals

Physical presence & work

Family

Citizen

Resident commune

Visa

Income

Physical presence

if you spend more than 183 days in Austria during the tax year.

Business

Citizen

Resident population

if you are registered with the Italian resident population.

Physical presence

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

Vital interests

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Home

if your main residence is located in Austria during the tax year.

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

National

National

Visa

Physical presence & work

Family

Resident commune

Personal income tax rate in Austria
Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 55%.
Residents are not subject to taxation on personal income.
Global comparison
World highest
World lowest
Denmark
42
56
%
Austria
42
55
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Austria
42
55
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Austria
42
55
%
UAE
42
0
%
Special tax regime in Austria
Tax cap
ยฃ200,000 per tax year.
Foreign income
Flat tax rate
Flat tax charge
Earned Income
Taxable income
Business profits
Special tax status
Special tax status
Applied for 15 years.
Other personal taxes in Austria
Residents may be subject to the following personal taxes:
Asset tax
Tax on property and share sales
Wealth tax
Tax on value of owned assets
Death tax
Tax on assets passed to heirs
Social tax
Tax to contribute to state welfare
* It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
Double taxation agreements in Austria

If you receive incomes overseas while you are living in Austria, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.

Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure youโ€™re not taxed twice and even better, ensure your income is tax free. ย 

At present, Austria has 92 double taxation agreements signed.

Global comparison
World highest
World lowest
UAE
42
140
Austria
0
92
Bahamas
42
0
Global comparison
World highest
World lowest
UAE
42
140
Austria
0
92
Bahamas
42
0
Tax obligations in Austria
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What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 January and ends on 31 December.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return is 30 June following the end of the tax year. The deadline to settle the tax payment is one month from the date the Austrian tax authority issues the tax assessment.
Do you need to make advance payments of tax?
You may be required to make advance payments of tax towards future tax years on top of settling the current tax year liability.