Austria
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Austria.
Foreign Ownership Eligibility
Austria welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- Foreign nationals can form GmbH, AG, or Einzelunternehmer without Austrian residency
- No requirement to have an Austrian address; can use virtual office (EUR 0–300/month)
- Formation can be completed largely remotely with assistance of Austrian notary or professional service
- Founder does not need to be physically present in Austria to incorporate
- All company filings and communications can be handled electronically
Ownership
100% Foreign OK
Formation
100% Remote
Note
EU/EEA citizens have automatic freedom of movement. Non-EEA founders need residence permit for self-employment (Aufenthaltstitel) if planning to reside or work in Austria.
Tax at a glance
Austria Tax Overview
25% standard rate (one of EU's highest)
Corporate income tax (Körperschaftsteuer)
Fact sheet section 3
3.2% on corporate tax
Solidarity surcharge
Fact sheet section 3
25.55% (including surcharge)
Effective corporate rate
Fact sheet section 3
20%
VAT/GST standard rate
Fact sheet section 3
10% (food), 5% (books/media)
VAT reduced rates
Fact sheet section 3
55% on income > EUR 1 million
Personal income tax (top bracket)
Fact sheet section 3
27.5% on distributions
Dividend withholding tax
Fact sheet section 3
0% for businesses; 27.5% for individuals on assets held <1yr
Capital gains tax
Fact sheet section 3
~21.48% of wages (varies by benefit type)
Employer social contributions
Fact sheet section 3
Pros & cons
Advantages & Considerations
Key Advantages
EU/EEA Strategic Location — Direct access to 450+ million consumers in single market; gateway to Central/Eastern Europe; ideal for companies targeting pan-European expansion
Strong IP Protection — Austria signatory to major IP treaties; robust patent/trademark enforcement; Austrian courts known for rigorous IP litigation
Excellent Business Infrastructure — World-class broadband (#1 in Europe for speeds), transportation hubs, financial infrastructure; Vienna is regional business center
Skilled Workforce — High education standards; strong STEM talent from Austria and neighboring Central Europe; multilingual professionals available
Banking & Capital Access — Vienna is major European banking hub; easy access to financing, capital markets, and European investor networks
Stable Economy — Austria ranked #8 globally on World Economic Forum Competitiveness Index; predictable legal/tax environment; low corruption
R&D Tax Incentives — 10–12% R&D tax credit for qualifying expenses; special depreciation rates available for innovation
Business-Friendly Online Services — Streamlined online company registration via Unternehmensserviceportal; digital-first government services
Considerations
Highest Corporate Tax in EU — 25% + 3.2% surcharge = 25.55% effective rate (EU average ~20%); among world's highest for small businesses
Significant Compliance Burden — Comprehensive annual reporting, mandatory audits for most entities, quarterly VAT filings in German language
High Labor Costs & Regulations — Average worker salary EUR 3,600/month gross; strict employment laws make hiring/firing difficult and expensive
Language Barrier — German required for business registration, official correspondence, and legal documents; English less common in bureaucracy
Administrative Complexity — Multiple registrations (tax office, social insurance, commercial court); bureaucratic processes can be time-consuming
Cost of Living — Vienna apartment rent averages EUR 1,200–2,500/month; among Europe's highest for capital cities; significant operational overhead
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Prepare articles of association
Notarization
File with Commercial Court
Receive company registration
Tax authority registration
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Austria has high corporate tax (25% + 3.2% solidarity surcharge = 25.55%, among EU's highest). Notary and audit requirements add significant costs. Budget EUR 2,000–4,000 annually for professional compliance.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Austria setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Austria. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Erste Bank | Traditional bank | Low (Visit Required) | 3–7 business days (some banks faster) • EUR 10–40/month (business accounts vary) • EUR 0–500 (varies by bank; some no minimum) • Passport, business registration, proof of address, proof of capital • SEPA transfers, cards, checks, SWIFT |
| Raiffeisenbank | Traditional bank | Low (Visit Required) | 3–7 business days (some banks faster) • EUR 10–40/month (business accounts vary) • EUR 0–500 (varies by bank; some no minimum) • Passport, business registration, proof of address, proof of capital • SEPA transfers, cards, checks, SWIFT |
| Sparkasse | Traditional bank | Low (Visit Required) | 3–7 business days (some banks faster) • EUR 10–40/month (business accounts vary) • EUR 0–500 (varies by bank; some no minimum) • Passport, business registration, proof of address, proof of capital • SEPA transfers, cards, checks, SWIFT |
| BAWAG/PSK | Traditional bank | Low (Visit Required) | 3–7 business days (some banks faster) • EUR 10–40/month (business accounts vary) • EUR 0–500 (varies by bank; some no minimum) • Passport, business registration, proof of address, proof of capital • SEPA transfers, cards, checks, SWIFT |
| Bank Austria | Traditional bank | Low (Visit Required) | 3–7 business days (some banks faster) • EUR 10–40/month (business accounts vary) • EUR 0–500 (varies by bank; some no minimum) • Passport, business registration, proof of address, proof of capital • SEPA transfers, cards, checks, SWIFT |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Audit requirements | Ongoing | Mandatory if revenue > EUR 8 million OR balance sheet > EUR 4 million; otherwise limited audit acceptable |
Corporate tax return | Ongoing | Due 31 May following year; extensions to 30 June available; electronic filing required |
Annual report | Ongoing | Must be filed within 8 months of business year-end with Commercial Court |
General shareholder meeting | Ongoing | At least one meeting required annually; must occur within 4 months of year-end |
Financial records retention | Ongoing | 7 years; electronic records acceptable |
VAT reporting | Ongoing | Monthly/quarterly VAT returns required if VAT-registered |
Payroll tax filings | Ongoing | Monthly if employees; employer withholding and contributions via tax authority |
Commercial registry updates | Ongoing | Within weeks of any major changes (directors, capital, address) |
Frequently Asked
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