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Austria has traditionally had close links with Eastern Europe, and has attracted significant numbers of companies from the region since the collapse of the Soviet Union. Approximately 67% of the Austrian workforce is employed in the country's service sector, although industry accounts for around 27% of the workforce, and agriculture the remainder.

As might be expected from a country with such a developed service sector, the standard is high, and the workforce generally well educated. The Vienna Stock Exchange showed a return to form in 2012 after a poor performance in the two years preceding, with the leading index, the ARC of the Vienna Stock Exchange, rising by around 28%.

Austria's close economic ties with Germany meant that the credit crunch had serious effects on the country and the economy grew by 3% in 2011. A subsidized reduced working hour scheme, enabling companies to retain employees during the economic downturn, resulted in a slower rise in unemployment compared to most other European countries and is at just over 4%.

The Federal States have declared themselves to be against a local income tax to generate more funds, but are strongly in favor of a worldwide tax on financial transactions.

The most commonly used business form is the Limited Liability Company, although a number of other structures exist, including the Sole Proprietorship, the Association, the Commercial Cooperative, and the European Joint Stock Company. Corporate income tax is imposed at a rate of 25% (and capital gains tax at the same rate). The standard rate of VAT is 20%. Austria has 83 tax treaties in place at the time of writing.

Euro (EUR) (€)
Time Zone:
UTC +1
Phone Code:
Formation Cost:
5000 - 11000 USD$
Formation Time:
11 - 18 days
Maintenance cost:
1000 - 4000 USD$

Suitable for:

  • Wealth Management
  • Treasury Management
  • Banking, Fund Management,
  • Shipping,
  • Yachting,
  • E-commerce,
  • Property Ownership

Vehicle Types:

  • Limited companies,
  • sole proprietorships,
  • branches,
  • general partnerships
  • limited partnerships and civil law partnerships

Capital primary business districts:

Good Relationships:
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Pakistan, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Bad Relationships:
Burma, Egypt, Iran, Korea (Democratic People's Republic of), Libya, Somalia, Sudan, Syria

Tax Burden - Business:

Tax Burden - Individual:

Headline tax rates:
CIT 25%, PIT 20.44%-50%, VAT 20%

Treaty Jurisdictions:
Albania, Algeria, Armenia, Australia, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Republic of, Kuwait, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Morocco, Nepal, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam

TIEA Jurisdictions:
Andorra, Gibraltar, Jersey, Monaco, Saint Vincent and the Grenadines