Doing business in Austria

Austria is a federal republic of nine states (Länder) with a codified civil-law system. Companies are registered in the commercial register (Firmenbuch) kept by the regional courts, and beneficial owners are reported to a register run by the Federal Ministry of Finance, which also administers tax and customs. The Financial Market Authority supervises financial services, the Federal Competition Authority and Cartel Court handle merger control, and the Data Protection Authority enforces the GDPR. Federal law governs most business matters, while real estate transfers to foreigners and some licensing are matters for the states.

Key facts

Corporate income tax

23% (as at mid-2026)

VAT

20% standard; 13%, 10% and 4.9% reduced

Main entity form

GmbH, minimum share capital EUR 10,000

Foreign investment

Generally open; non-EU acquisitions in sensitive sectors need approval

Currency and capital flows

Euro; no exchange controls

New York Convention

Party

Minimum wage

Set by collective agreements

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Austria is open to foreign investment and most investors use a limited liability company (GmbH), a stock corporation (AG) or a branch. Acquisitions in sensitive sectors by investors from outside the EU, EEA and Switzerland can require approval under the Investment Control Act.

Key facts

• A GmbH is the usual vehicle for a subsidiary; the minimum capital, lowered to EUR 10,000 by a 2023 reform, has reduced the cost of incorporation.

• An AG needs at least EUR 70,000 capital and is normally chosen only where a listing or a broad shareholder base is planned.

• The company exists on entry in the Firmenbuch, so contracts signed before registration need care.

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Who handles this in AustriaSetting up and running a companyContracts and commercial law

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Key facts

• Corporate profits are taxed at 23%, and dividend withholding tax of 27.5% (23% for corporate recipients) can be reduced under treaties or EU rules.

• VAT is charged at 20% standard, with 13%, 10% and 4.9% for listed supplies.

• Group taxation can offset losses across Austrian and some foreign group companies, which matters for start-up losses.

Who handles this in AustriaTax and structuring · Dr. Rosam Karl J.Accounting and annual filings

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Key facts

• Check the applicable collective agreement first, because it sets minimum pay, allowances and often working hours.

• Budget for 14 salary payments a year, which collective agreements provide for.

• Employees have five weeks of paid leave, and the employer pays 1.53% of gross pay into a company severance fund.

Who handles this in AustriaEmployment, payroll and immigration · Dr. Rosam Karl J.

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Purchases of real estate by non-EU persons are controlled by the laws of the nine federal states. Public procurement follows the Federal Procurement Act 2018, which transposes EU rules.

Key facts

• Non-EU buyers of land generally need approval under the law of the state where the property lies.

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• Public tenders follow the Federal Procurement Act 2018 at all levels of government.

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• The 14% research premium is a cash-effective incentive for companies doing R&D in Austria.

Who handles this in AustriaLicences, permits and regulatorsTax and structuring · Dr. Rosam Karl J.

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Austria uses the euro and has no exchange controls; EU free movement of capital applies. Banks are supervised by the FMA and the ECB, with the Oesterreichische Nationalbank as the national central bank. Account opening involves thorough know-your-customer checks under the Financial Markets Anti-Money Laundering Act.

Key facts

• Profits and capital can move freely in euro, subject to tax withholding and sanctions rules.

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Who handles this in AustriaBanking and capitalPayments and currencyAnti-bribery, sanctions and compliance

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As an EU member state, Austria is part of the EU customs union and applies the common external tariff and EU trade agreements. Customs is administered by Customs Austria under the Federal Ministry of Finance.

Key facts

• Importers need an EU EORI number and pay EU common tariff rates on goods from outside the EU.

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• Intra-EU supplies move without customs formalities, but VAT reporting applies.

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• EU free trade agreements can reduce duties if origin rules are met.

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Who handles this in AustriaCustoms, trade and export controls

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Who handles this in AustriaData protection and cyber

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The Austrian Patent Office registers national patents, utility models, trademarks and designs. Austria belongs to the main international systems, so protection can also be obtained through EU trademarks, European patents and the Unified Patent Court. Copyright arises without registration.

Key facts

• Protect brands nationally, through an EU trademark, or through Madrid designations.

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• A utility model gives faster, lower-cost protection for technical inventions than a patent.

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• Unitary patents and the Unified Patent Court cover Austria, with a local division in Vienna.

• Copyright needs no registration, so keep evidence of authorship and licences.

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Who handles this in AustriaTrade marks, patents and brands

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Foreign investments in sensitive sectors by non-EU investors are screened under the Investment Control Act. Insolvency and restructuring follow the Insolvency Code and the Restructuring Code.

Key facts

• Check Austrian merger thresholds, including the transaction-value test, for any deal with Austrian turnover.

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• Non-EU buyers of sensitive businesses need investment control approval, from 10% in some sectors.

• Restructuring tools under the 2021 Restructuring Code allow debt plans before insolvency.

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Who handles this in AustriaBuying, selling and investingLicences, permits and regulators

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2 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Bribery of public officials and in business is a criminal offence, and companies themselves can be held liable under the Corporate Criminal Liability Act.

Key facts

• Bribery in both the public and private sectors is criminal, including of foreign officials.

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• Effective compliance systems matter because companies can be fined for failures of supervision.

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Who handles this in AustriaAnti-bribery, sanctions and compliance

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Commercial disputes go to the ordinary civil courts, with a specialised Commercial Court in Vienna and commercial divisions elsewhere, and the Supreme Court as final instance. Austria has a modern arbitration law based on the UNCITRAL Model Law and an established arbitral institution in Vienna. It is a party to the New York Convention, and judgments from other EU states are enforced under EU rules.

Key facts

• Arbitration awards from Austria are enforceable abroad under the New York Convention, and set-aside goes directly to the Supreme Court.

• VIAC is the main institution for international arbitration seated in Vienna, under a Model Law-based statute.

• EU judgments are enforced under Brussels I bis; non-EU judgments may not be enforceable without a treaty, so arbitration is often preferred.

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Who handles this in AustriaDisputes and arbitrationContracts and commercial law