-
Why Grant Thornton
Whether you’re growing in one market or many, looking to operate more effectively, managing risk and regulation, or realising stakeholder value, our firms can help.
-
Culture and experience
Grant Thornton’s culture is one of our most valuable assets and has steered us in the right direction for more than 100 years.
-
Global scale and capability
Beyond global scale, we embrace what makes each market unique, local understanding on a global scale.
-
Join our network
In a world that wants more options for high quality services, we differentiate in the market to grow sustainably in today’s rapidly changing environment.
-
Leadership governance and quality
Grant Thornton International Ltd acts as the coordinating entity for member firms in the network with a focus on areas such as strategy, risk, quality monitoring and brand.
-
Africa
24 member firms supporting your business.
-
Americas
31 member firms, covering 44 markets and over 20,000 people.
-
Asia-Pacific
19 member firms with nearly 25,000 people to support you.
-
Europe
53 member firms supporting your business.
-
Middle East
8 member firms supporting your business.
-
Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
-
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
-
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
-
Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
-
Forensic services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
-
Mergers and acquisitions
We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer-term strategic goals.
-
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery.
-
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
-
Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
-
IFRS
At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
-
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
-
Global audit technology
Our global assurance technology platform provides the ability to conduct client acceptance, consultations and all assurance and other attestation engagements.
-
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
-
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
-
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
-
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
-
Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
-
Africa tax desk
A differentiating solution adapted to the context of your investments in Africa.
-
Banking Holding banking to account: the real diversity and inclusion pictureWe explore how the banking sector can continue to attract, retain and nurture women to build a more diverse and inclusive future.
-
Sustainability From voluntary to mandatory ESG: How banks can future-proof their operationsAs we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.
-
IFRS IFRS 9 - Audit of Expected Credit LossesGPPC releases The Auditor’s response to the risks of material misstatement posed by estimates of expected credit losses under IFRS 9
-
growthiQ Steering your company to long-term successHistory has something important to tell us about the difficulties of steering a business to long-term success – through seismic shifts in technology, consumer demands and product development. With that in mind it’s unsurprising that over half the world’s largest companies in the early 1900s had shut their doors by the late 1990s. Some, however, have endured.
-
International Financial Reporting Standards Implementation of IFRS 17 ‘Insurance Contracts’The auditor’s response to the risks of material misstatement arising from estimates made in applying IFRS 17 ‘Insurance Contracts’
-
IFRS Get ready for IFRS 17After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’, find out more.
-
Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
-
Not for profit Mission: possible – putting impact at the heart of charityGlobal charitable continues to decline and charity leaders are increasingly looking at their own unique impact journey.
-
Access to finance Raise finance to invest in changePrepare your business to raise finance to invest in change.
-
Private equity firms Private equity in the mid-market: reshaping strategies for 2021When the global COVID-19 pandemic stormed across the globe in early 2020, the private equity sector was hit hard but deals are coming back to the market.
-
Mid-market businesses Getting ready for private equity investmentOur specialists explore how private equity firms are now working with their portfolios and how the mid-market can benefit from investment.
-
Mid-market businesses Myth-busting private equityNervous about partnering with Private Equity? We explore some of the common myths we come across when speaking to mid-market businesses about PE investment.
-
Public sector Helping build the government of tomorrow, todayLearn about the Grant Thornton US public sector team.
-
Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
-
Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
-
Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
-
Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
-
Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Retail How retail is positioning for successCOVID-19 provided some hard lessons for the retail industry. It is time to turn those into sustainable and well executed growth strategies in 2021.
-
Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
-
Technology Mid-market tech companies lead the way on diversity and inclusionWe explore how the mid-market tech sector can continue to build and nurture a culture that’s increasingly more diverse and inclusive for women.
-
Tax Resetting global tax rules after the pandemicBusinesses are seeing rising challenges, and finance heads are dealing with a range of new measures. To say the next 12 months are critical for businesses is an understatement.
-
TECHNOLOGY International tax reform: the potential impact on the technology industryIn this article, we’ve summarised key elements of the global tax reform proposals, their potential impact on technology industry and advice from our digital tax specialists on what technology companies can do to prepare.
-
Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
-
TMT TMT industry: Fully charged or on standby?Our research revealed five key trends that resonated with Technology, Media and Telecoms (TMT) industry leaders around the world. We asked a panel of our experts from UK, US, India Ireland and Germany, to give us their reaction to the findings.
-
Cybersecurity One size fits nothingTechnology companies must adopt a new approach to digital risk: those that successfully develop a reputation for digital trust by demonstrating an unwavering commitment to cyber security and data privacy will be able to carve out a competitive advantage.
-
Technology, media & telecommunications Why it’s time for a 5G reality checkFigures suggest the mobile sector is maturing. While data usage continues to soar, mobile revenues are expected to flatten out over the next few years.
-
International business Mid-market businesses lifted by rising tide of optimismOptimism among global mid-market business leaders rose to 67% in the first half of this year and they are markedly more optimistic about their prospects with global optimism having increased by 8%.
-
Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
-
Hotels COVID-19: Checking in with the hotel industry one year onCOVID-19 provided some hard lessons for the hotel sector. It is time to turn those into sustainable and well executed growth strategies.
-
Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
- By topic
-
Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
-
COP28: Mid-market firms should seize the opportunity from adaption and innovation
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
-
Scanning the horizon: Mid-market sets sights on global trade growth
The latest International Business Report (IBR) data shows that mid-market businesses have high expectations for global trade.
-
Mid-market sees business optimism reach record high
Grant Thornton's latest International Business Report (IBR) sees optimism among mid-market business leaders reach a record high with 74% optimistic about the outlook for their economy over the next 12 months.
-
Women in tech: A pathway to gender balance in top tech roles
Grant Thornton’s 2024 Women in Business data suggests we are far from achieving parity within the mid-market technology sector.
-
Women in leadership: a pathway to better performance
What makes the benefits of gender parity compelling is the impact it can have on commercial performance.
-
Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
-
Women in business: Regional picture
We saw an increase in the percentage of senior management roles held by women, on a global level, but there are some significant regional and country variations.
-
Pathways to Parity: Leading the way
To push towards parity of senior management roles held by women, who leads within an organisation is vital.
-
Generating real change with a long-term focus
The most successful strategy to achieve parity of women in senior management is one which stands alone, independent of an ESG strategy.
-
People at the heart of great business
Businesses have started to put guidelines and incentives in place, focused on driving employees back to the office.
-
Focusing and developing a solid strategy around diversity, equity and inclusion
Grant Thornton Greece is pioneering a growing set of diversity, equity and inclusion (DE&I) initiatives that centre around three strategic pillars.
-
Ten considerations for preparing TCFD climate-related financial disclosures
Insights for organisations preparing to implement the International Sustainability Standards Board (ISSB)’s Standards.
-
COP28
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
-
Transition Plan Taskforce publishes its final disclosure framework
As organisations in the private sector make commitments and plans to reach net zero, there's a growing need for stakeholders to be able to assess the credibility of their transition plans.
-
Promoting ESG excellence through tax
ESG considerations have never been more important for an organisation’s long-term success, but how can tax be used to add value to an ESG agenda?
-
International business: Mid-market growth and expansion
The mid-market looks to international business opportunities for growth.
-
Top five constraints to international business in the mid-market
Top five major constraints that are testing the mid-market’s ability to grow their businesses internationally.
-
Brand and international marketing – breaking global barriers
Brand has been identified as a key driver of mid-market success when looking to grow and develop international business.
-
The key to international business: Investing in people
How can recruitment and retention help grow international business?
-
Building resilience in international business
Evolving supply chains and trade patterns amid ongoing global uncertainty.
-
IFRS Alerts
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
-
Example Financial Statements
General guidance for preparers of financial statements that supports the commitment to high quality, consistent application of IFRS.
-
Insights into IFRS 2
Insights into IFRS 2 summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.
-
IFRS 3
Mergers and acquisitions are becoming more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions.
-
IFRS 8
Our ‘Insights into IFRS 8’ series considers some key implementation issues and includes interpretational guidance in certain problematic areas.
-
IFRS 16
Are you ready for IFRS 16? This series of insights will help you prepare.
-
IAS 36
Insights into IAS 36 provides assistance for preparers of financial statements and help where confusion has been seen in practice.
-
IFRS 17
Explaining the key features of the Standard and providing insights into its application and impact.
-
Pillar 2
Key updates and support for the global implementation of Pillar 2.
-
Global expatriate tax guide
Growing businesses that send their greatest assets – their people – overseas to work can face certain tax burdens, our global guide highlights the common tax rates and issues.
-
International indirect tax guide
Navigating the global VAT, GST and sales tax landscape.
-
Global transfer pricing guide
Helping you easily find everything you need to know about the rules and regulations regarding transfer pricing and Country by Country reporting for every country you do business with.
Expatriates taking up employment in Austria will be subject to comprehensive rules and, in some cases, employment visa requirements. The expatriate services team at Grant Thornton Austria can help expatriates and their employers to deal with Austrian tax matters, as well as Austrian labour and social security issues.
In particular, Grant Thornton Austria can help expatriates and their employers identify tax planning opportunities and review tax equalisation policies, as well as provide compliance services regarding Austrian tax, social security and labour law requirements.
Click on each of the areas below to expand for more information:
Before expatriates take up employment in Austria, it is important to make sure that the expatriate’s employment contract and benefit package are structured in a tax efficient manner.
In addition, visa and work permit requirements may have to be observed:
- EU and EEA citizens as well as Swiss citizens do not require residency or work permits. They only need to apply for a registration certificate at the relevant local authority within a four-month period starting from the applicant’s arrival in Austria.
- Non-EU nationals usually need to apply for a visa at the Austrian Embassy or Consulate in their home country before travelling to Austria. In addition, a work permit issued by the Public Employment Service (AMS) is required.
- Special regulations may apply to foreign placements, eg where employees are sent to Austria by a foreign employer to fulfil a contractual obligation. If certain other conditions are met in addition (duration of the project, type of industry etc.) it is sufficient, if the Austrian contractor applies for a so-called foreign placement permit.
Non-EU/EEA citizens may file applications for issuance of work permits with the Public Employment Service (AMS).
- ‘Red-White-Red Card’ (RWR-Card): Obtaining a work permit is facilitated for highly qualified labour, skilled labour in understaffed professions, employed and self-employed key personnel, graduates from Austrian universities and start-up founders. The RWR-Card for these categories of personnel is issued for a period of 24 months and for employment with a specific employer. After a period of 24 months, he/she may apply for a ‘Red-White-Red Card Plus’, which grants unlimited access to the labour market for one and up to three years. Information on the conditions for obtaining the RWR-Card is available at: www.migration.gv.at.
- An EU Blue Card may be granted to non-EU citizens if (1) they are university (or similar educational institution) graduates; (2) they have a binding job offer to work in Austria for at least 6 months in an employment corresponding to the education; (3) they earn a gross annual income of at least one time the average gross annual income of full-time employees of € 47.855 in 2024 (in 2023: at least € 45.595,00 annual salary plus special payments); and (4) there is no equally qualified worker registered with the Public Employment Service (AMS) available for the job. Once the individual has been employed in such a function in Austria for at least 21 months within the preceding 24 months, he/she may apply for the RWR-Card Plus which grants unlimited labour market.
- The issuance of other types of employment visas may be subject to quotas.
The Austrian tax period is set for a calendar year.
Monthly payroll tax has to deducted and paid to the Austrian tax authorities by the employer if he or she has a permanent establishment (PE) for payroll tax purposes (in general, if the employment is longer than one month). Furthermore, the employer has to comply with annual payroll tax reporting requirements.Employer payroll tax reports are due by the end of February of the following tax year when filed electronically.
For the employee, the income tax requirements can be fulfilled with the payment of payroll tax. However, an annual tax declaration may be obligatory, if the employee has other sources of income in Austria, depending on the specific circumstances.
Tax declarations are also obligatory for employees with Austrian Double Tax Treaty (DTT) residency, if they have additional foreign income that is exempt from Austrian taxation because of the DTT. From the 2023 assessment year for taxpayers who have unlimited tax liability in Austria but are resident for tax purposes in another country the foreign income must be declared in the Austrian tax return subject to progression. Progression proviso refers to the inclusion of certain tax-exempt income or income not subject to Austrian taxation in the calculation of the progressive tax rate above a certain level.
Employee income tax declarations are due by June 30th of the following calendar year (if submitted electronically. If an employee is represented by a tax advisor, the filing deadline is on 31st March of the year after next.
A penalty of up to 10% of the tax due may be imposed at the discretion of the tax authorities in cases of late filings of tax declarations. In addition, interest is due on any tax owed.
Employees with limited tax liability in Austria only have to file a tax declaration if their Austrian source income that has not been subject to payroll tax exceeds € 2.126,-.
Employees who are not required to file a tax return can still choose to file one within five years after the end of the respective tax year e.g. to consider deductible expenses that have not yet been taken into account in the payroll.
The following progressive income tax rates apply to the annual taxable income:
Until 31.12.2023 | From 01.01.2024 | Tax rate |
up to € 11.639 | up to € 12.816 | 0% |
above € 11.693 up to € 19.134 | above € 12.816 up to € 20.818 | 20% |
above € 19.134 up to € 32.075 | above € 20.818 up to € 34.513 | 30% |
above € 32.075 up to € 62.080 | above € 34.513 up to € 66.612 | 40% (2023: 41%) |
above € 62.080 up to € 93.120 | above € 66.612 up to € 99.266 | 48% |
above € 93.120 up to € 1 million | above € 99.266 up to € 1 million | 50% |
above € 1 million | above € 1 million | 55% |
Employees pay income tax at reduced rates on special payments such as the 13th and 14th salary and certain bonuses when these are within the annual limit determined as one sixth of their annual regular pay in the respective year.
Annual amount of irregular remuneration in EUR (within the ceiling amount and after deducting corresponding employee social security contributions) | Tax rate that applies to special payments |
---|---|
first 620 | 0.00% |
next 24,380 | 6.00% |
next 25,000 | 27.00% |
next 33,333 | 35.75% |
above 83,333 | Regular tariff tax rate |
If an individual is employed by a foreign employer, and the employee has a filing obligation in Austria a L 17 payslip has to be submitted to the tax office in order to declare the foreign employment income.
The employee has no children and receives a monthly salary of € 3.000,- per month. He has a company car, which he can also use privately. The employee’s home is 30 kilometres from his place of work and using public transport for the commute would in principle be possible. In line with most collective agreements in Austria, he is entitled to 14 salary payments per year.
Salary (12x) | 36.000,00 |
Car benefit (1,5 or 2% of value up to a maximum | 5.400,00 |
of € 960,- per month) | |
Total earned income excluding 13th | 41.400,00 |
and 14th salary | |
Less employee social security contributions | 7.274,16 |
excluding those on the 13th and 14th salary | |
Less standard lump sum deduction for expenses | 132,00 |
Income taxable at progressive rates | 33.993,84 |
Computed income tax thereon | 4.821,36 |
13th and 14th salary | 6.000,00 |
Less social security contributions on | 1.024,20 |
13th and 14th salary | |
Income taxable at fixed rates | 4.975,80 |
6% tax on special payments within the annual | 261,34 |
limit amounts whereby a tax free amount of | |
€620,00 is considered | |
Total income tax payable: | 5.082,70 |
For tax purposes, individuals are considered residents in Austria if they have either their domicile or habitual abode in Austria. Resident taxpayers are in general taxable on their worldwide income (unlimited tax liability). Married persons and children are taxed separately as individuals.
Individual non-resident taxpayers are in general subject to tax in Austria on their income received for work in Austria. A tax declaration has to be filed if the Austrian income which has not been taxed by way of withholding (payroll tax) exceeds € 2.126,-. The zero-bracket for income up to € 12.816 (€ 11.693 in 2023) in the income tax table does not apply to non-residents – an amount of € 9.567 (until 2022 € 9.000) is added to their taxable income when determining the tax, therefore the zero-tax bracket only applies up to € 2.126 taxable income. Furthermore, a tax declaration is obligatory in cases where the non-resident taxpayer earns income subject to Austrian payroll tax from two sources. Generally, a non-resident may only deduct expenses that are linked to his/her taxable income in Austria. Personal tax credits are generally not granted to non-residents.
Non-residents from the EU and the EEA can apply to be treated as residents for Austrian tax purposes if at least 90% of their worldwide income is subject to Austrian income tax, or if income not taxed in Austria does not exceed € 12.816 (€ 11.693 until 2023).
Domicile
A domicile is a place where the individual maintains a residence under circumstances, which indicate that he/she will keep and use it not only on a temporary basis.
Habitual abode
An individual is considered to have his/her habitual abode in Austria if the person is physically present in Austria for more than 183 days during a year.
Income from employment includes any remuneration, in cash or in kind received by an employed person, whether paid by the employer himself or by a third party. As a rule, the employer is required to deduct and retain the tax on such income at source. The taxation at source applies to most expatriates moving to Austria. In addition they have to file a tax declaration if they have other sources of taxable income or if they intend to consider certain deductible expenses.
The regulations of the double taxation agreement between Austria and the respective other country have to be observed. In general, the source of employment income is deemed to be in Austria if the work was performed in Austria. It is irrelevant for this purpose when, where and in which currency the remuneration is paid or where the contract was signed.
In Austria, most non-monetary benefits are taxable and subject to social security contributions and income tax as well as to employer payroll taxes (incidental wage costs). In any case, the benefit and incentive package of expatriates coming to Austria should be reviewed in detail with regard to tax implications.
The most common types of taxable benefits in kind in connection with expatriates are the right to use a company car privately, the payment of apartment rent by the employer for the employee and the taking over of personal income tax liability of the employee by the employer.
Insurance premiums paid by the employer whereby the employee or his/her family are beneficiaries are generally taxable. A tax-free amount of €300 applies for certain types of insurance under certain condition.
Employer contributions to a pension fund are tax free under certain conditions.
Company events are tax free up to an amount of €365 per employee per year. Non-cash benefits (eg Christmas presents) are tax free up to an amount of €186 per employee per year.
Employee stock purchase programs that meet certain requirements may be tax exempt up to an annual amount of €3,000.
For 2022 and 2023, employers in Austria have the option of paying employees a voluntary cost-of-living bonus of up to € 3,000 each as a special payment that is exempt from contributions and tax. The cost-of-living bonus can also be paid to marginally employed persons. From 2024, it can also be paid tax and contribution-free in the amount of up to € 3,000 if it has been included in the collective agreement.
As before, if both an employee bonus and an employee profit sharing scheme are paid out, only a total amount of € 3,000 can remain tax-free.
Payments the employer makes towards childcare costs of the employee are tax free up to an amount of € 2.000 ( in 2023 up to € 1.000) per child per year.
Employee meal vouchers may be tax-free up to an amount of € 8,00 (if consumption at workplace or a restaurant or prepared by a restaurant) or € 2,00 (for purchase of food) per working day.
Inbound expatriates
Starting with the year 2016, it is possible to consider for inbound expatriates a lump-sum amount of 20% (up to € 10,000 per year) of the employee salary as expenses in the monthly payroll. The lump sum expense may also be considered in the tax declaration instead.
This provision applies to expats who have not been resident in Austria during the past ten years and only work in Austria temporarily (up to five years), if their salary is subject to Austrian tax. It is also a requirement that the expatriate keeps the domicile in his home country, and that he works in Austria on behalf of a foreign employer.
Furthermore, it is possible for the employee to consider expenses in the actually paid amount instead of the lump sum. Expenses that may be considered include the costs for keeping a second household (as long as both households are financially maintained by the expatriate) and the costs for family visiting trips.
Outbound expatriates
In cases of temporary assignments abroad it is possible under certain conditions to exempt 60% of the remuneration for the assignment (limited to the social security ceiling amount). The assignment abroad has to involve aggravating work risk factors (eg temperature, dust, dirt, health risks) or aggravating assignment country factors (countries where travel warnings have been issued or countries that are listed on the DAC List of ODA Recipients issued by the OECD).
The exemption is applicable for employees that are assigned to the project abroad by an employer resident in the EU/EEC or Switzerland or from a permanent establishment located within the EU/EEC or Switzerland if the assignment location is at least 400 kilometres from the Austrian border and the assignment duration is not shorter than one month. The assignment should not be to a permanent establishment of the employer. Certain other prerequisites may apply as well.
The tax exemption does not apply to irregular remuneration such as the 13th and 14th salary in Austria and certain bonuses.
Austria has concluded double taxation agreements with more than 80 countries in the world. Where a Double Taxation Agreement (DTA) exists, double taxation is eliminated in accordance with the exemption or the imputation method foreseen in the DTA.
Where no DTA applies, double taxation on most foreign income is alleviated by exempting the foreign income from taxation in Austria provided that the average tax rates and taxation in the other country are comparable and appropriate documentation is maintained. The foreign income is still considered to determine tax progression. If the conditions are not met, foreign tax paid can be deducted from the Austrian tax payable on this type of income. The credit can however not be higher than the amount of Austrian taxes on such income.
Deductions may include special personal or family expenditures and extraordinary expenses, which can either be claimed in full or up to a certain amount. Such deductibles for the tax return that could be relevant can be: work equipment (such as laptop or computer), expenses for homeoffice (like costs for ergonomic office equipment), training costs, professional literature, work council contribution, double housekeeping and family trips home, travel expenses for business trips paid out of pocket,…
Every active employee is entitled to a lump sum for income-related expenses of EUR 132 per year. This lump sum is already included in the income tax tables and is deducted from the income tax base regardless of whether income-related expenses are incurred. Income-related expenses therefore only have a tax-reducing effect if they total more than EUR 132 per year.
Details of the deductible costs can be found in the 2024 Tax Book from Federal Ministry of Finance. https://www.bmf.gv.at/services/publikationen/das-steuerbuch.html
Non-resident taxpayers can only deduct expenses that are directly related to their Austrian income. Personal and family expenditures of non-resident taxpayers cannot be considered.
Most frequent standard lump-sum deductions against income:
Standard lump sum deduction for expenses | €132.00/year |
Tax deduction for commuting, when public transport is considered reasonable, depending on the distance between work and home: | |
− between 20 km and 40 km | €696 per year |
− between 40 km and 60 km | €1,356 per year |
− above 60 km | €2,016 per year |
Tax deduction for commuting, if public transport is deemed unreasonable: | |
− between 2 km and 20 km | €372 per year |
− between 20 km and 40 km | €1,476 per year |
− between 40 km and 60 km | €2,568 per year |
− above 60 km | €3,672.00 per year |
Increased values for the period May 2022 – June 2023 applicable | |
Standard lump sum deduction for special personal expenses | €60 |
Most frequent tax credits to be deducted from income tax:
Standard traffic tax credit | €463 per year |
Sole earner/ single parent child deduction - 1 child |
€572 per year |
Sole earner/ single parent child deduction – 2 children |
€774 per year |
Family bonus (tax credit as of 2023) | Up to € 2,000 per year and child |
In the personal income tax declaration, numerous expenses e.g. for work related expenses and formation expenses that were not reimbursed by the employer, medical expenses that constitute an extraordinary burden, certain insurance premiums (only until 2020), certain donations to not-for profit organisations and church fees can be deducted from the taxable income.
In case of posting or assignment to Austria the Anti-Wage and Social Dumping Act (LSD-BG) applies. In accordance to this Act certain documents have to be kept ready (posting agreement in German or English, salary slips, ZKO form, A1 form).
The posting or assigning company has a duty to notify the Central Co-Ordinating Agency (ZKO - Zentrale Koordinationsstelle des Bundesministeriums für Finanzen), charged with investigating illegal employment, of the Federal Ministry for Finance.
This must happen before taking up a posting or assignment.
For this purpose, the ZKO provides two different forms:
The form 'ZKO 3' must be used for postings and the form 'ZKO 4' must be used for assignments to Austria. Each must be filed EDP-supported by the permanent employer in case of postings and respectively, by the assigning employer in case of assignments.
The employer is obliged to hold the following documents (in German or English) on site in paper or in electronic form: the ZKO form (copy of submitted form), form A1 (copy of submitted form), payslip documents, employment contract or employment notice and work permit of the secondment country (in case of posting of a NON-EU citizen to a EU-country.
Please note that there are very high penalties in Austria in case the requirements of the LSD-BG are not fulfilled or the relevant documents are not ready in case of an inspection.
In general, capital gains are considered taxable income irrespective of the holding period (e.g. income from capital investments, dividends, etc.). In case or stock options after the vesting date shares flow into private assets and constitute capital assets. This must be taken into account in the event of the receipt of dividends or in case of sale, as well as in the event of departure in the exit taxation.
The income tax rate on capital gains is in principle 27,5%. A reduced tax rate applies to certain capital gains such as interests from savings accounts and current accounts. In most cases, the capital gains tax is paid by withholding at the source (e.g. Austrian banks).
30% real estate profit tax may be payable in cases of income from real estate sales. There are exceptional provisions, eg for selling a previous primary residence, and for properties bought before 31 March 2002.
Individuals must generally declare income from the letting or leasing of real estate to the tax office. Only the income, i.e. the surplus, is subject to income tax. The costs associated with letting or leasing, in particular depreciation and other expenses, can be deducted from the rental income as so-called income-related expenses (income - income-related expenses = income). Income from letting and leasing must be declared in the income tax return regardless of whether the property is located in Austria or abroad. In order to avoid double taxation, foreign rental income can be exempted within the framework of progression or the foreign tax can be credited. The exemption method depends on the respective double taxation agreement.
The income from the various types of income is added together and subject to the progressive income tax rate after deduction of special expenses and extraordinary expenses. The amount of income tax therefore depends on the total amount of income.
As of 1 August 2008, inheritance and gift taxes have been abolished in Austria. There are however reporting requirements for gifts.
In Austria certain types of taxes are levied by the local communities while other tax types are levied on a federal level.
Immovable property situated in Austria is subject to a rather low real estate tax.
The tax is levied based on the assessed standard value of immovable property. In general the assessed value of real estate is substantially lower than its market value. Real estate tax is levied at an annual basic federal rate of usually 0.2% multiplied by a municipal coefficient. Municipal coefficients range up to 500%.
The acquisition of real estate is also taxable in Austria. The basic tax rate is 3.5%. A lower rate applies to certain ‘acquisitions’, e.g. inheritances or gifts. The basis for this tax is usually the value of the compensation received. In certain instances e.g. when the value of the compensation cannot be determined or there is no compensation, the assessed standard value of immovable property times three is used as the basis.
If a natural person moves abroad, the hidden reserves from capital assets (securities, shareholdings, etc.) that have arisen up to the time of the move are taxed as if the assets had been sold in accordance with Section 27 (6) EStG. If a move is made to an EU or EEA state, the tax is not assessed immediately. A corresponding application must be submitted with the tax return. If capital assets are sold at a later date, the tax liability is assessed in Austria. In the country of destination, the fair market value at the time of the move is deemed to be the acquisition cost. This means that the corresponding hidden reserves are taxed in each country of residence.
In general, employees are subject to compulsory social security under the Austrian social security system with income they receive for work mainly performed in Austria. Under certain conditions, employees who are placed in another country for not more than five years continue to be subject to social security in Austria even when their place of work is not in Austria during that time. EU/EEC regulations and social security agreements can mandate otherwise:
Within the EU/EEC and Switzerland, employees are subject to social security in only one country. Collision rules determine which country’s social security system applies based on the employee’s place of work – except for short term delegations to another country – and the country in which the employee is resident and other criteria.
Regarding the non-EU/EEC countries, Austria has entered into social security agreements with several countries. Some of these agreements do however only cover pension insurance as e.g. the agreement with the USA or Canada. Full scope social security agreements are in place with other countries such as Serbia and Bosnia. Generally, these social security agreements only apply to short term delegations and for example not to employees maintaining employment relationships in two countries at the same time – in these cases employees can be subject to social security in two countries, whereby each country levies social security on income from work performed mainly on its territory.
Under Austrian social security regulations, contributions are levied on income up to a ceiling amount of € 70.200,00 per year (2023) and € 72.720 (2024) or € 5.850,00 per month (2023) and EUR 6.060 (2024) (a separate ceiling of € 11.700,00 (2023) and € 12.120 (2024) applies to certain irregular remuneration items, such as the 13th or 14th month’s salary and certain bonuses)
For 2024, the employee contribution rates are:
Contribution for | White-collar | Blue-collar |
Rate (%) | Rate (%) | |
Pension insurance | 10.25 | 10.25 |
Health insurance | 3.87 | 3.87 |
Unemployment insurance | 3.00 | 3.00 |
Housing fund | 0.50 | 0.50 |
Total | 17.62 | 17.62 |
Certain employees must make a contribution to the chamber of employees (0.5%) additionally, other minor contributions can apply.
Employee social security contributions are deductible for income tax purpose For 2024 the employer contribution rates are:
Contribution for | White-collar | Blue-collar |
Rate (%) | Rate (%) | |
Pension insurance | 12.55 | 12.55 |
Health insurance | 3.78 | 3.78 |
Unemployment insurance | 2.95 | 2.95 |
Accident insurance | 1.10 | 1.10 |
Insolvency Fund | 0.10 | 0.10 |
Housing fund | 0.50 | 0.50 |
Total | 20.98 | 20.98 |
For employment agreements starting on or after 1 January 2003, the employer has to pay monthly contributions of 1.53% to a mandatory occupational retirement fund.
The employer is also liable to certain payroll taxes which are:
Local community tax: (KommSt) | 3% |
Employer contribution to FLAF (DB) | 3.7% to 3.9% |
Additional employer contribution to FLAF | 0.32% to 0.40% depending on the state |
Vienna City tax | 2.00 EUR per week per employee |
Working from home regulation: In January 2021 a new working from home regulation entered into force. The employer is entitled to pay a tax-free amount of up to € 300,00 per year (up to € 3,00 per home office day, up to 100 home office days per year). If the lump sum is not exhausted, the employee can claim the difference up to this maximum of € 300,00 as income-related expenses. Additionally, the employee can tax-deduct the costs for the purchase of ergonomic office furniture up to an amount of € 300,00 per year.
Stock options are treated as income from employment and subject to the individual progressive tax rates. If the stock options are not traded options taxes are levied at the time of exercise and not at the grant date. Tax treaties often refer to the vesting date instead.
There is currently no wealth tax in Austria.
Stamp duties are levied if certain legal transactions, eg lease and rental agreements or guarantee agreements are concluded in written form. The rates vary between 0,8% and 2% and some duties are levied as a fixed amount.
Under certain conditions even legal documents executed abroad may be subject to Austrian stamp duty, especially if the transaction will be performed in Austria or refers to an object situated in Austria.
Earnings description | Planning possible |
Cost of living allowance | Y |
Housing | Y |
Home leave | Y |
Club membership | N |
Moving expenses | Y |
Foreign service premiums | Y |
For further information on expatriate tax services in Austria please contact:
Christoph Schmidl |
Julia Saric-Bischof |