Tax in Austria

Who is the tax authority?

The Bundesministerium für Finanzen (BMF — Federal Ministry of Finance) sets Austrian tax policy. The Finanzamt Österreich handles day-to-day personal and corporate tax assessment for individuals and smaller businesses across all 39 regional offices. The Finanzamt für Großbetriebe handles large-business taxation at a national level.

The Bundesfinanzgericht (Federal Tax Court) is the first-instance dispute body. Appeals run to the Verfassungsgerichtshof (Constitutional Court) or the Verwaltungsgerichtshof (Supreme Administrative Court) depending on the ground of appeal.

The Kammer der Steuerberater und Wirtschaftsprüfer (KSW — Chamber of Tax-Advisers and Auditors) regulates the credentialed Steuerberater (tax-adviser) profession under the Wirtschaftstreuhandberufsgesetz (WTBG). Only KSW-registered Steuerberater hold statutory authority to represent taxpayers before the tax administration.

What is the tax year and when are returns due?

Austria's tax year is the calendar year (1 January to 31 December). The annual income tax return — Einkommensteuererklärung (Form E1) — is due 30 June online via FinanzOnline, or 30 April for paper filings.

Filers represented by a Steuerberater receive an automatic extension under the agent-extension scheme. The extension typically runs to end-February or end-March of the year after the following year — so a 2024 return prepared by a Steuerberater is generally due by 31 March 2026.

Employees pay tax via monthly Lohnsteuer (wage tax) withholding. Self-employed filers pay quarterly Vorauszahlungen (advance instalments). Balancing payments are due on final assessment.

Who counts as an Austrian tax resident?

Under section 26 of the Bundesabgabenordnung (BAO — Austrian fiscal code), a person is subject to unlimited tax liability in Austria if they have either a Wohnsitz (residence — a maintained dwelling held under circumstances indicating retention and use) or a gewöhnlicher Aufenthalt (habitual abode — physical presence for more than six months, excluding short interruptions) in Austria. Either trigger alone produces worldwide-income taxation. Treaty tie-breaker rules apply where two jurisdictions both claim residency.

Limited tax liability applies to non-residents on Austrian-source income only. Short work assignments that straddle the six-month threshold require careful date tracking. The Zuzugsbegünstigung under section 103 EStG provides reduced rates for qualifying inbound researchers, scientists, artists, and athletes.

What are the personal income tax rates?

Austria uses a seven-bracket progressive structure for Einkommensteuer (personal income tax). The 2024 rates reflect the multi-year reform trajectory that lowered the entry-level brackets from 2022 onward.

Investment income — bank interest, dividends, capital gains on listed securities — is taxed at a flat 27.5% KESt (Kapitalertragsteuer) under section 27a EStG, withheld at source. Employment income also carries social security contributions: employee share roughly 18%, employer roughly 21%, both capped at EUR 6,060 per month (Höchstbeitragsgrundlage).

How does corporate tax work?

Austria's corporate income tax — Körperschaftsteuer (KöSt) — has applied at 23% on taxable profits from 1 January 2024, following a staged reduction from 25% (through 2022) and 24% (in 2023). There is no separate state-level corporate tax — the rate is fully national.

How does VAT work in Austria?

Value Added Tax — Umsatzsteuer (USt) — operates within the EU VAT Directive framework. Austria uses four active rates:

The Kleinunternehmerregelung small-business exemption applies up to EUR 35,000 of annual revenue. Cross-border digital services use the EU One-Stop Shop (OSS) framework. B2B e-invoicing is being phased in per EU ViDA proposals; public-sector e-invoicing is already mandatory.

How are cryptoassets taxed?

Austria implemented a comprehensive cryptoasset tax regime under section 27b EStG with effect from 1 March 2022 — one of the most codified frameworks in the EU. For individual filers, gains on disposal of cryptoassets acquired on or after 1 March 2021 are taxed at the flat 27.5% KESt rate, the same rate that applies to listed securities.

KESt withholding on crypto transactions has been extended to Austrian-licensed crypto exchanges from 2024. Disposals subject to the new regime include sale for fiat and use of crypto to buy goods or services. Austria's explicit statutory treatment contrasts sharply with most EU peers that still apply general capital-gains rules to crypto.

What is the treaty network?

Austria maintains approximately 95 comprehensive Double Taxation Conventions — one of the largest treaty networks in the EU. Most treaties follow the OECD Model, with Austria applying the exemption-with-progression method for active income and the credit method for passive income.

Austria signed and ratified the OECD Multilateral Instrument (MLI). The MLI's modifications — including the Principal Purpose Test — apply to most of Austria's covered DTCs for periods from 2019 onward. EU intra-group flows also benefit from the Parent-Subsidiary and Interest-Royalties Directives within scope.

Where does Austria sit in the European cohort?

Austria anchors the DACH sub-cohort (Germany, Austria, Switzerland) inside the wider EU civil-law major-economy group. The European tax landscape splits into five broad archetypes:

Common pitfalls for foreign taxpayers

Several recurring traps catch individuals and companies arriving in Austria or operating cross-border:

When should you talk to a Steuerberater or Tax-Adviser?

Some Austrian tax situations are routine; others get complicated quickly:

• Your income approaches or exceeds the 50% or 55% bracket (EUR 99,267 or EUR 1 million)
• You maintain a dwelling in Austria and work partly abroad — Wohnsitz vs treaty-residency questions are rarely self-evident
• Your group revenue is near EUR 750 million — Pillar Two in-scope assessment is annual
• You hold cryptoassets with mixed acquisition dates spanning the 1 March 2021 cut-off
• You receive cross-border dividends, interest, or royalties from a treaty-partner country
• You are setting up a GmbH, AG, or branch and need to confirm the participation-exemption or Group Taxation eligibility
• You received a notice from the Finanzamt about an audit, back assessment, or penalty
• You are claiming the Forschungsprämie 14% R&D bonus — documentation standards are strict

You can find vetted Austrian practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always confirm current figures on the BMF website (bmf.gv.at) or FinanzOnline (finanzonline.bmf.gv.at), or with a licensed Austrian Steuerberater registered with the KSW, before filing.