Relocation intelligence

🇦🇹 Moving to Austria: tax, residency and cost of living

Austria taxes residents on their worldwide income through a progressive income tax rising to 55%, with an effective burden of about 34% on gross annual pay of EUR 54,000 including 18.07% employee social insurance. Corporate tax is 23%, VAT 20% and capital gains 27.5%, while there is no net wealth tax and inheritance and gift tax have been abolished.

Thinking of moving to Austria? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
55%
Corporate tax
23%
Capital gains
27.5%
Wealth tax
No
Inheritance tax
No
Cost of living index
72
Safety
9/10
Internet quality
8/10
Visa-free destinations
189
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Progressive income tax up to 55% (top band above EUR 1,000,000, 48% above roughly EUR 105,000). Corporate tax 23%, VAT 20%, capital gains 27.5%. No net wealth tax, inheritance and gift tax abolished. Around 90 tax treaties. Residents are taxed on worldwide income.

Residency and visas

EU citizens settle freely. Non-EU citizens use the points based Rot-Weiss-Rot card. Naturalisation typically takes about 10 years and is strict. There is no golden visa.

Property ownership

Foreign residential ownership is generally permitted. Non-EU buyers may need approval in some federal states (Bundesland).

Cost of living and quality of life

A core EU location with very high quality of life, the Alps on the doorstep and accessible, high quality healthcare. Not a tax haven.

Passport and mobility

The Austrian passport gives visa-free access to about 189 destinations, placing it among the strongest in the world.

Why people move to Austria

  • EU core location with top tier quality of life

    As a full EU member, Austria offers free movement within the EU, a central position in Europe and cities that consistently rank high on liveability, safety and healthcare.

  • No wealth, inheritance or gift tax

    Austria levies no net wealth tax and has abolished inheritance and gift tax, though income remains progressively taxed up to 55% and it is expressly not a tax haven.

Honest trade-offs

  • De inkomstenbelasting is hoog en progressief tot 55%, met een effectieve druk van ongeveer 34% op een bruto jaarloon van EUR 54.000 inclusief 18,07% werknemerspremies. Oostenrijk is geen belastingparadijs.
  • Naturalisatie tot Oostenrijker duurt doorgaans ongeveer 10 jaar en de eisen zijn streng, waarbij dubbele nationaliteit in de regel niet is toegestaan.
  • Niet-EU-kopers van woningen hebben in sommige deelstaten een goedkeuring nodig via de regionale Grundverkehr-regels, wat de aankoop kan vertragen of beperken.

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Sources

Other destinations