Among the EU-15, only a few countries offer more favorable tax provisions. But Austria also performs extremely well in comparison with the new EU member states that are enticing investors with major tax reductions.
Effective tax burden
A comparison of the effective tax burden compiled by BAKBASEL and the Center for European Economic Research (ZEW) concludes that Austria continues to boast extremely business-friendly conditions within the EU despite massive tax competition from Eastern Europe. With a total tax burden of 22.4 percent, the taxes paid in Austria are lower than in Italy (23.1%), Germany (29.3%) and France (34.9%).
Corporate tax rates
The capital duty was abolished on January 1, 2016. Companies operating in Austria are only subject to a unified corporate tax of 25%. Taxes commonly levied in other countries, such as the trade tax or wealth tax, do not exist in Austria.
Double taxation agreements
Austria has concluded double taxation agreements with numerous countries in line with the example set by the OECD Model Tax Convention. This is designed to avoid double or multiple taxation of the same income in two or several countries. These agreements regulate which contracting state has the right to levy income taxes on the respective income.
Detailed information about taxes in Austria can be found in our download area
More information on different taxes can be found in our brochure "Tax Aspects in Austria":
- Tax consession for corporations (e.g. group taxation)
- Taxation of natural persons (e.g. seconded employees)
- Special international aspects (e.g. double taxation conventions)
This brochure is intended to provide a broad outline of the Austrian tax system, summarize changes to the law and provide information
on possible tax benefits that foreign investors should take into account when deciding where to locate their business.