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.
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%).
Taxes commonly levied in other countries, such as the trade tax or wealth tax, do not exist in Austria. The capital duty was abolished on January 1, 2016. Companies operating in Austria are only subject to a unified corporate tax of 25%.
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.
More information on different taxes such as the income tax, wage tax, value added tax, real estate transfer tax etc. can be found in our brochure Invest in Austria: Tax Aspects.