- Location advantages
- Establishment, law & taxes
Effective 1 January 2023, Austria has reduced the corporate tax on profits to 24%. Moreover, the Alpine Republic promotes the activities of companies with a 10% investment allowance, which even rises to 15% in the case of ecological investments. The tax assessment base (maximum amount for which the investment allowance can be claimed) equals € 1 million per company and fiscal year. Furthermore, companies can also claim a 14% research tax credit for research and development expenditures.
Austria will do even more next year. In 2024 the corporate tax rate will once again be decreased, this time to 23%. Accordingly, the average taxation of companies is expected to be close to 20% in the future.
The country is also becoming more attractive for employees from a tax standpoint. Bracket creep, known as the so-called “cold progression,” was abolished as of 2023. This involved hidden tax increases by not adjusting tax brackets to reflect price increases. Eliminating this cold progress is a response to the currently high inflation rate, thus serving to strengthen the purchasing power of consumers.
- Learn more about tax matters in Austria our or download our brochure on tax aspects below
Biogas facilities in which raw materials and manure are fermented, comprise an important decentralised component in expanding regenerative energies.