Starting a business in
🇦🇹Austria
Checked November 4, 2026 · How we score
Corporate tax
23%
Top income tax
55%
Setup from
$3,000
all-in, first year
Time to form
14 days
visit usually needed
Taxes in Austria
| Corporate income tax | 23% Flat 23% corporate income tax (KoeSt) since 2024; a minimum corporate tax of EUR 500 per year applies to GmbHs and FlexCos even in loss years. |
|---|---|
| Personal income tax (top) | 55% Progressive rates up to 50%, with a 55% rate above EUR 1 million of income (temporarily extended). Social security contributions add roughly 18% for employees. |
| Tax system | Worldwide income |
| Capital gains tax | 27.5%27.5% special rate on capital gains from securities and crypto assets for individuals. |
| Dividend withholding (non-residents) | 27.5% |
| VAT / GST | 20% |
| Social security | Employee social security is about 18% of gross pay and employer contributions about 21-22%; self-employed pay roughly 26-27% of profit up to a ceiling. |
Forming a company in Austria
| Usual entity | GmbH (limited liability company) or FlexCo |
|---|---|
| Minimum capital | $11k |
| Setup cost (all-in) | $3,000–$7,000 |
| Annual running cost | $4,500–$12k |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
EU/EEA citizens have free movement. Non-EU founders can apply for the Red-White-Red Card for startup founders (points-based) or self-employed key workers, which requires a business plan and capital and takes months.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
FlexCo (Flexible Company)
A 2024 GmbH variant with EUR 10,000 capital that allows share classes, employee equity programmes and share transfers by private deed, designed for startups and VC funding.
Red-White-Red Card for startup founders
Points-based residence permit for non-EU founders of innovative startups, with requirements on qualifications, language and business capital.
Profit allowance (Gewinnfreibetrag)
Sole proprietors and partners can deduct a basic allowance of 15% on the first EUR 33,000 of profit without proof of investment.
Pros and cons
Why founders pick Austria
- Strong rule of law and credibility in the DACH region
- FlexCo structure suited to venture funding
- Corporate tax cut to 23%
- Access to the EU single market and treaty network
Watch out for
- High personal tax and social-security burden
- Notary and Austrian address needed so remote setup is difficult
- Minimum corporate tax of EUR 500 per year
- Complex bureaucracy and German-language filings
Best for: EU-focused startups that value a reputable, stable jurisdiction · Companies serving DACH markets · Founders needing VC-friendly share structures via FlexCo
Austria: common questions
What is the corporate tax rate in Austria?
Austria's corporate income tax is a flat 23% since 2024, down from 25% in 2022 and 24% in 2023. Profits distributed to shareholders face a further 27.5% capital-income tax, so the combined burden on distributed profit is about 44%.
How much does it cost to set up a GmbH in Austria?
Minimum share capital is EUR 10,000, of which at least EUR 5,000 must be paid in cash at formation. Notary, registry and advisory fees typically add USD 3,000-7,000, and the founding deed must be notarised.
What is a FlexCo in Austria?
The Flexible Company (FlexCo) is a GmbH-style entity introduced in 2024 that lets startups issue different share classes and employee shares without a notary for share transfers. It also needs EUR 10,000 capital with EUR 5,000 paid in.
Can a non-EU founder start a company in Austria?
Non-EU nationals can own an Austrian GmbH, but residing there to run it requires a residence permit such as the Red-White-Red Card for startup founders. The company needs an Austrian business address and a notary-signed deed, so it cannot be done fully remotely.
Sources
- Austrian Federal Ministry of Finance
- Austrian Business Service Portal (USP)
- PwC Worldwide Tax Summaries - Austria
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.