Expand Business in Austria

Global Upside helps businesses expand into Austria by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Austrian laws and regulations.

The hiring and incorporation processes in Austria are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Austria. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Vienna

Currency

Euro (€)

Language

German

Government

Federal Parliamentary Republic

Country Overview

Austria is a well-developed market economy with a skilled workforce and an excellent standard of living. Its economy includes a huge service sector, a sound manufacturing sector, and a small, yet exceptionally advanced agricultural sector.

  • Austria’s economy is considered one of the most stable in Europe.
  • The main exports are machinery, vehicles, medicament, and human blood.
  • Major Austrian imports are petroleum, machinery, and vehicles.

Legal Entity Setup

Options for setting up a legal entity in Austria include:

Stock corporation (Aktiengesellschaft/ AG)

Stock Corporation (Aktiengesellschaft/ AG) is an establishment that has an unlimited number of investors and there are no personal liabilities for them. The board system is 2-tier – supervisory board that looks after the management and assigns its consent to specific business and transactions, while the management board is liable for daily administration.

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH)

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH) is a form of setup that allows an unlimited number of shareholders. The board system can either be a 1-tier or a 2-tier depending on the size of the company. Similar to the AG, the management board is liable for daily administration, whilst the supervisory board, if set up, looks after the management and assigns its consent to specific business and transactions

It takes approximately four to five weeks to establish a legal entity set up in Austria.

Human Resources

The employment contracts do not necessarily have to be in a written format; however, the duties and terms of the job need to be in a written format.

There are 13 statutory public holidays in Austria, for which employees are entitled to paid leave.

  • Jan. 1: New Year’s Day
  • Jan. 6: Epiphany
  • Easter Monday
  • May 1: International Workers’ Day
  • Ascension
  • Whit Monday
  • Corpus Christi
  • Aug. 15: Assumption
  • Oct. 26: Austrian National Holiday
  • Nov. 1: All Saints’ Day
  • Dec. 8: Immaculate Conception
  • Dec. 25: Christmas
  • Dec. 26: St. Stephen’s Day

Payroll

Salaries are paid monthly usually by the end of the month.

It is standard practice to give a 13th salary divided between 2 installments (June and November).

Accounting

As a member of the European Union (EU), Austria is dependent upon the accounting, auditing, and financial reporting prerequisites that have been set up in EU Regulations and Directives as translated into public laws and guidelines. Austria has completely aligned its legal system with the EU acquis communitaire as it identifies with accounting and auditing.

Taxation

Corporate Tax

The corporate tax rate in Austria is 25%.

Value Added Tax (VAT)

The VAT rate in Austria is 20%, a reduced rate of 10% is applicable for essential items.

Data Privacy

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation.

Anti-Bribery & Anti-Corruption Law

Bribery of public officials, in Austria, is governed under Section 304 to Section 308 of the Austrian Criminal Law Code (Strafgesetzbuch or StGB).

Bribery of Public Officials

For Individuals

Principal sanctions
i) Imprisonment for at least 3 years.
ii) Imprisonment for at least 5 years if the benefit value exceeds EUR 3,000.
iii) Imprisonment for up to 10 years if the benefit value exceeds EUR 50,000.

For Legal Entities

i) An everyday fine of EUR 50 to a maximum of EUR 10,000.
ii) A maximum penalty of EUR 1.3 million.

Bribery for Private Officials

For Individuals

i) Imprisonment for at least 2 years.
ii) Imprisonment for at least 3 years if the benefit value exceeds EUR 3,000.
iii) Imprisonment for up to 5 years if the benefit value exceeds EUR 50,000.

For Legal Entities

i) An everyday fine of EUR 50 to a maximum of EUR 10,000.
ii) A maximum penalty of EUR 1 million