Taxes in Austria

Income tax

Austria has a progressive tax system, just as we have in the UK. This means that when your earn more you have to pay more and visa versa. Tax systems can seem complex in another country, but we have the knowledge and experience to update you with all the relevant information you need to know.

You must pay income tax on your world wide income when living in Austria for more than 6 months. This is based on the progressive tax system. Below are the tax rates and related amounts:

Other tax

Similarly to the UK, income tax is not the only tax you have to pay. Other taxes you pay Austrian social security contributions, VAT and property tax. Employees and employers are required to contribute to social security, which is automatically deducted from the salary of the employee.

The VAT rate in Austria has been 20% since 1992. These are on goods such as food, medicines, books, agricultural and cultural events, a reduced rate of 5%. Completely tax-free are services including doctors, banks or insurance companies.

When buying you need to consider the following taxes:

• Real estate tax is between 0.4% and 0.9% of the real estate value.
• Additional charges are transaction costs (3.5%)
• Emergency expenses (3%)
• Land registration fees (about 400 euros)
• VAT of 20%

Tax return

Tax returns are due by 30 April — but you only need to file one if:

• you earn over a minimum amount from sources other than your employment or
• are employed by 2 or more employers at once.

How to appeal / complain

If you disagree with a tax assessment, you can appeal to the tax office within 1 month.

For details of exactly where and how, see your tax assessment letter.

You can also complain to the national ombudsman (Volksanwaltschaft).

Banking

When moving to Austria you will need a bank account in order to sort out your taxes in Austria. The main banks are the following:

• UniCredit Bank Austria AG
• Oesterreichische Nationalbank
• Bank Austria
• VTB Bank (Austria) AG

Opening a bank account in Austria is a very straightforward and pain-free process. To open an account, expats simply need to appear in person at their bank of choice and bring the following documents:

• Passport
• Proof of residence in Austria
• Meldezettel (Residence Registration Form – not always required)
• Employment details

Are you thinking of moving to Austria? If so, Sirelo can give you a hand. We recommend you take a look at the pages we have linked below -they will help you start planning your move to Austria on the right foot. 🙂