Austria
Western Europe • UTC+2 • Europe/ViennaAustrian Income Tax System
Austria employs a progressive tax system for personal income, with rates ranging from 0% to 55%. Corporate income is taxed at a flat rate of 24%, and the standard VAT rate is 20%.
Income Tax
0%–55%
Progressive rates
Corporate Tax
24%
Standard corporate tax rate
VAT / GST
20%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Austria's tax system is progressive, taxing residents on worldwide income and non-residents on Austrian-source income. The system includes personal income tax, corporate tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on their worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Austrian-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Austria's progressive income tax bands for 2025 based on annual taxable income in EUR.
Tax Treaty
Double Taxation Agreements help prevent double taxation on income earned in multiple countries.
Germany
Treaty ActiveThe Austria-Germany tax treaty prevents double taxation and reduces withholding taxes on dividends, interest, and royalties.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Germany
Agreement ActiveAustria and Germany have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Austria-Germany workers.
- Allows workers who split careers between the two countries to combine contribution periods.
- Applies to employees, self-employed, and certain government workers.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
24% standard rate with potential reductions for small businesses
VAT Registration
Mandatory if annual turnover exceeds €35,000.
Freelancer Rules
Freelancers are subject to income tax and must register for VAT if turnover exceeds the threshold.
Crypto Policy
Cryptocurrency gains are taxed as capital gains at standard rates.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No wealth tax on global assets
- Access to Austria's healthcare system
Filing Roadmap
Register for Tax ID
Obtain a tax identification number (Steuernummer) from the local tax office.
Gather Income Documents
Collect all relevant income documents, including employment slips and bank statements.
File Tax Return
Submit your tax return online via FinanzOnline by the deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the deadline to avoid penalties.