Tax residence in Austria for U.S. citizens and green card holders

Austria treats you as a tax resident if you have a home there that is available to you (Wohnsitz) — the number of days does not matter — or if you stay more than 6 months. U.S. citizens remain taxable in the United States too; the U.S.–Austria treaty settles dual residence and double taxation.

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Free, no sign-up, about 3 minutes. Conclusion under U.S. law, compared with the law of Austria and the tax treaty.

When Austria treats you as a tax resident

In Austria, as in Germany, the dwelling is decisive: a Wohnsitz makes you resident without counting days. Without a dwelling, more than six months of presence — even across the year-end — makes you resident.

The six months are counted consecutively, not within a calendar year; short trips out of Austria (holiday, business trip, trip home) only pause the count.

You have a home in Austria — this is a Wohnsitz, and under § 1 EStG 1988 you are resident in Austria and taxable on worldwide income, even if you are rarely there.
You have been in Austria for more than six months — this is a habitual abode, and you are resident in Austria retroactively from the first day.
An employment contract or work permit for more than six months — under BMF practice you are resident in Austria from the start of your stay, even if the work ended earlier.

When you are a nonresident

You have no home in Austria and your stay does not exceed six months — you are not resident in Austria. Wages for work performed in Austria are still taxed there.

Where the rules of Austria clash with U.S. tax rules

Collision: an Austrian home is enough for Austria, the U.S. taxes you as well. For Austria a dwelling you can use at any time is a Wohnsitz even if you are rarely there (VwGH, Ra 2019/15/0145); the BFG held a person with a room and own bathroom in a shared house fully taxable in Austria although the centre of vital interests was in the United States (RV/3100198/2020). The United States taxes citizens and green-card holders on worldwide income wherever they live, and others under the substantial presence test. The tie-breaker in Art. 4(2) of the U.S.–Austria Convention then decides: with homes in both countries, the centre of vital interests — as a rule where you live with your family (VwGH, Ra 2019/15/0160), assessed over several years rather than one (VwGH, Ra 2023/13/0186: temporary work in the U.S. left the centre in Austria while the Austrian home was kept).
Collision: treaty residence in Austria does not end U.S. tax on a U.S. citizen. Even if the tie-breaker makes you a resident of Austria, the United States may keep taxing you as a citizen as if the Convention had not come into effect (saving clause, Art. 1(4)); the exceptions in Art. 1(5) preserve the relief article. Double taxation is relieved by Art. 22(2): Austria taxes first and credits only the U.S. tax the treaty allows other than by reason of citizenship; the United States then credits the Austrian tax, treating the income as Austrian-source to the extent needed (re-sourcing). How the credit and U.S. filing work is explained in the U.S. part.
Collision: six months in Austria vs. calendar-year counting in the U.S.. Austria counts more than six months of presence even if they fall in two calendar years, and you are then resident from the first day. A stay from October to April therefore makes you Austrian-resident although you spent fewer than 183 days in Austria in each calendar year. U.S. residence of a citizen does not depend on days; for non-citizens the substantial presence test counts days in the United States per calendar year.
Collision: a contract for more than six months makes you resident from day one. With an employment contract or work permit for more than six months, Austria treats you as resident from the start of your stay, while in the first year you will usually still be a U.S. resident too (as a citizen or green-card holder, or under the substantial presence test). The tie-breaker in Art. 4(2) of the Convention decides for treaty purposes.

What else to know

Green-card holders and the U.S.–Austria Convention. If you are not resident in Austria, the treaty treats a U.S. citizen or green-card holder as a U.S. resident only with a substantial presence, permanent home or habitual abode in the United States (Art. 4(1)(c)). If Austria treats you as resident under its own law, the ordinary tie-breaker of Art. 4(2) applies. The saving clause covers U.S. residents «as determined under Article 4» and U.S. citizens (Art. 1(4)), so a green-card holder assigned to Austria by the tie-breaker is in a different position from a citizen — see the U.S. part for the consequences.
Working in Austria while not Austrian-resident. A non-resident is taxed in Austria on wages for work performed in Austria (§ 98(1) no. 4 EStG 1988), unless all conditions of Art. 15(2) of the Convention are met: no more than 183 days in Austria in any twelve-month period, an employer that is not an Austrian resident, and pay not borne by its Austrian permanent establishment or fixed base. The 183 days are counted over any 12-month period, not per calendar year.
Second home in Austria. If your centre of vital interests has been outside Austria (for example in the United States) for more than five calendar years, an Austrian holiday home does not make you resident in years in which you use it on no more than 70 days and keep a log of the days.
Inbound relief for researchers (Zuzugsbegünstigung). Scientists and researchers whose move to Austria serves science and research can apply for a 30 % flat allowance on income from scientific work for five years; scientists, researchers, artists and athletes can apply to remove the extra tax burden caused by the move. The application must reach the Finanzamt Österreich within six months of moving and requires moving your centre of vital interests to Austria. The BMF sets no nationality condition, so U.S. citizens can apply; U.S. tax on a citizen is not reduced by it.
Social security: U.S.–Austria totalization agreement. The U.S.–Austria Social Security Agreement (effective 1 November 1991, amended from 1 January 1997) ensures that only one country's system covers the same work. Employees are normally covered where they work; an employee sent to Austria for five years or less generally stays in the home system, with a certificate of coverage as proof. Self-employed people are generally covered only where they reside. This agreement covers social security only, not income tax.

How dual residence is resolved

If both countries treat you as a resident, Art. 4(2) of the treaty applies: Convention between the United States of America and the Republic of Austria for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed 31 May 1996). The tests are applied in order — permanent home, center of vital interests, habitual abode, nationality, and finally mutual agreement between the tax authorities. U.S. citizens remain taxable in the United States under the saving clause.

Terms you will come across in Austria

Wohnsitz: domicile — a home available to you, regardless of how often you use it
gewöhnlicher Aufenthalt: habitual abode — more than 6 months of stay
unbeschränkte Steuerpflicht: unlimited tax liability on worldwide income (resident)
Zweitwohnsitzverordnung: second-home ordinance: a home used fewer than 70 days a year may be disregarded
Ansässigkeitsbescheinigung (ZS-AD): certificate of tax residence
Finanzamt: local tax office

Questions

I am a U.S. citizen — do I still pay U.S. tax if I live in Austria?

Yes. The United States taxes its citizens on worldwide income wherever they live, and the treaty keeps that right through the saving clause (Art. 1(4)). You file Form 1040 every year; double taxation is relieved mainly by the foreign tax credit (Form 1116) or the foreign earned income exclusion (Form 2555), plus the treaty's relief article (Art. 22).

Which treaty applies between the U.S. and Austria?

The Convention signed on 31 May 1996 (in force 1 February 1998). The tie-breaker in Art. 4(2) follows the usual order: permanent home, center of vital interests, habitual abode, nationality, mutual agreement.

Does Austria count days like the United States?

No. A home available to you in Austria (Wohnsitz) makes you resident regardless of days; otherwise more than 6 months of stay. Under Art. 15(2) of the treaty, salary for work in Austria is taxable there if you exceed 183 days in any 12-month period or an Austrian employer pays it.

Sources

Legislation and official guidance

§ 1(2)–(3) EStG 1988 — Persons with a domicile (Wohnsitz) or habitual abode in Austria have unlimited tax liability (worldwide income); others are taxed only on Austrian-source income (§ 98).
§ 26 BAO — A Wohnsitz is a dwelling kept under circumstances indicating an intention to retain and use it. Habitual abode means presence that is not merely temporary; more than six months in Austria always creates it, including for the first six months.
BMF: Persönliche Steuerpflicht (2026) — For a Wohnsitz the dwelling must be used at least repeatedly; after six months of presence, unlimited liability applies retroactively.
LStR 2002 para. 3 (version of 04.12.2024) — A Wohnsitz means the ability to use a dwelling for oneself at any time; registration is only an indication; a sleeping place shared with others and provided by the employer does not create a Wohnsitz.
LStR 2002 para. 4 — With a work permit or employment contract for more than six months, a habitual abode and unlimited liability exist from the first day; this continues even if the work ends earlier.
LStR 2002 para. 5 (version of 15.12.2023) — More than six months of presence gives unlimited liability from the first day, even across the year-end; short trips abroad (holiday, business trips, trips home) suspend the count and are not included, but do not reset it.
§ 98(1) no. 4 EStG 1988 — A non-resident is taxed on employment income for work performed or used (verwertet) in Austria.
Art. 4(2) U.S.–Austria Convention — A dual-resident individual is deemed resident of the State where he or she has a permanent home available; if in both or neither, where personal and economic relations are closer (centre of vital interests); then habitual abode; then nationality; otherwise the competent authorities endeavour to settle the question by mutual agreement. The Memorandum of Understanding notes that the centre of vital interests may not be determinable from a single year.
Technical Explanation, Art. 4 (U.S.–Austria Convention) — The residence of a U.S. citizen or green-card holder who is also resident in Austria under Austrian law is determined by the tie-breaker rules of para. 2; a period beyond one year may have to be examined to identify the centre of vital interests.
Art. 1(4)–(5) U.S.–Austria Convention — Art. 1(4): except as provided in para. 5, a Contracting State may tax its residents (as determined under Article 4) and, by reason of citizenship, its citizens as if the Convention had not come into effect; «citizen» includes a former citizen whose loss of citizenship had tax avoidance as a principal purpose, for 10 years. Para. 5 exceptions include Arts. 22, 23 and 24.
Art. 22(2) U.S.–Austria Convention — U.S. citizen resident in Austria: (a) Austria credits only the U.S. tax the Convention allows the U.S. to impose other than solely by reason of citizenship; (b) the U.S. credits the Austrian income tax paid after that credit; (c) to the extent needed for (b), the income is deemed to arise in Austria (re-sourcing).
Art. 4(1)(c) U.S.–Austria Convention — For an individual who is not a resident of Austria under para. 1, «resident of the United States» includes a U.S. citizen or green-card holder only if the individual has a substantial presence, permanent home or habitual abode in the United States. Per the Technical Explanation, if such a person is also resident in Austria under Austrian law, the tie-breaker of para. 2 applies.
Art. 15(2) U.S.–Austria Convention — Wages for work done in the other State are taxable only in the State of residence if the employee is present there for no more than 183 days in any twelve-month period, the employer is not a resident of the other State, and the pay is not borne by a permanent establishment or fixed base of the employer there.
Zweitwohnsitzverordnung (BGBl. II No. 528/2003) — If the centre of vital interests has been abroad for more than five calendar years, an Austrian dwelling is a Wohnsitz only in years in which it is used on more than 70 days; a log of days must be kept.
§ 103 EStG 1988; BMF: Zuzugsbegünstigung — Scientists and researchers moving to Austria in the interest of science and research may apply for a flat allowance of 30 % of income from scientific work for five years (§ 103(1a)); scientists, researchers, artists and athletes may apply for removal of the additional tax burden caused by the move. Application to the Finanzamt Österreich within six months of moving (it may be filed before). The move requires shifting the centre of vital interests to an Austrian residence. The BMF page sets no nationality condition.
U.S.–Austria Social Security Agreement (SSA, POMS RS 02001.650) — The Totalization Agreement with Austria became effective on 1 November 1991; a Supplemental Agreement effective 1 January 1997 amended it. Only one country's system covers a worker's employment or self-employment.
SSA pamphlet «U.S.–Austrian Social Security Agreement» (archived 2008) — Employees are normally covered by the country where they work; an employee sent to the other country for five years or less stays covered by the home country; self-employed people are generally covered only by the country where they reside; a certificate of coverage proves the exemption.
Art. 22(1), (3) U.S.–Austria Convention — Para. 1: the U.S. credits income tax paid to Austria by its citizens and residents. Para. 3(a): for an Austrian resident with income the U.S. may tax under the Convention, Austria deducts from its tax an amount equal to the U.S. income tax paid, capped at the Austrian tax attributable to that income (credit method); 3(b): income exempt in Austria may be taken into account for the rate.
Art. 4(2)(a) of the Convention — A dual-resident individual is deemed to be a resident of the State in which he or she has a permanent home available; if in both States or in neither, of the State with which his or her personal and economic relations are closer (centre of vital interests). The Memorandum of Understanding notes that the centre of vital interests may not be determinable solely from the circumstances of one single year.
Technical Explanation, Art. 4 — The residence of a U.S. citizen or green-card holder who is also resident in Austria under Austrian law is determined by the tie-breaker rules of para. 2; a period beyond one year may have to be examined to identify the centre of vital interests.
Art. 4(2)(b) of the Convention — If the State of the individual's centre of vital interests cannot be determined, he or she is deemed resident of the State in which he or she has an habitual abode.
Art. 4(2)(c), (d) of the Convention — If the individual has an habitual abode in both States or in neither, he or she is deemed resident of the State of which he or she is a national (c); if a national of both or neither, the competent authorities endeavour to settle the question by mutual agreement (d).

Case law

Verwaltungsgerichtshof (Austria), Ra 2019/15/0145, 2020-03-05 — A Wohnsitz is the legal and factual ability to use a habitable dwelling at any time; how often it is actually used does not matter and no minimum number of nights is required (a BFG decision that required one was set aside).
Verwaltungsgerichtshof (Austria), Ra 2015/15/0066, 2017-11-27 — For a Wohnsitz under § 26 BAO actual control over the dwelling is decisive; police registration (ZMR) and whether rent is paid are not decisive. A VAT case (export exemption for a foreign buyer), but the Wohnsitz test is the same.
Bundesfinanzgericht (Austria), RV/3100198/2020, 2022-06-09 — A room with its own bathroom in a shared house is a dwelling: unlimited tax liability in Austria, although the centre of vital interests was in the United States.
Verwaltungsgerichtshof (Austria), Ra 2019/15/0160, 2020-01-23 — Appeal rejected: with dwellings in both States, the closest personal ties are as a rule with the place where the person regularly lives with the family; a foreign (Swiss) residence certificate confirms residence only from that State's perspective and does not decide the centre of vital interests — circumstances in both States must be weighed.
Verwaltungsgerichtshof (Austria), Ra 2023/13/0186, 2024-09-03 — The centre of vital interests is assessed over several years, not a single year; temporary work abroad (here: in the United States) leaves the centre in Austria, even if the family moved along, when the Austrian home is kept; ordinary contacts with colleagues and neighbours are not personal ties to a State.

Updated 2026-11-04. The result is for information only and is not tax or legal advice. Tax authorities and courts may interpret the rules differently, including because of circumstances not covered here, and the law changes. Consult a qualified adviser before making decisions.

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