DoubleTaxationUnited States – Austria tax treaty: residence, 183 days, rates
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)
- Signed: 1996-05-31
- In force since: 1998-02-01
- Official text
If both countries treat you as resident
- 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. Art. 4(2)(a) of the 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. Technical Explanation, Art. 4
- 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)(b) 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). Art. 4(2)(c), (d) of the Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in any 12-month period; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18(1)(a) |
| State pension (social security) | Only the source country (for pensions, the paying country). | Art. 18(1)(a) |
| Government service | Only the paying country. | Art. 19(1) |
| Government service pension | Only the paying country. | Art. 19(1) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 10(2)(b) |
| Interest (deposits, bonds, loans) | Only the country of residence. | Art. 11(1) |
| Royalties (copyright, licences) | Only the country of residence. Other rates or exemptions apply in some cases (see the article). | Art. 12(1) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 13 |
| Other income | Only the country of residence. | Art. 21(1) |
How double taxation is relieved
- Austria: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(3)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(1)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.