Tax regimes for individuals: Austria

Preferential and special regimes in 21 countries for people who relocate, work for themselves, invest or draw a pension. Conditions, time limits and the legal basis for each.

Regimes: 6

Zuzugsbegünstigung (Beseitigung der steuerlichen Mehrbelastung)

OpenFor people relocating

Foreign income taxed at a flat average rate of at least 15% instead of the Austrian scale; after the 10th year the rate rises by 2 points a year.

Details

Who: People whose move from abroad promotes science, research, art or sport and is therefore in the public interest; for former residents only if more than 10 years have passed since they left.
How it works: For the duration of the public-interest activity, the Austrian tax office may remove the extra tax burden on non-Austrian-source income (outside § 98) caused by the move; the base or tax may be fixed as a lump sum, including the pre-move average rate, but not below 15%.
Duration: Until the end of the year in which the rate first reaches 48%; ends earlier if you leave Austria or stop the activity.
How to opt in: Application to the Finanzamt Österreich no later than 6 months after moving, with the list of documents proving the public interest.
Limits and risks: Does not cover Austrian-source income; for former residents only if more than 10 years have passed since they left. The benefit is lost if material facts were concealed.
Legal basis: § 103 Abs. 1, 2, 3 EStG 1988; Zuzugsbegünstigungsverordnung 2016
Checked: November 4, 2026

Zuzugsfreibetrag für Wissenschaft und Forschung

OpenFor people relocating

An allowance of 30% of scale-taxed income from scientific work.

Details

Who: Scientists and researchers whose move from abroad is in the public interest; for former residents only if more than 5 years have passed since they left.
How it works: For 5 years from the move, an allowance of 30% of tariff-taxed income from scientific work; no other move-related expenses may then be deducted. Can be combined with para. 1.
Duration: 5 years from the date of the move.
How to opt in: Application to the Finanzamt Österreich no later than 6 months after moving; can be combined with the main Zuzugsbegünstigung.
Limits and risks: No other move-related expenses can then be deducted; for former residents only if more than 5 years have passed since they left.
Legal basis: § 103 Abs. 1a, 2 EStG 1988
Checked: November 4, 2026

Basispauschalierung (Betriebsausgaben nach Durchschnittssatz)

OpenFor the self-employed

Expenses are deemed to be 15% of turnover (up to EUR 63,000) or 6% (up to EUR 25,200) for consulting, writing, teaching and scientific work.

Details

Who: Self-employed with cash-basis accounts, no bookkeeping obligation and prior-year turnover up to EUR 420,000 (from 2026).
How it works: Expenses are deemed to be 15% of turnover (max EUR 63,000), or 6% (max EUR 25,200) for consulting, writing, lecturing, scientific and teaching work and § 22 no. 2 income; only goods, wages and social contributions are deductible on top. Profit is taxed at the normal schedule.
How to opt in: Chosen when computing profit in the annual return; requires cash-basis accounts and prior-year turnover of no more than EUR 420,000.
Limits and risks: Only goods, wages and social contributions are deductible on top. After switching to normal accounting you can return only after 5 years. SVS contributions are due as usual.
Legal basis: § 17 Abs. 1–3 EStG 1988
Checked: November 4, 2026

Pauschalierung für Kleinunternehmer

OpenFor the self-employed

Expenses are deemed to be 45% of revenue (up to EUR 24,750) or 20% (up to EUR 11,000) for service businesses.

Details

Who: Self-employed with § 22 or § 23 EStG income whose entire turnover qualifies for the small-business VAT exemption (§ 6(1) no. 27 UStG); not for supervisory board members, shareholder-managers under § 22 no. 2 or foundation board members.
How it works: Profit = revenue less flat expenses of 45% (max EUR 24,750), or 20% (max EUR 11,000) for service businesses; social contributions are deductible on top, other expenses are not. Taxed at the normal schedule.
How to opt in: Chosen in the annual return; turnover must fit within the small-business VAT exemption threshold (EUR 55,000).
Limits and risks: Only social contributions are deductible on top; other actual expenses are not. After opting out voluntarily you can return only after 3 years. Not for supervisory board members or shareholder-managers under § 22 Z 2.
Legal basis: § 17 Abs. 3a EStG 1988
Checked: November 4, 2026

Sportlerpauschalierung

OpenFor the self-employed

Only 33% of income from sport and related advertising is taxed in Austria.

Details

Who: Self-employed athletes resident in Austria who during the year compete mainly in events and tournaments abroad.
How it works: On application, 33% of total annual income from sport and related advertising is taxed in Austria; foreign taxes on that income are not credited, and the foreign part is taken into account for the rate on other income (progression).
How to opt in: Application in the annual return for the year concerned.
Limits and risks: Only for self-employed athletes who compete mainly abroad during the year. Foreign taxes on this income are not credited, and the foreign part raises the rate on other income.
Legal basis: Verordnung BGBl. II Nr. 418/2000 (Sportlerpauschalierungsverordnung), §§ 1–3 — Wortlaut zitiert in BFG RV/4100442/2014
Checked: November 4, 2026

Besonderer Steuersatz für Einkünfte aus Kapitalvermögen (§ 27a EStG 1988)

OpenFor investors

27.5% (deposits: 25%) instead of the progressive scale; tax withheld by the bank is final.

Details

Who: Austrian residents with dividends, interest and gains on securities, derivatives and crypto.
How it works: Capital income is taxed separately from other income at a special rate of 27.5% (bank deposits and accounts: 25%) instead of the progressive scale. Austrian banks withhold the tax (KESt) as final; income on foreign accounts is declared yourself at the same rate. On application the normal scale can apply instead.
How to opt in: Automatic through an Austrian bank; income on foreign accounts and a request for the normal scale go into the annual return.
Limits and risks: Does not apply to private loans not made through a bank; the normal scale can only be chosen for all such income together.
Legal basis: § 27a Abs. 1, 2, 5 EStG 1988
Checked: November 4, 2026

The catalogue describes general conditions. Whether a regime fits you depends on your circumstances and the tax authority's decision.