Tax residence in Austria for Pakistani taxpayers

Austria treats you as resident if you have a home there available to you (Wohnsitz), if you stay more than six months, or from day one with a work contract for more than six months. Pakistan may still treat you as resident under s. 82 of the Income Tax Ordinance, 2001; the Austria–Pakistan Convention of 2005 decides dual residence and relieves double tax.

Check your status: Pakistan and Austria

Free, no sign-up, about 3 minutes. Conclusion under Pakistan's Income Tax Ordinance, 2001, 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 Pakistani tax rules

Collision: an Austrian home is enough for Austria, Pakistan may still treat you as resident. 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 abroad (RV/3100198/2020). Pakistan's own test (s. 82 of the Income Tax Ordinance, 2001) counts days in its tax year, 1 July – 30 June: 183 days or more makes you resident; a Pakistani citizen with fewer days stays resident unless he or she was present in one other country for more than 182 days and is a resident taxpayer there (s. 82(d)). If both countries treat you as resident, Art. 4(2) of the Austria–Pakistan Convention 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); with a permanent home in neither, the habitual abode.
Pakistani citizen living in Austria: when Pakistan lets go. As a Pakistani citizen you stop being resident in Pakistan only if, in the Pakistani tax year (1 July – 30 June), you spent fewer than 183 days in Pakistan, more than 182 days in one other country and are a resident taxpayer there (s. 82(d)). Austria can make you resident from the first day — with a home, a contract for more than six months, or more than six months of stay — so in the year you move both countries often claim you and Art. 4(2) of the Convention decides. Keep a day-by-day travel record and an Austrian certificate of residence (form ZS-AD) for each year.
Collision: six months in Austria vs. Pakistan's 1 July – 30 June tax year. 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. Pakistan counts days in its own tax year (1 July – 30 June); a Pakistani citizen who was not in Austria for more than 182 days in that year stays resident in Pakistan (s. 82(d)).
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 Pakistani tax year you will usually still be resident in Pakistan too (183 days there, or the citizen rule of s. 82(d)). The tie-breaker in Art. 4(2) of the Austria–Pakistan Convention decides for treaty purposes.

What else to know

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. 16(2) of the Austria–Pakistan Convention are met: no more than 183 days in Austria in the relevant tax year, an employer that is not an Austrian resident, and pay not borne by its Austrian permanent establishment or fixed base. Unlike many newer treaties, the 183 days are counted per tax year, not over any twelve-month period.
Second home in Austria. If your centre of vital interests has been outside Austria (for example in Pakistan) 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 Pakistani citizens can apply.
How double tax is relieved between Austria and Pakistan. If you remain resident in Pakistan (or the tie-breaker assigns you to Pakistan), Pakistan credits Austrian tax on Austrian-source income, up to the Pakistani tax on that income (Art. 24(2); s. 103); salary for work in Austria on which Austrian wage tax was withheld and paid is exempt in Pakistan (s. 102). If you are resident in Austria, Austria exempts income Pakistan may tax with progression and credits Pakistani tax on dividends, interest, royalties and fees for technical services (Art. 24(1)); under the MLI it credits instead of exempting where Pakistan exempts the income or limits its rate.
Pakistani government employees posted to Austria. An employee or official of the Federal or a Provincial Government of Pakistan posted abroad stays resident in Pakistan (s. 82(c)). Under Art. 20 of the Convention, government salary is taxable only in Pakistan unless you work in Austria and are Austrian-resident and either an Austrian national or did not move to Austria solely for the job.
No Austria–Pakistan social security agreement. Austria has no social security agreement with Pakistan, so Austrian contributions on work in Austria are due under Austrian law and no certificate of coverage can exempt a posted worker. Contributions are outside the income tax treaty.

How dual residence is resolved

If both countries treat you as a resident, Art. 4(2) of the treaty applies: Convention between the Republic of Austria and the Islamic Republic of Pakistan for the avoidance of double taxation with respect to taxes on income, signed at Islamabad on 4 August 2005 (BGBl. III No. 49/2007), as modified by the MLI. The tests are applied in order — permanent home, centre of vital interests, habitual abode, nationality, and finally mutual agreement between the tax authorities.

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 six months of stay
unbeschränkte Steuerpflicht: unlimited tax liability on worldwide income (resident)
Zweitwohnsitzverordnung: second-home ordinance: a home used on no more than 70 days a year may be disregarded if your centre of life has been abroad for over five years
Ansässigkeitsbescheinigung (ZS-AD): certificate of Austrian tax residence
Finanzamt Österreich: the Austrian tax office

Questions

Which treaty applies between Pakistan and Austria?

The Convention signed at Islamabad on 4 August 2005, in force since 1 June 2007 and modified by the MLI. Its tie-breaker (Art. 4(2)) is not changed by the MLI: permanent home, centre of vital interests, habitual abode, nationality, mutual agreement.

How are the 183 days for salary counted?

Under Art. 16(2) of the Convention, salary for work in Austria stays taxable only in Pakistan if you are in Austria for no more than 183 days in the relevant tax year, the employer is not Austrian and no Austrian establishment bears the pay.

Is there a social security agreement between Austria and Pakistan?

No. Austria's list of social security agreements (August 2026) does not include Pakistan, so Austrian contributions on work in Austria are due under Austrian law.

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.
Income Tax Ordinance, 2001, s. 82(d) (inserted by the Finance Act, 2022; consolidated text amended up to 30.06.2026 listed by FBR) — A citizen of Pakistan is also a resident individual if he or she is not present in any other country for more than 182 days during the tax year, or is not a resident taxpayer of any other country. Applies from tax year 2023.
Art. 4(2) Austria–Pakistan Convention (2005) (MLI synthesised text) — Permanent home; if in both States, centre of vital interests; if that cannot be determined, or there is no permanent home in either State, habitual abode; if habitual abode in both or neither, nationality; if a national of both or neither, the competent authorities endeavour to settle the question by mutual agreement. The MLI does not modify Art. 4.
Art. 16(2) Austria–Pakistan Convention (2005) — Salary for work done in the other State is taxable only in the State of residence if the employee is present in the other State for not more than 183 days in the relevant tax year, the employer is not resident there, and the pay is not borne by a permanent establishment or fixed base of the employer in that State.
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.
Art. 24 Austria–Pakistan Convention (2005) as modified by Art. 5(2) MLI (Option A) — Austria exempts income that Pakistan may tax (para. 1(a)), subject to progression (1(d)); it credits Pakistani tax on income under Arts. 8(2), 10(2), 11(2), 12(2), 13(2), 14(4)–(5) and 23(3), capped at the Austrian tax on that income (1(b)). Under the MLI, the exemption does not apply where Pakistan applies the Convention to exempt the income or limit its rate; Austria then gives a credit. Pakistan credits Austrian tax, limited to the Pakistani tax attributable to that income (para. 2).
Income Tax Ordinance, 2001, s. 103 — A resident taxpayer gets a credit for foreign income tax on foreign-source income equal to the lesser of the foreign tax paid and the Pakistan tax on that income (average Pakistani rate × net foreign-source income), computed separately for each head of income; unused credit is not refunded, carried back or forward; the foreign tax must be paid within two years after the end of the tax year.
Income Tax Ordinance, 2001, s. 102 — Foreign-source salary received by a resident individual is exempt if the individual has paid foreign income tax on it; tax is treated as paid if it was withheld by the employer and paid to the revenue authority of the country where the employment was exercised.
Income Tax Ordinance, 2001, s. 82(c) — An individual is a resident individual for a tax year if he or she is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year — regardless of days in Pakistan.
Art. 20 Austria–Pakistan Convention (2005) — Salaries (other than pensions) paid by a State or its subdivisions for services to that State are taxable only in that State, unless the services are rendered in the other State by a resident who is a national of that other State or did not become resident solely to render the services; government pensions are taxable only in the paying State unless the recipient is a resident and national of the other State.
Federal Ministry of Social Affairs (Austria) — overview of social security agreements (as of 3 Aug 2026) — Austria has bilateral social security agreements with 21 states outside the EU/EEA (Albania, Australia, Bosnia and Herzegovina, Brazil, Chile, India, Israel, Japan, Canada/Québec, Korea, Kosovo, Moldova, Mongolia, Montenegro, North Macedonia, Philippines, Serbia, Tunisia, Türkiye, USA, Uruguay); Pakistan is not among them.

Case law

Verwaltungsgerichtshof (Austria), Ra 2019/15/0145, 05/03/2020 — 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, 27/11/2017 — 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, 09/06/2022 — 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, 23/01/2020 — 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, 03/09/2024 — 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 04/11/2026. The result is for information only and is not tax or legal advice. The FBR, other tax authorities and courts may interpret the rules differently, including because of circumstances not covered here, and the law changes with each Finance Act. Consult a qualified adviser before making decisions.

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