Austria is home to hundreds of thousands of expats — from EU citizens working in Vienna to international specialists relocating for tech, finance, or UN employment. Whether you've just arrived or have been here for years, navigating the Austrian tax system as a foreigner can be complex. This guide covers what you need to know.
Are You a Tax Resident in Austria?
Your tax obligations depend primarily on whether Austria considers you a tax resident.
You Are a Tax Resident If:
- You have your primary home (Wohnsitz) in Austria, OR
- You have spent more than 183 days in Austria in a calendar year
As a tax resident, you pay Austrian tax on your worldwide income — income from all countries, not just Austria.
Non-Residents
If you work in Austria but live abroad (common for people in border regions), you are generally taxed only on your Austrian-sourced income.
EU vs. Non-EU Citizens
EU/EEA Citizens
Free to live and work in Austria without a visa. Tax treatment is the same as Austrian citizens once you register your residence (Meldezettel). You must register within 3 days of moving in.
Non-EU Citizens
You need a valid visa or residence permit. Tax residency rules are the same — if you have a home in Austria or stay 183+ days, you're a tax resident. Some permits (like the Red-White-Red Card) come with specific tax implications.
Double Taxation Agreements
Austria has signed double taxation agreements (DTA) with over 90 countries. These prevent you from being taxed on the same income in two countries simultaneously.
Key countries with DTAs with Austria include: Germany, USA, UK, Canada, Australia, India, China, Japan, and most EU member states.
How it works:
- Your DTA determines which country has the right to tax each type of income
- The other country either exempts that income or gives a tax credit
- You generally still need to report foreign income even if it's not taxable in Austria
Always check the specific DTA for your home country — terms vary significantly.
What Income Is Taxable in Austria?
As an Austrian tax resident, you must declare:
- ✅ Austrian employment income (Lohnsteuer already withheld at source)
- ✅ Foreign employment income (if working for a foreign employer)
- ✅ Rental income (Austrian or foreign properties)
- ✅ Investment income (dividends, interest, capital gains)
- ✅ Freelance / self-employment income
- ✅ Pension income (depending on DTA)
Deductions Available to Expats
You have access to the same deductions as Austrian citizens:
Standard Deductions
- Employee allowance: €132/year (automatic)
- Commuter allowance: If you commute to a workplace
- Home office: Up to €300/year flat rate
- Work equipment: Computers, tools, professional books
- Professional development: Courses and training
Relocation Expenses
Moving costs can be deductible as income-related expenses if the move is required by a job change or your employer requires you to relocate. Document all moving costs.
Language Courses
German language courses are deductible if German is required for your job. This is a commonly missed deduction for expats.
Professional Memberships and Literature
Memberships in professional associations and work-related books, journals, or subscriptions are fully deductible.
The Zuzugsbegünstigung: Special Expat Tax Break
Austria offers a special immigration tax incentive (Zuzugsbegünstigung) designed to attract highly qualified workers and researchers.
Who Qualifies?
- Scientists, researchers, and artists relocating to Austria
- Must not have had Austrian tax residency in the previous 10 years
- Must apply within 6 months of establishing residency
What It Provides?
- A 30% flat-rate deduction on Austrian employment income for up to 5 years
- Significantly reduces your taxable income during the settling-in period
This is one of Europe's more generous expat tax incentives — apply early if you qualify.
Social Security as an Expat
EU Workers
EU social security regulations generally mean you contribute to the social security system of the country where you work. If you work in Austria, you pay Austrian social security (~18.12% of gross salary as an employee).
Non-EU Workers
Social security treatment depends on your visa category and whether Austria has a bilateral social security agreement with your home country. Austria has agreements with many countries including the USA, Canada, Australia, Japan, and India.
A1 Certificate
If you are temporarily posted to Austria by a foreign employer (EU citizen), you may be able to maintain social security in your home country and get an A1 certificate confirming exemption from Austrian social security.
UN and International Organization Employees
Vienna hosts numerous international organizations (UN, OPEC, IAEA, etc.). Employees of these organizations generally have diplomatic immunity from Austrian income tax on their official salaries. However:
- Local taxes (property, vehicle) may still apply
- Income from other sources (rental, freelance) is taxable
- Spouses who work for Austrian employers pay normal Austrian taxes
Filing Your Tax Return as an Expat
Do You Need to File?
Employees with only one Austrian employer typically don't have to file — tax is withheld at source. However, filing is usually worth it because:
- You may have foreign income to declare
- You can claim deductions not processed by your employer
- You may be entitled to a refund
Deadline
The deadline to file is 30 June of the following year (for paper returns) or 30 September (online via FinanzOnline). Extensions are possible if you work with a registered tax advisor (Steuerberater).
FinanzOnline
Austria's tax portal FinanzOnline is available in German only. You can access it with your tax ID (Steueridentifikationsnummer) and set up an account. Many expats work with a Steuerberater who files on their behalf.
Your Tax ID (Steueridentifikationsnummer)
You receive your Austrian tax ID automatically when you register your residence (Meldezettel). If you haven't received it, you can request it from your local tax office (Finanzamt).
Common Expat Tax Situations
Working for a Foreign Employer While Living in Austria
If your employer is outside Austria, no tax is withheld at source. You must:
- File a quarterly advance tax payment (Vorauszahlung)
- File an annual income tax return
- Pay any DTA-determined Austrian tax
- Check whether you still owe tax in your home country
Renting Out Property in Your Home Country
Foreign rental income must be declared in Austria (as a resident). The DTA usually assigns taxing rights to the country where the property is located, but you still report it in Austria and may receive a credit or exemption.
Remote Working for a Foreign Employer
Austria taxes your income based on where you are, not where your employer is. If you work remotely from Vienna, your income is Austrian-sourced and subject to Austrian tax — even if paid in a foreign currency by a foreign company.
Key Contacts and Resources
- BMF (Austrian Tax Authority): bmf.gv.at
- FinanzOnline (Filing Portal): finanzonline.bmf.gv.at
- Residence Registration: Local municipality (Magistrat/Gemeindeamt)
- Tax Advisor Search: Austrian Chamber of Tax Advisors (kwt.or.at)
Quick Checklist for New Arrivals
- Register your residence (Meldezettel) within 3 days of moving in
- Receive your Austrian tax ID (Steueridentifikationsnummer)
- Check whether Austria has a DTA with your home country
- Determine if you qualify for the Zuzugsbegünstigung (apply within 6 months)
- Register with FinanzOnline or find a Steuerberater
- Keep records of all income sources and work-related expenses
- File by the applicable deadline (30 June or 30 September)
Use our income tax calculator to estimate your Austrian tax bill based on your salary. It updates in real time and covers the 2026 rates.
This guide covers general principles of Austrian taxation for expats as of 2026. Individual tax situations — especially those involving international income — can be complex. We strongly recommend consulting a qualified Austrian tax advisor (Steuerberater) for personalised advice.