Tax liability in Austria

If you are self-employed in Austria, you are either subject to unlimited or limited tax liability. 

Info: In Austria, nationality does not play a role in tax liability.

You are subject to unlimited tax liability if you are resident or ordinarily resident in Austria. Your habitual residence is considered to be in Austria if you stay there for more than six months/183 days a year. 

If you have unlimited tax liability, Austria generally has the right to tax your entire worldwide income. Above a certain level of income, you must file an income tax return. On the basis of this declaration, the tax office determines how much profit you made from your self-employed activity in the respective tax year and taxes this profit. See the subchapter on income tax.

You are subject to limited tax liability if you are self-employed in Austria but do not have a residence or habitual abode there. If you are subject to limited tax liability, Austria may tax the self-employed income you receive in Austria under certain conditions. See the subchapter on foreigner’s withholding tax.

Attention: If you work across borders, you must check whether Austria and the country in which you are resident for tax purposes have concluded a double taxation agreement. This regulates which country has the right to tax certain income. See the subchapter on tax liability in multiple countries.

If you are not self-employed in Austria—i.e. you have an employment contract—you are either subject to unlimited or limited tax liability.

Info: In Austria, nationality does not play a role in tax liability.

You are subject to unlimited tax liability if you are resident or ordinarily resident in Austria. You habitual residence is considered to be in Austria if you are not only staying there temporarily (e.g. on holiday or business trips), but for a longer period. If you stay for more than six months/183 days per year, Austria is assumed to be your habitual residence. People who do not have a place of residence in Austria therefore require an employment contract lasting at least six months or at least a six-month residence and work permit in order to establish their habitual residence in Austria. In these cases, unlimited tax liability applies retroactively, i.e. all income earned from the start of residence is subject to unlimited tax liability in Austria.

Info: See the chapter on visas & residence to find out whether you need a residence and work permit.

You are subject to limited tax liability if you are employed in Austria or receive other non-self-employed income such as a pension, even if are not resident or ordinarily resident in Austria. 

If you have limited tax liability, Austria can, under certain conditions, tax your income derived from employment in Austria. See the chapter on tax liability in multiple countries. 

Info: If you work as an employed artist on a cross-border basis, your income will be taxed in the country in which you carried out your work in accordance with most double taxation agreements. This also applies if your fee is not paid straight into your bank account, but is transferred to an artists’ agency, for example. 

For the specific calculation and amount of tax payable for unlimited and limited taxpayers, see the subchapter on the taxation of employed people’s income.