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Business Permits & Incorporation for Foreigners in Vienna

Good to know

Good to Know

  • Austria reduced the standard GmbH minimum share capital from €35,000 to €10,000 effective January 1, 2024 — but many company-formation agency websites and blogs still quote the old €35,000 figure, so double-check the current requirement with a notary or the Federal Economic Chamber (WKO) before budgeting.
  • Owning 100% of an Austrian company remotely as a non-EU foreigner does not itself require a residence permit, but if you intend to personally live in Austria and actively run the business day-to-day, you will separately need an establishment/residence permit — a process that can take several months.
  • All incorporation documents (Articles of Association, court filings) must be in German, so budget for certified translation and a local notary/lawyer even if you speak English.
  • A non-EU investor setting up a branch office (rather than a GmbH) must appoint an Austrian-resident 'permanent representative,' which is not required for a standard GmbH with a foreign, non-resident director.
  • Austria's GmbH minimum share capital was cut from EUR 35,000 to EUR 10,000 in 2024, making the standard company form noticeably more accessible for foreign founders than it used to be — but the EUR 500/year minimum corporate tax still applies even if the company makes no profit at all.
  • There's no residency requirement to be a GmbH shareholder or director as a foreigner, but you do need a local registered office address, and all core incorporation documents must be in German (translations/certified copies add time and cost for non-German-speaking founders).
  • Most solo nomads/freelancers in Vienna start as a sole proprietor or 'Neue Selbständige' rather than a GmbH — it's free to register and needs no capital, but it means unlimited personal liability and taxing profit at personal progressive rates (0–55%) rather than the flat 23% corporate rate.
  • Budget for SVS social insurance separately from income tax if you go the freelancer route — contributions kick in once annual income passes roughly EUR 6,600 and run around 28% of profit once fully assessed, and new registrants often get hit with a lump back-payment once their real income is assessed after the first few provisional years.
  • The VAT small-business exemption threshold was raised to EUR 55,000 annual turnover from January 2025 — double-check this figure with a Steuerberater or the Finanzamt before assuming it, since a lot of online guides still cite the older EUR 35,000 threshold.

VAT Umsatzsteuer

Standard Rate
20%, with reduced rates of 13% and 10% for certain goods/services.
Filing
VAT-registered businesses file periodic (monthly or quarterly, depending on turnover) VAT returns through FinanzOnline.

Small Business VAT Exemption Threshold

Amount Local Annual Turnover
€55,000
Note
This threshold was raised from EUR 35,000 effective January 2025; below it, a small business (Kleinunternehmer) generally does not have to charge VAT but also cannot reclaim input VAT. Registration is mandatory above this level, and foreign businesses supplying goods/services in Austria may need to register regardless of turnover in some B2B/reverse-charge scenarios.

Corporate Tax GmbH

Corporate Income Tax Rate
Flat 23% Körperschaftsteuer (KSt) on company profits, applied regardless of whether profits are retained or distributed, and regardless of the level of income.
Loss Carryforward
Losses can generally be carried forward indefinitely, subject to a 75% annual utilization cap against taxable profit.
Dividend Withholding Tax
Profit distributions to individual shareholders are subject to 27.5% withholding tax (Kapitalertragsteuer); distributions to corporate shareholders are withheld at 23%, with EU Parent-Subsidiary Directive relief potentially reducing this to 0% for qualifying EU corporate shareholders.
Filing And Payment Schedule
Corporate tax operates on a pay-as-you-earn basis with quarterly advance payments due 15 February, 15 May, 15 August and 15 November, based on the prior year's liability, reconciled via an annual corporate tax return filed through FinanzOnline.
Worldwide Vs Source Taxation
A GmbH with its legal seat or place of effective management in Austria is taxed on its worldwide income; a non-resident company is taxed only on its Austrian-source income.

Minimum Corporate Tax

Amount Local Annual
€500
Note
Applies to a GmbH even in a loss-making or zero-revenue year, paid in quarterly instalments of roughly EUR 125; it is a genuine minimum (not a prepayment) and cannot be offset against future profits.

Company Structures Available

Ag
Aktiengesellschaft (stock corporation) requires EUR 70,000 minimum share capital and is generally only relevant for larger operations or those planning to raise institutional capital, not typical solo-nomad setups.
Flexco
FlexCo (Flexible Kapitalgesellschaft), introduced 1 January 2024, is a hybrid between a GmbH and an AG aimed at startups, offering more flexible shareholding/employee-participation models.
Branch Office
A Zweigniederlassung (branch of a foreign company) is not a separate legal entity — the foreign parent remains liable — but must still register in the Commercial Register and obtain any required trade licenses; non-EU/EEA parent companies must appoint a resident representative in Austria.

GmbH

Foreign Ownership
100% foreign ownership is permitted; there is no residency requirement for shareholders or the managing director, though the company must have an Austrian registered office/service address.
Description
Private limited liability company (Gesellschaft mit beschränkter Haftung) — the default choice for most foreign-owned businesses in Austria.
Incorporation Notes
Requires a notarized Articles of Association / Gesellschaftsvertrag (in German), deposit of the cash capital into an Austrian business bank account, and entry in the Firmenbuch (Commercial Register). Incorporation typically takes a few weeks and can largely be done digitally since 2022, though non-EEA founders may still need in-person or power-of-attorney banking steps.

Minimum Share Capital

Total Required
€10,000
Minimum Cash Paid In At Incorporation
€5,000
Note
Reduced from EUR 35,000 to EUR 10,000 as of 1 January 2024 under the Company Law Amendment Act 2023.

Freelancer Vs Full Company For Foreigners

Practical Distinction Freelancer Vs GmbH
A sole-proprietor/freelancer setup is faster, free to register, and requires no capital, but carries unlimited personal liability and taxes profit at personal progressive rates up to 55%. A GmbH ring-fences liability to the company's assets, is taxed at the flat 23% corporate rate (plus withholding tax only when profits are actually distributed), but requires EUR 10,000 in share capital, notarized German-language incorporation documents, ongoing Firmenbuch/accounting obligations, and a EUR 500/year minimum tax even at a loss — making it worth the extra setup cost mainly once turnover/profit is high enough that the tax and liability trade-off pays for itself.

Social Insurance Svs

Contribution Rate
Combined SVS contributions run at roughly 28% of declared profit (not gross revenue) once fully assessed.
New Registrant Treatment
New registrants pay a provisional minimum monthly contribution (recalculated later against actual declared income) for the first several years, since SVS cannot yet base contributions on an actual tax assessment; under-provisioning can lead to a significant back-payment once the real income is assessed.
Penalty For Late Registration
Failing to register proactively and being identified retrospectively through the income tax assessment triggers a 9.3% penalty surcharge on top of contributions owed.
Note
Both sole proprietors and Neue Selbständige must register with the SVS (Sozialversicherungsanstalt der Selbständigen) for health, pension, and accident insurance once annual self-employment income is expected to exceed this threshold; registration below the threshold is optional.

Sole Proprietor Einzelunternehmer

Taxation
Business profit is not taxed separately; it is added to the owner's other income and taxed under the standard progressive personal income tax scale (0–55%).
Liability
Unlimited personal liability for business debts and obligations, unlike a GmbH's limited liability.
Eligibility
Open to EU/EEA/Swiss nationals aged 18+, or non-EU/EEA nationals who hold a valid Austrian residence permit; applicants must have no disqualifying criminal or financial record, and regulated trades require proof of qualification.
Two Sub Types
Austria distinguishes between 'Gewerbe' (trade) activities requiring formal trade registration (Gewerbeanmeldung) with the Wirtschaftskammer Österreich (WKO), and 'Neue Selbständige' (new self-employed — e.g. consultants, writers, translators, many liberal/creative professions) who generally register directly with the tax office (Finanzamt) without needing a trade license.
Capital Requirement
None — a sole proprietorship can be started with no minimum capital investment.
Registration Process
Trade registration (Gewerbeanmeldung) via the Business Service Portal (USP) or local trade authority is free of charge; entry into GISA (the Austrian trade register) can take up to roughly three months, though the initial registration itself is typically processed within days.

Incorporation Process And Requirements

Realistic Timeline
Most sources describing the current process cite roughly 3-6 weeks from document preparation through Firmenbuch registration, assuming documents and bank formalities are in order; court processing itself after a complete filing can be as short as a few business days, but total time is driven by notarization, translation, and banking steps.

Core Steps

  • Choose a legal structure (GmbH is standard for most foreign founders).
  • Choose and reserve a unique company name, checked against the Commercial Register (Firmenbuch).
  • Draft the Articles of Association (Gesellschaftsvertrag) in German; a foreign investor who does not wish to travel to Austria can instead grant a notarised power of attorney to a local representative to sign on their behalf.
  • Open a capital deposit account (Kapitaleingangskonto) at an Austrian bank and transfer the required minimum capital contribution.
  • Obtain the bank's deposit confirmation (Einzahlungsbestätigung/Eingabebestätigung), required for notarization.
  • Attend (in person or via authorized representative) the notarial signing meeting for the founding documents.
  • File the notarized documents, proof of capital deposit, and shareholder/director ID documents with the competent commercial court (Firmenbuch).
  • Receive the Firmenbuchnummer (commercial register number) once the court approves the filing — the company only gains legal personality at this point.
  • Apply for a tax number (Steuernummer) and VAT ID (UID) at the local Finanzamt (tax office); trade registration is handled via the linked GISA system.
  • If hiring staff, register as an employer with Austrian social insurance institutions (e.g. ÖGK for health insurance) before employees' first day.

Common Entity Types

  • GmbH (Gesellschaft Mit Beschränkter Haftung) — Limited Liability Company
    Description
    The default and most widely used structure for foreign-owned small/medium businesses in Austria.
  • FlexCo (Flexible Kapitalgesellschaft)
    Description
    A newer hybrid structure combining GmbH-style simplicity with more flexible shareholding, aimed at startups and companies planning employee equity schemes.
  • AG (Aktiengesellschaft) — Joint-stock Company
    Description
    Used by larger enterprises planning to raise capital publicly; heavier governance and reporting obligations.
  • Branch Office (Zweigniederlassung)
    Description
    An extension of a foreign parent company rather than a separate legal entity; the parent bears unlimited liability for the branch.
  • Sole Proprietorship (Einzelunternehmen)
    Description
    Simplest form for individual entrepreneurs; no minimum capital, but full personal liability.

Capital Requirements

AG
Minimum share capital of €70,000, with at least 25% paid in before registration.
GmbH
Minimum share capital of €10,000 as of the reform effective January 1, 2024 (reduced from the prior €35,000 standard under the 2023 Corporate Law Amendment Act), with at least 50% (€5,000) paid in cash at incorporation.
Sole Proprietorship
No minimum capital requirement.

Typical Cost Estimate

Notary Legal And Registry Fees
€2,000
GmbH Minimum Capital To Deposit
€10,000
GmbH Minimum Cash Paid At Incorporation
€5,000
Cost Range Note
Combined notary, legal, and registry fees typically run in the range of €1,500–3,000, separate from the share capital itself.

Local Partner Or Sponsor Mandates

Details
Non-EU investors can own 100% of Austrian companies across all industries, and Austria does not run investment screening for most sectors.
Branch Office Exception
For companies based outside the EU/EEA setting up a branch office, a 'permanent representative' residing in Austria must be appointed.
Foreign Ownership Allowed
100% foreign ownership is permitted with no local shareholder or partner requirement.
Local Director Requirement
There is no requirement that a managing director be Austrian or an EU/EEA resident. Directors do not have to live in Austria, but they must have a local Austrian address where official documents can be delivered.
Work Permit Note
EU/EEA/Swiss nationals do not require permits, while non-EU nationals who personally wish to actively manage or work in the business (as opposed to purely owning shares remotely) generally need an establishment permit, which requires demonstrating economic benefit, business viability, financial means, and professional qualifications, with processing taking about 3-6 months through Austrian embassies.

Scope Note

Covers local/corporate business tax mechanics and the practical freelancer-vs-company decision for a foreigner setting up in Vienna.

Accounting And Bookkeeping Obligations

GmbH
Full double-entry bookkeeping and annual financial statements are mandatory, generally requiring a Steuerberater (registered tax adviser) given the complexity of Austrian GAAP-based reporting and Firmenbuch disclosure deadlines.
Sole Proprietor Freelancer
Simpler income/expense recordkeeping is generally sufficient (full double-entry bookkeeping is only mandatory for sole proprietors entered in the Commercial Register); all supporting documents, invoices and VAT records must be retained for at least seven years.
AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.usp.gv.at

More About Vienna

Data last updated July 2026 · Verify anything important.