5 reasons to choose Austria as your European business hub
Article 2 minute read

5 reasons to choose Austria as your European business hub

09 June 2016

Want a gateway into Eastern Europe and all the benefits of operating in an EU member state? Why not consider Austria?

Sharing land borders with eight countries, Austria’s prime position makes it ideal for business both within Western Europe and into Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS). Here are some of the top reasons to choose Austria as your European business hub.

  1. Speed to market
    When you establish operations in Austria, your company is registered within a week, a tax number is issued within one day, and your Austrian entity enjoys one of the world’s most extensive double taxation treaty networks whether its purpose is for holding assets, financing or trading.
  2. Simplicity
    A single personal (even non-resident) managing director, a registered address, annual financial statements and an annual tax return is all that is required to run the most commonly-used form of a legal entity; the Austrian limited liability company (LLC).
  3. Privileges
    The Austrian Group taxation scheme allows for the pooling of tax profits and losses of a domestic parent and its domestic subsidiaries, as well as tax losses of its foreign subsidiaries; subject to consolidated income taxation. Privileges for start-up enterprises means a substantially lower amount of equity is needed upon registration. This goes hand-in-hand with the Austrian R&D premium of 12% that applies to a domestic company’s own R&D expenses (unlimited), as well as contract research (up to €1m p.a.) which is paid in cash by the tax office.
  4. The heart of Europe
    Austria is perfectly located on the brink of East and West, and Vienna International Airport provides you with fast connections to global business centres and 40 CEE destinations; more than any other airport in the world.
  5. Motivated local workforce
    Austrian employees are both highly educated and productive, and workers rarely go on strike. Wage cost is moderate compared with the EU average, and the country has highly flexible labour laws. These attributes make Austria an ideal hub for corporates looking to expand from Western Europe to the CEE/CIS, or the other way around.

Talk to us

TMF Group’s experts in Linz, Salzburg and Vienna provide business-critical, financial and administrative services and key on-the-ground support in Austria, to help you successfully grow your business.

Find out about our Accounting and Tax services.

Written by

Alexander Walther

Managing Director, Vienna

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