Expanding a business to Austria is a logical step for many entrepreneurs, but right from the start, it is necessary to expect that the Austrian system of trade categorisation is significantly different. Activities that we consider free (unregulated) at home can be strictly regulated in Austria and require professional qualifications in the given field.

A typical example is construction work, which is mostly a free trade at home, or cleaning services, which are more regulated in Austria compared to our local conditions. If you plan to focus on, for example, facade cleaning or office cleaning, you will already encounter a regulated trade in Austria.

If it turns out that your planned activity belongs to the regulated trades, the process of recognising your professional qualification awaits you first. As part of this procedure, you must be able to reliably document your education or experience in the field. It is important to prepare for the fact that the recognition itself can take several months, which can significantly delay the overall process of setting up the business and starting your enterprise.

What to Prepare

When registering a trade in Austria, you will need to present an identity document and, in case of a change of your birth surname, also a marriage certificate. If you do not have a registered residence in Austria, or if you have lived there for less than five years, you will also have to provide a criminal record check from your home country. The documents must also include, among other things, a declaration of the non-existence of grounds that would exclude the operation of a trade, in a precisely prescribed format. For regulated activities, documents proving professional competence are added to this. If you want to navigate Austrian bureaucracy successfully, consult with experts.

A Virtual Office is Not Enough

One of the key conditions is to have a real address that will be registered as your place of business. In Austria, this cannot be just a virtual office, because a sole trader must have a real space available where they can carry out their activity. The Austrian tax office strictly checks compliance with this condition.

Compulsory Contributions

After successfully registering your trade, you automatically become a member of the Austrian Economic Chamber (WKO), which brings with it compulsory contributions. You must also count on compulsory social security contributions, which are usually paid quarterly to the Austrian social insurance agency. The minimum social security contributions, which must clearly be calculated at the start, are approximately €160 per month. However, their exact amount will only be determined retrospectively based on your tax return and real profit.

In addition to contributions, a progressive income tax awaits you in Austria. On the positive side, a zero tax rate applies to income up to €13,539 per year. However, as income grows, the tax burden increases and, depending on the level of your earnings, can rise up to the 55% limit.

If you want to be sure that your entry into the Austrian market goes smoothly without unnecessary mistakes and fines, the ProfiDeCon team is ready to guide you through the entire process from the initial registration to tax registration. We have been helping people do business abroad for more than 15 years.