ATOperating in Austria
Payroll, accounting, employment, immigration, entity setup, and corporate compliance managed locally through a single international coordination model.
Request a country assessmentThe regulatory landscape
Austria applies a flat 23% corporate income tax rate, unchanged since 2024 after a phased reduction from 25%, alongside a 20% standard VAT rate and employer social security contributions of 20.98% of gross salary under the ASVG system. Dividends are subject to 27.5% withholding tax (23% where the recipient is a corporation), reducible under double tax treaties. A GmbH can be formed with a reduced minimum share capital of €10,000 (€5,000 paid in cash) since 2024, or the standard €35,000 (€17,500 paid in) variant; an AG requires €70,000.
The structural detail multinationals must plan around is Austria's group taxation system, introduced in 2005 and still one of the more developed cross-border relief mechanisms in the EU. Only first-tier foreign subsidiaries — resident in the EU or in a state with a comprehensive administrative assistance agreement with Austria, and held at more than 50% directly by an Austrian group member — may be included. Group members' profits and losses are attributed to the parent, but only losses of foreign members may be deducted, and only in proportion to the direct shareholding. Critically, those foreign losses are recaptured and taxed in Austria in later years once they can be offset against the foreign entity's own profits under its domestic regime, or if the entity leaves the group — meaning the deduction is a timing benefit, not a permanent one, and must be tracked accordingly.
Official language
German
Legal forms
GmbH · AG · FlexKapG (FlexCo, since 2024)
Corporate tax rate
23% flat (minimum CIT: €500/year standard GmbH, €500/year reduced-capital GmbH billed at €125/quarter)
Currency
EUR
Employer social security
20.98% of gross salary (ASVG, 2026) — monthly contribution base capped at €6,930
Dividend tax (withholding)
27.5% (23% to corporate recipients), reducible under double tax treaties
Minimum share capital
GmbH: €10,000 (€5,000 cash) reduced variant since 2024 · €35,000 standard variant · AG: €70,000
VAT
20% standard · 13% and 10% reduced (10% narrowing to 4.9% for select basic foods from 1 July 2026)
Integrated services in Austria
Each service is delivered as part of an integrated service model, coordinated across functions under a single point of accountability. Clients engage one team, not a coordination layer between independent providers.
Accounting & Tax Compliance
Statutory accounts under the Austrian Commercial Code (UGB), Firmenbuch filings, and corporate tax returns via FinanzOnline, including group-taxation (Gruppenbesteuerung) election and loss-recapture tracking where relevant.
Explore Accounting & Tax CompliancePayroll & Workforce Management
Full-cycle Austrian payroll including ASVG social security contributions, 14-instalment salary structures, and alignment with the applicable sector collective bargaining agreement (Kollektivvertrag).
Explore Payroll & Workforce ManagementCompany Formation & Entity Setup
GmbH, FlexKapG and AG incorporation, Firmenbuch registration, and notarial formalities for share capital and Articles of Association.
Explore Company Formation & Entity SetupWorkforce Mobility
Red-White-Red Card and EU Blue Card coordination for non-EU hires, including salary-threshold checks against the 2026 minimums.
Explore Workforce MobilityClient profiles in Austria
HR & Employment Advisory
Multinationals establishing or restructuring an Austrian holding or group-parent entity
Company Formation & Entity Setup
Companies entering Austria for the first time, requiring entity setup and CBA-correct payroll from the first hire
Workforce Mobility
Groups electing into Gruppenbesteuerung and needing ongoing recapture-liability tracking across foreign subsidiaries
Payroll & Workforce Management
Companies already operating in Austria consolidating fragmented HR, payroll and accounting providers under a single governance layer
At the center of your HR operations
What clients say about our services in Austria
We'd included our first-year Italian subsidiary's losses in the Austrian group return without fully modelling what would happen once that subsidiary became profitable. Walking through the recapture mechanism in advance meant the eventual tax charge was budgeted, not a surprise three years later.
Group Tax Director, Industrial Group — Austrian OperationsInsights on Austria
Selected articles on regulatory developments and operational frameworks relevant to companies in Austria.
Group taxation offsets a subsidiary loss in the year it arises, then recaptures it when the subsidiary returns to profit. The same-year benefit is a tracked, deferred liability.
Read articleAustria has no statutory minimum wage; sectoral agreements cover around 95% of employees and set the applicable floor. Combined with the 14-instalment year, this reshapes payroll planning.
Read articleThe 2026 immigration salary floors have to be read against a salary structure paid in fourteen instalments. How the two interact when testing whether an offer qualifies.
Read articleFrequently asked questions
Questions raised most often by companies entering or operating in Austria.
What services does HTLC Network provide in Austria?
HTLC Network provides Payroll & Workforce Management, Accounting & Tax Compliance, HR & Employment Advisory, Company Formation & Entity Setup, and Workforce Mobility services in Austria through a coordinated international service model.
How does Gruppenbesteuerung loss recapture actually work?
Losses of a foreign group member may be deducted from the Austrian group's taxable income in proportion to the direct shareholding, but these are timing benefits, not permanent deductions. If the foreign entity subsequently generates enough profit to use those same losses under its own domestic tax regime, or if it drops out of the group, the previously deducted amount is recaptured and taxed in Austria.
Which foreign subsidiaries can join an Austrian tax group?
Only first-tier foreign subsidiaries qualify: those held at more than 50% directly by an Austrian group member, and resident either in an EU member state or in a country that has a comprehensive administrative assistance arrangement with Austria. Lower-tier (indirectly held) foreign entities cannot be included.
Does Austria have a national minimum wage?
No. Austria has no single statutory minimum wage; pay floors are set through sector-level collective bargaining agreements (Kollektivverträge) covering roughly 95% of employees. Most 2026 entry-level minimums fall between €1,800 and €2,000 gross per month, paid across 14 instalments including the mandatory 13th and 14th month payments.
What is the minimum share capital for a GmbH?
Since 2024, a GmbH can be formed with a reduced minimum share capital of €10,000, of which €5,000 must be paid in cash at formation. The standard variant still requires €35,000 (€17,500 paid in). An AG requires €70,000. The reduced-capital GmbH is also subject to a lower minimum corporate tax of €125 per quarter (€500/year).
Talk to a Austria expert
For companies structuring a market entry or consolidating an existing Austrian operation under a single governance model.