Austria

Austria is one of the most economically powerful countries in the European Union and at the same time our neighbor, that is reason enough to do business in Austria. In the area of taxation, the country is particularly attractive for holding companies, which can obtain numerous tax breaks.

Why start a business in Austria?

Prestige
Austria is one of the most developed countries in the European Union. With its long tradition of a free market and business environment, it belongs to the countries that are best valued by the World Bank and business registers.

Opportunities
Since Austria is our southern neighbor, it is an interesting destination for Czech citizens and a suitable place for business expansion. Although the Austrian legal and tax system is not the easiest, the stable business environment, law enforcement and the friendliness of the authorities make it a perfect place to do business.

Types of companies

The most common form of newly established companies in Austria is the GmbH (Gesellschaft mit beschränkter Haftung), a company of a similar type to the Czech limited liability company. The company is responsible for its obligations up to the amount of its share capital, which in Austria is EUR 35,000 (one of the highest in the entire EU). At least 50% of the value of the share capital must be paid into the bank account when the company is established. One shareholder and one director are required to establish a company. In Austria, it is necessary to have a registered address, but you can use a virtual office to reduce costs.

Another common form of established companies is AG (Aktiengesellschaf­t), equivalent to a Czech joint stock company. The conditions for establishing an AG are similar to those of a GmbH, but the share capital is EUR 70,000 and the minimum share value must be EUR 1.

Taxes in Austria

Corporate income tax is higher than in the Czech Republic, at 25%. In addition, there is a rule that a certain minimum tax must be paid even if the company does not make a profit. This tax is EUR 1,750 per year for a GmbH type company and EUR 3,500 per year for an AG type company. In most cases, the rate for value added tax is 20%, in some cases a reduced rate of 10% is applied, e.g. in the case of food, tourist services, etc. The obligation to register for the payment of VAT occurs for a company with an annual turnover of EUR 30,000.

INVESTMENT IN AUSTRIA

With the exception of a few industries (state monopolies, radio, television, telephone and postal services, gas and electricity supplies), both domestic and foreign entrepreneurs have freedom in the location of their activities. They compete on an equal footing with public enterprises in market access and in obtaining loans and other business activities. 100% foreign ownership is allowed in most business activities. There are not as many investment incentives in Austria as in other European Union states. Making investment decisions

Å¡ak are positively influenced by other factors, which include, in particular, a stable environment, relatively high legal certainty, good infrastructure, advantages in logistics and banking, automatic membership in the Chamber of Commerce after the establishment of a company with the possibility of using its services, a qualified workforce and, last but not least, an advantageous geographical location position. Many foreign, international companies have their headquarters in Vienna and from there they process the markets of Central and Eastern Europe.

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