Investment Conditions in Austria
Investment in Austria can be done through several methods, including property purchase, entrepreneurship, self-support, company registration, and acquiring an existing business. While buying property does not grant residency, entrepreneurship and innovative business ideas can lead to obtaining residence permits. The minimum investment for entrepreneurship is €50,000, while registering a joint-stock company requires at least €100,000.
Austria is an attractive destination for investors due to its economic stability, central European location, and transparent tax system. The Austrian government supports investors through various financial incentives and funding programs.
Applicants for immigration to Austria through investment can contact Malekpour Migration Institute for free consultation. In the comments section, you can also ask your questions.
Why Invest in Austria?
Austria is considered one of the best European countries for investment, with a stable economy, a strategic location in the heart of Europe, strong infrastructure, and a transparent tax system, making it an ideal option for foreign investors.
The country attracts numerous investors annually due to its sustainable economic growth, high security, supportive laws for investors, and high quality of life.
Investment Conditions in Austria
Investing in Austria is one of the safe and profitable ways to enter the European market and obtain residency in this country. To invest successfully in Austria, individuals must meet specific conditions and requirements. These conditions vary depending on the chosen method of investment; however, some general principles are common across all methods.
- Minimum legal age – the applicant must be over 18 years old.
- Sufficient financial means – proof of financial ability to invest and cover living expenses in Austria.
- Valid business plan – providing a strong and profitable business plan for investment methods through company registration or startup.
- No criminal record – providing a certificate of no criminal record from the country of origin.
- Providing health insurance – having valid health insurance for yourself and your family.
- Financial deposit (in some methods) – for some investment programs, the applicant must invest a certain amount in Austrian banks.
- Job creation – in some methods, the investor must create jobs for Austrian citizens.
- Basic knowledge of the German language – in some residence programs, basic knowledge of the German language is required.
Advantages of Investing in Austria
Investing and obtaining a Visa for Austria not only leads to obtaining residency in Austria through investment, but it also offers many other advantages as follows.
- Economic and political stability
- Strategic geographical location
- Access to the EU market
- Advanced infrastructure
- Attractive tax system
- Support programs for businesses
- High quality of life
- Legal and legal security
- Possibility of obtaining residency and citizenship
- Access to research and development funds
Minimum Investment Amount in Austria
One of the frequently asked questions and an important aspect before starting the migration process is having accurate and updated information about costs and minimum amounts for migration. For migration through investment in Austria, the required investment amount varies depending on the selected path. For entrepreneurship and innovation, the minimum investment is €50,000.
If you intend to register a company in Austria, the minimum investment for registering a public joint-stock company is €100,000. Additionally, if you intend to purchase property in Austria, a minimum amount of €200,000 is required for this action.
Investment Methods in Austria
Investing in Austria can be done through various methods, each depending on a specific type of business and the investor’s goals. Below, we refer to some of the most common investment methods in Austria:
- Buying Property in Austria
- Entrepreneurship in Austria
- Innovation in Austria
- Buying a Business in Austria
- Registering a Company in Austria
- Self-Support in Austria
Buying Property in Austria
Buying property in Austria is a popular investment choice, but it alone does not grant residency. To obtain residency through property purchase, you must submit an approved business plan to qualify for the “Red-White-Red” investment residency.
Property prices vary by location, with city center apartments starting around €6,569 per square meter and reaching up to €10,000, while outside city areas range from €3,000 to €6,000 per square meter.
| City | Property Type | Price per Square Meter (EUR) |
|---|---|---|
| Vienna | Apartment in city center | €8,886 |
| Vienna | Apartment outside city center | €5,668 |
| Graz | Apartment in city center | €6,583 |
| Graz | Apartment outside city center | €4,316 |
| Salzburg | Apartment in city center | €6,800 |
| Salzburg | Apartment outside city center | €5,585 |
| Innsbruck | Apartment in city center | €10,166 |
| Innsbruck | Apartment outside city center | €7,590 |
Entrepreneurship in Austria
Investing in Austria through company registration and entrepreneurship is a promising option, especially in sectors like construction, tourism, electronics, and engineering, thanks to the country’s stable economy and strong industrial base.
European Union citizens can register a business with fewer restrictions, typically requiring only a valid residence card. In contrast, non-EU citizens may need to meet stricter requirements, provide detailed documentation, and undergo additional evaluations to complete the registration process.
Key criteria for business registration in Austria are listed below:
- Adequate investment is essential to start a business and implement economic plans.
- Your plan must have the capability to create jobs for the local workforce.
- Using new technologies in the business plan is very important.
- Your business must contribute to the economic and social development of the region.
To register a company in Austria, having education and work experience relevant to the company’s field of activity is crucial. These aspects demonstrate your credibility and expertise in the targeted business area. Additionally, proving financial capability is one of the essential requirements. Minimum monthly income has been set at €933 for each individual, €1,399 for couples, and €144 for each child to support your business and family.
The company registration process begins after the business plan has been prepared. The Austrian Employment Service (AMS) reviews this plan within four weeks and sends the results to the immigration office at www.migration.gv.at/. If the plan is approved, a residency permit will be granted to you.
Innovation in Austria
To apply for the Start-Up Visa in Austria, you must submit a detailed and convincing business plan, as it plays a crucial role in the approval process. The minimum required investment is €50,000. Additionally, the applicant must hold at least 50% of the company shares and be actively involved in managing the business.
Securing 50 points based on the following criteria is sufficient to utilize the innovation plan for investment in Austria:
| Criteria | Eligibility Details | Maximum Points |
|---|---|---|
| Qualifications | 30 | |
| Possession of specific professional skills (at least 4 years of experience) | 20 | |
| Minimum 3 years of university education | 20 | |
| Degree (Bachelor’s/Master’s/PhD) or technical/vocational training in Austria | 30 | |
| Work Experience | 10 | |
| 2 points for each year of relevant work experience | Up to 10 | |
| Language Skills | 15 | |
| German up to A2 level | 5 | |
| German B1–B2 level | 10 | |
| English B2 level | 10 | |
| German C1–C2 level | 15 | |
| Additional Points | 30 | |
| Minimum investment of €50,000 | 10 | |
| Acceptance of financial support from a startup organization in Austria | 10 | |
| Age under 35 | 10 | |
| Total Maximum Points | 85 | |
| Minimum Required to Qualify | 50 |
Buying a Business in Austria
Buying a business in Austria is one of the most profitable investment methods. To purchase a business in Austria, you should pay attention to the past performance of the business and its income over the previous years and after ensuring it has had a good trend in recent years, you can proceed with the purchase.
Some profitable businesses include gas stations, franchises, hostels, restaurants, and shops. Below are some of the lucrative business types in Austria:
Buying a restaurant in Austria
One of the most profitable businesses in Europe currently is establishing and buying restaurants. Various well-known brands exist throughout Austria where you can open a franchise of your desired brand. The cost required for establishing this branch depends on the type of brand.
An advantage of establishing a branch and buying a restaurant in Austria is that each brand conducts a training course for the applicant, familiarizing them with aspects such as customer interaction, branch management principles, and sales techniques. Brand owners will advertise for the investor and will be present alongside them at all stages.
Buying a shop in Austria
Buying a shop in Austria is another profitable business. For instance, stores located next to gas stations earn substantial profits monthly. Opening a hypermarket branch is also very profitable. Other profitable stores in Austria include various branches of brands. By buying a store in Austria and opening a branch of a well-known brand, you can not only establish a business but also achieve good profit.
Registering a Company in Austria
Registering a company in Austria has various conditions including age, education, work experience, and language proficiency. Individuals intending to register a company in this country must be at least 18 years old and have no criminal record.
Another condition that must be met is the necessary costs for registering the company. In the initial stages, you are required to have around €7,500 for the initial registration of your company. Annual company costs are usually lower, around €3,500. The following costs are considered necessary subsets for company registration in Austria:
- Company registration fee
- Cost of preparing required documents
- Payment of other fees for one year
- Payment of taxes for one year
- Account opening fee
- Government fees
Self-Sufficiency Visa in Austria
For self-Sufficiency in Austria, an individual only needs to show the Austrian government that they are wealthy in their home country and only seek to obtain residency in Austria; to prove this claim, the applicant must deposit €20,000 for each family member in a bank in their home country for a specified duration and show that the source of this money is legal.
Self-Sufficiency means the applicant is financially stable and able to cover living expenses, allowing residency for themselves, their spouse, and children under 18, with access to free education for the children.
Applicants must demonstrate a monthly income of €2,500 to €3,000. The required funds must remain accessible in the applicant’s own bank account—they are neither blocked nor transferred to the Austrian government. Additionally, ownership of property, business documents, payslips, or proof of stock ownership significantly supports the residency application process.
| Type of Cost | Amount |
|---|---|
| Required Capital | €20,000 per family member |
| Required Monthly Income | €2,500 to €3,000 per month |
Necessary Documents for Investment in Austria
To invest in Austria, submitting necessary documents to prove the individual’s capability and qualification is essential. These documents include:
- Business plan
- Identification documents
- Proof of financial means
- Certificate of no criminal record
- Financial reports
- Company registration documents
- Educational and employment documents
- Health insurance
Financial Capability in Austria
For investing in Austria, proving financial capability is one of the key stages that must be conducted carefully. This process involves submitting documents that demonstrate sufficient financial capacity for investment and covering living costs in this country. For example, to obtain a start-up visa, the applicant must have a minimum capital of €50,000, of which at least 50% must come from personal funds.
These funds will be used to establish and develop a business in Austria. The amount of investment in other programs may vary depending on the type and economic sector involved. To prove financial capability in Austria, applicants must provide the following documents:
- Bank statements for the past 6 to 12 months to show balance and cash flow.
- Including bank deposits, long-term investments, and savings accounts.
- Tax reports from the home country, including tax returns and financial records.
- Documents regarding annual income from various sources, such as salary, investment profits, and other income.
- Including certificates of property ownership, company shares, and other valuable assets.
- Documents related to business contracts, employment records, and papers regarding previous or current businesses.
Investment Steps in Austria
The steps for investing in Austria include several critical actions that may vary depending on the type of investment. Here are the general steps for investment in Austria:
1. Choose the Type of Investment
Before starting, you should decide which type of investment is more suitable for you:
- Entrepreneurship and Innovation (Minimum investment: 50,000 EUR)
- Company Registration (Minimum investment: 100,000 EUR)
- Property Purchase (Minimum investment: 200,000 EUR)
2. Preparing a Business Plan
For entrepreneurship and innovation, you must prepare an innovative and scalable business plan. This plan should show that your business will be profitable and beneficial for the Austrian economy. For company registration, detailed planning for the business model, financial forecasting, and execution strategies is required.
3. Obtain Necessary Approvals
If you are applying for entrepreneurship or innovation, you must submit your business plan for approval to relevant agencies like the Austrian Business Agency (ABA). In the case of company registration, you must prepare and provide all legal and tax documentation for registration with the Austrian Chamber of Commerce.
4. Open a Bank Account and Transfer Capital
After your business plan is approved and documentation is prepared, you must open a business bank account with one of the reputable banks in Austria. You will then transfer the initial capital required to start your business or register your company to this bank account.
5. Obtain Visa and Residency
Depending on the type of investment, you must submit a visa and residency permit application. For investors and entrepreneurs, the entrepreneurial or investment visa of Austria will be issued. This visa is usually issued for 2 years, and if the business is successful, you can apply for permanent residency.
6. Establish Business and Commence Operations
After receiving your visa and residency, you can start your business activities in Austria. As your business expands and creates employment, you can gradually apply for permanent residency.
7. Obtain Permanent Residency and Citizenship
After living in Austria for 5 years, if your business is successful, you can apply for permanent residency and ultimately for Austrian citizenship.
8. Monitor Business Progress and Comply with Tax Regulations
During the operation, you must comply with Austrian tax and trade laws. Austria has an advanced tax system that requires adherence to accounting principles and accurate reporting.
Best Industries for Investment in Austria
Austria, with its stable economy, strategic location in the heart of Europe, and governmental support, is considered one of the best destinations for investment. Due to its strong infrastructure, skilled workforce, and clear economic laws, the country has provided many opportunities for foreign investors. Below, we introduce some of the best industries for investment in Austria.
- Real Estate
The Austrian real estate market, especially in cities like Vienna and Salzburg, is considered one of the best investment options due to its economic stability and continued growth in property value. The high demand for residential, commercial properties, and tourist hotels has made this industry a reliable option for investors.
- Technology and Startups
Austria, as one of the innovation centers in Europe, provides a suitable platform for investing in technology startups, especially in the fields of artificial intelligence, fintech, and biotechnology. The government encourages foreign investors to enter this field through supportive programs and financial incentives.
- Tourism and Hospitality
With its historic cities, mountainous areas, and renowned ski resorts, the tourism industry is one of the most booming sectors in Austria’s economy. Investing in luxury hotels, mountain resorts, and recreational centers offers high returns for investors.
- Renewable Energy
Austria is a pioneer in the utilization of renewable energies, especially in hydro, wind, and solar energy. Investing in sustainable power plants and related energy efficiency technologies is lucrative and promising due to governmental support and environmental laws.
- Automotive Industry and Auto Parts
Austria occupies a significant position in the automotive industry as a major supplier of automotive parts for companies like BMW and Mercedes-Benz. Investing in advanced parts production, electric vehicles, and self-driving technologies offers attractive opportunities in this sector.
- Food Industry and Organic Agriculture
The growing demand for organic and sustainable products has made Austria one of the leaders in this industry in Europe. Investing in the production of healthy food, sustainable agricultural technologies, and organic product exports offers a growing and profitable market.
Best Cities for Investment in Austria
Investing in Austria can be profitable in different cities depending on the type of business and the investor’s goals. Below, we introduce the best cities in Austria for investment based on economic opportunities, geographical position, and infrastructure:
1. Vienna
Vienna, the capital of Austria, is the economic and commercial hub of the country, offering extensive investment opportunities in real estate, technology, and tourism. The presence of international companies, banks, and innovative startups makes this city an ideal option for investment.
2. Graz
Graz, as the second-largest city in Austria, has seen significant growth, especially in technology, engineering, and the automotive industry. The presence of reputable universities and educated workforce has turned this city into a center for attracting investments in startups and advanced industries.
3. Linz
Linz is an industrial and innovative city significantly active in sectors such as steel, industrial production, and digital technology. Its strategic location near Germany and the Czech Republic makes it an important center for trade and logistics.
4. Salzburg
Famous for its historical and cultural attractions, Salzburg is an ideal city for investment in the tourism and hospitality industry. Hosting world-renowned music events like the Mozart Festival and its beautiful nature has made Salzburg a popular destination for investors in luxury real estate and recreation.
5. Innsbruck
As the capital of winter sports in Austria, Innsbruck offers unique opportunities in mountain recreation due to attracting international tourists for skiing and mountaineering. Investing in luxury hotels, recreational centers, and sports-related medical services is highly profitable in this city.
6. Klagenfurt
Klagenfurt, a beautiful city by Lake Wörthersee, is known for its high potential in tourism and water recreation. Investing in recreational properties, developing tourism infrastructure, and businesses related to summer recreation in this area has attracted significant attention from investors.
Obtaining Investment Visa in Austria and Accompanying Visa
The investment visa in Austria provides a pathway to residency through company registration, property purchase, entrepreneurship, or financial deposits. It starts as a one-year temporary permit, extendable up to five years with maintained investment and legal compliance. After five years, applicants can apply for permanent residency, and after ten years, for Austrian passport and citizenship.
Key requirements include minimum investment, financial proof, a valid business plan, job creation, and health insurance. Family members, including spouse and children under 18, can also get residency, with children accessing free education and spouses potentially receiving work permits.
Taxes Payable in Austria
Despite the increase in capital gains tax from 25% to 27.5%, Austria still offers an attractive tax system for foreign investors and is recognized as one of the suitable jurisdictions for investment.
This characteristic has made Austria a primary base for many holding companies and the structures of international groups. Furthermore, Austria does not impose wealth tax or business taxes, which is a significant factor in attracting foreign investors.
Impactful Economic Indicators in Austria
Economic indicators in Austria play a crucial role in determining the economic status of the country and assist in financial and investment decisions. Some of these key indicators include:
- Austria GDP
One important aspect is the Gross Domestic Product (GDP) in Austria; GDP represents the total value of goods and services produced in a given time period, typically calculated annually, and made available to consumers within a country. According to statistics provided from 2014 to 2019, this parameter indicates steady growth in Austria.
- Corporate Tax Rate
Another discussed factor regarding economic indicators affecting investments in Austria is the corporate tax rates in this country. According to a World Bank report and an evaluation conducted from 2012 to 2019, you will gain more information from the chart below.
- Unemployment Rate
An important indicator for measuring the labor market condition is usually relatively low in Austria, which signifies a strong workforce and adequate job opportunities.
- Inflation Rate
Austria generally has a low inflation rate, which indicates price stability and purchasing power among the population.
- Interest Rate
The central bank’s interest rate is a key economic indicator that affects the costs of loans and investments.
- Trade Balance
With its export-driven economy, Austria typically maintains a positive trade balance and benefits from the export of industrial and technological products.
- Foreign Investment
Attracting foreign investment is one of the key factors in Austria’s economic growth, drawing investors due to the political and economic stability of the country.
Investment in Austria for Obtaining Citizenship
Individuals who have received residency through investment in Austria may apply for a passport after living in the country for ten years, with at least five years of that period having been under permanent residency. The following conditions must be met for this purpose:
- Sufficient knowledge of German
- No criminal record
- Have a secure and stable income
Disadvantages of investing in Austria
Despite numerous advantages such as economic stability and access to the European market, investing in Austria also has disadvantages that investors should consider before making decisions. Some drawbacks of investing in Austria include:
- High taxes
- High costs of living and doing business
- Language barriers
- Complicated bureaucratic processes
- High market competition
- Restrictions on property purchases for foreigners
- Economic and global risks
Services of Malekpour Institute for Investment in Austria
Malekpour Institute, with over 15 years of experience in immigration and investment affairs, offers comprehensive services for investing in Austria. The main office of this institute is located in Austria, collaborating directly with local lawyers and legal experts in this country.
The services of this institute include specialized consultation in selecting the best investment method, company registration, obtaining residency through investment, preparing and designing a professional business plan, and guiding financial and tax matters, as well as assisting in all legal steps to obtain residency and establish a business.
Additionally, this institute facilitates legal processes with the help of experienced lawyers and supports the interests of investors in Austria.
Frequently Asked Questions About Investment in Austria
- Is Austria a good place to invest?
Austria, as one of the strongest EU countries economically, offers high purchasing power and is a very attractive location for companies looking for high-growth markets. Another advantage is the skilled labor force in the country.
- Where can I invest my money in Austria?
Austria’s primary stock exchange is Wiener Börse AG (Vienna Stock Exchange). Therefore, trading here offers the largest venue for Austrian stocks with the narrowest spreads.
- Can a foreigner buy a house in Austria?
A private individual can only hold property in Austria if they have a European Union residency permit. However, the areas where housing can be acquired are limited to certain regions: Upper Austria and Lower Austria, Styria, Carinthia, and the suburbs of Vienna.
- How difficult is it to buy property in Austria?
The process of buying property in Austria is straightforward. A notary public will act on behalf of both the buyer and the seller. The notary prepares the sale deed and all necessary documents for legal ownership transfer.
Conclusion:
Investing in Austria offers diverse opportunities like company registration, property purchase, and entrepreneurship, supported by a stable economy and transparent tax system. Benefits include access to strong infrastructure and a path to citizenship. Austria’s economic growth and low unemployment make investments secure and profitable. For more information, contact Malekpour Migration Institute for a free consultation or leave your questions in the comments below.
