Various tax regulations must be observed when moving to Austria. Taking up residence (pursuant to tax law) is one of those circumstances that lead to unlimited tax liability in Austria. This implies that all global income is generally taxable in Austria, although in individual cases this right of taxation may be restricted in favor of another country due to double taxation agreements.
It is advisable to obtain individual and comprehensive tax information at an early stage, as different tax regulations apply depending on the situation. These may include, for example, the obligation to notify the tax office of a taxable activity (this obligation has relevance, for example, if someone is not exclusively employed, e.g. in the case of renting, self-employment*…), the obligation to file a tax return or the submission of an employee tax return (“Arbeitnehmerveranlagung” – voluntary or mandatory, depending on the case). Different deadlines must be observed. Find out about your individual tax situation (the regulations are too detailed to be explained in full here)!
But it is often important to seek tax advice even before the planned move! Particular caution is required, for example, if you have foreign bank accounts, custody accounts and similar at the time of moving to Austria. Although capital income is generally subject to final taxation in Austria, this applies only to Austrian accounts and custody accounts. Income from foreign accounts and custody accounts, on the other hand, must be declared in the tax return and the existence of such foreign investment income generally also leads to compulsory assessment (exemption limit for capital income only €22 at the time of August 2024). In the case of larger deposits, the tax return can be very time-consuming, as individual records must be kept for capital income in Austria. Unfortunately, foreign documents are often not usable, as the tax treatment of investment funds in Austria, for example, differs greatly from other countries. It is therefore usually advisable, if possible, to close foreign accounts before moving to Austria and to transfer securities, savings, etc. to Austrian accounts. However, it is essential to obtain expert tax advice in advance in order to correctly assess the overall tax situation and take into account the tax situation in the country of departure. Depending on the structure of exit taxation in the other country, it may also be possible to save tax abroad, depending on when the transfer takes place.
Also, for example, in the case of cross-border activities (which are not covered by these FAQs) various special regulations must be observed, such as working from home in Austria for a foreign employer. For this reason, the planned specific situation should also be clarified in advance from a tax perspective (in addition to the other related legal issues).
These two cases serve merely as examples. In any case, it is advisable to seek appropriate tax advice in good time. Due to the complexity of the subject, a conclusive assessment of the tax situation is only possible on an individual basis.
Expert advice is offered in particular by tax consulting firms.
Depending on the scope and complexity, the Chamber of Labour Tirol (Kammer für Arbeiter und Angestellte Tirol), for example, also offers its members advice on tax issues.
Of course, early and comprehensive information is also important in order to take advantage of any time-bound benefits. One example of this is the so-called “Zuzugsbegünstigung”, which is subject to various legal requirements and can only be applied for within six months of moving to Austria (please note that the relevant text says “sechs Monate ab Zuzug”). In order to avoid mistakes (in this area of law with its own terminology and provisions), early and comprehensive advice is also highly recommended!
Initial information on this topic can be found here, for example:
*Please note that these FAQs do not cover self-employment (e.g. as a sideline) or any associated regulations.
