Café Central, Herrengasse 14, Vienna
Transfer of Tax Residence to Austria: Residency by Investment and
Austrian Golden Investor Visa
Austrian Red-White-Red Card
("Permanent residence permit except for gainful employment")
Apply for the Austrian investor visa
Description of the Austrian Residency by Investment Program
The Austrian Red-White-Red Card ("Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit") offers to non-EU/EEA citizens (here) and their families a (i) temporary Austrian residence permit (also known as Austrian investor visa) and, after 5 years (ii) permanent EU residence and, after 6 years (iii) Austrian citizenship.
The Austrian passport which is valid for 10 years and the Austrian national identity card (here) give free rights of movement and residence in any of the states of the European Union including Iceland, Liechtenstein, Norway, Switzerland, and the United Kingdom.
Austrian passports are the same burgundy colour as other European passports, with the Austrian Coat of arms emblazoned in the centre of the front cover. Each page of the Austrian passport shows the coat of arms of a different Austrian province in the background.
The Austrian passport gives visa-free travel (or visa on arrival) to 187 countries. Dual citizenship is restricted under Austrian nationality laws. In other words, a second passport is not allowed in Austria, with a few exceptions (here).
| Competent organs | District Authorities, Local Governor, Ministry of Interior (in decreasing order) |
|---|---|
| Lifecycle | Austrian temporary residence permit issued for one year |
| After 1 year | 1st renewal issued for another year |
| After 2 years (if German Module 1 completed) | 2nd renewal issued for three years |
| After 5 years (if German Module 2 completed) | Permanent European Residency (for 5 years) |
| After 6 years (if German Module 2 completed) | Citizenship |
What Are the Key Benefits of Living in Austria?
- The Austrian residence permit provides visa-free travel throughout the EU and the Schengen area (here)
- Since 2008, there is no inheritance tax in Austria. Nevertheless, heirs who inherit property from their relatives are subject to the property transfer tax. Other OECD countries that do not tax estates (year of abolition in brackets) are Australia (1979), Canada (1972), Israel (1980), Mexico (1961), Norway (2014), New Zealand (1992), Slovak Republic (2004), Czech Republic (2014) and Sweden (2004) (here)
- Under the Austrian residency by investment program, there is no need to invest into potentially illiquid real estate or any financial instruments
- Investors without the intention to obtain permanent residence in the EU can maintain their tax residence outside Austria
- Under the Austrian residence program,
Austrian citizenship
is possible after 6 years
(Integration Module 2 is, however, needed) which is a relatively short waiting period in comparison to other residency and citizenship programs such as the
Australian investor visa
(here)
(Australian citizenship after 5 years), the
Gibraltar investor visa
(here) (Gibraltar citizenship after 5 years), the
Portuguese investor visa
(here)
(Portuguese citizenship after 6 years), the
Greek investor visa
(here)
(Greek citizenship after 7 years), the
Italian investor visa
(here) (Italian citizenship after 10 years), the
Monaco investor visa
(here)
(Monaco citizenship after 10 years), the
Spanish investor visa
(here) (Spanish citizenship after 10 years), and the
Swiss investor visa
(here)
(Swiss citizenship after 12 years)
What Are the Key Downsides of the Austrian Investor Visa?
- Applicants for the Austrian red-white-red card must (i) demonstrate basic German language skills (A1) or, alternatively (ii) hold a university, college, secondary, or vocational, school diploma
- Applicants for permanent European residency ("Daueraufenthalt EU") after 5 years of stay in Austria, or Austrian citizenship after 6 years of stay, must demonstrate medium German language skills (German Level B1 as per the CEFR) (here)
- The Austrian residence permit provides no access to the Austrian job market ("ausgenommen Erwerbstätigkeit") during the first 5 years of stay in Austria
- There is a maximum quota of 300 Austrian residence permits per year ("Quotenplätze") which are being allocated on a "first come first served" basis (according to the date and time of the effective submission of the application)
What Are the Physical Presence Requirements for Tax Residence in Austria?
Applicants wishing to qualify for Permanent European Residency must not spend over 6 consecutive months (or, alternatively, a total of 10 months) outside Austria in the 5-year run-up to permanent residency.
Permanent European Residency is cancelled if its holder spends more than 12 consecutive months outside the EU/EEA.
> In special circumstances (medical, social) to be notified beforehand, tolerated absence can increase to 24 consecutive months.
How much Are the Personal Income Taxes in Austria?
| Yearly income | Tax rate |
|---|---|
| Income under €11,000 | 0% |
| Income €11,000 - 18,000 | 20% |
| Income €18,000 - 31,000 | 35% |
| Income €31,000 - 60,000 | 42% |
| Income €60,000 - 90,000 | 48% |
| Income €90,000 - 100,000 | 50% |
| Income over €1m | 55% (until 2025, then 50%) |
| CGT on investment proceeds | 27.5% |
> Austrian residents are taxed on their worldwide income, non-residents are taxed on income sourced in Austria only.
How much Are the real Estate Taxes in Austria?
| Municipal tax (Grundsteuer) | 0.2% p.a. (on up to 5 times the property value) |
|---|---|
| Transfer tax (Grunderwerbssteuer) | 3.5% (if not among family members) |
| Registration (land register) fee | 1.1% |
| Capital gains tax (Immobilienertragsteuer) | 4.2% (if purchased before 31.03.2002) |
| 30% (if purchased after 31.03.2002) |
How Much is Corporate Income Tax in Austria?
| Income, capital gains | 25% |
|---|
How to Get the Austrian Residence Permit?
Applicants for the Austrian investor visa must meet the following conditions:
1) Fixed and regular income covering all living costs without having to resort to welfare aid from the Austrian local authorities ("keine finanzielle Belastung einer Gebietskörperschaft").
> A personal bank statement in EUR giving evidence of assets of no less than €150,000, either (i) from an Austrian bank or (ii) freely transferrable to Austria as evidenced in a letter from a foreign bank.
> Regular monthly income must be twice the Austrian equalisation supplement reference rate ("Ausgleichszulagenrichtsatz"):
- Single applicant | €966.65
- Couple | €1,524.99
- Child | €149.15
2) Austrian real estate or rental contract ("Rechtsanspruch auf eine Unterkunft") deemed adequate given the applicant's family size and to be maintained for the entire duration of the Austrian residence permit.
3) Austrian health insurance covering all risks for all applicants for the entire stay ("alle Risiken abdeckender in Österreich leistungspflichtiger gesetzlicher oder privater Krankenversicherungsschutz").
4) German language skills ("Deutsch vor Zuwanderung") corresponding to German Level A1 (here) of the Common European Framework of Reference (CEFR) for all applicants over 14 years, that is, the most basic level, as evidenced in a certificate (not older than 12 months) from the following German language institutes:
- Österreichisches Sprachdiplom Deutsch - ÖSD (here)
- Goethe-Institute (here)
- Telc (here)
- Österreichischer Integrationsfonds (here)
> Exempted from documenting their language skills are (i) children under 14 (ii) physically, mentally handicapped (to be confirmed by a medical evaluation).
According to the Austrian Integration Agreement, non-EU/EEA nationals must complete after two years of residence ("im Fall eines Verlängerungsantrages") Integration Module 1 (German Level A2) in one of the following ways:
- ÖSD Zertifikat A2 / Österreich (here)
- Certificate "Integrationsprüfung A2" from Österreichischer Integrationsfonds - ÖIF (here)
- Equivalent of Austrian university, college, secondary, or vocational, school diploma
> Persons wishing to obtain (i) permanent European residency ("Daueraufenthalt EU") after 5 years of "uninterrupted effective" stay in Austria or (ii) Austrian citizenship after 6 years of such stay must complete Integration Module 2 (German Level B1 as per the CEFR) (here).
> Family members include
(i) spouses (registered, only same-sex, partners) older than 21
(ii) unmarried minor (adoptive) children (in law).
What Are the Required Documents for the Austrian Residence Card?
To apply for the Austrian golden residence permit, investors must present the following documents (certified, apostilled and translated into German by a court translator):
- International passport
- Birth certificate
- Passport photo (45mm x 35mm) (here)
- Marriage (alternatively, registered partnership, divorce) certificate
- University diploma (or equivalent)
- Criminal record certificate
How much Does the Austrian Golden Investor Visa Cost?
| Handling and due diligence fee | €30,000 (includes property search and personal bank account opening in Austria) |
|---|
How Long Does it Take to Apply for the Austrian Golden Investor Visa?
January: personal application at (i) Austrian consulate of the home country (here) for an Austrian entry visa Type D (for all applicants subject to an entry visa) or (ii) at the local Austrian District Authorities, for all visa-free applicants (here)
March / April: official decision, biometrics, residence permit issued