Form an Austrian GmbH with EUR 35,000 nominal capital (EUR 17,500 paid in cash) or an AG with EUR 70,000, and gain EU passport on day one. Corporate tax is 23% from 2024 (cut from 25% under the eco social tax reform), VAT is 20% standard with 10% reduced, and Austria's 90+ double tax treaty network plus EU participation exemption make it a credible Mittelstand and DACH bridge jurisdiction.
When Austria is the right call, and when it is not.
Austria offers a credible GmbH brand recognised across DACH markets, with 23% CIT (lower than Germany's combined ~30%), EU single market access, and direct land borders into Czech Republic, Slovakia, Hungary, Slovenia, and Italy. Vienna is one minute closer to Bratislava than to Salzburg, and Linz and Graz host industrial supply chains feeding German OEMs.
Unlike pure Luxembourg or Cyprus holdings, an Austrian GmbH benefits from participation exemption on qualifying subsidiary dividends and capital gains (10% / 1 year), a 90+ DTA network, EU Parent Subsidiary 0% withholding, and no controlled foreign company sting for genuine commercial substance. Useful when the holding also has operational activity in DACH.
The Forschungsprämie reimburses 14% of qualifying R&D expenditure (uncapped, refundable in cash), Austria Wirtschaftsservice grants subsidise capex, and FFG offers innovation funding. Combined with strong vocational engineering talent in Linz, Graz, and Vienna and Mittelstand grade banking, Austria works for hardware, automotive, MedTech, and clean tech operators.
GmbH requires EUR 35,000 nominal with EUR 17,500 paid in cash, plus notarial deed in German and Firmenbuch processing of 1 to 3 weeks. That is heavier than EUR 1 EU jurisdictions and slower than Estonia's 1 day digital flow. The lighter weight Flexible Company (FlexCo) introduced in 2024 needs EUR 10,000 but is still notary heavy.
Firmenbuch filings, WiEReG beneficial ownership submissions, BMF tax returns, and most bank documentation are German language. Vienna banks like Erste, Raiffeisen, and BAWAG operate in German for KYC; English language relationship managers exist but documentation defaults to German. Translation overhead adds friction for fully remote English speaking founders.
Working data for Austria. Cite check each figure before use.
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Each rate, threshold, and deadline below is cited from an authoritative source.
Information is provided for general guidance and reflects tax year 2025 unless noted. Specific situations require advice from a local practitioner. Always confirm against the cited tax authority and registrar before relying on a figure.