Do you need a visa to work in Austria?
To work in Austria, you must first apply for a work permission. The only exception to this rule is EU or EEA residents.
However, citizens of EU/EEA countries can only live and work in Austria for 90 days, after which they must apply for a certificate of registration in order to extend their stay.
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What is a Red-White-Red Card?
A Red-White-Red Card is a work permit and residence permit that allows its owner to stay and work in Austria for up to 2 years. Not everyone is eligible for this type of visa, as it is issued to highly qualified individuals from other countries who want to work in Austria. The eligibility criteria for obtaining this permit are measured using a scoring system. In the system: personal qualities such as language proficiency, professional achievements, age and work experience are evaluated accordingly.
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You will be eligible for a Red-White-Red Card if you fall into one of these categories:
- Highly qualified employees.
- Skilled workers in scarce professions.
- Other key employees.
- Graduates of universities and colleges of Higher Education in Austria.
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The permit is issued in the form of a card with an image and identity. For this reason, it is important to keep it in person in cases where you need to confirm your residence status.
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Requirements for a work visa to Austria
In addition to the basic requirements for an Austria visa, you will need some special documents to obtain a work permit, including:
- Employer's application. Your employer must provide you with an application in accordance with the Foreign Employment Act (AuslBG).
- The confirmation of professional qualifications. These include certificates and proof of employment.
- The confirmation of language skills. You must provide proof of proficiency in German or English with an international diploma.
- Scientific activities. You must also submit any research publication or declaration from the university stating that you have worked as a researcher or at a research center.
- Patent registration. Registration of a patent using an extract from the national/regional patent register (if any).
- The confirmation of the annual gross salary for the previous year. These include tax reports confirming your salary.
- The confirmation of your previous position. You must provide a declaration from your previous employer that you worked in a senior position.
- Confirm the status of your previous company. You must also provide documents stating that the company you worked for is listed on the stock exchange.
- The confirmation that you studied in Austria. This includes confirmation through your training record (Studienbuch) and related certificates.
- The confirmation of habilitation. This is a postdoctoral lecture qualification that recognizes you as a qualified person to conduct research or teach in a scientific field.
- Employment contract. You will need to provide a copy of your contract from your current employer in Austria, which indicates your annual salary.
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How do I apply for an Austrian work visa?
To apply for a red-white-red card, you need to follow several steps.
- Provide yourself with a job.
- Apply for a work permit.
- Applying for a work visa.
- Travel to Austria.
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Although a work permit in Austria allows you to work and live in Austria for a long period of time, unfortunately, you cannot enter Austria without a D visa. You must apply for a National D visa before moving to Austria.
A national visa allows you to stay in Austria for up to 6 months, in which case the only purpose of this visa is to allow you to enter Austria, and once you pick up the red – white-red card, no visa is required.
Remember: you have three days after entering Austria to register with the Registration Department.
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Where can you apply for a work visa to Austria?
To obtain a National D visa to enter Austria, you must apply at your local office, embassy or consulate.
You must first apply for a work permit – if you get a permit, the visa application process will be much easier, since you are already registered as a future employer in Austria.
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How long does it take to get a work visa to Austria?
Applying for a work visa to Austria usually takes about 8 weeks. By then, you should have received a response from the embassy. However, keep in mind that sometimes delays occur for various reasons.
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How long does a work visa to Austria last?
A work visa to Austria is valid for two years. During this time, you are free to work and live in Austria just like any other resident of Austria. If your employment contract expires before the expiration of two years, your visa will be valid for the duration of your work plus an additional three months.
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Can you extend your work visa to Austria?
If you want to renew your work permit when it expires, you can apply for an extension of your red-white-red Plus card, which will allow you to stay in Austria for another two years. In addition, if you have a Red-White-Red Plus card for two years, you can apply for another card, and this time you can stay for 3 years.
You must apply for an extension three months before the visa expires.
If you have lived with a work permit for 5 years in Austria, you are eligible to apply for the title of "long – term resident of the EU (Daueraufenthalt - EU)". Your residence permit must also be renewed.
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*Please note that in order to qualify for an extension, you must also complete module 1 of the integration agreement. Completing module 1 means that you have a basic knowledge of German in accordance with the Common European Framework of Reference (CEFR).
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Can you change your employer with an Austrian work visa?
No, you can't change your employer with an Austrian work visa. A red-white-red ticket is issued only from a specific employer. If you want to work for someone else, you must re-apply for a work permit.
You can work for another employer if you have a red-white-red Plus card.
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Other types of work visas in Austria
There are several other types of Austrian work visas that you can apply for, depending on what works best for your situation.
- The EU Blue Card
The EU Blue Card is a type of work permit that is not based on a point system. To get an EU Blue Card, you need to meet several criteria.
- you have completed your higher education at an accredited university (at least a three-year program).
- your salary is at least 1.5 times the annual salary in Austria.
- there is not a single relevant position registered as a job seeker in the state Employment Service.
- you must have a guaranteed job in Austria for at least one year.
- Austrian seeker job visa.
A seeker job visa allows you to stay in Austria for 6 months while you are looking for a job. Please note that only highly qualified individuals are eligible to apply for a job seeker visa. Only those who score 70 or more points according to the point system will receive a job seeker's visa.
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Can you bring your family members to Austria with a work visa?
Yes, you can. If you have a Red-White-Red Card, your family members can apply for a Red-White-Red Card Plus, which allows them to work and live in Austria for 1-2 years. Family members are considered to be:
- Spouses.
- Registered same-sex partner.
- Minor children.
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How much does a work permit cost in Austria?
A work permit in Austria as a whole will cost about 160 euros. You must pay 120 euros when you apply, an additional 20 euros when you get a permit, and 20 euros for police identification data
Company name and address
For the development of any business in a foreign market, the name and address of the company are of great importance. When choosing a company name in Austria, pay attention to the type of partnership (general or limited) and corporation (private or public company). You can also seek advice from the Austrian Federal Economic Chamber regarding your company name.
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The company incorporation process in Austria will not be complete without a proper address. Various institutions will deliver all official correspondence (e.g. insurance, tax, social security payments, etc.) to this registered address.
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Taxation
The Austrian government offers affordable taxation regimes for foreign companies operating in the country. Your tax requirements for doing business in Austria will include the following:
- Corporate tax of 25% is levied on the total income and net profit of the company. 3,500 euros is the minimum amount for limited liability legal entities, while for joint stock companies this amount is reduced to 1,750 euros.
- 20% VAT (value added tax)
- Individual entrepreneurs earning EUR 30,000 or less are entitled to pay income tax at a rate of 23% to 50%.
- A personal income tax of 25% is levied on interest income. This also applies to income from securities.
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Entrepreneurial capital
The authorized capital is vital for the establishment of an offshore company in Austria. It is the minimum investment you must make to start a business in Austria. This cost depends on the type of legal business structure. For general or limited partnerships, there are no authorized minimum investments.
However, for limited liability companies, this amount is EUR 35,000, of which EUR 17,500 (at least) must be deposited in cash with the bank. For joint stock companies, the minimum investment must be EUR 70,000, and 25% of this amount must be paid in cash.
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Director/officer
A board of directors is required for the legal operation of joint stock companies. Austrian law also requires at least three supervisory board members. For limited liability companies, at least one managing director and three supervisory board members are required.
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Shareholders
Austrian law does not limit the maximum number of shareholders in a company, but there must be at least one shareholder.
In a joint-stock company, shareholders do not have any personal liability to the company and each shareholder's shares must be registered in the Austrian company register. In a general partnership, however, the shareholders are liable for the profits and losses associated with their assets.
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License
To trade goods in Austria, you must apply to the local authorities and obtain a trade license. To register for this license, you have to provide your basic data, such as name, contact information, company address, name, type of business, etc.
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Bank account
To set up an offshore company in Austria, you must register a local bank account to deposit the minimum capital. You also need to obtain a confirmation of account opening as this is mandatory for business registration.
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Types of business structures in Austria
Below are the types of legal entities you can set up in Austria:
1. Joint Stock Company (AG)
A joint-stock corporation or partnership is limited to the ownership of shares. The shares can be traded on the stock market. Austrian law requires one supervisory board with a minimum of three members. Joint stock companies are legal entities that can be established by one shareholder or by several shareholders with a minimum initial investment of EUR 70,000.
2. Limited liability company (GmbH)
A limited liability company is one of the most popular organizational and legal forms of doing business. It is popular due to the greater control over corporate law and the possibility of having a smaller share in the authorized capital. The minimum investment for this business structure is 35,000 euros, 50% of which must be deposited in a local bank before registering a company in Austria.
3. General partnership (OG)
In Austria, an open or general partnership occurs when two legal entities (at least) or natural persons unite and act as one entity. In a general partnership, each partner is fully liable, both individually and jointly and severally. A trade license and a certificate of registration in the Austrian Commercial Register are the only two formal requirements necessary to establish a general partnership.
4. Limited partnership (KG)
Establishing a company in a limited partnership is the same as in a general partnership. However, the difference between a KG is that at least one partner must be a general partner, who assumes full responsibility for the management of the company, its obligations and rights. The other partners are limited partners who are responsible only for their investments. The formal requirements for a limited partnership are the same as for a general partnership.
5. Silent partnership (stGes)
This structure is very similar to a limited partnership, where only one partner assumes all the liability of the company. The main difference is that a silent partnership does not provide for any liability or management powers for the silent partners.
6. Sole proprietorship
This is the second most popular form of legal business structure in Austria, where the entire company is owned by one person. This type of self-employment provides the owner with freedom of investment, simple accounting, and moderate taxation (although taxation may vary depending on changes in turnover). To start a business in Austria, you will also need a trade license.
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Company registration process
The requirements for company incorporation in Austria are as follows:
- Shareholders.
- Shareholders' agreement or notarized declaration of incorporation
- Managing directors
- Name of the company
- Certificate of incorporation
- Memorandum of association
- Minimum authorized capital
- Local bank account
- Financial statements of the company
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Registration process:
Once you have collected all the necessary documents, you can start the process of company registration.
- The first step is to have your company name and activities approved by the Commercial Registry (HRA). For this purpose, you may also need to provide certain personal data.
- The second step is to draft your company's statutory documents and have them notarized.
- The last step is to submit the documents to the Commercial Register to obtain a business license in Austria.
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Once your company is registered, certain post-registration requirements must be met. These include:
- Applying for tax registration.
- Issuing share certificates to the company's shareholders.
- Registering employees for social insurance.
- Making a company seal.
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How much does it cost to register a company in Austria?
The cost of registering a company in Austria is about 7400 euros for the first year. This includes the costs of:
- Preparation of legal documents in Austria
- Registration of your company, payment of taxes
- Registration fees
- The annual maintenance costs for the company in the following year can be around 3500 euros. In addition, a fee of EUR 47.30 must be paid to obtain a trade license in Austria.
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Can foreigners staying in Austria with certain permits start a business in Austria?
To incorporate an offshore company in Austria, you will need to apply for a visa and work permit if you are not an EEA or EU citizen. You need to contact an Austrian embassy to apply for a Red-White-Red Card, a business visa or an EU Blue Card.
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State support for companies with foreign capital
The Austrian government attaches great importance to the development of foreign companies in the country. The Austrian government provides attractive tax incentives to attract foreign businesses to the country.
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Group corporate taxation
The Austrian government allows two or more business entities to form a tax group to reduce their net taxable value. This group may also include foreign members. However, a prerequisite for the creation of a group is that the parent company must own more than 50% of the shares of the subsidiary, directly or indirectly. Profits and losses of the domestic group, including losses of the foreign subsidiary, are offset. Offsetting taxation is a method that significantly reduces the amount subject to taxation.
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Do you need a business visa to Austria?
Residents of the EEA/EU and Schengen countries, as well as countries with visa-free agreements (USA, New Zealand, Australia, Japan, Canada, etc.), do not need a business visa to Austria, provided that they stay for 90 days for six months.
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Requirements for a business visa to Austri
If you want to do business in Austria and you are from a country that does not have a visa agreement with Austria, you need to prepare for applying for a business visa. You will need several documents, including:
- The visa application form. You need to print out this form and fill it out with your personal information, then attach the form to the rest of your documents.
- A passport. You must have a valid travel document. Your passport cannot be expired and must be valid even during your stay in Austria. Make sure that it doesn't expire during your visit, otherwise you won't be issued a visa. In addition, it should have two blank pages.
- Identity Pictures. You must have the last two identification photos that comply with the Schengen photography rules. Images must be:
- With the size 35 x 40 mm.
- Take photo within the last 6 months.
- Take photo with a white background.
- Take photo so that your ears and eyebrows are visible.
- Take photo with a neutral expression on his face.
- Previous passports. If you have any previous passports that were issued within the last 7 years, you must also provide copies of them.
- The confirmation of professional status. You must provide a copy of one of these documents depending on your current status:
- When applying for employment: employment contract.
- If the student: school documents.
- If you work independently: a copy of your business license.
- If you are retired: certificate of the pension fund.
- An invitation letter. You must provide an invitation letter from a commercial company that will do business in Austria.
- Bank statements. Please make sure that your latest bank statements should also be part of the documents. They must not be more than 6 months old.
- The visa commission. Before applying for a visa, you must pay the fee and attach a receipt to your application. The commission changes accordingly:
- the cost of a Schengen visa for an adult: 80 euros.
- the cost of a Schengen visa for citizens of the Russian Federation, Ukraine, Albania, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia, Moldova and Georgia: 35 euros.
- A detailed route. Among other things, you should have a detailed daily routine for your trip. It is important to include information such as:
- The dates of the departure.
- The return dates.
- Flight number.
- A session plan.
- Other countries of the Schengen area that you will visit (if any).
- The confirmed placement. Please make sure that you have proof that you have provided accommodation during your stay. This can be hotel reservations, Airbnb deals, private accommodation, or any other type of accommodation, as long as you can provide proof that you have a place to stay.
- Schengen travel insurance. You will not get a visa without travel insurance. Please make sure that your insurance covers any emergencies up to 30,000 euros.
- Copies of the previous Schengen visa. This is only mandatory if you have previously had a Schengen visa (regardless of the country).
- Cover letter. You must provide an email indicating the reason for your visit.
- Marriage certificate / Family card. It is used only in cases when the husband/wife accompanies the husband/wife on a business trip.
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* Please note that all documents must be in English or German, if they are not, you must translate them by a certified translator.
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Where can you apply for a business visa to Austria?
You must apply to the embassy, consulate or official representative office of the Austrian government in your country. All types of Schengen visas are issued by embassies.
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When can you apply for a business visa to Austria?
It is always best to apply for a business visa at least three weeks before your scheduled visit. Don't apply three months in advance, because you probably won't get a positive response.
Can you travel to other countries in the Schengen area with an Austrian business visa?
The countries of the Schengen area have abolished their borders and their residents can move freely in these countries. A person with a valid Schengen visa can enter any country of the Schengen area that they wish.
But be sure to indicate in your application which countries you plan to visit. You must still apply to the Austrian representative office regardless of where you plan to go, as Austria is your main destination.
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How long can you stay in Austria with a business visa?
The business visa is valid for 90 days for six months. This means that you can enter the Schengen area during these six months and stay for a maximum of 90 days. When your 90-day period ends, you must return to your home country.
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What if you need to stay longer?
You can apply for a visa extension if you need to stay longer. But you should know that you probably won't get a visa extension without a very good reason.
A Schengen business visa can be extended if:
The user faces force majeure circumstances. Force majeure can be anything that prevents you from returning to your country, it can be either a natural disaster or a political situation in your country.
The user has good personal reasons. These reasons may be related to any unexpected personal situation that requires you to stay longer than 90 days.
The guest entered Austria later. If you entered the country after your visa was valid, you can request an extension for the same period of time that you missed.
The visitor has humanitarian reasons. You have to stay to help someone for various reasons.
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In addition to requesting an extension, if you want to stay longer than 3 months, you can apply for a long-term D visa. This national visa allows you to stay for six months, and in special cases – up to a year. In addition, with a D visa, you can also apply for a residence permit that allows you to stay in Austria for up to 5 years.
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Can you use a tourist visa for business purposes?
Schengen visas are unified and with a Schengen visa, you can stay for the same period of time for business purposes or as a tourist in any country of the Schengen area. However, you will not be able to use a tourist visa for business.
This is because the requirements for applying for a visa are very different depending on the specific reason for your visit.