A usable home can create residence before six months
An Austrian dwelling available for recurring personal use can establish tax residence even if it is not labelled the main home. Habitual presence is another connection; a stay exceeding six months normally creates unlimited liability retrospectively. Registration is relevant evidence, but the tax test does not simply wait for day 183.
Residents generally report worldwide income. Where another country also claims residence, apply the actual treaty rather than choosing whichever residence card was issued first. Before a move, map homes, family, work and investment interests, then preserve a chronology supporting the result.
The 2026 salary and ordinary-income brackets
The scale applies to taxable income after relevant deductions, not gross salary. Tax credits are then applied where available. Preferential treatment of qualifying special payments and the social-insurance calculation require separate steps; an annual salary divided by twelve can miss the effect of Austrian remuneration arrangements.
Example: €50,000 of ordinary taxable income gives €11,447.20 before credits and other adjustments: €8,453 × 20%, €14,466 × 30% and €13,542 × 40%. The last euro falls in the 40% band, but the average scale tax is about 22.9%. The 55% top band is currently time-limited through 2029.
| 2026 taxable-income slice | Marginal rate |
|---|---|
| Up to €13,539 | 0% |
| Over €13,539 to €21,992 | 20% |
| Over €21,992 to €36,458 | 30% |
| Over €36,458 to €70,365 | 40% |
| Over €70,365 to €104,859 | 48% |
| Over €104,859 to €1 million | 50% |
| Over €1 million | 55% through 2029 |
Investment income, securities and property
Bank-deposit interest commonly uses a 25% special rate; most other qualifying capital income, including dividends and securities gains, uses 27.5%. Certain private loans, silent interests and derivatives instead fall into the ordinary scale. Foreign-bank or broker income still needs a return where Austrian collection has not settled the obligation.
Property is separate. Private real-estate gains generally use a 30% special rate, subject to acquisition-history, own-home and other rules. The main-home exemption includes specified two-year continuous-use or five-of-ten-year alternatives with abandonment of the home. Neither the securities rate nor an arrival portfolio valuation automatically governs a property sale.
Arrival basis: a meaningful rule with important limits
For covered capital assets and derivatives, §27(6)(1)(e) generally uses market value as acquisition cost when Austrian taxing rights arise relative to another state. The legal trigger is entry into Austrian taxing rights, not simply the day a residence card is printed. A substantiated valuation and the applicable treaty are therefore central to the file.
Example: qualifying shares worth €300,000 when those rights arise and sold for €350,000 can start with a €50,000 Austrian gain rather than the entire historical appreciation. This assumes the ordinary entry rule applies. Re-entry after an earlier Austrian non-assessed exit has a specific historic-cost limitation and adjustments for proven EU/EEA appreciation; it must not be presented as another automatic fresh step-up.
Exit tax can arise without selling
Restricting Austria’s taxing rights over covered capital assets, derivatives or crypto can trigger a deemed disposal. The current rules do not use the French €800,000 portfolio or German 1% ownership test as a universal Austrian threshold. Work from the Austrian asset definition and actual loss of taxing rights.
For an individual’s qualifying EU/EEA departure, non-assessment until a later realisation can be requested. It is an application-based mechanism, not a blanket exemption. A later move outside the relevant area, transfer or other specified event may trigger the tax. Notify the custodian correctly and review portfolio transfers before execution: a custody move can itself have reporting and deemed-disposal consequences.
New exit-proof obligations from July 2026
For covered non-assessment decisions after 30 June 2026, the law adds annual proof where the relevant computed gains for the assessment year exceed €100,000. Evidence that no triggering event has occurred, together with a current address, is required by the end of the following year. The law provides a correction procedure for defective evidence and consequences for failure.
A separate transition covers specified earlier decisions concerning tax debts arising after 31 December 2005 that remain not fully assessed, where the relevant originally non-assessed amount exceeds €100,000. Those cases require proof by 31 December 2026. Review the actual historic decision and the statutory amount test; do not assume the new duty applies only to people leaving after July 2026.
Foreign companies: personal and corporate rules differ
The specific CFC inclusion rule in KStG §10a applies at the controlling corporate level. That does not make a personally owned foreign company consequence-free: the company can become Austrian resident through actual management, a transparent vehicle may be treated differently, and payments to its owner remain taxable under their classification.
For a corporate holding structure, the 2026 low-tax threshold is less than 15%, replacing the older 12.5% figure. More-than-one-third passive income, control and a substantial-activity test are additional conditions. Analyse ownership and operating facts rather than inferring the answer from where the entity was incorporated.
Employee contributions and regional differences
For ordinary covered employees, the 2026 general monthly contribution ceiling is €6,930; special payments have a separate €13,860 annual ceiling. The table shows principal components. Special-payment bases, reduced unemployment contributions, marginal work and special occupations require separate calculations.
The employee unemployment rate falls to 0% up to €2,225 monthly contribution income, 1% above €2,225 through €2,427 and 2% above €2,427 through €2,630; the ordinary rate is 2.95% above that. Vienna’s housing contribution increased in January 2026, so a single countrywide payroll percentage is inaccurate.
| Selected ordinary component | Employee | Employer |
|---|---|---|
| Health | 3.87% | 3.78% |
| Pension | 10.25% | 12.55% |
| Unemployment | Normally 2.95%; reduced low-income bands | 2.95% |
| Accident | — | 1.10% |
| Insolvency fund | — | 0.10% |
| Chamber of labour | 0.50% | — |
| Housing: ordinary rate | 0.50% | 0.50% |
| Housing: Vienna | 0.75% | 0.75% |
Build the return from the underlying records
Keep original costs, arrival valuations, foreign withholding, fund statements and the history of disposals and transfers. A broker’s foreign tax report may use a different basis or classify a transaction differently from Austria. Reconcile the Austrian return rather than copying the foreign result.
Employment withholding, investment withholding and annual assessment are different collection mechanisms. Company directors with substantial holdings need particular attention: remuneration can be self-employment income instead of ordinary salary. Ask which social-insurance category and reporting process applies before using an employee net-pay estimate.
Sources & research notes13 references
Sources supporting this guide. Research draft awaiting editorial review.
- BMF: personal tax residence and worldwide income
- BMF: 2026 income-tax scale
- Income Tax Act: consolidated September 2026
- BMF: capital-income rates and filing
- EStG §27: current arrival, exit and portfolio-transfer rules
- BMF: capital gains, exit and custody transfers
- BGBl I 43/2026: exit-proof duties and transition
- KStG §10a: 2026 CFC threshold, control and substance
- USP: company seat, management and worldwide tax liability
- Austrian Social Insurance: contribution rates and values, 2026
- Austrian Social Insurance: 2026 contribution ceilings
- City of Vienna: 2026 housing contribution
- USP: shareholder-director remuneration and distributions