Quick answer
Austria has double tax treaties with more than 90 countries in 2026, including every EU state, the UK, the US, Switzerland and the UAE. Most exempt foreign employment and business income (with progression) and credit foreign tax on dividends. Treaty residence follows the tie-breaker: permanent home, then centre of vital interests. Without a treaty, Austria grants unilateral relief.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my tax setup →You live in Austria and earn from clients, an employer or a company abroad, or you have left Austria and still have income there. This guide explains how Austria's tax treaties decide which country taxes what in 2026, how the 183-day rule really works, which method removes the double tax, and how to claim relief in practice.
Austria international tax treaties in 2026: the key figures
| Item | Rule in 2026 |
|---|---|
| Treaties in force | More than 90 comprehensive double tax treaties (DTTs) |
| Model and multilateral instrument | OECD Model; Austria ratified the BEPS Multilateral Instrument, in force since 1 July 2018 |
| Main relief method | Exemption with progression for most income types (Germany, Switzerland, France, Spain…) |
| Credit method treaties | Italy, UK, US, Japan, Canada, Sweden, UAE (since 2023 protocol), among others |
| Dividend withholding | 27.5% domestic; typically 15% (portfolio) and 0–5% (companies ≥10%) under treaties |
| Interest and royalties | Interest paid abroad is mostly tax-free in Austria; royalties 20% domestic, often 0–10% by treaty |
| Employment income | Taxed where the work is done, unless the 183-day rule sends it back to the residence state |
| No treaty? | Unilateral relief: exemption if the foreign tax is at least 15%, otherwise a credit |
Is this guide for you?
Read on if you…
- are tax resident in Austria with a foreign employer, foreign clients or foreign investments
- have left Austria but still receive Austrian salary, rent, dividends or pension
- are resident in two countries at once and need to know which one wins
Probably not your case if you…
- have only Austrian income and no foreign connections
- need company-level transfer pricing advice (this guide covers individuals and small businesses)
How does Austria avoid double taxation?
Austria taxes residents on worldwide income. Someone with a home in Austria, or a stay of more than six months, is resident. The other country often claims the same income, because it was earned, paid or sourced there. A double tax treaty (Doppelbesteuerungsabkommen, DBA) is the rulebook that splits the pie.
Austria's treaties follow the OECD Model Convention and use two methods:
- Exemption with progression: Austria does not tax the income the treaty assigns to the other country, but it counts that income when fixing the rate on your remaining Austrian income. If you earn EUR 40,000 in Austria and EUR 40,000 exempt abroad, Austria taxes the EUR 40,000 at the rate that applies to EUR 80,000.
- Credit method: Austria taxes everything and gives you a credit for the foreign tax, capped at the Austrian tax on that income. If the foreign rate is lower, you top up in Austria.
Most Austrian treaties use exemption for employment, business and real estate income, and the credit method for dividends, interest and royalties. A growing minority use credit across the board: Italy, the UK, the US, Japan, Canada, Sweden and, since the 2023 protocol, the UAE.
No treaty? Unilateral relief
Where no treaty exists, the Austrian ordinance on avoiding double taxation (based on section 48 of the Federal Fiscal Code) applies. Foreign income taxed abroad at an average rate of at least 15% is exempt with progression. Below 15%, you get a credit instead.
Which country are you resident in when both claim you?
Treaty residence is decided by the tie-breaker in Article 4 of each treaty, in strict order:
- Permanent home: where you have a home available to you on a lasting basis. Only one? That country wins.
- Centre of vital interests: basically where your life is: partner, children, main business, bank, doctor, gym.
- Habitual abode: where you spend more time.
- Nationality.
- Mutual agreement between the two tax authorities.
Here's the catch. Losing the tie-breaker does not end your Austrian residence under domestic law. Austria still treats you as resident, but it can only tax what the treaty allows. The domestic tests are explained in obtaining tax residency in Austria and ceasing your tax residency in Austria.
Companies have their own tie-breaker: the place of effective management. Running a foreign company from an Austrian flat can make it Austrian-resident, with 23% corporate tax. See corporate income taxes in Austria.
How is each type of income taxed under Austria's treaties?
Employment income and the 183-day rule
The default is simple: salary is taxed where the work is physically done. The exception sends it back to your residence state if three conditions are all met: you spend no more than 183 days in the work state in the period the treaty names (the calendar year, the tax year or any 12-month window, depending on the treaty), your employer is not resident in the work state, and the salary is not borne by a permanent establishment there.
For a remote employee in Austria with a German employer, this means Austrian tax on every Austrian workday. The German treaty adds a cross-border commuter rule for people living within about 30 km of the border who return home daily; their salary is taxed in the residence state.
Self-employment and business profits
Taxed in your residence state unless you have a permanent establishment (PE) in the other country: a fixed place of business, a dependent agent, or in some treaties a service PE after 183 days. A home office abroad used regularly for your freelance business can be a PE.
Dividends, interest and royalties
- Dividends: the source state may withhold, usually 15% for individuals and 0–5% for companies holding at least 10%. Austria then taxes the gross dividend at 27.5% and credits the treaty-rate foreign tax (max 15%). Foreign tax withheld above the treaty rate is not credited; you must reclaim it from the source country.
- Interest: most Austrian treaties assign interest to the residence state, with 0% or up to 10% at source.
- Royalties: Austria's domestic withholding is 20%; treaties reduce it to 0–10%.
Real estate and capital gains
Rental income and gains on property are taxed where the property is located, always.
Capital gains on shares and crypto are usually taxed only in the residence state, which is why Austria levies an exit tax when you leave with a portfolio. Details in capital gains tax in Austria and cryptocurrency taxes in Austria.
How do you actually claim treaty relief?
- Get a certificate of residence (Ansässigkeitsbescheinigung) from your Finanzamt via FinanzOnline, or ask them to stamp the foreign authority's form. Foreign payers need it to apply the reduced rate at source.
- Relief at source in Austria: a non-resident receiving Austrian dividends, royalties or fees gives the Austrian payer form ZS-QU1 (individuals) or ZS-QU2 (companies) with a residence certificate. The payer then withholds the treaty rate under the DTT Relief Ordinance.
- Refund in Austria: if full tax was withheld, file a refund claim with the Finanzamt Österreich (Dienststelle für Großbetriebe handles some cases) electronically, within five years of the end of the year of payment.
- Relief in your Austrian return: declare foreign income in the right annex (E1kv for capital income, L1i or E1 for employment and business income) and state the treaty method. The Finanzamt applies exemption or credit.
- Social security is separate. Treaties do not cover contributions. Within the EU, Regulation 883/2004 and the 2023 multi-state telework framework (under 50% remote work from your home state keeps you in your employer's system) decide where you pay.
Keep records: workday calendars, boarding passes, lease agreements. In a dispute, the burden of proving where you worked is yours, and getting it wrong can shade into the territory covered by tax fraud regulations of Austria.
Example – Maria, Portuguese product manager living in Vienna, employed by a Lisbon company
Maria moved to Vienna in January 2026, rents a flat there and works remotely for her Portuguese employer, visiting Lisbon for 40 days a year. Under the Austria–Portugal treaty, her Austrian workdays (about 180 of 220) are taxed in Austria; the 40 Lisbon days are taxed in Portugal, because her employer is resident there. Austria exempts the Portuguese share with progression. On a EUR 70,000 salary, Austria taxes about EUR 57,000 at the rate for EUR 70,000, roughly EUR 16,500. Her employer registers an Austrian payroll, and she moves to Austrian social insurance because over half her work is done in Austria.
Maria's salary is split across two countries by a 40-day calendar. Yours probably is too.
Get a personalised treaty check and find out exactly what Austria and your other country can tax.
Check my tax setup →Common mistakes (and what they cost)
- Believing 183 days is the only test → with a flat in Austria you are resident from day one, and the 183-day rule only concerns where your salary is taxed; the result is back taxes for the whole year.
- Claiming a full foreign tax credit for dividends → Austria credits only the treaty rate (usually 15%); the excess must be reclaimed abroad, or it is simply lost.
- Ignoring the progression effect of exempt income → your Austrian rate jumps, and the prepayments set by the Finanzamt are too low, leading to a lump sum plus interest.
- A freelancer working weeks at a client's office abroad → a service or fixed-place PE can arise, giving the other country the right to tax part of the profit and creating a second filing.
- Mixing up tax and social security → paying tax in Austria does not move your contributions; a wrong assumption leads to double contributions or gaps in coverage.
Frequently asked questions
How many tax treaties does Austria have?
More than 90 comprehensive double tax treaties in force, covering all EU and EEA states, the UK, the US, Canada, Australia, Japan, China, India, Switzerland, the UAE, Thailand and most other major economies. The Federal Ministry of Finance publishes the full list with texts and protocols.
Does Austria use the exemption or the credit method?
Mostly exemption with progression for employment, business and real estate income, and the credit method for dividends, interest and royalties. A number of treaties use credit for all income, including those with Italy, the UK, the US, Japan, Canada and Sweden.
Is there a tax treaty between Austria and the UAE?
Yes, in force since 2004, and amended by a protocol applicable from 2023 that moved Austria from the exemption method to the credit method for UAE income. Since the UAE levies no personal income tax, an Austrian resident with UAE income now pays full Austrian tax on it. Moving to the UAE with Austrian investments also triggers the Austrian exit tax.
How does the 183-day rule work with Austria?
Salary for work done in Austria is taxable in Austria unless three conditions all hold: you spend at most 183 days in Austria in the relevant period, your employer is not Austrian-resident, and the salary is not borne by an Austrian permanent establishment. The period is the calendar year, tax year or a rolling 12 months depending on the treaty.
How do I claim a refund of Austrian withholding tax as a non-resident?
File a refund application with the Austrian tax office electronically, attaching a certificate of residence from your home country and proof of the withheld tax. The deadline is five years from the end of the year of payment. For future payments, give the Austrian payer form ZS-QU1 or ZS-QU2 with your residence certificate so the treaty rate is applied at source.
What if Austria has no treaty with my country?
Austria grants unilateral relief under its double taxation ordinance. Foreign income that was taxed abroad at an average rate of at least 15% is exempt in Austria with progression. If the foreign tax was lower, Austria taxes the income and credits the foreign tax.
Related guides
- Austria tax landscape overview
- Obtaining your tax residency in Austria
- Ceasing your tax residency in Austria
- Corporate income taxes in Austria
- Capital gains tax in Austria
- International tax treaties of Switzerland
- International tax treaties of France
- All country tax guides
Sources
- Austrian Federal Ministry of Finance (BMF) – Taxes, including the list of double tax treaties
- Federal Fiscal Code (BAO), section 48 – Legal Information System RIS
- OECD – Model Tax Convention and the Multilateral Instrument
- FinanzOnline
- European Commission – Social security coordination (Regulation 883/2004)
This guide is general information, not personalised tax advice. See how we research and review.
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