Key takeaways
- Austria has no general flat-tax or non-dom regime for newcomers, but it offers two targeted incentives: the expatriate lump-sum deduction (20% of gross salary, capped at EUR 10,000 a year, for up to 5 years) and the relocation allowance (Zuzugsbegünstigung) for researchers, scientists and certain other profiles moving in the public interest.
- Everyone else is taxed like a resident: progressive income tax up to 55% on worldwide income, with standard credits and deductions (e.g. employee allowance of EUR 132, commuting allowance, family credits).
- Austria has no dedicated digital nomad visa or tax regime; remote workers who live there for more than six months or keep a home there become tax resident on worldwide income.
Last reviewed: October 2026
Austria is a high-tax country, but it does reward specific profiles: internationally mobile employees on assignment and researchers or specialists whose move is in Austria's public interest. This guide explains who qualifies for each incentive in 2026, what the standard reliefs look like for everyone else, and what location-independent professionals should know before moving to Vienna, Graz or Salzburg.
Austrian incentives for newcomers – overview (2026)
| Incentive | Who qualifies | Benefit |
|---|---|---|
| Expatriate lump-sum deduction (Expatriate-Pauschale) | Employees assigned to Austria by a foreign employer, not resident in Austria in the prior 10 years | 20% of gross salary, max EUR 10,000 per year, up to 5 years |
| Relocation allowance (Zuzugsbegünstigung, s.103 EStG) | Scientists, researchers, artists, athletes, others whose move is in the public interest | 30% tax-free allowance on qualifying income for 5 years and/or elimination of tax increase on foreign income |
| Employee allowance | All employees | EUR 132 standard deduction |
| Family credits | Parents | Sole-earner credit EUR 612 (1 child), EUR 828 (2 children), +EUR 273 per extra child; family allowance EUR 138.40–200.40 per child per month |
| Charitable donations | All taxpayers | Deductible up to 10% of taxable income |
The expatriate lump-sum deduction
Designed for international assignees, the expatriate deduction allows qualifying employees to deduct a flat 20% of gross salary, capped at EUR 10,000 a year, as additional income-related expenses, without receipts. Typical conditions:
- You are assigned to Austria by a foreign employer (or employed by an Austrian group company in the context of an assignment) for a limited period, generally up to five years.
- You have not been resident in Austria in the previous ten years.
- You keep your home abroad (or your assignment is clearly temporary).
The deduction replaces the actual costs of double housekeeping and home trips, which cannot be claimed in addition.
Example: A Spanish engineer seconded to Vienna with EUR 90,000 gross salary deducts EUR 10,000 (20% would be EUR 18,000, capped) from taxable income, saving about EUR 4,800 a year at the 48% marginal rate that applies to his income.
The relocation allowance (Zuzugsbegünstigung)
Under section 103 of the Income Tax Act, people whose move to Austria is in the public interest – mainly scientists and researchers, but also certain artists, athletes and other specialists – can apply to the Federal Ministry of Finance for relief:
- Researchers and scientists: a 30% tax-free allowance on income from the qualifying scientific activity for five years, plus a flat deduction replacing actual relocation costs.
- Elimination of tax increase: foreign income can be excluded from the progression effect for a period.
- Application: generally within six months of moving to Austria, before or soon after taking up residence.
Standard reliefs everyone gets
- Progressive rates from 0% to 55% (top rate on income above EUR 1 million) with indexation each year.
- Employee allowance of EUR 132; higher actual expenses with receipts.
- Commuting allowance (Pendlerpauschale) depending on distance and public-transport availability.
- Mandatory social security contributions (Austrian or foreign) are deductible.
- Special expenses: church tax up to EUR 600, tax adviser fees, charitable donations up to 10% of income.
- Favourable taxation of the 13th and 14th salaries (mostly at 6%) for employees.
Austria for digital nomads and remote workers
- No digital nomad visa: non-EU remote workers need a residence title (e.g. Red-White-Red Card for skilled workers or self-employed key workers).
- Tax residence: a home in Austria available to you, or more than six months' presence, makes you resident on worldwide income.
- Permanent establishment risk: working from Austria for a foreign employer can create an Austrian PE or payroll obligations for that employer; Austria has specific rules for home offices.
- EU citizens can live and work freely, but the same tax residence rules apply.
Frequently asked questions
Does Austria have a special tax regime for expats?
Not a general one. Austria offers the expatriate lump-sum deduction for assigned employees (20% of salary, up to EUR 10,000 a year for five years) and a relocation allowance for researchers and other public-interest profiles. Others are taxed under normal rules.
How much income tax do expats pay in Austria?
Expats who are resident pay the same progressive rates as Austrians, up to 50% (55% above EUR 1 million), on worldwide income. Assigned employees can reduce their tax base with the expatriate deduction.
Is there a digital nomad visa in Austria?
No. Non-EU remote workers need an ordinary residence title such as the Red-White-Red Card. Living in Austria for more than six months or keeping a home there makes you tax resident.
Who qualifies for the Austrian relocation allowance (Zuzugsbegünstigung)?
Mainly scientists and researchers whose move is in Austria's public interest, as well as certain artists and athletes. Researchers can receive a 30% tax-free allowance on qualifying income for five years, on application to the Ministry of Finance.
How do I get a tax residence certificate in Austria?
Request it from your Austrian tax office (Finanzamt), usually through FinanzOnline, stating the tax year and the treaty country. Use the official form required by the foreign authority where applicable.
Related guides
- How to obtain tax residency in Austria
- Leaving Austria: ending your tax residency
- Business expenses in Austria
- Capital gains tax in Austria
Sources
- PwC Worldwide Tax Summaries – Austria: Other tax credits and incentives
- PwC Worldwide Tax Summaries – Austria: Deductions
- Austrian Income Tax Act (EStG), section 103; Expatriate Ordinance (Expatriate-Verordnung)
- Austrian Federal Ministry of Finance (bmf.gv.at)
This guide is general information, not personalised tax advice.
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