Import Procedures

Imported goods are to be declared at Customs. A Single Administrative Document or SAD is used for this purpose. The Single Administrative Document (SAD) may be submitted to the Austrian Customs Administration physically or through an electronic declaration. For more information click here Hauptzollamt Wien (Central Customs Office, Vienna).

Imported products are subject to a value-added tax (Einfuhrumsatzsteuer) as they enter the Austrian customs area. The VAT upon importation is calculated based on the customs value of imported goods. The importer is entitled to a VAT refund from the Tax Authority once the imported good is resold or re-exported in the distribution chain.

As a member of the EU, Austria requires import licences for most goods, especially agricultural products. This applies to all countries of origin, including the United States. Special rules apply to particular imports from certain countries, such as shoes made in China. EU import quotas are handled through the granting of import licences to qualified companies. Austrian importers are usually required to show an exporter licence from the supplier country and then obtain an approval to import from the Austrian authorities (Einfuhrbewilligung or import permit)

The Austrian Federal Ministry of Science, Research and Economy is the licencing authority for most other goods. The import of war material requires a licence and individual approval of each shipment by the Austrian Ministry of Interior.

Specific Import Procedures

Simplified declaration system applies on shipments of commercial samples or gifts below EUR 45 and/or negligible value shipments below EUR 22 and provides Duty and Tax relief. Import of tobacco, drugs, medicines, weapons and their parts, strategic materials and their parts require special licenses.

Several specifics directives exist for some products, due to the UE legal framework (REACH, Registration, Evaluation and Authorization and Restriction of Chemicals, WEEE, Waste Electrical and Electronic Equipment, and ROHS Directive that imposes restrictions on the use of certain chemicals in electrical and electronic equipment, and Cosmetics Regulation.
Moreover, European Union imposes specifics regulations for the import of agricultural products as well as fisheries products.
The import of certain commodities into Austria is prohibited, usually as a result of international sanctions. To determine if a product is prohibited or subject to restriction, check the TARIC for the following codes:
- CITES Convention on International Trade of Endangered Species
- PROHI Import Suspension
- RSTR Import Restriction

Distribution channels

Although it is a relatively small country within the EU, Austria is an important strategic economic player because of its geographical location at the crossroads of Europe. Under the EU's Schengen Agreement, Austria enjoys lax border control between itself and its eight neighbouring countries. Today, the Austrian market is saturated in all major sectors and in order to penetrate it, the advertising is a must. The total retail sales area covers an area of 13.8 million square mt, meaning 1.55 square mt per inhabitant, 25% of which is in shopping centres and retail parks (CBRE, 2021). Austria has 122 shopping centers with a combined gross lettable area of about 2.9 million square mt (Bank Austria, 2021). There is a net reduction in retail space due to oversupply (EHL). In 2021, the retail sector recovered from the closures and other restrictions related to the Covid-19 pandemic. Austrian retail enterprises achieved a nominal increase in turnover of 5% in 2021 compared to 2020, and sales volume increased by 2.9%. The retail trade of food, beverages and tobacco recorded a nominal increase of 1.7%, and sales volume increased by 0.4% (Statistics Austria). Grocery retailers (especially discounters and supermarkets) record a higher value growth compared with most other channels in store-based retailing, mostly due to increased precautionary buying. The share of organic products is comparably high, with healthy, sustainable products and regionally sourced products registering a strong demand. Overall, continuing shifts of sales towards e-commerce continued to place strong pressure on store-based retailing in the country during and after the Covid-19 pandemic. The principal trading zones of the country are Vienna, Vorarlberg and Burgenland, with important areas like Styria and Tirol.

Distribution market players

It is estimated that nearly 80% of the retail market in Austria has been controlled by foreign enterprises, with German companies having a strong presence. In fact, Germany plays a very important role in the Austrian commerce, and it owns more than 15% of the capital invested in some 500 companies. Despite the fluctuations observed during the pandemic, due to increased focus on healthy diet, traditional grocery sales follow a downward trend (Euromonitor, 2022). Supermarkets are the leading channel in grocery retailing and account for a quarter of all outlets and two fifths of total value sales in the country (Euromonitor, 2022). Food distribution is a very secured and dominated by a few big groups market, which control two-thirds of total sales in the country. Three groups dominate this market: Spar, a Dutch conglomerate, with an accumulated market share of 36%; Rewe Austria, a company of German origin, working under the name Billa as a co-operative trade group (network of smaller retailers), with 33.9% market share; and Hofer (23.1%), a subsidiary of Aldi (ORF Salzburg, 2021). Other players are Penny Markt, MPreis, Lidl, and Unimarkt.

Retail Sector Organisations

Austrian Economic Chambers (only Austrian)

Consumption Taxes

Nature of the Tax

Value Added Tax (VAT): Einfuhrumsatzsteuer

Tax Rate

Standard rate is 20% with slight variations according to where the supply is made. In Jungholz and Mittelberg, the standard rate is 19%.

Reduced Tax Rate

A reduced rate of 10% applies to most foodstuffs, books (including e-books), hotel accommodation, restaurant meals, domestic passenger transport (except flights), residential apartment rental, supplies made by private hospitals and charitable organizations, pharmaceuticals, repairs of bikes, shoes, clothes, and leather goods, feminine monthly hygiene products.

A reduced rate of 13% applies to entrance fees for sporting events, entrance fees for cultural events, domestic flights, animal feed, seeds, supplies made by artists, certain wine sales made by the producer.

Other Consumption Taxes

Custom duties are levied on non-EU imports. Excise duties are levied on tobacco (13% to 47% of price), alcohol and other beverages (according to the type) and petroleum products (approximately EUR 40 to EUR 600 per 1,000 litres). More detailed information on excise duties is available concerning tobacco products and energy products on the European Commission website.
In Austria, environmental taxes include energy taxes (e.g., on electricity, natural gas, and coal consumption), transport taxes (e.g., motor vehicle tax, highway vignette, road pricing for lorries, and tolls for specific routes), resource taxes, and pollution taxes (e.g., tax on mineral oils, waste deposit levy, and fee on water use).

Corporate Taxes

Company Tax

23% (as of calendar year 2024)

Tax Rate For Foreign Companies

A company is considered resident in Austria if its effective management is in Austria or if it is incorporated in the country. The place of effective management for these purposes is the place where the day-to-day management of the company is actually carried out; a building site which lasts for more than six months; or plants, warehouses, purchase and sales establishments where the entrepreneur or a permanent representative carries out business activities. The Austrian tax authorities generally follow the OECD model regarding the permanent establishment concept.

Capital Gains Taxation

Capital gains, both short and long-term, are typically included in a corporation's annual results and taxed at the ordinary CIT rate of 23% as of 2024.

A specific tax treatment applies to capital gains related to the disposal of taxable assets. When assets forming part of a business are transferred from Austria to a foreign country, latent capital gains are generally taxed at the time of transfer. The same applies if Austrian taxing rights over an asset are relinquished due to other circumstances. If Austrian taxing rights are ceded due to asset transfers to another EU/EEA member state, it's possible to request a payment plan (up to seven years for non-current assets and two years for current assets). Asset transfers where taxation was deferred in the past (since 1 January 2006) will be subsequently recaptured (e.g., upon sale or transfer outside the EU).

Main Allowable Deductions and Tax Credits

Deductible expenses include start-up costs; interest payments that meet the general arm's-length requirements and those resulting from the debt-financed acquisition of shares (except if the acquisition is from related parties or directly or indirectly controlling shareholders); valuation allowances for bad debts that are not calculated on a lump-sum basis; donations to charitable institutions (capped at 10% of the current year’s profit), non-profit organizations performing research and educational activities and certain educational institutions (capped at 10% of the current year's profit), business lunches (limited to 50% of actual expenses) and advertising expenses; payments to a member of the supervisory board (up to 50%, for salaries not exceeding EUR 500,000 per person/year); payroll taxes; royalties, interest, and service fees paid to foreign affiliates, provided they are at arm's length. R&D expenses are also deductible, with a premium of 14% for R&D activities carried out in Austria.
Taxes are not deductible (with some exceptions, like payroll taxes), same as for fines and penalties.

For depreciation and amortisation, only the straight-line method is accepted, with the cost evenly spread over the useful life of an asset (with some exceptions like buildings and automobiles).
Tax losses can be carried forward without any time limit (within a limit of 75% of the taxable income for any given year, with some exceptions). The carryback of tax losses is generally not permitted.

Other Corporate Taxes

Stamp duties of 0.8% to 2% apply to certain legal transactions such as leases and hire contracts.

Local authorities annually levy real estate tax on all Austrian property, based on its assessed standard ratable value (Einheitswert), which is typically below market value. The effective tax rate depends on the property's use and is calculated using a special multiplier. Agricultural and forestry land is taxed at 0.16% for the first EUR 3,650 and 0.2% thereafter. Buildings and property are taxed at 0.2%, with reductions for single-family houses (0.05% for the first EUR 3,650 and 0.1% for the next EUR 7,300) and leasehold/shared property (0.1% for the first EUR 3,650 and 0.15% for the next EUR 3,650). Other properties are taxed at 0.1% for the first EUR 3,650. The final tax is determined by applying a municipal rate (up to 500%), reduced by 25%, and increased by a 35% inflation adjustment.
For real estate transfers within close family circles, tax is based on three times the assessed ratable value (up to 30% of fair market value) at a 2% rate. Corporate restructuring under the Reorganisation Tax Act uses twice the assessed standard ratable value with a standard tax rate. Free-of-charge transfers, both familial and non-familial, are taxed based on property value, with rates varying: 0.5% for values under EUR 250,000, 2% up to EUR 400,000, and 3.5% over EUR 400,000. Business transfers are capped at 0.5% of property value. Transactions under corporate restructuring and share consolidation incur a 0.5% tax. Real estate transactions below EUR 1,100 in value are exempt from tax. An additional 1.1% registration fee becomes due upon incorporation of the ownership change in the land register.

Both Austrian banks and foreign banks with an Austrian branch are subject to a banking tax at a rate of 0.024% (assessment bases between EUR 300 million and EUR 20 billion) to 0.029% (beyond EUR 20 billion) of the tax base.

A digital services tax ("Digitalsteuer") applies at a rate of 5% to multinational companies with worldwide revenue of at least EUR 750 million and yearly domestic revenue of at least EUR 25 million from providing online advertising services.

Social security contributions paid by the employer amount to a total of 20.98% (maximum assessment basis of EUR 6,060/month), so divided:
- Sickness: 3.78%
- Unemployment: 2.95%
- Pension: 12.55%
- Accident: 1.10%
- Miscellaneous: 0.60%

Furthermore, the employer is liable to the Family Burdens Equalisation Levy at the rate of 3.9% (3.7% from 2025), the municipal tax on payroll at the rate of 3% of monthly gross salaries and wages, and a public transportation levy equal to EUR 2 per week/employee in the city of Vienna. A contribution to the Chamber of Commerce is levied at a rate between 0.32% and 0.42% of monthly gross salaries paid, according to the province. Local authorities also levy other taxes, for example, on rubbish collection and on entertainment.

Other Domestic Resources

Federal Ministry of Finance

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

Austrian Ministry of Finance

Withholding Taxes

Withholding tax rates are:
Dividends: Dividends paid to resident companies are exempt from withholding tax if they hold a minimum of 10% of the distributing company's shares; otherwise, the rate is 23%. Resident individuals face a 27.5% rate on dividends. For nonresidents, the withholding tax rate is 23% for those subject to limited corporate income tax and 27.5% for others, unless reduced under domestic law, a tax treaty, or the EU parent-subsidiary directive. EU/EEA parent companies may seek a refund if unable to credit the withholding tax in their home state, while refunds may also be available to parent companies in non-EU/EEA jurisdictions, subject to certain conditions.
Interest: Interest paid to a resident company is taxed at a 23% withholding rate, but if the company confirms in writing to the payer that the interest is taxed at 23% as part of its business income, no taxes are withheld. For interest paid by a financial institution to a resident individual, the rate is 25%; otherwise, it's 27.5%. Nonresident companies receiving loan interest face no withholding tax, but payments to nonresident silent partners in Austrian companies are subject to a 27.5% withholding tax (23% for those subject to limited corporate income tax), unless reduced under a tax treaty or EU directives. For interest paid by financial institutions to nonresident individuals, the rate is 25% or 27.5% unless reduced under a tax treaty.
Royalties: 0% (resident company or individual)/20% (non-resident company or individual).