Company Formation & Tax in Austria
A central European base with a lowered capital barrier — the GmbH, the new FlexCo, a flat corporate tax and a fully digital incorporation route.
Austria pairs a German-speaking, central-EU location with a corporate tax regime that has steadily fallen and a 2024 reform package that cut the cost of incorporation sharply. Foreign founders can own 100% of an Austrian company, with no residency requirement, and complete the whole process remotely by video.
Choosing an entity
The standard vehicle is the GmbH (Gesellschaft mit beschränkter Haftung, private limited company). Since 1 January 2024 the minimum share capital is €10,000 (down from €35,000), of which at least €5,000 must be paid in. The 2024 reform also introduced the FlexCo (Flexible Kapitalgesellschaft / FlexKapG), a startup-friendly hybrid designed for employee equity and staged investment. Larger or listed businesses use the AG (Aktiengesellschaft, €70,000 minimum). Registration is via the Firmenbuch (Commercial Register, accessed through JustizOnline), followed by tax registration with the Finanzamt. Notarial deeds and signatures can be executed digitally, so the company can be formed without travelling to Austria; typical timelines run from roughly one to four weeks.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax (KöSt) | 23% |
| Minimum corporate tax (GmbH) | €500 / year (credited forward) |
| VAT (USt, standard) | 20% |
| VAT (reduced) | 13% / 10% |
| VAT registration threshold | €55,000 |
Corporate income tax (Körperschaftsteuer) is a flat 23%, the end point of a phased reduction from 25% (2022) to 24% (2023) and 23% from 2024, with no further cut currently planned. A minimum corporate tax of €500 a year applies to a GmbH even in loss years and is credited against future liabilities. VAT (Umsatzsteuer) is 20% standard, with reduced rates of 13% and 10%; the registration threshold rose to €55,000 on 1 January 2025. Distributed profits carry withholding tax of 27.5% for individuals and 23% for corporate shareholders, reducible to nil for qualifying EU parents under the Parent-Subsidiary Directive (a 10% holding held for at least a year). Austria also offers a 14% research premium on qualifying R&D.
Frequently asked questions
What is the corporate tax rate in Austria?
A flat 23% (reduced from 24% in 2023 and 25% in 2022), with a €500 minimum annual corporate tax for a GmbH that is credited against future liabilities.
How much capital do I need for an Austrian GmbH?
Since 2024 the minimum is €10,000, of which €5,000 must be paid in. The new FlexCo follows the same €10,000 minimum.
What is the Austrian VAT rate?
20% standard, with reduced rates of 13% and 10%; registration is required once turnover exceeds €55,000.
Official sources
- Federal Ministry of Finance (BMF)
- Firmenbuch / JustizOnline (Commercial Register)
- Business Service Portal (USP)
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the Federal Ministry of Finance, or with an advisor, before acting.
Set up in Austria with confidence.
ARM Management advises international companies on Austrian entity formation, registration and tax compliance, alongside wider DACH and CEE structuring. Begin with a confidential conversation.