Opening a company in Austria: locals, foreigners, freelancers and digital nomads

At a glance: GmbH or FlexCo with 10,000 euros capital (5,000 paid in), notary deed, 2 to 4 weeks, 23 percent corporate tax, VAT exemption up to 55,000 euros, no digital nomad visa. Legal forms. Sole trader (Einzelunternehmen): no capital, registration in the Firmenbuch only above 700,000 euros turnover. GmbH: minimum capital 10,000 euros, at least 5,000 paid in cash (since 2024). FlexKapG (FlexCo): same capital, cheaper template deed, employee shares allowed. AG: 70,000 euros. Registration. Trade licence (Gewerbeanmeldung) free at the district authority or online via GISA, business can start the same day; automatic chamber (WKO) membership. GmbH and FlexCo need a notarial deed (single-founder GmbH can use the simplified online route via USP) and entry in the Firmenbuch: court fees 493 euros, often waived for new founders under NeuFoeG. Notary 1,000 to 2,500 euros for a GmbH, 200 to 500 for a FlexCo with the statutory template. Total excluding capital: roughly 2,000 to 7,000 euros. Taxes 2026. Corporate income tax 23 percent, minimum 500 euros a year in the first ten years. Dividends 27.5 percent withholding for individuals. VAT 20 percent (10 and 13 reduced); small-business exemption up to 55,000 euros gross turnover. Top personal rate 50 percent above 104,859 euros, 55 percent above one million. Freelancers and the self-employed. Trades register the Gewerbe; "new self-employed" (consultants, authors, IT without a licensed trade) and liberal professions register only with the tax office (FinanzOnline) and SVS social insurance. Flat expense regimes: small-business flat rate (turnover up to 55,000 euros: 45 percent deemed expenses, 20 for services) or Basispauschalierung (turnover up to 420,000 euros: 15 percent, 6 for consulting). SVS 2026: minimum base 551.10 euros a month, rates 26.83 percent plus 12.96 euros accident cover, so about 160 euros a month at the minimum; opt-out below 6,613.20 euros income and 55,000 turnover. Foreigners. EU/EEA/Swiss citizens trade like locals (register residence, Anmeldebescheinigung within four months). Non-EU founders need the Red-White-Red Card for self-employed key workers: 100,000 euros investment or job creation, two years renewable, fee 218 euros; licensed trades need a qualified trade manager reachable in Austria. No resident director rule, 100 percent foreign ownership allowed, a real seat with management in Austria required. Banks run in-person KYC on non-residents; expect weeks. Branch of a foreign company. Zweigniederlassung registered in the Firmenbuch: parent register extract, certified translated articles, resolution, premises proof, specimen signatures; non-EEA parents must appoint a permanent representative resident in Austria and prove activity abroad. Taxed as a permanent establishment at 23 percent, no remittance tax. Most foreign groups prefer a GmbH subsidiary. Digital nomads. No digital nomad visa. Closest route is the Red-White-Red Card above or the quota-based settlement permit for self-employment, both applied for from abroad; residents are taxed on worldwide income with no exemption period. Changed recently. GmbH capital cut to 10,000 euros and FlexCo introduced (2024); VAT exemption 55,000 euros (2025); Basispauschalierung raised to 15 percent and 420,000 euros (2026); 55 percent top rate extended to 2029; Firmenbuch fees up (April 2025). Figures checked October 2026 from WKO, USP and Austrian tax advisers; thresholds and fees change yearly. Confirm with a licensed adviser in Austria before you file.