Those coming from outside Austria and whose main place of residence is not in the country may be eligible for unlimited tax liability. If total income from sources outside of Austria does not exceed €11,000, or if 90 percent of earnings originate from Austria, one can opt for an Employee Tax Assessment Declaration (Erklärung zur ArbeitnehmerInnenveranlagung).
The Austrian Tax Ministry (Bundesministerium für Finanzen) offers an income tax calculator, which estimates the percentage of income that will have to be paid.
As is the case with most EU countries, all individuals resident in Austria who are liable to be taxed receive a tax identification number, commonly known as TINs. These are nine-digit numbers that are required to process income tax.
TINs are not official documents of identification. A single, lifelong TIN has been assigned to each person required to pay taxes in Austria since 2021. TINs can be obtained via the local tax office.
Double taxation agreements in Austria
Austria has bilateral arrangements with countries all over the world to prevent double taxation. These treaties are commonly known as Double Taxation Conventions (DTC), and they ensure that taxpayers do not have to pay tax on the same income to two different countries.
Austria has concluded DTCs with well over 80 countries, including Germany, Switzerland, the United States and the United Kingdom.
Tax benefits for researchers
The Austrian government has established generous tax allowances for researchers under a regulation called the Zuzugsbegünstigungsverordnung. This tax deduction (Zuzugsfreibetrag), which is limited to five years on income generated through scientific work, was specifically designed to attract scientists and researchers from abroad.
The benefits aim to offset moving expenses, help compensate for price differences between Austria and the newcomer’s home country and to address other expenses encountered by expatriates, such as running two households, learning German or sending children to private schools. Applications for this benefit must be submitted in writing to the Austrian Tax Authoritywithin six months of arrival in Austria.
Since most scientists and researchers will fall into the independent personal service taxation category, they will be able to take advantage of generous benefits for tax-deductible expenses. Such incurred expenses must be directly related to their work, and include studying fees, work clothes, relevant literature, language courses (if coming from abroad) and the costs of basic and further training. Commuters are also able to deduct transportation costs.