Below are the essential steps for becoming a freelancer in Austria.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

 Resident Permit Requirements for Freelancers in Austria

To work as a freelancer or solopreneur in Austria, a residence permit may be necessary if you do not qualify for residency based on EU, EEA, or Swiss citizenship. Note that candidates must not have a criminal record or financial offense that would prevent them from trading in the country. Here are some permit options:

- Red-White-Red Card: For self-employed individuals making a significant economic impact. Apply through an Austrian embassy or consulate if you’re outside Austria or at the residence authority if already in the country.

- Red-White-Red Card for Start-Up Founders: Aimed at innovative businesses, requiring a business plan, €50,000 in startup capital, and completion of a points-based test.

- Residence Permit – Self-Employed: For non-permanent residents with a contract for freelancing work, for stays over six months.

 Legal Status Options for Freelancers in Austria

Freelancers in Austria can choose between the following legal structures:

1. New Self-Employed: These individuals work independently and generally do not need a business license. Examples include writers, journalists, artists, and lecturers.

2. Liberal Professionals: Though usually sole proprietors, these roles (such as pharmacists, notaries, and doctors) often don’t fall under freelancer status.

3. Free or Regulated Business License: Certain fields require a business license, which may or may not involve exams. For example, some types of artists and consultants need a license, while others (such as photographers and interpreters) only require a free business license.

4. Independent Contractors: Freelancers working on a temporary basis without affiliation to a specific company.

 Registration Process for Freelancers in Austria

To legally freelance in Austria, follow these registration steps:

1. Register with the Austrian Tax Office: Begin your registration by visiting the Tax Office website, where you’ll receive a login, password, and PIN by mail within 10 business days. Once you receive these, log in to request a tax number by entering estimated annual revenue. Your tax ID will arrive by mail within 5 to 10 days.

2. Mobile Signature Registration: After receiving your FinanzOnline credentials, you may apply for a mobile signature for easier access to official documents.

3. Business License (if applicable): If your profession requires a business license, visit the Austrian Business License Information System (GISA) to obtain it. This step isn’t required for independent contractors or new self-employed individuals.

4. Social Security Registration: Register with Social Security for the Self-Employed (SVS) within 30 days of starting your business operations.

 Tax Responsibilities for Freelancers in Austria

Most freelancers need only pay taxes if their annual income exceeds €11,000. If required, tax declarations are due by June unless filed by a professional tax advisor. Freelancers may deduct expenses such as office supplies, rent, insurance, travel, training fees, and technology. 

Income tax rates range from 25% to 50% depending on total profit, with quarterly payments based on estimated assessments.

 VAT Requirements for Freelancers in Austria

Not all freelancers need to pay VAT. Businesses with annual revenue exceeding €35,000 must do so, while certain sectors (such as health and banking) are VAT-exempt. Austria’s standard VAT rate is 20%.

 Key Points for Freelancers in Austria