Retiring In Austria: Options For Us Citizens

Austria is a dream retirement destination for many, with its stunning Alpine scenery, rich cultural heritage, and high quality of life. But what does it take for a US citizen to retire in this German-speaking nation? In this paragraph, we will explore the key considerations and requirements for US citizens looking to spend their golden years in Austria. From visas and permits to healthcare and cost of living, we will outline the essential information you need to know about retiring in Austria as a US citizen. So, is it possible for Americans to make this European nation their home in retirement? Let's find out!

Can a US Citizen Retire in Austria?

Visa requirements for US citizens

US citizens do not need a visa to enter Austria for stays of up to 90 days within a period of 180 days. However, if you intend to stay longer than 90 days, you must obtain the appropriate visa.

There are no specific retirement visas for Austria, but there are other options available. Retired US citizens can obtain a residence title called a "settlement permit except gainful employment". This is a type of residence permit issued to financially independent individuals. To be eligible, you must meet the general and special requirements for a settlement permit, which include having sufficient means of subsistence, health insurance coverage, and customary accommodation according to local standards.

The settlement permit is usually issued for a limited period of 12 months and there is a limited number issued each year, so it is important to check the availability of quota places before applying.

To apply for a residency permit (for stays longer than six months), you need to schedule an appointment with the Austrian Consulate General by email. Incomplete applications will not be accepted and will delay the visa process. It is important to note that your visa application must be submitted no later than 15 days before your planned trip.

The application process may vary depending on your state of residence in the US. For example, if you reside in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, or U.S. Pacific Islands, you must apply for a Schengen visa at the VFS Visa Application Center in Los Angeles and San Francisco.

Consular fees must be paid in cash when submitting your application and are non-refundable in case of refusal. The fees change every month depending on the exchange rate of the Euro.

It is recommended to review the Austrian Embassy or Consulate website for the most current and detailed information on visa requirements and application procedures.

Healthcare options

Austria has a two-tier healthcare system, with both public and private healthcare sectors. The country's public healthcare system is publicly funded and offers free or low-cost access to healthcare services for low- or no-income citizens.

Public health insurance is compulsory for all residents, including foreigners, and covers most treatments. Patients may have to pay for some treatments, but part of the costs will be reimbursed by the health insurance fund.

Private health insurance is also available in Austria and offers zero waiting times and a larger choice of physicians, clinics, and hospitals. Many individuals who take out private health insurance use it to supplement their compulsory public insurance.

Public Health Insurance

Public health insurance is deducted directly from wages and is free for people with disabilities, students, or retired people. It is also free for people who earn under a certain income.

If you are employed, your employer will automatically sign you up for health insurance. If you are a pensioner, you must first register as a resident in Austria and then take out voluntary insurance. You can also add your dependents to your insurance plan.

Once you have registered, you will be given a European Health Insurance Card (E-card) that you will need to take with you every time you visit a doctor. The E-card is available to all residents of the EU and allows you to access state-provided healthcare in any of the 27 EU countries.

Doctors' surgeries that accept the E-card will display signs saying "Kassenarzt" (contracted doctor) or "Alle Kassen" (all insurers). You won't have to pay to see these doctors, but you will have to pay to see a private doctor. The cost should be about 20%, with your insurer reimbursing the rest.

Private Health Insurance

If you are a retired expat living in Austria, you can choose between private health insurance or registering for public insurance. You can register with an Austrian company or cooperate with international health insurance companies.

Private health insurance in Austria costs about $240 per month, and a doctor's visit may cost up to $70.

Healthcare for US Citizens in Austria

US citizens looking to retire in Austria will need to obtain health insurance to get a residence permit or settlement permit. You can purchase health insurance policies for expats from Austrian or American companies.

Healthcare in Different Austrian Cities

When choosing where to retire in Austria, it is important to consider the healthcare options in different cities.

• Vienna has more than a dozen modern hospitals, many of which are the best in Austria.
• Innsbruck has three public hospitals, so retirees with specific healthcare needs may need to travel outside the city for certain types of medical services.
• Salzburg has more than a dozen public hospitals and clinics, so retirees can easily access specialized medical care.
• Feldkirch has three hospitals, so retirees may need to travel outside the city to see specialists.
• Bregenz has six hospitals and a widespread public transportation system.
• Linz has four hospitals in the city center, as well as several clinics and doctors' offices.
• Alpbach does not have any hospitals, and the nearest one is a private clinic in Wörgl, about an hour away by bus.
• St. Gilgen does not have any hospitals, and the nearest high-quality hospitals are in Salzburg.
• Lienz has two hospitals, one of which has several departments and eight specialists.

Taxes

US citizens are generally required to file a tax return each year, regardless of whether they are in the country or not. The foreign earned income exclusion (FEIE) can be applied depending on how much time a person spends outside the US. For example, on US expatriate taxes, you can exclude up to $105,900 of your 2019 foreign earnings.

If you earn an income while in Austria, that income may be taxed up to 55%. However, your foreign earned income will not be taxed by Austria. Therefore, your tax on your retirement income will be taxed as it would be if you were in the US, and any income you earn in Austria will be taxed separately.

In Austria, tax brackets are defined by how much is earned in a year before special circumstances are applied. The pension fund is not subject to tax on investment income earned on employer or employee contributions. Therefore, investment income is tax-exempt.

Austria has a social security agreement with several non-EU states, including the US. This allows some people to access their pension directly from Austria, depending on the agreement.

Cost of living

Austria is considered an expensive country to live in, with the cost of living being 1.67 times higher than the world average. However, the quality of life it offers makes it worth the price tag. A single person can expect to spend around $900 per month on necessities, excluding rent. For a family of four, the estimated monthly costs rise to $3020.

The capital, Vienna, and the city of Innsbruck are the country's most expensive places to live. Therefore, it is recommended to consider cheaper cities like Graz, Klagenfurt, Salzburg, Feldkirch, and Bregenz. The average cost of living in Graz for a single person is €1526 per month, while in Salzburg, it is €1556.

The average room rent for a one-bedroom apartment in an Austrian city centre is around €862.51. The monthly costs for utilities (electricity, water, heating, cooling, and garbage) for an 85m2 space are estimated to be $200.

The average monthly salary in Austria is approximately €3800, while the minimum wage is €1212. For a single working professional, a minimum of €1580-€2820 is required to cover basic living expenses, including housing, food, and transportation. A family of four would need a budget of €2370-€6460 for a comfortable lifestyle.

• Consider renting in suburban areas to reduce costs.
• Shop at discount supermarkets like Aldi and Lidl for affordable groceries.
• Take advantage of lunch specials at restaurants, which often offer reduced prices.
• Buy fresh produce from local markets for cheaper and healthier options.
• Compare utility providers and switch to cheaper plans when possible.
• Opt for public transportation or a bicycle instead of taxis.
• Take advantage of student discounts for cheaper travel.
• Be mindful of rental agreements, as utilities are often not included in rent costs.
• Do not skip health insurance; healthcare without insurance can be very expensive for expats.

Best places to retire

Austria is a highly-developed industrialised country that offers one of the highest standards of living in the world. It is a perfect place for financially independent persons who want to settle in a new place and spend their retirement years there. The country has a very strong economy and is placed second for quality of life. It also has a low crime rate, excellent social security, and a stable political environment.

Vienna

The capital city of Austria is a cultural and architectural hub. Although the cost of living is pricier than smaller cities in the country, it is still cheaper than many other large cities in Europe. Vienna is a classic tourist destination with visitors from around the world. The artistic and intellectual values of the city are shaped by Mozart, Beethoven, Sigmund Freud, and other famous Austrians.

Salzburg

The city offers a plethora of cultural activities and is most famous for being the birthplace of Mozart. Generally, Salzburg sits among the most expensive cities in Austria due to its generous combination of natural and man-made wonders. The architecture alone is reason enough to live in Salzburg.

Innsbruck

Located high in the Alps, Innsbruck is rich in natural beauty. The historic city is the fifth-largest in Austria and famous for snow sports and scenery. Although known for its winter sports, due to its location, Innsbruck has a larger annual temperature difference than most of Central Europe. But despite its popularity, it maintains a small-town feel. It’s also right up there with Vienna among the priciest cities to live in Austria.

Linz

Linz is the third-largest city in Austria and the cultural centre of the Upper Austrian province. Home to the River Danube, it is a popular leisure area with a good tram and bus system. Generally, it is less expensive than Vienna and Salzburg.

Graz

Filled with beautiful landscapes, cultural heritage, and fun nightlife, Graz is popular among all generations. It is located right in front of the Alpine area and is one of the most affordable cities in Austria. It is also a UNESCO World Heritage city. An individual expat retiree can expect to spend a monthly $652 on rent. Meanwhile, the monthly cost of living (including rent) is $2,310.

Sankt Pölten

Sankt Pölten is a beautiful retirement haven in the idyllic Lower Austrian countryside. Notable landscapes such as the Wachau Valley, a UNESCO heritage site, are located nearby. Numerous hiking trails lead through rolling hills, lush forests, and meandering meadows that retirees can explore. On average, the monthly cost of living is $2,144, which includes $741 spent on rent.

Klagenfurt

Set on the shores of the stunning Lake Wörthersee, Klagenfurt combines the appeal of outdoor living with an urban lifestyle. Lush greenery and the Alps make for a picturesque backdrop, offering a serene environment for retirees to call home. The city has a Mediterranean climate, ensuring pleasant summers, sunny winters, vibrant autumns, and mild springs. On average, the monthly cost of living for an individual expat retiree in Klagenfurt is $2,540, which includes $695 spent on rent.

Frequently asked questions