Working In Austria: Opportunities For Americans

Austria is a popular destination for expats due to its rich culture, high salaries, and beautiful scenery. However, finding a job in Austria as an American can be challenging. Most Americans who relocate to Austria do so through a transfer within their company. For those seeking employment in Austria, it is important to note that European passport holders have the right to live and work in the country, while non-EU citizens typically need a work visa or permit. The process of obtaining a work visa can be complex, and it is recommended to consult with an immigration specialist to navigate the requirements. Networking and personal connections are highly valued in Austria, so leveraging any personal contacts can be advantageous when seeking job opportunities. Additionally, basic German language skills can improve one's chances of securing employment in the country.

Work permits and visas

Whether or not you need a work permit to work in Austria depends on your nationality and the type of work you will be doing. If you are a citizen of an EU-member state, you can work in Austria without a permit, but you must register your stay with local authorities if you will be there for more than three months. If you are not a citizen of an EU-member state, you will likely need a visa or permit to live and work in Austria.

Most migration to Austria is regulated by a points-based system of visas known as the Red-White-Red Card. This system grants residence based on the skills of potential workers and the shortages in the Austrian labour market. There are several ways to qualify for a Red-White-Red Card, depending on your skill level, qualifications, and type of work. To qualify as a very highly qualified worker, you must score more than 70 points on the points-based scheme. This scheme awards points for things like professional qualifications, work experience, language ability, and previous salary levels.

To get the Red-White-Red Card, you must already have a job lined up. However, there is a second option called the Red-White-Red Card Plus, which allows you to enter Austria to work without a specified employer sponsoring you. This card is issued under certain circumstances and has strict criteria. If you have already held a Red-White-Red Card for 10 of the preceding 12 months, you can upgrade to the Plus version, which grants unlimited labour market access.

Another option is to apply for the Red-White-Red Card under the shortage occupations stream. For this, you must score at least 50 points on the points-based test. However, this method only covers a limited number of roles, with 11 job areas included as of March 2017. If you are being considered for a key worker position and are offered a job that pays above the minimum monthly wage, you may also be able to get the Red-White-Red Card through a separate entry scheme.

If you are planning to work in Austria for a short period of time, you may be eligible for a temporary residence visa or a seasonal worker visa. Seasonal worker visas are available for those working in tourism, agriculture, and forestry, and they are only issued if the work cannot be done by a local person. Visas for agricultural harvest work are valid for a maximum of six weeks, while other seasonal worker visas are valid for up to six months.

If you are a student in Austria on a student visa, you are not allowed to work. However, you can apply for a specific employment permit that will allow you to work 10 or 20 hours per week, depending on your course. Depending on your age and nationality, you may also be able to apply for a working holiday visa, which allows you to work and study in Austria.

To obtain a work visa, you will need to submit the relevant documents at your local Austrian embassy or, if you are already in Austria, to the local authorities. There is a fee for the paperwork: a job seeker visa costs €100, and the Red-White-Red Card costs €120. For all applications, you will need a valid travel document, evidence of planned accommodation, valid health insurance, and proof of adequate financial support. You will also need to provide evidence for any claims you make as part of the points calculation, such as degree certificates, tax statements, testimonials of work experience, and proof of language skills.

Job market and opportunities

Austria is one of the richest countries in the European Union, with a strong economy and a high standard of living. It offers a mix of cosmopolitan cities, stunning countryside, and a high quality of life. As such, it is a popular place for expats to live and work. However, finding a job in Austria can be challenging, especially for Americans who do not have EU citizenship.

European passport holders can live and work in Austria without a work permit, but they must register their stay with local authorities if they plan to stay for more than three months. On the other hand, Americans and other third-country nationals typically need a visa or work permit to work in Austria. The process of obtaining a work visa can be complex and may involve a points-based system or specific requirements for certain occupations.

Vienna, the capital of Austria, contributes approximately 25% of the country's GDP and has strong real estate, engineering, banking, business, and tourism sectors. The city also has a thriving media industry, with many newspapers, radio stations, and television channels headquartered there. Additionally, Vienna is a major business hub, attracting branches and headquarters of multinational corporations.

Expats seeking employment in Austria should utilise online job listings, social networking sites like LinkedIn, and personal contacts. Networking and personal relationships are highly valued in Austrian business culture, and most companies have a hierarchical structure where senior positions are highly regarded.

For Americans seeking to work in Austria, it is important to note that there may be a preference for hiring EU citizens due to less complex visa processes. To increase their chances of employment, Americans should focus on jobs that require specific skills or qualifications that are in high demand and may be lacking in the local workforce. Additionally, learning basic German can be advantageous when applying for jobs, especially in Vienna.

Austria offers several types of work visas, including the Red-White-Red Card, which is based on a points system that considers skills, qualifications, work experience, language ability, and salary levels. The EU Blue Card is another option for highly skilled workers, similar to the US Green Card, which allows individuals to work across most EU member states.

In summary, while Austria offers a range of job opportunities, particularly in strong industries like engineering, banking, and tourism, the job market can be competitive, especially for Americans who need to navigate the complexities of work visas and permits. Networking, personal connections, and in-demand skills can increase the chances of finding employment in this desirable expat destination.

Work culture

Austria is a popular place for expats to live and work, with many attracted to its rich culture, history, and nightlife. Vienna, in particular, is a well-connected city with a high average salary and a vibrant mix of urban centres and stunning countryside.

However, finding a job in Austria is not easy, and most expats who relocate to the country do so as a result of a transfer within their company. For those who are not transferred by their company, there are several options for obtaining a work visa.

The majority of immigration to Austria is regulated by a points-based system of visas known as the Red-White-Red Card. This system grants residence based on the skills of potential workers and the shortages in the Austrian labour market. To qualify as a very highly qualified worker, you must score more than 70 points on the points-based scheme. Under this system, you score points for things like your professional qualifications, work experience, language ability, and previous salary levels.

Another option for workers in in-demand occupations is to apply for the Red-White-Red Card under the shortage occupations stream, for which you need to score at least 50 points. However, there are only a limited number of roles covered by this method, with 11 job areas included as of March 2017.

If you are a citizen of an EU-member state, you can legally work in Austria without any special documentation. However, if you are from outside the EU, you will need to obtain a work permit. While English is generally spoken in business circles, speaking some basic German will be advantageous when it comes to securing a job.

Vienna, the capital of Austria, has a definite hierarchical structure in its work culture, and those in senior positions, particularly those with high qualifications and many years of experience, are highly regarded and deferred to. Viennese work culture is based on the concept of Sozialpartnerschaft, or social partnership, which promotes cooperation and dialogue in matters relating to industrial relations. It is important for expat entrepreneurs and business owners to work closely and cooperate with local business partners and Austrian subsidiary companies.

Taxes

US citizens and permanent residents living in Austria are subject to both US and Austrian tax laws. They are required to file a tax return with the Internal Revenue Service (IRS) every year, reporting their worldwide income.

In Austria, anyone who earns an income in the country must file a tax return, including foreign nationals. Residents and non-residents are subject to income tax, which is called 'Einkommensteuer' in Austria. Residents have an unlimited tax liability, whereas non-residents have a limited tax liability.

Tax Residency in Austria

You are considered a tax resident in Austria if you have a permanent home in the country or spend more than 183 days in Austria during a calendar year. Tax residency status affects your tax obligations and the amount of tax you are required to pay.

Income Tax in Austria

Residents are taxed on a progressive scale, paying between 0% and 55% depending on their income level. Non-residents are only taxed on income earned in Austria, not foreign income. The tax year in Austria is the calendar year, and the deadline for filing income tax returns is April 30 for paper returns and June 30 for electronic returns.

Other Tax Situations in Austria

• Self-employed individuals must register with the Social Insurance Institution for the Self-Employed if their gross annual income exceeds €5,830.20. They are also subject to income tax.
• Businesses must pay a flat corporate tax rate of 25%.
• Value-added Tax (VAT) is paid by Austrian consumers when buying goods or services and is 20% for most items.
• There is no wealth tax, inheritance tax, or gift tax in Austria.
• Property tax is an annual tax levied by local authorities, calculated as a percentage of the assessed value of the property.
• Luxury and excise taxes are levied on certain luxury and consumer goods, such as tobacco, alcoholic beverages, and energy products.

Housing

The housing market in Austria is varied, with options ranging from charming wooden alpine lodges and cozy cottages in the mountains to urban period houses and renovated flats and chic studio apartments. The rate of homeownership in Austria is increasing and stood at 55.4% in 2018, though it sits below the European average of 69%.

The average cost of a new house in Austria is €359,000, though this varies across the country. Styria has an average of just over €300,000, while Lower Austria is up at €338,000. The average monthly rent in Austria is €390, though this also varies across the country. Carinthia has the lowest average at €310, while Vorarlberg is the highest at €500. Vienna, the capital, has the highest average rent within the city at €390.

If you're looking to rent in Austria, you can expect to need proof of identity, proof of employment, your Austrian visa, and references from previous landlords. Leases typically last for three years, with a three-month notice period and a security deposit of one month for each year. Renting is done through real estate agents, who will charge up to two months' rent for the service.

If you're looking to buy a home in Austria, you can expect to pay:

• Estate agent's fee: 3% to 4% of the property value
• Legal fees: 1% to 3% of the property price + 20% VAT
• Property transfer tax: 3.5%
• Notary fee: up to €120 per person + 20% VAT
• Registration duty: circa €400

There are plenty of protections for renters in Austria, as landlords have a plethora of obligations to their tenants. However, buying property is also fairly straightforward. Though the initial costs are high, property in Austria is affordable and considered a solid investment.

Austria has a strong commitment to social housing, with the government co-financing many new builds. Social housing is designed for a mix of incomes, not just low-income households, and includes thoughtful elements such as childcare facilities, swimming pools, and well-kept communal gardens. More than 60% of Viennese residents live in subsidized housing. To qualify for social housing, you must have legal residence in Austria for at least five years, and the subsidy only applies to flats that are your primary residence.

If you're looking to build your own home, sustainable housing is built into the fabric of the Austrian housing market. All new properties in the country use energy-efficient materials and green energy solutions, though these new builds will be pricier.

Frequently asked questions