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If you're considering self-employment in Austria, there are several important steps you need to take to ensure compliance with the law. The process can be complex, especially for expats, as it involves various registrations, licences, and insurance requirements. The first step is determining whether you fall into the category of a freelancer or a self-employed individual, as this will impact the specific regulations and procedures you need to follow. In either case, you must ensure you have the right to work in Austria, which typically requires residency rights or citizenship of an EU or EEA country. This article will guide you through the process of registering as self-employed in Austria, covering topics such as tax registration, insurance obligations, and the advantages and disadvantages of self-employment in the country.
| Characteristics | Values |
|---|---|
| Registration Process | Online registration through FinanzOnline, the official portal of the Austrian Tax Office, or the traditional way of sending a form by mail |
| Requirements | Work visa or residency rights in Austria, a trade permit (occupation-dependent), health insurance, and social security |
| Registration Deadline | No explicit deadline, but early registration is recommended to avoid penalties |
| Insurance | Compulsory insurance contributions, including health, pension, and accident insurance |
| Taxation | Liable for income tax but not wage tax; must submit an income tax return (Form E1) to the tax office |
| Visa | Self-employed individuals can register a company and sponsor their working visa |
| "New Self-Employed" Category | Includes authors, experts, translators, musicians, artists, writers, journalists, lecturers, (self-employed) nurses, midwives, scientists, self-employed psychologists, and therapists |
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What You'll Learn
Registering online or by mail
Registering online is the recommended way to register as self-employed in Austria, as it gives you access to all the online authority channels. The first step is to open a FinanzOnline account, which is the official portal of the Austrian Tax Office. You will need to fill in all the required information, and you will then receive the access data (your Login, PIN, and password) by mail within about ten weekdays. Once you have these login details, submit a request to get your tax number on FinanzOnline. If you already have a tax number, go to the "More services" ("Weitere Services") category and choose "Explanation of change" ("Erklärungswechsel"). This form applies only if you are earning an income from self-employment. It takes about 5-10 business days for FinanzOnline to process your request, so if you don't hear from them after ten days, contact your tax office and ask if there is any other information or documents you need to submit.
Having a mobile phone signature will streamline and speed up many operational tasks, so it is worth getting one. You can use the mobile signature to sign documents, access your SVS Online account, and register at the USP Portal for entrepreneurs. To get a mobile signature, go to "Aktivierung Handy-Signatur" (Mobile Signature Activation) and follow the steps. Once the mobile signature is ready, you will receive the activation confirmation by mail to the address you provided on the portal.
As a self-employed person in Austria, you must also register with the Social Insurance Institution. This is called Sozialversicherungsanstalt der Selbständigen, or SVS for short, and it handles social contributions for the self-employed. You must also notify the tax office and register in the commercial register. If you are a freelancer, you will need to complete these formalities and also register for freelance tax in Austria, as well as health insurance and social security.
If you would rather not register online, you can register by mail by sending in a form. However, this is not recommended as it does not give you access to the online authority channels.
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Getting a work visa or residency rights
If you are planning to immigrate to Austria as a self-employed person, you will need to obtain a residence title or visa. The type of visa or residence permit you need will depend on the length of your stay and the nature of your work.
If you are an EU citizen, you can apply for various residence titles that are available in Austria and engage in self-employed work. To obtain a residence title, you must meet the specific conditions of the title and prove that you meet the general conditions for residence titles in Austria, including having adequate accommodation that meets Austrian standards.
If you are a non-EU citizen, you can apply for a Red-White-Red Card for Self-Employed Key Workers if your occupation in Austria creates macroeconomic benefits beyond operational benefits. This includes creating new jobs, securing existing jobs, transferring know-how or new technologies, or having a company that is of considerable significance for the entire region. To qualify, you must also provide proof of an investment transfer of at least €50,000, with at least 50% derived from equity capital.
If you are a third-country national, you can apply for the Red-White-Red Card for Self-Employed Key Workers if your occupation in Austria offers high added value, provides an impetus, or has an outstanding positive effect on Austria's economic development ("macroeconomic benefits"). You can also apply for the Red-White-Red Card for Startup Founders if your future company will provide an innovative enrichment to the Austrian economy. To qualify as a startup founder, you must provide proof of an investment transfer of at least €30,000, with at least 50% derived from equity capital, and achieve sufficient points within a legally stipulated points system.
If you plan to stay in Austria for less than six months, you can obtain a Visa C (for up to three months) or a Visa D (for up to six months) instead of a residence permit. If you receive a Red-White-Red Card, you can usually obtain a Red-White-Red Card Plus after two years.
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Registering for freelance tax
To register for freelance tax, you can follow these steps:
- Ensure you have the right to work in Austria: Before embarking on your freelance journey, confirm your eligibility to work in the country. You must possess residency rights or be a citizen of an EU or EEA country. Holding a residence permit that authorises self-employment is also acceptable.
- Choose your registration method: You can register online through the FinanzOnline portal, which is the recommended method as it provides access to various authority channels. Alternatively, you can opt for the traditional route of submitting the registration form by mail.
- Open a FinanzOnline account: Sign up on the official portal of the Austrian Tax Office, providing all the necessary information. You will receive your login credentials, including a PIN and password, within approximately ten weekdays.
- Request a tax number: Once you have access to your FinanzOnline account, submit a request for your tax number. If you already possess a tax number, navigate to "More services" and select "Explanation of change."
- Register with the Social Insurance Institution: Self-employed individuals are required to register with the Social Insurance Institution (SVS) for health, pension, and accident insurance. This ensures you are compliant with compulsory insurance requirements.
- Submit an income tax return: As a freelancer, you are liable for income tax. You must submit an income tax return (Form E1) to the tax office within the specified timeframe. Deadlines may vary depending on whether you utilise the services of an accountant or tax advisor.
- Optional trade permit: Depending on your occupation, you may need to obtain a trade permit. However, certain occupations falling under the "'new self-employed' category, such as authors, experts, translators, and musicians, are exempt from this requirement.
- Local Economic Chamber Office (WKO): Most of the registration process can be facilitated through your local WKO. They will guide you through the necessary forms and documents, such as identification, proof of address, and your police record. A yearly fee of approximately €100 is payable to the WKO.
- VAT registration considerations: If your annual gross income exceeds EUR 35,000, you will need to register for Value Added Tax (VAT). However, if your income falls below this threshold, VAT registration is not obligatory, as your business is classified as a small business.
- Mobile phone signature: Consider obtaining a mobile phone signature to streamline and expedite operational tasks. This allows you to sign documents, access your SVS Online account, and register at the USP Portal for entrepreneurs.
By diligently following these steps, you can successfully register for freelance tax in Austria and ensure compliance with the necessary legal and administrative requirements.
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Registering for health insurance and social security
When it comes to registering for health insurance and social security as a self-employed person in Austria, there are a few key things to keep in mind. Firstly, self-employed individuals in Austria are insured through the Social Insurance Institution for the Self-Employed, known as SVSSVS or SVS for short. This institution is automatically notified of your business establishment by the Austrian Trade Licensing Office, so you are not required to register independently. However, it is important to distinguish between entrepreneurs, business partners, and freelancers, as these categories have different requirements.
Freelancers, such as doctors, architects, tax consultants, and journalists, are considered independent employees and are generally not subject to trade tax. On the other hand, tradespeople require a trade license and are subject to trade tax. If you require an Austrian trade license or are a liable partner of specific company types (OG, KG, or GmbH), you must take out insurance. Registering a business license typically means mandatory insurance is required, though exemptions may apply under certain conditions.
The amount of social security contributions, or "contribution rates", depend on your classification as a worker, employee, apprentice, or marginally employed person. If you are both employed and self-employed, your insurance is determined by your highest source of income. If your salary is higher than your self-employed income, you are insured with ÖGK, and vice versa. If your earnings are below the marginal earnings threshold, you are subject to the same self-insurance rates as marginally employed workers.
It is important to note that unemployment insurance is not automatically included in the social insurance for the self-employed. However, you can voluntarily register for unemployment insurance to ensure you are entitled to benefits when you stop working. Additionally, as a self-employed person, you are liable for income tax and must submit an income tax return (Form E1) to the tax office. This tax return is used to calculate your definitive assessment base, which, in turn, determines the final assessment base for your social security contributions.
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Registering with the Social Insurance Institution
To register as self-employed in Austria, you must first ensure that you have residency rights in the country. This means that you must be a citizen of an EU or EEA country or already have a residence permit that entitles you to be self-employed. Once you have confirmed your eligibility, you can proceed with the registration process.
The new self-employed in Austria are required to register with the Social Insurance Institution, known as the Sozialversicherungsanstalt der Selbständigen or SVS. This registration is necessary to comply with compulsory insurance requirements, which include health, pension, and accident insurance. Those who fail to register on time will be charged an additional 9.3% on top of their insurance contributions. Therefore, it is advisable to initiate the registration process as early as possible.
To register with the SVS, you will need to provide various documents and information. This typically includes identification, proof of address, and a police record. You will also be required to submit an income tax return (Form E1) to the tax office. Additionally, ensure that you have a work visa or residency rights in Austria before commencing the self-employment journey.
The registration process with the SVS can be facilitated through the USP Portal for entrepreneurs. Before registering with the SVS, it is recommended to open a FinanzOnline account, which serves as the official portal of the Austrian Tax Office. By submitting a request through FinanzOnline, you can obtain your tax number, a crucial component of your financial and administrative setup as a self-employed individual in Austria.
Overall, registering with the Social Insurance Institution in Austria is a crucial step for new self-employed individuals to ensure compliance with insurance requirements and facilitate their professional journey in the country.
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Frequently asked questions
To register as self-employed in Austria, you must have residency rights in the country. This means you must be a citizen of an EU or EEA country, or already have a residence permit which entitles you to be self-employed. You will also need to register for freelance tax in Austria, as well as health insurance and social security.
There are two ways to register as self-employed in Austria: online or by sending a form by mail. The online method is recommended as it gives you access to all the online authority channels. To do this, you must first open a FinanzOnline account and fill in all the required information. Once you receive your login information, submit a request to get your tax number.
One of the biggest advantages of being self-employed in Austria is that you can register a company and sponsor your own working visa. Additionally, you will have the freedom to work for yourself and be your own boss.
