Austria

{"ftc_utility":"high","fbar_trigger_notes":"Austrian residents are required to have a local bank account for many practical purposes (salary payment, utility bills). Accounts at Austrian banks such as Erste Bank, Raiffeisen, and Bank Austria will trigger FBAR filing requirements if aggregate balances exceed $10,000 at any point during the year. FATCA reporting applies - Austrian financial institutions report US person accounts to the IRS under the Austria-US IGA (Model 1, signed 2014).","ftc_utility_reason":"Austria has a worldwide income tax system with rates up to 55%. Austrian income taxes paid on the same income taxed by the US generate substantial foreign tax credits, effectively eliminating US double taxation for most expats with significant income. The FTC is generally more useful than the FEIE for higher earners given Austria's top marginal rates exceeding the FEIE exclusion threshold.","presence_day_count_notes":"Austria is a Schengen member. US citizens can enter and remain for up to 90 days in any 180-day period visa-free. Establishing residency requires registration (Meldezettel) and either an EU right of residence or a national visa/permit. Long-term stay requires a Red-White-Red Card, Blue Card, or similar permit. The 330-day physical presence test is achievable once legal residency is established, but the 90-day Schengen limit prevents qualifying without formal registration and a valid residence permit.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.48,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Austrian-source pension income (including the statutory Pension Insurance, Pensionsversicherung) is taxed at progressive income tax rates. A pension-specific deduction (Pensionistenabsetzbetrag) of up to EUR 954 per year applies for lower-income pensioners. Foreign pension income received by Austrian residents is also generally taxable in Austria, subject to treaty provisions. Effective rates depend on total income.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"Under Article 18 of the US-Austria tax treaty, US Social Security benefits paid to Austrian residents are taxable only in the US, not in Austria. This provides clear protection against Austrian taxation of US Social Security income.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Austria does not recognize the Roth IRA as a tax-exempt vehicle. Distributions may be treated as pension income and subjected to progressive income tax. The tax-free character of Roth distributions under US law is not respected for Austrian tax purposes. US citizens in Austria with Roth accounts should seek specific tax advice, as treaty treatment is ambiguous and Austrian tax authorities may assess tax on the full distribution.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The 1996 US-Austria income tax treaty (as amended by the 2004 protocol) generally allows the US to tax US-source pension and retirement distributions paid to US citizens resident in Austria. Austria may also tax these distributions as pension income under domestic law, but the treaty generally limits double taxation through the foreign tax credit mechanism. Article 18 of the treaty covers pensions. Distributions are taxed at progressive rates applicable to pension income. The treaty does not specifically exempt 401(k) or IRA distributions from Austrian tax, but credits for US taxes paid should offset Austrian liability.","tax_rate":null,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.275,"notes":"Austria taxes capital gains on securities, dividends, and investment income at a flat 27.5% (Kapitalertragsteuer). Real property gains are taxed at a flat 30% via the Immobilienertragsteuer.","details":{"tax_type":"Capital Gains Tax","country_name":"Austria","country_iso_code":"AUT","source_references":["PwC Worldwide Tax Summaries - Austria","Austrian Federal Tax Authority (BMF)","KPMG Austria Tax Profile"],"last_verified_date":"2026-06-03","general_description":"Austria applies a flat 27.5% withholding tax on capital gains from securities and financial instruments. Gains from real estate disposals are subject to a separate flat rate of 30%. These rates apply regardless of holding period. Both are final settlement taxes withheld at source in most cases. The option to apply the standard progressive income tax rate exists if it results in a lower liability (Regelbesteuerungsoption).","corporate_capital_gains":{"rate":0.23,"tax_treatment":"Taxed as ordinary corporate income at the standard CIT rate of 23% (reduced from 25% effective 2024). Participation exemption may apply to gains on qualifying shareholdings."},"individual_capital_gains":{"rate":0.275,"tax_treatment":"Flat 27.5% final withholding tax (KESt) on gains from shares, bonds, mutual funds, and other financial instruments. Real property gains taxed at flat 30% (ImmoESt). Progressive rate election available if marginal rate is lower."}}}

{"notes":"Dividends received by Austrian residents are subject to a 27.5% flat withholding tax (Kapitalertragsteuer), which is generally a final tax. Dividends paid to non-residents are also withheld at 27.5%, subject to reduction under applicable tax treaties. The EU Parent-Subsidiary Directive may exempt qualifying corporate recipients.","rates":[{"rate":0.275,"type":"withholding","notes":"Standard flat KESt rate on dividends paid to residents and non-residents. Final tax for resident individuals in most cases."},{"rate":0.275,"type":"withholding","notes":"Non-resident withholding rate before treaty reduction. Reduced to 15% under the US-Austria tax treaty for qualifying dividends (5% for corporate holdings of 10% or more)."}]}