The arrest in Lower Austria was carried out by Cobra, Austria's elite counter-terrorism unit.
A spokesman for the prosecutor confirmed the arrest and said the man is a Russian citizen who holds a Belgian passport.
The man, who was on an international wanted list, threatened to detonate a bomb during his arrest (although it was later revealed he didn't have any explosives on him). Police used a sniffer dog to examine vehicles in the surrounding area.
Austrian authorities are not releasing further details about the arrest, but say that police have searched the suspect's house and have seized some computers.
It's the second terrorism-related arrest in the spa town of Baden within a few weeks. Last month another Russian national was arrested. It's unclear if the two men are connected in any way.
According to the Kurier newspaper the Chechen arrested this week had downloaded manuals with instructions on how to make a bomb.