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EXPLAINED: What can I deduct from my tax bill in Austria? 

It's tax time in Austria. Here's your guide to some common deductions.

A home office is one of the ways you can claim tax back as a freelancer (Photo by Ina FASSBENDER / AFP)
A home office is one of the ways you can claim tax back as a freelancer (Photo by Ina FASSBENDER / AFP)

Austria may be a great place to live and start a business but the more you earn, the more taxes you will have to pay.

So how can you get back some of your hard-earned money when completing a tax declaration as a freelancer in Austria?

The Local spoke to SEA – Services for self-employed and Tax Advisor Alexandra Kaspar to find out. 

What can you deduct?

First of all, there are many items you can deduct from your tax bill. If you are self-employed, you can deduct all expenses related to your business from your revenue.

For example :

  • office costs including costs for working from home
  • training costs
  • car and transportation, travel expenses
  • communication expenses
  • office supplies
  • liability insurance and other insurances, which are related to your business
  • social security contributions (SVS) (but only what you paid so far for the relevant year).

READ MORE: Everything you need to know about paying tax in Austria

For some of the items mentioned above especially working from home, training and car/transportation costs, there are special circumstances and regulations.

What about a flat tax deduction rate?

Many people decide rather than claiming back the tax for every individual item, they would rather apply a flat tax deduction rate. 

In this case, as long as your annual revenue does not exceed €220,000, you can apply a tax deduction rate (Betriebsausgabenpauschalierung) of 6 percent or 12 percent depending on your business or activity.

This saves you having to collect bills for all your expenses. 

After deducting the flat tax deduction rate, you can still subtract your social security (SVA) contributions.

READ MORE: Being self-employed in Austria: What you need to know

The Raiffeisen Bank in Austria  (Photo by ALEXANDER KLEIN / AFP)

New flat rate for small businesses

From 2020 onwards, another flat rate has been introduced for small businesses: up to an annual revenue of €35,000, the flat rate for expenses will be 20 percent for service providers and 45 percent for other businesses, for example trading businesses. 

Social security contributions can also be deducted in addition to the flat rate. 

From 2021 onwards, this rule is connected to VAT exemption for small businesses (this is also applicable even if the small business “opts to apply VAT”), and can therefore be applied up to a revenue of €42,000.  

There is an upper limit of €8,400 for expenses which can be deducted for businesses which provide services and an upper limit of €18,900 for other businesses. 

After the deduction of actual expenses or the flat rate and social security contributions, you come up with the amount of your actual profit. 

Additional tax free profit allowance

An additional 13 percent tax-free profit allowance (Grundfreibetrag) can then be deducted from the net amount for business with profit up to €30,000. 

If your profit before the 13 percent allowance amounts to more than €30,000, an additional 13 percent allowance may apply to the extra amount, if it is covered by certain investments into business assets (Gewinnfreibetrag). 

You can use this tax calculator to calculate your income tax

When does it make sense to claim individual expenses rather than the flat rate?

Tax Advisor Alexandra Kaspar says that sometimes it makes sense for service providers to claim for individual expenses instead of choosing a flat rate, especially when there are big costs related to materials, equipment and rent for an office. 

This could be the case for therapists or physiotherapists renting an office, artists with their own studio or film production companies for example.

Some companies have a big amount of expenses in the first year and this is when it’s more beneficial for them to collect bills rather than claim back the flat rate of tax.

What else can I deduct from tax?

If you are eligible to deduct expenses for an office in your private apartment (i.e. when working from home) you may deduct:

  • a part of the rent
  • a part of electricity and gas costs
  • a part of the costs of furnishing the room 
  • maintenance of the room and the furnishings
  • work equipment such as computers, fax machines, printers, etc (deductible even if they are set up in a room that doesn’t match the deduction requirements)

Further education

  • work equipment and work documents
  • transportation costs
  • accommodation costs
  • specialist literature (job-related literature or literature to improve job opportunities)
  • office and writing materials
  • part of the telephone and internet costs

Other deductibles:

  • consulting costs (e.g. from lawyers, tax consultants)
  • interest on debt (for liabilities related to your business)
  • contributions for compulsory memberships, for example the Chamber of Commerce (WKO)
  • advertising expenses

You can learn more about all the possibilities for deductibles at

SEA – Services for self-employed is designed to support self-employed individuals by delivering information in form of guidebooks and free articles in English. 

You can find out more in their guidebook on self-employment aimed at those who fall into the New self- employed (Neue Selbständige) working category.

Useful vocabulary

Tax – Steuer

Steuerberater/ Steuerberaterin – Male tax adviser/ Female tax adviser

Flat tax deduction rate – Betriebsausgabenpauschalierung

Tax-free profit allowance  – Grundfreibetrag

Business assets – Gewinnfreibetrag 

New self-employed – Neue Selbständige

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Austria’s beaches ‘second cleanest in Europe’

Bathing waters at more than four out of five beaches in the European Union are of "excellent" quality, with Cyprus, Austria and Greece topping a European Environment Agency list published on Tuesday.

Austria's beaches 'second cleanest in Europe'
A man carries a paddle board on the dock of a hotel in Grundlsee. Photo: BARBARA GINDL / APA / AFP

A total of 82.8 percent of the 22,276 bathing sites studied across Europe in 2020 had “excellent” water quality, while 92.6 percent met the minimum standard, “sufficient”.

These figures are about two percentage points below those for 2019, the EEA said, attributing it to a greater number of beaches where no data was collected last year due to the pandemic.

The lack of data mainly affected Poland and Britain, which is still included in the report for 2020 despite Brexit.

Water quality continues to improve in Europe, with only 1.3 percent of sites reporting “poor” water quality, compared to 1.4 percent in 2019 and almost 2 percent in 2013.

READ MORE: Austrians world’s best at baring all on the beach

Under EU rules, bathing water sites that have been classified as “poor” for five consecutive years are slapped with a permanent ban.

Cyprus was the only country to register a perfect score in the 2020 standings, with 100 percent of its bathing sites boasting “excellent” water quality, ahead of Austria (97.7 pct), Greece (97.1 pct), Malta (96.6 pct) and Croatia (95.1 pct).

They were followed by Germany (89.9 pct), Italy (88.6 pct), Spain (88.5 pct), Belgium (79.7 pct) and France (77.5 pct).

Around two-thirds of bathing sites in the EU are located along sea coasts, which are generally cleaner, and one third are located inland.

According to the EEA, the percentage of European bathing waters achieving at least “sufficient” quality increased from just 74 percent in 1991 to over 95 percent in 2003, and has remained relatively stable since then.

The number of bathing sites in the European Union has nearly quadrupled in the past 30 years due to the expansion of the EU and the growth of the tourism and leisure industry.