Austria’s tax system can be challenging for both locals and foreigners to understand, especially when factors like travel, holiday homes, or remote work are involved. This can make determining tax residency even more confusing.
Under Austrian law, you are generally considered a tax resident if you spend six months in Austria during a calendar year. This is commonly known as the 183-day rule.
If you are an Austrian resident, you must pay tax on your worldwide income, including earnings from employment, business, investments, and property in other countries.
According to the federal government website: "Persons have their habitual residence in Austria if they are not only staying in the federal territory temporarily (holiday, business trip, visit etc.), but obviously for a longer period of time. In any case, after six months of residence in Austria, unlimited tax liability applies retroactively. Citizenship is not decisive here."
The 183-day rule
If you split your time between Austria and other countries, Austrian tax authorities will determine whether Austria is your main base for work, financial activities, or personal life.
They consider whether you own property, run a business, have a bank account, or have a family in Austria.
If you are not an EU citizen and do not have an Austrian visa, you can only stay in Austria for 90 days within 180 days. In that case, you will not qualify as a tax resident because you do not meet the 183-day rule.
Also, it is essential to remember that the 183 days you spend in Austria do not have to be continuous. Therefore, shorter trips outside of Austria usually do not affect your tax residency status if your primary work or personal connections are still in Austria.
READ MORE: Can you pay your Austrian taxes using a foreign bank account?
Proof of residency
In Austria, tax authorities consider several factors to determine how much time you spend in the country every year.
When the authorities want to determine your time in the country, they do not rely only on passport stamps, especially because Austria is part of the EU’s open-border system, which allows travel without checks between most neighbouring countries.
So, instead of just tracking stamps, Austrian authorities look at other indicators.
Owning or renting a property in Austria is one of the strongest signs of residency, especially if it is registered as your main address. Authorities can also check vehicle registrations, employment records, tax returns, memberships in gyms or clubs, and mobile phone records to see if you are actively using services in Austria.
Your banking activity also matters, and frequent use of Austrian credit cards or local bank accounts, along with consistent purchases of train, bus, or flight tickets within Austria, can suggest a strong connection to the country.
For some, like high-income earners or public figures, Austrian authorities might even use online activity, such as tracking movements through social media posts. For most people, this is not very likely, but if there is any question about where you live, these details could come up in an investigation.
If you want to show that you are based in another country, you can provide similar records to support your claim.
In some situations, obtaining a tax residency certificate can be a good idea. Austria has tax treaties with many countries to avoid double taxation.
If you earn income abroad or live in a country with a tax treaty with Austria, the tax authorities will consider these factors when determining your tax obligations.
READ ALSO: Do I have to register and pay taxes in Austria if I’m a remote worker?
Taxes on vacation homes
You cannot be considered a tax resident in Austria only by owning a holiday home.
Therefore, if you own a holiday home in Austria but live there for less than 183 days per year, you will not be considered a tax resident.
However, you will still need to pay property taxes, waste collection fees on the home, and other local fees.
The municipalities have the authority to establish their own rates. Therefore, it can be a good idea to learn about local regulations in the area where you plan to buy property.
Digital nomads in Austria
Austria does not offer a specific digital nomad visa like some other countries. Therefore, if you are not from an EU member state, you can only stay in Austria for a limited time as a digital nomad.
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