The end of the year is traditionally the moment when Austria’s tax advisers get very busy – but if you’re self-employed, a freelancer, or running a small business, you may be doing much of this planning and organising yourself.
Here are some of the most important and impactful things you can do now if you run a one-person business, work as a freelancer, or manage a small operation without a full corporate accounting department behind you.
Using depreciation rules to reduce your tax base
If you are planning to invest in equipment, tools, software, or vehicles, the way you depreciate those items can make a noticeable difference to your 2025 tax bill, according to the Austrian Economic Chamber (WKÖ).
Since 2020, Austria has allowed businesses to use declining balance depreciation of up to 30 percent for many new assets.
Accelerated depreciation is also available for buildings acquired or built after June 30th, 2020. This can matter for small landlords, co-working operators, or anyone investing in business premises, because the first-year depreciation can be three times the normal rate.
If none of this applies to you, the standard half-year depreciation rule remains useful. If you put a new asset into use before December 31st (even if you pay for it later), you can still take half a year of depreciation in 2025.
READ ALSO: The key deductions to make on your 2025 Austrian tax assessment
Low-value assets: the easiest way to reduce profit
Many self-employed people rely on the Geringwertige Wirtschaftsgüter (GWG) rule.
Anything you buy for up to €1,000 can be written off immediately in the year of purchase — no depreciation required. This is especially helpful for laptops, office furniture, small tools, or software licences purchased in November or December.
Year-end timing: when to bring purchases forward or delay income
If you use cash-basis accounting – which many freelancers and one-person businesses do – you still have some influence over your 2025 tax burden by carefully timing payments.
Paying for repairs, maintenance, or other business costs in December still reduces this year’s profit. Certain advance payments (for example, rent or consulting fees) are deductible only in the current or following year, so it’s worth double-checking the timing. Social contributions (SVS payments) can also make a big difference in your tax bill.
Income and expenses that regularly recur (such as subscriptions or insurance) can still be allocated to 2025 if they fall within 15 days before or after year-end.
This year, timing matters even more. Tariff thresholds will only rise by two-thirds of inflation in 2026, and the basic flat-rate allowance is also increasing. If you use a flat-rate system, deferring income into January may result in a lower overall tax burden because the 2026 flat-rate percentage will be higher.
READ ALSO: EXPLAINED: Why it's worth filling in your annual tax return in Austria
Tax-free allowance (GFB): automatic for the first €33,000 profit
The Gewinnfreibetrag (GFB) allows up to 15 percent of your profit to be tax-free, up to a maximum of €46,400. Everyone, including freelancers and micro-entrepreneurs, automatically receives the basic €4,950 allowance, provided their profit does not exceed €33,000.
If your profit is higher, you can claim the extended allowance if you invest in certain assets before year-end. This may make equipment purchases more attractive than saving the cash.
If you use a flat-rate system, only the basic €4,950 applies – investments do not increase your allowance.
Investment allowance (IFB): higher bonuses for purchases in November and December
The Investitionsfreibetrag is another tool that can lower your tax bill. For assets acquired or manufactured from 2023 onwards, you can deduct an additional 10 percent of the purchase price. For environmentally friendly assets, the rate is 15 percent.
From November 1st, 2025, to December 31st, 2026, these rates temporarily increase to 20 percent and 22 percent. For the last two months of 2025, the maximum eligible amount is €166,667, but anything above that can be added to the normal IFB or carried into 2026.
This can be particularly useful if you plan to buy equipment, technology, electric vehicles, or environmentally friendly machinery before year-end.
READ ALSO: What is your Austrian tax number, and where can you find it?
Hidden reserves, record-keeping and energy tax refunds
Self-employed people who sell older business assets may be able to transfer hidden reserves into new purchases. If you think this applies to you, it’s worth reviewing the specific conditions.
For the 2020 energy tax refund, the final deadline is December 31st, 2025. Since 2011, only production businesses are eligible – a detail especially relevant to small manufacturers.
Record-keeping rules matter too. On December 31st, 2025, the seven-year retention requirement for documents from 2018 expires. However, anything related to real estate or coronavirus aid needs to be kept for longer – check your particular case.
Donations and disaster relief
Donations from business assets are deductible up to 10 percent of annual profit when made to approved organisations.
For disaster-related support, donations are unlimited as long as your company receives some form of advertising benefit (for example, your business name being mentioned publicly).
READ ALSO: What foreign residents in Austria should know about taxes
Cash register rules and turnover thresholds
If your business uses a cash register, the annual receipt must be printed, signed, and stored at the end of December. The system must also undergo verification by February 15th, 2026. Data logs must be saved at least every quarter.
For freelancers or micro-businesses approaching the turnover thresholds: if your revenue exceeds €700,000 in two consecutive years or €1 million in a single year, you must switch to double-entry bookkeeping.
f your turnover stays below the threshold for two consecutive years, you can switch back from double-entry bookkeeping in the following year.
Useful end-of-year checks for freelancers and the self-employed
Two allowances are particularly relevant, the workplace allowance and the public transport deduction.
If you work from home and have no other business space available, you may claim either €1,200 or €300, depending on your other income level. Ergonomic furniture can be deducted separately up to €300.
Additionally, half the cost of weekly, monthly, or annual travel passes used for work can be deducted. The Klimaticket is included.
Special expenses (such as voluntary pension contributions or medical costs paid out of pocket) can still be deducted for 2025 if paid this year.
READ ALSO: Five tax benefits to help you save money in Austria
Key vocabulary
die Abschreibung – depreciation
das Wirtschaftsgut – business asset
der Freibetrag – tax-free allowance
die Betriebsausgabe – business expense
die Gewinnermittlung – method used to calculate profit
die Belegaufbewahrung – record-keeping requirement
This story is meant for information purposes only. Check with a tax advisor to learn more about your specific case. Any questions? Let us know in the comments below.
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