United States Department of State

Austria United States Department of State

Observers do not expect Austria's positive view of foreign direct investment to change under the current coalition government between the center-left Social Democratic Party (SPÖ) and the center-right People's Party (ÖVP), which began its most recent five-year term on December 16, 2013. Austria is particularly welcoming of foreign direct investment that creates new jobs in high technology fields, promotes capital-intensive industries, and has links to R& D activities, for which special tax incentives are available. Officials are also conscious of ensuring that investments avoid a negative impact on the environment. Austria is a high-tax country overall with a heavy personal income tax burden. However, due to a relatively low 25% corporate tax rate, it is attractive as a business headquarters location. Including tax base adjustments, experts estimate the effective corporate tax burden at no more than 22%.