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Why Is Austria an Attractive Country for Investors?

Updated on Monday 27th April 2020

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Why-is-Austria-an-attractive-country-for-investorsSince 1995 when it joined the European Union, Austria has rapidly ascended as one of the most powerful economies in Europe and one of the most industrially developed countries in the world. Foreign companies with branch offices and subsidiaries in Austria have contributed to the expansion of the country’s economy indicating that foreign investors are very attracted by the business environment here. The high living standards, the infrastructure and the well-developed industry were the main incentives for foreign investors who came to Austria until now.
 
If you want to open a company in Austria and need assistance with the company formation process, you can rely on our consultants.
 

Foreign direct investments in Austria

 
Fitch, Moody’s and Standard and Poor’s, the three largest credit rating agencies in the world, have offered high ratings to Austria during the last few years which was a very strong reason for foreign investors to choose Austria as their business destination. Austria attracted foreign direct investments worth an average 5 billion euros in the last few years.
At the moment, Austria is one of the largest exporters in Europe and is one of the easiest countries to do business in, according to the World Bank, which are two other reasons that make this country very attractive to foreign investors who are mainly interested in industries like pharma and research and development. It is also known that the Government offers many tax breaks to Austrian companies in the research and development field.
 
Our company registration agents in Austria can offer information on the available tax incentives.
 

Why do foreign investors come to Austria?

 
Austria is one of the most stable economies in the world and boasts one of the most skilled labor forces in Europe which are some of the most powerful arguments foreign investors rely on when choosing to open companies here. Also, Austria offers one of the most favorable set of foreign investment legislations in the world which is what makes and will make the country one of most attractive places to do business in. Among the industries bound to grow in the following years, analysts say that banking, transportation and agriculture are highly to render the best returns on investment.
 

What are the main laws governing foreign investments Austria?

 
First of all, Austria does not discriminate between local and foreign investors, which is why the Commercial Code provides the same requirements for both types of enterprisers seeking to open companies here. The most important Austrian laws governing foreign investments are:
 
  • -          the Civil Law;
  • -          the Limited Liability Company Law;
  • -          the Stock Exchange Law;
  • -          the Joint Stock Company Law;
  • -          the Employment Contract Adaptation Law;
  • -          the Reorganization Tax Law.
 
Austria also included most of the EU directives in its national laws. Among these, The Law on Societas Europea, the EU Merger Law and the EC Merger Regulation which provide for EU investors interested to expand their foreign companies in Austria without further requirements from the local authorities. Additionally, Austria has enabled several laws related to specific industries foreign investors are most interested in. Among these, the financial and the trading industries.
 

What are the most important incentives for foreign investors in Austria?

 
Apart from the legislation related to foreign investments in Austria, the government also offers a wide range of incentives which are adapted every year to the investors’ needs. Among these are:
 
  • -          industry-targeted cash incentives;
  • -          subsidies;
  • -          tax rebates;
  • -          guarantees related to exports;
  • -          loans with preferential interests.
Apart from these, Austria ensures a strong protection of intellectual property rights which is very important for the research and development industry.
 

The Austrian Company Law encourages investments

 
The Company Act is the main law providing for the opening of companies in Austria. Foreign investors have the following advantages if they decide to set up businesses here:
 
  • -          the Austrian Company Act provides for a wide variety of entities which can be registered in Austria;
  • -          foreign investors can open all the types of companies prescribed by the Company Law;
  • -          foreign entrepreneurs will follow the same regulations as local ones when it comes to the requirements for creating businesses;
  • -          the requirements for opening a company in Austria are minimum, implying at least one shareholder and one director;
  • -          the company registration procedure can be completed remotely.
You can give power of attorney to our company registration consultants in Austria who will incorporate the company on your behalf.
 

The most prolific investment industries in Austria

 
Foreign investors wondering why they should open companies in Austria must know that in terms of investment industries this country is quite advanced. Among the most prolific industries they can establish companies in are:
 
  • -          information technology which encompasses subsectors like security and financial technology;
  • -          the financial sector which now includes cryptocurrencies and blockchain technology;
  • -          trading which is one of the largest contributors to the Austrian economy;
  • -          real estate, in which investors can set up construction companies and real estate agencies;
  • -          manufacturing which is the top economic sector in Austria.
 

Austria's policy for foreign investments

 
Austria has a pro-foreign investment policy and direct investments do not require special approvals from the Government. This may be needed in some cases where real estate purchases are necessary and it applies especially to non-EEA investors. If this is the case, one of our attorneys in Austria can help answer your questions.
 
Three of Austria's advantages for foreign investors include its central position in Europe, its political stability and its focus on R&D activities. The country also has a highly qualified workforce and a very well developed infrastructure. A large number of international companies have chosen Austria as their headquarter location. The quality of life and personal security are high in Austria.
 
Foreign companies in Austria are subject to the same rules and regulations as locally incorporate companies, including in obtaining special permits and licenses. A lawyer in Austria can help you with the special permits.
 
For more information on why invest here, you can contact our Austrian company formation representatives.

 

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