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Austria tax

2 special regimes for new residents: Relocation allowance for scientists and researchers (Zuzugsfreibetrag, Section 103 EStG) and Relocation relief for foreign-source income of scientists, researchers, artists and athletes (section 103 EStG).

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Special regimes for new residents

Special regime

Relocation allowance for scientists and researchers (Zuzugsfreibetrag, Section 103(1a) EStG)

30% tax

Details
  • On: Income from scientific activity taxed under the income tax scale (Section 33(1) EStG)
  • Who: Relocating scientist or researcher

30 percent of income from domestic and foreign scientific activity taxed at the scale rate is exempt, granted by decision for five years from relocation. 1

Taxed on

Income from scientific activity taxed under the income tax scale (Section 33(1) EStG).

Who it applies to

  • Relocating scientist or researcher; evidence is mainly an employment contract, collective-agreement grading, CV, publication list and research-project responsibility.
  • Written application to Finanzamt Österreich within six months after the move; may be filed before the move (form E103, in German).

Exclusions

  • The allowance is reserved for scientists and researchers; artists and athletes can only apply for removal of tax surcharges on foreign-source income (see the separate record).

Tax residence

Relocation means taking an Austrian dwelling and moving the centre of vital interests to Austria; with a partner or minor children, the move generally counts once they have relocated too. Granted for five years from the move.

Visas

Separate from the residence permit; researchers often use a settlement permit for researchers.

Other taxes

Social security contributions are separate.

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Special regime

Relocation relief for foreign-source income of scientists, researchers, artists and athletes (section 103(1) EStG)

15% tax

Details
  • On: Foreign-source income not covered by section 98 EStG

Foreign-source income of qualifying new residents is taxed at a flat average rate (minimum 15%) based on their foreign tax in the last three years, instead of the Austrian scale, for ten calendar years; the rate then rises two percentage points a year until it reaches 48%. 1

Taxed on

Foreign-source income not covered by section 98 EStG (Austrian-source income cannot be relieved).

Who it applies to

  • Scientists, researchers, artists and athletes who relocate to Austria and meet the further conditions of the Relocation Relief Ordinance (ZBV 2016).
  • Flat rate equals foreign-source income tax paid in the last three calendar years before the move divided by foreign-source income in the same period, adapted to Austrian tax rules, and is at least 15%.
  • Written application to Finanzamt Österreich within six months after the move; may be filed before the move.

Exclusions

  • Austrian-source income cannot be relieved.

Tax residence

Relocation requires an Austrian dwelling and the centre of vital interests in Austria. Granted from the date of the move; the rate rises two points a year after the tenth calendar year and the relief ends in the calendar year the rate first reaches at least 48%.

Visas

Separate from the residence permit.

Other taxes

Social security contributions are separate.

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Standard rules and foreign-source income

Standard rules

Personal income tax scale 2026 (ordinary)

Progressive rates

Details
  • On: Taxable annual income
  • Limit: €14k/yr ≈ $15k

Progressive rates: 0% to EUR 13,539 (≈ $15,100); 20% to 21,992; 30% to 36,458; 40% to 70,365; 48% to 104,859; 50% to 1,000,000; 55% above (55% limited to 2016-2029). 2

Taxed on

Taxable annual income.

Who it applies to

  • Tax scale applies to individuals with Austrian taxable income.

Limits

  • EUR 13,539 a year (≈ $15,100) · Zero-rate band (0%).
  • EUR 21,992 a year (≈ $24,600) · Upper limit of the 20% band.
  • EUR 36,458 a year (≈ $40,700) · Upper limit of the 30% band.
  • EUR 70,365 a year (≈ $78,600) · Upper limit of the 40% band.
  • EUR 104,859 a year (≈ $117,000) · Upper limit of the 48% band.
  • EUR 1,000,000 a year (≈ $1,120,000) · Upper limit of the 50% band; 55% above, temporary for 2016 to 2029.

Tax residence

Applies to individuals with unlimited tax liability (residence or habitual abode in Austria).

Visas

Independent of the permit.

Other taxes

Rates above the EUR1,000,000 (≈ $1,120,000) band (55%) apply temporarily from 2016 to 2029.

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Standard rules

Ordinary residence-based taxation of worldwide income

Worldwide income

Details
  • Who: Residence (Wohnsitz): an Austrian dwelling the person evidently keeps available and uses

Persons with a residence (Wohnsitz) or habitual abode in Austria are subject to unlimited income tax liability, so their foreign-source income is taxed in Austria together with Austrian income; habitual abode arises after six months of stay, retroactively. 3

Taxed on

Worldwide income (domestic and foreign-source) of persons with a residence or habitual abode in Austria; persons without either are taxed only on certain Austrian-source income.

Who it applies to

  • Residence (Wohnsitz): an Austrian dwelling the person evidently keeps available and uses.
  • Habitual abode: stay in Austria that is evidently not merely temporary; unlimited liability applies after six months of stay.

Exclusions

  • Non-residents with Austrian employment or pension income have limited liability on Austrian-source income only.

Tax residence

Unlimited liability arises in any case after six months of stay in Austria, retroactively to arrival. Nationality is irrelevant to income tax liability. The 2026 scale is in “Personal income tax scale 2026” and the scientist allowance and foreign-income relief are in the relocation records.

Visas

Independent of the residence permit; tax residence arises from dwelling or length of stay.

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VAT, social security and other taxes

Questions people ask

Who qualifies for Relocation allowance for scientists and researchers (Zuzugsfreibetrag, Section 103 EStG)?

Relocating scientist or researcher; evidence is mainly an employment contract, collective-agreement grading, CV, publication list and research-project responsibility. Separate from the residence permit; researchers often use a settlement permit for researchers.

Who qualifies for Relocation relief for foreign-source income of scientists, researchers, artists and athletes (section 103 EStG)?

Scientists, researchers, artists and athletes who relocate to Austria and meet the further conditions of the Relocation Relief Ordinance (ZBV 2016). Separate from the residence permit.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (3)

Official sources

  1. Zuzugsbegünstigung (relocation tax benefit, Section 103 EStG) · Federal Ministry of Finance (bmf.gv.at) · checked 2026-10-10
  2. Steuertarif 2026 (income tax scale) · Federal Ministry of Finance (bmf.gv.at) · checked 2026-10-10
  3. Einkommensteuerpflicht (unlimited and limited income tax liability) · Unternehmensserviceportal (USP), Republic of Austria · checked 2026-10-10