Austria's trade license system draws an important line early on: whether your activity is a "free trade" or a regulated one determines how fast you can actually start working. Get that classification right and the rest of the process is efficient and well-documented. Here's what it takes to start a business in Austria in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Einzelunternehmen (sole proprietorship). No minimum capital, and for free trades, you can start working from the day of registration. Full personal liability applies.
- GmbH. Austria's standard limited liability company. Minimum share capital is €10,000, with at least €5,000 required to be paid in at incorporation.
2. Register your business
Einzelunternehmen
You obtain a trade license (Gewerbeschein), register with SVS (the self-employed social insurance fund) within one month of trade registration, and register for tax with the Finanzamt using form Verf 24 to get your tax number. Realistic total setup cost without hiring an advisor runs €50 to €500. Registering in the Firmenbuch (commercial register) is optional for sole traders, useful mainly for name protection, and costs roughly €100 to €150 plus notary fees.
GmbH
You'll need notarized articles of association, a bank confirmation (Eingabebestätigung) proving the share capital deposit, and registration with the Firmenbuch. The full process typically takes 3 to 4 weeks. At least one managing director is required, with no residency requirement.
3. Get your Steuernummer
Your tax number (Steuernummer) comes from the Finanzamt as part of tax registration. If your turnover requires VAT registration, you'll separately apply for a VAT ID using form U 15.
4. Check licenses and permits
Austria distinguishes between "free trades," which you can start the moment you register, and regulated trades, which require a qualification certificate before you can legally operate. Confirming which category your activity falls into is one of the most common early mistakes founders make. Beyond that, Austria doesn't issue a single national business license.
5. Understand Austrian taxes
Sole traders pay progressive personal income tax from 0% up to 55%, with a tax-free amount around €12,800. Self-employed SVS social insurance runs roughly 26.8% of your contribution base, covering pension, health, accident, and self-employed provision; watch for a recalculation in your third year of business that can bring an unexpected back-payment if you haven't set aside reserves.
GmbH and AG companies pay a flat 23% corporate income tax (Körperschaftsteuer), reduced from 24% back in 2023, plus a 27.5% withholding tax when profit is distributed to shareholders as dividends.
VAT is 20% standard, with reduced rates of 13% and 10% for specific categories. The small-business VAT exemption threshold rose to €55,000 in annual turnover as of January 2025, up from €35,000, a meaningful increase worth knowing if you're deciding whether to register voluntarily.
6. Stay compliant
Sole traders can use simplified cash-basis bookkeeping (Einnahmen-Ausgaben-Rechnung) up to €700,000 in turnover; above that, full double-entry bookkeeping is required. GmbH and AG companies always keep double-entry accounts and submit annual financial statements to the commercial register. If you hire staff, you'll also owe a 3% municipal tax on wages.
Austria business costs at a glance
| Item | Cost |
|---|---|
| Einzelunternehmen setup (no advisor) | €50 to €500 |
| GmbH minimum share capital | €10,000 (€5,000 paid in) |
| Steuernummer | Free |
| Self-employed SVS social insurance | ~26.8% of contribution base |
| Corporate tax (GmbH/AG) | 23% |
| Dividend withholding tax | 27.5% |
| VAT, standard rate | 20% |
| VAT exemption threshold (since Jan 2025) | €55,000 turnover |
Frequently asked questions
What's the corporate tax rate in Austria?
A flat 23%, reduced from 24% back in 2023, plus a 27.5% withholding tax when profit is distributed to shareholders as dividends.
How much capital do I need to start a GmbH in Austria?
€10,000 minimum, with at least €5,000 required to be paid in at incorporation.
What's the VAT exemption threshold in Austria?
€55,000 in annual turnover as of January 2025, up from €35,000.
How much does it cost to register as a sole trader in Austria?
Realistic total setup cost without an advisor runs €50 to €500.
What's the difference between a free trade and a regulated trade in Austria?
Free trades let you start working the moment you register. Regulated trades require a qualification certificate before you can legally operate.
Fees and rates above come from the Austrian Finanzamt and Firmenbuch as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Austria-qualified accountant or lawyer about your specific situation.