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News and useful information from Insurance Austria

All foreign nationals working in Austria for more than six months are defined, for taxation purposes, as residents in Austria, and are therefore liable for taxation on all the income they derive from Austrian sources.

Income Tax: Austria’s individual income tax rates are progressive. As of 2018 there are 7 tax bands:
Annual income up to 11,000 €: 0%
11,001 to 18,000 €: 25.0%
18,001 to 31,000 €: 35.0%
31,001 to 60,000 €: 42.0%
60,001 to 90,000 €: 48.0%
90,001 to 1,000,000 €: 50.0%
over 1,000,001 €: 55%

Taxes will be deducted after contributions to the Public Insurance System.

Note that Austria has double taxation agreements in place with more than 40 countries. Expats who hail from a country with one such agreement in place will not have to pay tax on their Austrian-source income as well as any income they generate from within their country of origin.

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The Public Insurance system in Austria is divided into three branches: healthcare (also called public health insurance), public accident insurance, and public pension insurance. The Austrian Public Insurance System is compulsory for everybody working and living in Austria.

Expats working in Austria are required to pay into the Puclic Insurance scheme. The contribution amounts to a percentage of income: 7.65% for health insurance, 1.3% for accident insurance, and 22.8% towards the public pension. Contributions are only taken from the first € 4,650 per month and are automatically deducted from an individual’s salary by their employer. Risk factors (age, health status, sex) are not taken into account. Spouses and children who do not work are usually insured without supplementary contributions.

The Public Health Insurance System / Social Insurance System in Austria consists of three branches (click for more):

> Healthcare in Austria / Public Health Insurance in Austria:

Austria, a country said to have one [...]

Please note: Private liability insurance is generally included in flat insurances and homeowner insurances.

The most important and yet the least expensive insurance cover is third-party private liability insurance. This essential insurance is intended to give you more than just peace of mind, and it is strongly recommended. It will provide cover for you or any insured member of your family in the event that you commit an act for which an Austrian court would consider you ordinarily negligent.

This could be a simple matter of damaging someone else’s property, for instance knocking over a vase while visiting a friend or in a shop, or causing an accident as a pedestrian by not crossing at the zebra crossing, causing bodily injury whilst skiing, or engaging in other sporting activities.

We recommend coverage of at least 1 million Euros for a family. Saving by taking out a cheap policy with limited coverage is very much a [...]

An inability to work insurance pays an agreed monthly pension upon inability to work. It is designed to replace part of your lost earnings due to illness or disability and will therefore take care of you and your family in case of an interruption in your ability to work.

If you are feeling healthy, you may not see the importance of exploring inability to work insurance at this point. Yet, planning for the possibility of disability is a good idea for everyone, because even if you are not able to work, you still have to pay your monthly bills. Savings can quickly disappear under these circumstances.

Please note that the Austrian public health system will only replace around 30% of your income in case of inability to work. Also, this benefit is only available for persons who have paid into the social insurance scheme for more than 90 months!

Only private inability to work insurance [...]

75% of all accidents happen during spare time or when engaged in sports activities. The Austrian public insurance coverage does not provide any protection against the economic consequences of accidents during spare time.

Only private accident will be specifically adjusted to the needs of the individual and cover all accidents, 24/7 and worldwide. The most important coverage is:

Permanent disability: The amount of compensation will be stated in the insurance policy. It depends on the degree of disability that is established by a physician on the basis of a medical examination after an accident has occurred. The table of compensation rates for damage to, or loss of individual body parts will determine the compensation. For instance, blindness in both eyes will receive compensation of up to 100% of the total insured sum, whereas the loss of a leg up to the knee could result in compensation of up to 70% and the loss of a [...]

The Austrian legal system is probably radically different from the traditions and experience of most new residents. Misunderstandings or disagreements with employers, landlords, neighbors, local merchants, and tax authorities, not to mention parties involved in a car accident, happen often enough.

Legal assistance insurance will save you significant amounts of money and a lot of personal discomfort. This insurance will help protect your rights and allow you to litigate without extra funds from your pocket. Most people simply cannot afford to take the risk of going to court, especially when they do not understand the language.

The attorneys’ and court fees in Austria are based on the amount in dispute. For instance, should you have a dispute with your landlord and need to go to court based on a disputed amount of 8.000 €, the court and attorney’s fees that will have to be paid in advance can be as high as 7.000 €. If [...]

Car registration in Austria is relatively easy if you buy a new car or a used car from an Austrian car dealer.

Your car dealer will hand over all documents which you will need to register the car. You will need the following documents and take them to a registration office:

  • contract of sales with your name on it
  • motor vehicle title certificate (COC)
  • certificate of approval (not needed when buying a new car)
  • safety check certificate (not needed when car is no older than 3 years)
  • proof of identity / passport
  • proof of insurance provided by the insurance company / insurance broker

Importing a car to Austria: In case you would like to import a car to Austria, things will be a little more complicated. You will have to make an appointment with your car brand’s Austrian main importer first. The main importer will pre-register the car in Austria.

As soon as [...]

Flat insurance is necessary to indemnify you for loss of, or damage to your possessions. Included are all belongings contained in your home, such as furniture, clothing, collectibles, sports equipment, valuables and personal computers. Fixtures and fittings attached to the building need to be insured by the owner of the house, either the landlord or by yourself.

The coverage includes the risks of fire, burglary, storm damage, breakage of window panes, water damage, and vandalism. Some policies also include limited cover for damage caused by electrical surges. Bicycle theft is a problem in Austria. Additional insurance should be purchased for bicycle theft and is especially valuable. Some insurance tariffs include coverage for bicycle theft, but this is by no means universal.

If you are self-employed and normally work from home, you must insure your office equipment separately.

 

What type of insurance do I need?

I will rent or buy a flat / an apartment [...]

General Information about Austria Area 83,855 km² / 32,377 sq mi Population 8,400,000 State Treaty Second Republic since 1945 Official language German Capital Vienna Economic Indicators GDP per capita $ 44,000 Unemployment rate 4.5% Gini coefficient 26 (rather equal distribution of wealth) Average inflation rate 2 %

 

Currency: Austria uses the Euro (EUR), which is divided into 100 cents. Even the smallest towns have banks or bureaux de change where money can be exchanged. ATMs are also widely available and most major international debit and credit cards are accepted, however smaller restaurants or shops may only accept cash.

Time: The time zone for Austria is GMT +1 in winter and GMT +2 in summer (from the final Sunday in March to the final Sunday in October).

Electricity: Austria uses European round 2-prong plugs as well as the Schuko plug with side grounding contacts. The electrical current in Austria is 230 volts, 50Hz.

Language: German [...]

Expats doing business in Austria will find that the workplace is formal, structured and significantly more conservative than other EU member states.

Faxes and emails, and any other form of correspondence should be done in a formal manner. Work attire should also be formal and elegant as Austrians place significant value on appearances. Businessmen and women are sure to make a good first impression if dressed in a tasteful, well-fitted suit. Titles and surnames are important in Austria and should always be used when addressing business contacts, such as Herr (Mr.) or Frau (Mrs.), professional and academic titles should also be added when necessary (e.g. Herr Professor Kaufmann).

Business meetings tend to be concise and to the point, with a small amount of preliminary small talk. Being punctual for meetings and showing thorough preparation is vital. German is the language of business in Austria: however it is advisable to print copies of agreements and other [...]

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