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Tax Matters for Expats in Austria
Have you settled in well?
For employees engaged in long-term assignments, Austria could become their place of residence. This would lead to the taxation of individuals’ worldwide income in Austria. Our experience has shown that people working internationally tend to keep their capital assets or real estate in their home country. Should the place of residence change, income from these assets could also become subject to tax in Austria.
It is each employee’s personal responsibility to ensure their entire income is taxed correctly with non-compliance with the principle of worldwide taxation leading to problems with and possible fines from fiscal authorities. Deloitte tax experts have gathered experience in these areas for many years. Our team would be happy to assist in avoiding any such unwanted situations.
Should Austria become an expat’s place of residence, compliance requirements may change. Taxation of worldwide income includes investment and capital income derived from foreign deposits and bank accounts as well as rental income from properties held globally. There are special rules on the taxation of capital and rental income in Austria that also have to be followed.
More often than not it is in the employer’s interests to ensure that employees receive support regarding taxation issues caused by the assignment through providing the services of a tax advisor – like Deloitte – in the home and host country. However, the personal income situation of employees often exceeds the scope of the engagement between the employer and Deloitte. In cases of comprehensive capital assets, foreign pension plans and income from real estate it might be necessary to arrange an additional engagement between the employees or the employer and Deloitte.
Deloitte tax experts have many years’ experience in dealing with tax issues relating to foreign investments, capital and rental income. Our professionals are specialised in classifying your capital assets correctly as well as in calculating income according to the special Austrian provisions on investment funds and other asset classes. With regards to income from foreign real estate, our team is skilled in determining the taxable base according to Austrian law.
- Analysis of your tax situation in Austria and in light of double taxation agreements
- Calculation of the taxable income derived from capital assets held abroad
- Calculation of taxable income derived from rental income or sale of foreign real estate according to Austrian tax law
- Preparation of tax returns while taking into consideration foreign taxes paid
- Formulation of prior-year tax returns in order to avoid retrospective fiscal penal consequences
- Preparation of applications for the refund of foreign taxes paid
- Having a single tax advisor for all your tax matters (employment, capital and rental income)
- Our experts are familiar with the particular Austrian rules on income from investments and real estate
- If necessary, we can engage local tax experts from our international member firms to assist with your particular situation
- We can help to avoid consequences of non-compliance with Austrian tax law
- Tailor-made packages to suit your individual tax situation