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Be Brexit ready
A glimpse behind the scenes
What impact will Brexit have on Austria?
Like many other countries, Austria will not remain unaffected by the consequences of the Brexit. The first consequences are already noticeable, for example, in Austria's trade with Great Britain. The loss in value of the pound after the British referendum led to a drop in export volume by 2% in 2016.
Important trade relations
Great Britain is currently Austria's most important trading partner. In recent years, Austria has continuously generated a positive trade balance with the UK - mainly driven by high exports of machines and vehicles. In addition, we benefit greatly from a good indirect trade relationship with the UK, resulting from the favorable positioning of Austria in the supply chain of German car manufacturers.
Potential effects on your business
Effects of Brexit on society
The Brexit will influence transnational employment, emigration or business travelers. An end to the free movement of people may lead to a limited mobility of workers. The exit of Great Britain from the European Union also means a change in the regulations on personal taxes, a lack of a consistent labor law could lead to far-reaching problems.
Consequences for trade
We will face new challenges in Trade with British customers as well by conducting imports and exports (deliveries) as a result of Brexit. An end to the free movement of goods and services is conceivable. Uncertainties will also be on the capital markets. Brexit will have an impact on tariff and non-tariff trade barriers on exports as well as inefficiencies in supply chains. The limited access to the London financial market will lead to a growing importance of other European financial markets. Last but not least, weak UK growth will also have a negative impact on Austrian exports.
Changes in the organization of e.g. Subsidiaries, branches or productions
The influence of Brexit on regulatory aspects of company taxation will also have a problematic impact on corporate mergers. An end to the free movement of capital is conceivable. In any case, more bureaucracy will be necessary for transnational cooperation due to different regulations.
Recommendations to be well prepared for the Brexit
- Evaluate the extent to which changes in the free movement of workers affect your company and which measures can be taken to establish employee loyalty
- Reflect on your business model and planned investments to maintain the necessary market access and profitability of your company
- Review the impact of regulatory changes and legal changes on your business strategy
Our experts will be happy to answer any questions you may have regarding Brexit.