Advantages of the business location Austria

Attractive framework conditions

  • Above-average purchasing power of Austrian consumers, with a per capita GDP of almost 34,000 euros, makes Austria a worthwhile market for international companies despite its relatively small size and population. Austria is also the fourth richest country in the EU
  • Companies as good customers – the gross fixed capital formation of Austrian companies reached a share of 22.4 % of GDP in 2008
  • Highly developed infrastructure

Hub for markets of the future – springboard to the markets of tomorrow

  • Central location at the heart of Europe with optimum connections both west and east.
  • The major commercial interlinks with the new Central and Eastern European Accession States makes Austria the winner of the eastward expansion
  • Geographic proximity to the growth markets of Central and Eastern Europe with average economic growth of 4.4 % (2008)
  • Experience through a total of 16,000 joint ventures already in existence between companies from Austria and Eastern Europe
  • Eastern European coordination center for around 1,000 foreign companies and 40 international institutions involved in Central and Eastern Europe
  • Competences and contacts – service providers, banks, business consultants and tax advisors have extensive expertise, contacts and competences concerning business in Eastern Europe and know exactly “where, how and with whom”
  • “Neutrality” – given the image competition between the countries of Eastern Europe, having your headquarters on “neutral territory” such as Austria is an advantage
  • Distribution centre and logistical hub between west and east as well as for the Balkans
  • Investment king in the east – Austria is the leading investor in Slovenia, Croatia, Bulgaria, Romania and Bosnia-Herzegovina. It occupies 2nd place in Serbia, 3rd place in the Czech Republic and Macedonia
  • Ideal connections – with 47 destinations and almost 600 flights each week, Vienna airport has developed into an efficient hub for Eastern and South-Eastern Europe

Productivity

Strong productivity growth of 44,9 % between 1997 and 2007. Thus Austria is clearly ahead of Japan, France and Switzerland.In terms of productivity based on purchasing power, Austria ranks 8th* (with an hourly production of 44.71 USD per employee, followed by Germany (ranked 11th), Great Britain (ranked 16th), Japan (ranked 19th) and Switzerland (ranked 20th).

* Source: World Competitiveness Yearbook 2009

Tax advantages

The second lowest corporate taxation within the EU15 with a uniform rate of corporation tax of 25 % – according to the Centre for European Economic Research, the effective tax on profits is just below 22.4 %

No wealth tax or trade tax

Most attractive group taxation in Europe

Exclusion possibilities and generous rulings on tax-free allowances for investments in research (up to 35 %) and training (20 %), new technologies as well as start-ups

Qualified and motivated personnel

  • 3rd rank* in the category motivation of employees (behind Denmark and Switzerland)
  • Employee training is a high priority in Austrian companies. Austria ranks 4th* worldwide (behind Denmark, Japan and Switzerland).
  • 5th place* in the EU as regards the availability of qualified personnel
  • Ranking 10th* worldwide, Austria is also top in training and education. The reason is Austria's dual education and training system, which enables practice-oriented learning for technical and commercial professions.

Research & Development

  • 2,800 competence centers, research and development facilities
  • Four out of five manufacturing multinationals carry out strategic research and development (R&D) for the entire group in Austria
  • “House of research“ as “one-stop-shop”
  • Research trust: an additional 80 million Euros for subsidies – innovative R&D projects are subsidized by up to 50 %

Innovative subsidies

  • Regional subsidies for investments
  • Up to 35 % tax-free allowance for research
  • 20 % tax-free allowance for training
  • Trainee bonus

Safety

  • Political and social stability
  • No downtimes because of strikes between 2005 and 2007
  • Rank 3* in the EU in terms of the safety of one’s own person and property

Quality of Life

  • Vienna is the world’s most livable city (followed by Zurich and Geneva)
  • World-wide second highest quality of living in Austria* (behind Switzerland)
  • Wide range of international schools

* Source: World Competitiveness Yearbook 2009

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