Description
Observers do not expect Austria’s positive view of foreign direct investment to change under the current coalition government between the center-left Social Democratic Party (SP) and the center-right People’s Party (VP), which began its most recent five-year term on December 16, 2013. Austria is particularly welcoming of foreign direct investment that creates new jobs in high technology fields, promotes capital-intensive industries, and has links to R&D activities, for which special tax incentives are available. Officials are also conscious of ensuring that investments avoid a negative impact on the environment. Austria is a high-tax country overall with a heavy personal income tax burden. However, due to a relatively low 25% corporate tax rate, it is attractive as a business headquarters location. Including tax base adjustments, experts estimate the effective corporate tax burden at no more than 22%.
