Learn about everything you need to register as a sole trader in Austria.
With its rich history, lush forests, and snow-capped mountains, Austria’s a popular destination for tourists from around the globe. But it’s Austria’s favorable investment climate that attracts businesses and entrepreneurs. If you’re interested in starting as a sole trader in Austria, you’re in the right place. But be aware that nothing in this article should take the place of legal counsel.
What is a sole trader/Einzelunternehmer in Austria?
A sole trader (Einzelunternehmer) in Austria is a self-employed individual who is personally liable for any activities they perform in the course of their business. However, the benefit to becoming a sole trader is the ability to quickly and easily begin setting up your business.
How do I become a sole trader in Austria?
To begin with, an individual will need to acquire a trade license (Gewerbeberechtigung) from the business district or city registration authority (Bezirksverwaltungsbehörden) where they intend to do business.
In the cases of some specialized trades, such as carpentry and engineering, an applicant must prove their ability to verifiably perform that trade (Zuverlässigkeitsprüfung) before being given a license.
Within three months of your application, the Bezirksverwaltungsbehörden will enter your information into the Austrian Business Licence Information System (Gewerbeinformationssystem Austria, GISA). As soon as your registration is completed, you are immediately available to begin your self-employment. Within one month of the beginning of your work, you must inform the local tax office (Finanzamt) of your new business and self-employment.
What kind of taxes will I pay as a sole trader in Austria?
As an entrepreneur and sole proprietor, you will be responsible for paying income tax and sales tax.
If your net profits exceed €5710.32, you will also be required to contribute to Social Security (Sozialversicherung der Selbstständigen (SVS)).
There are specific tax exemptions (Neugründungsförderungsgesetz – NeuFöG) available for startups specializing in information and technology. If your new business qualifies, it would be wise to consult a tax accountant to maximize your benefits. Additionally, the Austrian Economic Chambers (Wirtschaftskammer Österreich WKO) provide a wealth of information and contacts that Einzelunternehmen can utilize for more details.
Receiving payments in Austria via Liquid.
Liquid supports payments to Austria and 175+ countries worldwide in USD and selects foreign currencies, including EUR. Payments arrive in 2-5 business days via wire transfer, whether the invoice was sent to an existing client using Liquid or a client who is new to Liquid.
Invoices in Liquid are in USD by default but can also be sent in Euros and other select foreign currencies, allowing vendors to receive payment in their local currencies instead of USD. In addition, Work Orders / Project Proposals can also be agreed to in Euros and other select foreign currencies in Liquid.
Liquid charges clients who initiate payments $3 per US invoice paid and $8 per international invoice paid.
Liquid never charges Vendors to receive payments, even when Vendors are requesting payments from Clients who are not current users of Liquid.
Now you’re ready to start making money in Austria!
With your new business freshly launched, you can begin enjoying all the benefits of being a freelancer, from setting your own hours to choosing the kind of work that challenges you. And when it’s time to invoice your US clients, Liquid makes it easy to get paid.
Ready to invoice your United States-based clients? Try Liquid today.
