The Austrian Government has implemented a comprehensive array of incentives to foster the creation of Tech start-ups and to promote Research and Development (R&D). The country provides robust support for these emerging companies, thereby advancing national technological development. 

Austria offers numerous fiscal incentives for hiring, as well as aid for training and specialization in this sector. The Austrian Economic Development Agency (Austria Wirtschaftsservice or AWS) provides non-refundable grants to support the development of start-ups in R&D. Additionally, it offers low-interest loans and favorable conditions to encourage entrepreneurship. 

To further stimulate growth and expansion, the government supports venture capital initiatives, with various companies willing to fund start-ups. These entities have programs to connect with private investors (Business Angels), who provide advice and capital in exchange for equity. Moreover, start-ups with annual sales income below $36,295 can benefit from VAT exemption and are not required to submit periodic declarations. 

Given Austria’s commitment to promoting this sector, it is irrelevant whether a company is profitable or not to qualify for tax deductions. Consequently, the state allows start-ups to reduce their tax base or even receive tax credits of up to 14% of their development and research expenses. 

Furthermore, although the standard Corporate Income Tax rate (Körperschaftsteuer or KSt) in Austria is 25%, technology start-ups can benefit from tax exemptions and reductions during their initial years to facilitate their growth and expansion. 

Finally, in certain regions of Austria, there are local subsidies in addition to those provided by the government. These subsidies aim to encourage technology start-ups to establish themselves in economically underdeveloped areas, thereby supporting entrepreneurship in these regions. 

If you are interested in the domiciliation of your subsidiary in Austria, you can count on Auxadi for expanding your company. 

Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

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All information contained in this publication is up to date on 2025. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.