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Tax residence is explained in 1.1.

Non-residents are subject to tax on a limited liability basis – ie income arising from Austria is subject to taxes in Austria (EstG, s 99).

Artificial increase of taxable base

The usual tax-exempt amount in Austria is EUR 13,308 for 2025 (EUR 12,816 for 2024) (2.1.1). No taxes are applied on income up to this level.

However, the taxable base of someone subject to limited liability is artificially increased by EUR 10,486 (unchanged from 2024 to 2025). This means that the tax-exempt amount for a non-resident of Austria is effectively only EUR 2,822.

Note that the arbitrary increase of EUR 10,486 does not affect payroll calculations. Tax withholding is calculated for an employee with limited liability in the same way as for any other Austrian employee. When the employee files their personal tax return, then EUR 10,486 is added to their taxable base for their annual employee tax assessment (1.3) (The Tax Book 2025, ss 1A and 2B and Wage Tax Guidelines 2002, s 29).

The artificial addition of