Living in Austria: becoming a tax resident, 2026 tax brackets and savings

Moving to Austria means becoming subject to Austrian worldwide income tax, with a tax bracket that reaches 55% (%) for the highest tax bracket. This page is based on information from the Federal Ministry of Finance (BMF) and the CLEISS. It explains what these sources establish, what falls under French jurisdiction, and what needs to be verified by an Austrian professional. Details of withholding taxes between the two countries can be found on the page about... France-Austria tax treaty.

Residence or habitual residence: two gateways to unlimited taxation

The BMF retains two alternative criteria. A person who has a home (Wohnsitz) or his usual residence (gewöhnlicher Aufenthalt) in Austria is subject without limitation: all of its income, Austrian and foreign, is taxed, and nationality is not a determining factor.

• The home This is a dwelling used "offensichtlich längerfristig" (often described as long-term), meaning clearly on a permanent basis. It does not have to be the primary residence, nor occupied continuously, but at least on a recurring basis. The BMF adds that the dwelling must be suitable for habitation in light of the occupant's personal circumstances.
• The usual stay assumes a stay that is not temporary. According to the page, unlimited liability applies in any event ("auf jeden Fall") after six months of stay in Austria, and retroactively: "nach sechs Monaten Aufenthalt in Österreich, und zwar rückwirkend".

A practical consequence of this is that, after six months of residence, unlimited tax liability applies retroactively, according to the BMF. Since the two criteria are alternative, accommodation meeting the above conditions may be sufficient on its own. For France, the issue is symmetrical and falls under Article 4 B of the CGI, discussed on our page about... three criteria for French tax residency.

Homeless and without habitual residence: limited liability

A person without a fixed address or habitual residence, but with Austrian income, is subject to limited tax liability. The BMF website provides several figures for 2026: €11,077 is added to the base amount in the case of a declaration upon request from those subject to limited tax liability, and the basic exemption is €2,463.

A national of the European Union or the EEA without a domicile in Austria can opt for unlimited liability if their income is mainly Austrian: 90 %, or foreign income of no more than €13,539 in 2026.

A seven-tier scale, from 0 to 55 %

The BMF's "Tax Rates" page, updated on January 1, 2026, gives the following marginal rates.

The 55% % rate is temporary: "Exempt until 2029, then 50%." It applies to income exceeding one million euros for the years 2016 to 2029. This table shows the tax before deductions and tax credits, which we have not reviewed.

Savings and securities: special rates, outside the standard schedule

Capital gains are not subject to this scale. The pages of the BMF, marked "last updated January 1, 2025" (the 2026 version is not displayed), indicate:

• Dividends Capital gains tax (KESt) is 27.5 %, which is generally a final tax for dividends from an Austrian company. Dividends from foreign sources, without KESt, must be declared and taxed at 27.5 %, separately from other income: "the taxation is isolated from the other income".
• Interests : interest on savings and current accounts is subject to a special rate of 25 %; other capital income, of 27.5 %.
• Capital gains on securities These are taxed as capital income. A person with limited tax liability is taxable on the sale of a stake in a company headquartered or managed in Austria if they have held at least 1 % such stakes during the last five calendar years. The page does not specify the applicable rate in this case.

For a dividend of French origin received by a resident of Austria, the convention caps the French withholding tax at 15 % of the gross amount (Article 10 § 2). For a company holding at least 10 % of its capital, the text reserves taxation for the State of which the beneficial owner is resident, under the conditions of Article 10. How this French levy interacts with the Austrian KEST depends on the specific case: the general mechanics are explained on our page about...’elimination of double taxation.

Leaving Austria: a departure is equivalent to a transfer

The Federal Tax Administration (BMF) indicates that the loss of Austria's right to tax securities is treated as a transfer of ownership (§ 27 VI 1 EStG), particularly when the taxpayer moves abroad. A deferral of taxation until the actual sale can be requested in the tax return if the move is to an EU or EEA state. According to the source, the taxpayer can also avoid subsequent withholding of capital gains tax by their bank by informing the bank and providing it with the tax office's decision. The detailed conditions for deferral are not outlined here.

For departures from France, the comparable mechanism is the exit tax: see Leaving France, exit tax and tax residence.

Arriving in Austria: the scheme for researchers and artists

The BMF's "Zuzugsbegünstigung" page, updated as of January 1, 2026, describes a scheme under Article 103 EStG for scientists, researchers, artists, and athletes. For scientists and researchers, it provides for a 30% tax allowance on scientific income for five years, and a flat-rate average of at least 15% on foreign income to eliminate surcharges. Applications must be submitted within six months of arrival. We have not found any other entry schemes for professions other than these.

Social security: 2026 contributions according to CLEISS

CLEISS publishes the membership fees valid from January 1st to December 31st, 2026.

• Employees : pensions 12.55 % (employer) and 10.25 % (employee); calculation basis capped at €6,930 per month.
• Self-employed : sickness-maternity 6.8 % and pensions 18.5 %, on an annual ceiling of €97,020.

The other rates (health, unemployment, supplementary benefits) are in the source. For an employee seconded from France, see social security and duration of secondment.

Income of €80,000: a numerical example (fictitious profile)

Profile. A single person, resident in Austria throughout 2026, receives income subject to the tax scale of €80,000. They also receive a dividend of €10,000 and €4,000 of interest from a savings account, taxed separately.

Strategy. The 2026 scale is applied tranche by tranche, then the special rates, without deduction or tax credit.

Result. The tax due according to the tax brackets is €24,218, representing an average rate of 30.3%: €1,690.60 for the 20% bracket, €4,339.80 for the 30% bracket, €13,562.80 for the 40% bracket, and €4,624.80 for the 48% bracket. The last euro is taxed at 48%. The dividend is subject to €2,750 (27.5% of €10,000) and the interest to €1,000 (25% of €4,000). This calculation does not take into account tax deductions and credits, social security contributions, or the effects of the tax treaty. The profile and amounts are fictitious.

What this page does not cover

• Austrian inheritance or wealth tax: no official Austrian website I consulted describes it.
• Local savings products, including assurance-vie: no official source consulted.
• The procedures for residence and registration: the information sheet consulted is old.
• Employee tax deductions and credits.

What changes depending on your situation

• Your residence situation in France under 4 B of the CGI and in Austria: domicile, stay, duration.
• The nature of your income: salary, self-employment, capital gains.
• Your nationality, for the unlimited coverage option and for certain schemes.
• The nature of your securities and the date of your possible departure.

An Austrian rule must be interpreted in light of the facts of your case. No outcome is guaranteed, and the application of Austrian law should be validated with a local professional.