Introduction
German entrepreneurs have made Austria one of their favourite expansion markets. Shared language, a two-hour drive from Munich to Salzburg, and EU freedom of establishment make cross-border setup simpler than launching in France or Poland.
Interest is not limited to freelancers testing the waters. German SMEs and larger firms register Austrian entities to gain a foothold across the wider DACH region. Still, trade licences, company law, and tax registration differ enough from German rules that a wrong first step can cost weeks.
This guide covers the legal requirements, business structures, costs, and registration steps German founders need to start a business in Austria.
TL;DR
- Germans need no special permit—only standard registration—under EU establishment rights
- Main structures: GmbH, Einzelunternehmen (sole proprietorship), or partnerships (OG/KG)
- Register trade licence (Gewerbeanmeldung), Firmenbuch (if needed), Finanzamt, and SVS
- Timeline: 2–4 weeks for sole proprietorships, 4–8 weeks for a GmbH
- Budget share capital (GmbH), notary fees, plus ongoing VAT and social insurance
Can Germans Start a Business in Austria?
Short answer: yes, without hurdles specific to German nationality. As an EU citizen, you hold the same establishment rights in Austria as any Austrian national.
What this means practically:
- No residence permit is required to register or run a business
- Same treatment as other EU/EEA citizens under Article 49 TFEU, which bars restrictions on self-employment across member states
- Austria’s chamber of commerce (WKO) treats Germany like other EU states: you can exercise a trade without special authorisation
That said, practical requirements still apply regardless of citizenship:
- A registered Austrian business address (Gewerbestandort) is generally needed
- A company bank account is required, particularly for GmbH share capital deposits
- You can live in Germany and run an Austrian business, though some structures need a local representative or registered agent
There’s no nationality barrier—the bureaucracy is the same one every founder, Austrian or otherwise, works through.
What to Know Before You Start
Cultural closeness can create a false sense of familiarity. Many German founders assume Austrian processes mirror Germany's, then get tripped up. Three things that catch people off guard:
- Agencies and rules differ. Gewerbeanmeldung, SVS (social insurance), and Finanzamt (tax office) follow Austrian logic. German paperwork and assumptions do not transfer.
- SVS is not copy-paste. Contribution calculation and timing differ from Germany. Payments start provisional and are finalised after your tax assessment.
- Confirm if your trade is regulated. A freies Gewerbe needs only notification. A reglementiertes Gewerbe needs a Befähigungsnachweis, and German certificates are not automatic. If you're moving a consulting practice, IT services, or similar unregulated activity, this step is straightforward. If you're in construction, healthcare, or another regulated field, budget extra time to confirm your qualifications are recognised.
Choosing the Right Legal Structure
The structure you pick shapes your liability, capital needs, and paperwork load. Here's how the main options compare.
| Structure | Min. capital | Liability | Best fit |
|---|---|---|---|
| GmbH | €10,000 | Limited | German companies needing credibility |
| Einzelunternehmen | None | Unlimited personal | Solo freelancers and consultants |
| OG / KG | None | Unlimited or mixed | Founders working with partners |
| FlexCo | €10,000 | Limited | Startups wanting leaner formation |
| Branch office | N/A | Shares parent liability | Testing the market without a new entity |
| Subsidiary | Per entity type | Separate entity | Ring-fenced Austrian operations |
GmbH: The Credibility Choice
The GmbH (limited liability company) is the go-to for German companies wanting liability protection and market credibility in Austria.
- Minimum share capital: €10,000, with at least €5,000 paid in cash
- Formation typically requires a notarised Gesellschaftsvertrag (articles of association)
- The company only legally exists once it's entered in the Firmenbuch (commercial register)
- At least one managing director is required
Sole Proprietorship: The Fast Entry Point
An Einzelunternehmen is the simplest way for German freelancers and consultants to start operating in Austria.
- No minimum capital requirement
- Formed through Gewerbeanmeldung, often allowing you to start trading immediately
- Downside: unlimited personal liability; there is no legal separation between you and the business
Partnerships, Branches, and Subsidiaries
For founders working with a partner, an OG (general partnership) or KG (limited partnership) is worth considering:
- OG: all partners carry personal, unlimited, joint liability
- KG: at least one Komplementär (general partner) with unlimited liability, plus Kommanditisten (limited partners) liable only up to their contribution
- Both require Firmenbuch registration with certified partner signatures
German companies also choose how to establish presence:
- Branch office: an extension of the German parent, sharing its liability
- Subsidiary: a separate Austrian legal entity, usually a GmbH
FlexCo: The Startup-Friendly Newcomer
Introduced in 2024, the FlexCo (Flexible Kapitalgesellschaft) gives startups more formation flexibility than a classic GmbH.
- Same €10,000 minimum capital as a GmbH (€5,000 cash minimum)
- A one-person FlexCo can be formed online without a notary; multi-founder formations still require one
- Comes into existence once entered in the Firmenbuch, just like a GmbH
Match the form to your liability tolerance, available capital, and need for Austrian market credibility. Most German companies pick a GmbH or FlexCo subsidiary; solo freelancers often start as an Einzelunternehmen.
How to Start a Business in Austria from Germany – Step by Step
This is the execution sequence, from paperwork to becoming fully operational.
Step 1 – Choose Your Structure and Draft Founding Documents
Decide between GmbH, FlexCo, Einzelunternehmen, or a partnership based on your liability tolerance and available capital. Companies need a notarised Gesellschaftsvertrag; sole proprietors skip straight to registration.
Step 2 – Register Your Trade (Gewerbeanmeldung)
Apply at your local Bezirkshauptmannschaft or Magistrat with:
- Valid ID
- Proof of address
- Qualification certificates, if your trade is regulated
Common mistake: assuming a German professional qualification automatically transfers. It often needs separate verification before you're cleared for a reglementiertes Gewerbe.
The notification is free of charge, and for unregulated trades, you can generally begin operating immediately once the filing is complete.
Step 3 – Open an Austrian Bank Account and Deposit Capital
For a GmbH or FlexCo, you'll need to:
- Deposit the required share capital into a company account
- Obtain a bank confirmation — this is required before you can file with the Firmenbuch
- Allow extra time if you're a non-resident applicant, since EU anti-money-laundering checks can slow account opening
Step 4 – Register with the Firmenbuch
This step is mandatory for GmbH, AG, and partnership structures. Simple sole proprietorships below certain thresholds are exempt. The register application typically requires certified signatures from all managing directors or partners.
Step 5 – Register with the Tax Office and SVS
- Finanzamt: Report your business opening within one month of starting activity. Sole proprietors use Form Verf 24; capital companies use Verf 15; partnerships use Verf 16
- VAT threshold: Under the Kleinunternehmerregelung, businesses under €55,000 gross annual turnover can skip charging VAT (but also can't reclaim input VAT)
- SVS: Self-employed individuals are mandatorily insured. Insurance generally starts the day your trade licence is issued, and you'll get a welcome letter within about four weeks
Step 6 – Set Up Cross-Border Compliance Between Germany and Austria
This is where things get complicated for German founders keeping ties to both countries.
The Germany–Austria double taxation treaty, in force since 2002, determines which country taxes what. Article 7 generally taxes business profits only in your home state unless you have a permanent establishment in the other (a fixed place of business through which you carry out your activity there).
Getting this wrong risks double taxation or accidentally triggering Austrian tax residency you didn't intend.
For founders managing both sides, VJM Global supports entity formation, accounting, and multi-jurisdiction tax compliance across Germany and other EU markets, so you are not left interpreting two rulebooks alone.
Costs, Taxes, and Ongoing Compliance
Budgeting correctly upfront avoids surprises later. Here's what to expect:
| Item | Figure |
|---|---|
| Gewerbeanmeldung fee | Free |
| GmbH/FlexCo minimum capital | €10,000 (€5,000 cash minimum) |
| Corporate tax (KÖSt) | 23% |
| Minimum corporate tax (GmbH/FlexCo) | €500/year |
| Standard VAT rate | 20% |
| Kleinunternehmer VAT threshold | €55,000 gross turnover |
| Record retention | 7 years (up to 22 years for certain VAT-related property records) |
Personal income tax for sole proprietors is progressive, ranging from 0% (up to €13,539) to 55% (above €1,000,000) for 2026.
Beyond initial setup, ongoing obligations include:
- Annual financial statements for companies
- Firmenbuch filings for any structural changes
- VAT returns based on your Kleinunternehmer status
- Coordinated bookkeeping across both German and Austrian entities if you're running operations in both countries
Managing two countries' filing calendars, currencies, and reporting formats is where many remote founders lose time. VJM Global's accounting outsourcing and CFO support cover bookkeeping, tax advisory, payroll, and management reporting across both jurisdictions—so dual-country compliance stays coordinated without adding internal headcount.
Frequently Asked Questions
Can someone from Germany start a business in Austria?
Yes. As EU citizens, Germans have equal establishment rights in Austria and don't need a residence permit. You will still need a registered business address and a bank account.
How much money do I need to start a business in Austria?
Sole proprietorships cost almost nothing to register (the Gewerbeanmeldung is free). A FlexCo requires €10,000 in share capital; a GmbH requires €35,000, plus notary and registration costs.
What is the easiest business structure for a German founder to set up in Austria?
The Einzelunternehmen (sole proprietorship) is fastest and cheapest to launch. A GmbH offers liability protection but demands more capital and paperwork.
Do I need to speak German to start a business in Austria?
Most official registration documents are in German. While English is common in startup circles, fluency in German helps with authorities and day-to-day dealings.
How long does it take to register a business in Austria?
Sole proprietorships typically take 2–4 weeks. A GmbH usually takes 4–8 weeks, mainly due to notarisation and capital deposit requirements.
Can I run my Austrian business while living in Germany?
Yes, but you'll likely need a registered Austrian address or local representative depending on your structure. Cross-border tax implications under the Germany–Austria treaty should be reviewed with a specialist before you start.
