Austria the Unknown Neighbour? Marion Biber, Director Southern Europe Slovenia, April 2012 ABA-Invest in Austria Folie 2
Surely you know Austria like this Folie 3
but did you also know Production sectors as percentage of GDP, 2010 Austria 29,2 Germany 27,8 Japan 27,3 Switzerland 27,2 EU-27 24,7 Netherlands 23,7 USA 21,3 UK 21,8 France 18,8 Source: OECD, Eurostat Folie 4
did you also know Folie 5
and that? Folie 6
Austria s R&D expenditures grow above average As a percentage of GDP *Forecast 2011 2,9 2,7 Germany Austria 2.79 * 2,5 2,3 2,1 1,9 EU-25 1,7 1,5 1998 2000 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Eurostat Folie 7
The Austrian market - small but profitable 8.4 million inhabitants 50 m. consumers within 400 km GDP/capita: 32,110 #4 in the EU regarding purchasing power GDP growth 2011: 3.2% Inflation 2011: 3.4% Folie 8
In the heart of Europe Folie 9
Attractive for regional headquarters Some 300 international companies have their CEE headquarters in Austria, for example: Regional CEE HQs examples Folie 10
Motivated workforce 10=Employees identify with the company s goals Denmark 1 Switzerland 2 Austria 3 Germany 8 Netherlands 11 Japan 15 USA 21 Belgium 23 Czech Republic 27 United Kingdom 35 Hungary 41 Poland 43 Italy 48 France 51 Source: World Competitiveness Yearbook 2011 8,09 7,92 7,73 7,24 7,14 6,88 6,47 6,42 6,05 5,7 5,24 5 4,77 4,42 Folie 11
Labour law basic information There is no general minium wage, minimum wages regulated in sectoral agreements Wages paid 14 times per year Working hours: 38.5 or 40 hours / week (excluding lunch brake) Usually 25 days vacation per year New system for severance payments no need for provisions Employees may be dismissed without stating a cause Folie 12
Labor Regulations Changes Effective May 1, 2011 End of the transition period for employees from the new EU Member States Work permit is no longer required Within 3 months only a registration certificate with the responsible immigration authorities must be applied for Employees must be employed in accordance with the minimum conditions stipulated in prevailing wage and labor regulations Folie 13
Economic and social stability Eurozone Lowest strike rate High level of personal security Reliable legal system Folie 14
Competitive office rents reduce your operating costs In Euro per m² and year Berlin 294 Budapest Vienna Prague Amsterdam Warsaw Rome New York Frankfurt 323 332 396 401 413 505 526 555 Zurich Paris Moscow 665 924 1.043 Tokyo 1.248 Hongkong London 1.455 1.530 Source: CB Richard Ellis, 11/2010 Folie 15
Constitution of a limited company in Austria (GmbH) Minimum share capital 35.000 Articles of Association signed by notary deed Time for registration at company register appr. 2 weeks Cost of constitution ca. 10% of share capital Taxation 25%, minimum tax 1.750 /year Folie 16
Trade license Non-regulated (e.g. trade/commerce) or regulated trades (e.g. restaurant, construction) Holder of the trade licence has to be appointed Can also be employed (at least 20 hours/week) General prerequisites: Over age of 18 Austrian or EU citizen No reasons for exclusion (e.g condemnation) Special prerequisites depend on activity Folie 17
Investor-friendly Tax System Corporate tax rate: 25% Modern group taxation Tax premium for R&D: 10% Double taxation treaties No Black List Folie 18
Taxation of physical persons AUSTRIA SLOVENIA EUR % EUR % - 11.000 0% - 7.529 16% 11.000-25.000 36,5% 7.529 15.057 27% 25.000 60.000 43,2% >15.057 41% > 60.000 50% Employer s cost: (gross salary*14) + appr. 30% Source: Leitner & Leitner, 02/2012 Folie 19
Taxation of physical persons examples Gross salary 25.000 50.000 75.000 100.000 Net salary in Austria 18.400 31.700 46.200 60.600 Net salary in Slovenia 15.684 27.180 38.600 50.160 Source: Leitner & Leitner, 02/2012 Folie 20
Incentives support your project Examples: Fiscal for R&D and training of staff Grants/credits with low interest rates for investments in production up to 25% Grants/credits with low interest rates for R&D projects up to 50% Folie 21
ABA-Invest in Austria Consulting company owned by the Ministry of Economic Affairs Consulting services and information for international investors - free of charge 29 employees International network Cooperation with the regions Folie 22
What we can do for you Consulting services fast, non bureaucratic and free of charge General information on Austria as a business location Market data Legal and tax issues contact network Labour laws, labour costs Site identification Information about incentives and public contributions Organisation of fact finding missions Folie 23
ABA at Your Service! Marion BIBER Director Southern Europe E-Mail: m.biber@aba.gv.at Tel: +43 1 58858-32 www.investinaustria.at Folie 24