#Doing Business in Austria · business development Austrian Research Promotion Agency promotes R&D by companies along the entire innovation chain Austrian Science Fund promotion of

Austria#Doing Business in

Gerlinde Gahleitner

13th October, 2020

Hardship-fund for EPU and micro enterprises

Financial support to ensure the liquidity of companies

Measures to reduce liquidity shortages caused by tax

and social security contributions

Corona short-time work

NEW: Investment premium > to stimulate the economy

Support measures for companies

affected by COVID-19

Austria: Strong Economy in the Heart of Europe

Area: 83,872 km²

People: 8.8 m.

9 provinces, capital city Vienna

GDP / capita: € 40,500/N° 4 in EU

Highly export oriented: 55,8% of goods

and services

SMEs as backbone of the economy

Tradition of innovation!

Hidden champion rate per capita similar to

Germany and Switzerland

R&D quota: 3.19% (2019)

Austria is a strong industrial

location

Tourism: 15 %Industry: 29 %

As a percentage

of GDP 2019

Top 5 industry sectors

Electro /Electronics10,9%

Machinery23,3%

Vehicles9,3%

Food6,2%

Chemicals9,2%

Source: Austrian Chamber of Commerce, % of total production

Austria: +66%Total: 12.8 bn € (2019)

EU: +16%

Austria invests in R & DIncrease of R&D expenditures 2000 - 2017

Hidden Champions

▪ among top 3 in the global market

▪ or number 1 in Europe

▪ Annual turnover below 3 billion €

▪ HQ in Austria

▪ Barely known in public (niche

products, mostly B2B)

▪ Privately owned

200 Austrian Hidden Champions w/ annual

Sales < 200 Mio €

& 65 World & European Market Leaders w/

Sales > 200 Mio €

Rosenbauerworld’s leading manufacturer of systems for firefighting & disaster protection;

Staff: > 3,500

Sales network in >100 countries

Sales worldwide: 909 Mio €

Blumone of world’s leading manufacturer of furniture fittings;

Staff: 6,000 in Austria & 8,000 worldwide

Sales worldwide: 1.8 b. €.

Why Austria?Opportunities for international companies

Central European location with ideal access to EU markets

Country framework: High stability & security

Qualified & flexible employees

SupportInnovative technologies & competitive businessenvironment

90 m.customers

420 m.customers

760 m.customers

Your Ideal Access to European Markets and

the DACH region

DACH 100 m.

german

speaking

customers

Strong purchasing power

Austria: 128EU: 100

2019

Source: Eurostat

Why Austria?Opportunities for international companies

Central European location with ideal access to EU markets

Country framework: High stability & security

Qualified & flexible employees

SupportInnovative technologies & competitive businessenvironment

• Corporate tax rate: 25%

• Modern group taxation

• Tax premium for R&D: 14%

• No trade tax

• Dense network of double taxation treaties

Investor-friendly tax system

Why Austria?Opportunities for international companies

Central European location with ideal

access to EU markets

Country framework: High stability &

security

Qualified & flexible employees

SupportInnovative technologies &

competitive businessenvironment

Talent: qualified and productive personnel

• Productivity 16% above EU

average

• Motivation rank 4 worldwide

• Dual education:

apprenticeship

• Vocational schools (HAK, HTL

unique to Austria)

• Dense network of 12 private

and 22 public universities

• Modern and flexible labour

law

Why Austria?Opportunities for international companies

Central European location with ideal access to EU markets

Country framework: High stability & security

Qualified & flexible employees

SupportInnovative technologies & competitive businessenvironment

# High quality of life

Why Austria?Opportunities for international companies

Central European location with ideal access to EU markets

Country framework: High stability & security

Qualified & flexible employees

SupportInnovative technologies & competitive businessenvironment

The Columns of the Austrian Incentives

Schemes

Investments R&D Environment Inter-

nationalisation

Public incentives

Regional level

Federal level

EU programmes

At the regional level:

additional funding and support

Comprehensive Funding System

Austria Wirtschafts-service

funding bank for corporate business development

www.aws.at

Austrian Research Promotion Agency

promotes R&D by companies along the entire innovation chain

www.ffg.at

Austrian Science Fund

promotion of basic research

Direct incentives

One-stop-shop (FFG)

Mixture between cash grants and subsidized low interest rate loans

2018: 618 Mio. € spent

Indirect incentive: Research Premium

Tax allowance: 14%

Costs of staff and material

Even for investment in real estate

For SME and large companies!

Funding for R&D: Unique!

via two main programme lines

Subsidies for R&D Projects are

Available

„Special programmes“

„Top Down“

Thematic calls

„Bottom-up“

Any topic

Any time

„General programme“

Who we are

Austria’s federal consulting

company for international

investors

Free of charge assistance and

information

All sectors and all type of

companies

30 experienced employees

International network

Strong collaboration with regional

agencies

First Contact Evaluation Implementation

General information on Austria

Market data

Legal and fiscal framework

Fact-finding missions

Regulations and labor costs

Site selection

Real estate

Consulting on subsidies

Trade licence

Useful contacts

Assistance in obtaining federal subsidies

Assistance with permits

Ways to find personnel

…for all sectors and types of business from commercial to R&D!

ABA offers fast, non-bureaucratic consulting and services – free of charge

www.investinaustria.at

ABA – at your service!

Gerlinde Gahleitner

Director SEE

Tel: +43 158858 31

[email protected]