How to open offshore in Austria?

Austria is a modern, highly developed state located in the very center of the European Union. The country's tax legislation provides for a number of benefits for foreign entrepreneurs and investors, but official Kyiv does not perceive Austria as an offshore. This state does not appear in the lists of offshore zones for other countries.

Benefits of Austrian taxation

• Income received in the territory of tax-free states, as well as in states with low taxes, is not subject to taxation in principle.
• Foreign offshore companies registered in Austria do not pay taxes on dividends from abroad. In addition, they are exempt from capital gains taxes due to the sale of foreign shares if at least 10% of such shares were at the disposal of the firm for 12 months or more.
• Dividends that an offshore company receives from the presence in the authorized capital of a non-resident company are also not subject to taxation.
• Dividends provided by one Austrian company to another are also not taxed (in this case, the recipient of dividends is exempt from taxation).
• If a foreign subsidiary earns profits from interest or royalties and is taxed in the country in which it is registered (with taxes of at least 15%), then the dividends of the parent Austrian company are not subject to tax payments (otherwise the rate would be 25 %).
• In Austria, you will not need to pay taxes on dividends earned thanks to a foreign company that participates in the management of another company, consulting, rental and even manufacturing business. This rule is true even if there is no taxation in the state of the non-resident firm.
• If a subsidiary of a company registered in Austria suffers losses, then they can be deducted from the tax base. To take advantage of this opportunity, it is necessary that the company owns more than 50% of the shares of the foreign subsidiary. The losses themselves must be calculated in accordance with the rules of accounting in the country.
• Offshore companies can combine investment and trading activities in their work. In other words, they can simultaneously carry out trading operations in the status of an agent and be owners of shares in other companies, receiving dividends thanks to them. Tax in this case will need to be paid only on agency profits.

Company form in Austria

The most common and convenient form of doing business in this country is a limited liability company, the so-called GmbH (stands for Gesellschaft mit beschrankter Haftung). Such a company is convenient both for working in the domestic market and for the implementation of international tasks. To establish a GmbH in Austria you will need:

1. Authorized capital in the amount of at least 35 thousand euros (of which only half of the amount can be paid at the time of registration of the company).
2. A managing director who is personally liable for all obligations that arise from his actions on behalf of the firm. He can act both as an employee (if he owns less than 25% of the shares), and as a self-employed employee (otherwise).
3. Shareholders. They can be individuals and legal entities, residents and non-residents of the country, there can be several or even one.
4. Bank account. In order to pay the authorized capital, it is necessary to open at least one account in an Austrian bank, while the rest of the accounts can be opened without any restrictions in any country of the world, be it Ukraine or the USA.

Additional advantages of offshore registration in Austria

In most EU countries, companies are audited every quarter, which makes these informal offshore zones not very convenient for foreign investors. In this regard, Austria compares favorably: the companies registered here are audited only once a year. The country also has the possibility of recovering the costs of research and development performed. Companies engaged in such activities can apply for subsidies and for a return of up to 10% of all funds spent on research activities throughout the year.

Austria's Corporate Law