FDI in figures

With the country being located at the crossroad of East and Western Europe, direct foreign investment has always been important because of Austria's geographic location. In 2007, Austria showed significant growth in FDI stocks. On the other hand, 2008 sounded the death toll of the growth of foreign investment should continue to fall until 2010. The global crisis has had an impact on investments in the country because investors are afraid that Austria's financial involvement in Eastern countries could make it vulnerable. Austria strengths are its political stability, its location at the centre of Europe and a skilled work force.

Why you should choose to invest in Austria

Strong points

Well developed infrastructures, a skilled and competent work force and high productivity are the country’s strong points. Austria has the headquarters of many firms and ranks 27^th out of 181 economies with regard to ease of doing business. Austria also has a significant assemblage of pharmaceutical companies based in the country, thus developing a focus of biotechnological skills and attracting the big companies of this sector.

Weak points

Austria’s weak points:
- Rigid labor practice;
- Lack of risk capital financing;
- restrictive migration laws;
- Strong dependance to Central and Eastern Europe where numerous investments have taken place (risky in case of a crisis in one of these countries);
- the restrictions of its internal market.

Government measures to motivate or restrict FDI

Export incentives, political stability and low telecommunication costs make the Austrian business climate favorable. Another attractive factor is the fact that Austria has the most attactive taxation system in Europe and does not have a wealth tax or professional tax. Regional investment subsidies, tax exemptions on training (20%) and a training bonus for apprentices guarantees the country's appeal.
To mitigate the effects of the crisis, Austria has implemented mesures to reinforce the liquidity and the capitalization of the financial system.

Bilateral investment conventions signed by Austria

Visit the UNCTAD website.

Procedures relative to foreign investment

Freedom of establishment

Guaranteed.

Acquisition of holdings

Possible.
A majority holding interest in the capital of a local company is legal in Austria.

Obligation to declare

In order to be able to run a company in Austria, professional ability proofs are required in nearly all activities, listed in a regulatory test: Gewerbeordnung, reconducted by the law n°194 of 1994.

Competent organization for the declaration

Federal Competition Authority (FCA)

Requests for specific authorizations

Licenses are required in sectors like banking and insurance. Moreover, the federal and state governments maintain at least a 51% share in all electricity generation and supply companies.

Finding assistance for further information

Investment aid agency

Austrian Development Cooperation
Austrian Business Agency
Advantage Austria

Other useful resources

Vienna Business Agency