Austria
The Republic of Austria is situated in Central Europe. The country borders Germany and the Czech Republic to the north, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west.
According to the CIA Factbook, Austria covers a total area of 83,879 km2 (32,386 sq mi), and is the 113th largest country globally. Austria’s population is estimated at 8,935,112 (2020), and has a population density of 106/km2 (274.5/sq mi), ranking it 106th versus other countries across the globe (with 91% Austrian, former Yugoslavs 4%, Turks 1%, German 1%). The official language of Austria is German, with a small proportion of people speaking Turkish, Serbian, and Croatian.
Austria is regarded as one of the world’s wealthiest countries, and its largest city and capital are Vienna. Austria is a representative parliamentary democracy comprising of nine federal states. The county entered the EU Economic and Monetary Union in 1999, adopting the Euro as its official currency.
Austria participates in several international organizations, including The EU, United Nations, UNESCO, IMF, and WTO.
Austria Economy
Austria’s GDP is around $429 billion and a GDP per capita of $51,936, ranking it the 17th most prosperous country in the world.
Austria has a well-developed market economy, and a high standard of living is closely aligned with other European economies, especially Germany. The country has a large services sector that generates 69% of the national GDP, and a strong industry sector accounts for around 30% of GDP.
Austria’s primary industries include construction, machinery, automobiles, food, metals, chemicals, wood processing, paper, communication, and tourism.
Austria also benefits from a small but dynamic agricultural sector that produces 80% of domestic food requirements. Foodstuffs produced include grains, potatoes, sugar beets, wine, fruit, dairy products, and meats.
Trade with other EU countries accounts for over 60% of Austria’s imports and exports. Austria’s commodities are exported primarily to Germany 29%, Italy 8%, USA 4%, and Switzerland 4%. Recently a significant proportion of the country’s economic activity has been focused on expanding trade and investment to the emerging markets of central and Eastern Europe.
Austria also imports some products, primarily machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products, and foodstuffs, with 43% coming from Germany, Italy 7%, Switzerland 5%, and Netherlands 4%.
Austria Infrastructure
Austria has an excellent infrastructure that includes a well-developed transportation system. Its location makes it a major transportation route between leading business centers in Central and Eastern Europe.
The country is connected by an extensive road system that stretches 91, 238 kilometers: 1743 motorways, 10, 858 main or national roads, and 23, 653 secondary or regional roads.
The national railway company of Austria is called ÖBB – Austrian Federal Railways Österreichische Bundesbahnen. The company operates a dense train station network that links Austrian and International cities.
Most large Austrian cities operate an extensive public transport network consisting primarily of trolleybuses, trams, buses, and subway systems. Cycling is also prevalent in Austria, with significant cities offering good bike lanes and paths networks.
Austria has several international airports, with Vienna and Salzburg being the largest. Other significant points of entry by air are Innsbruck, Graz, Klagenfurt and Linz. The commercial aviation in the country transported almost 36 million air passengers (including transit), in 2019: Vienna – 31,662,189 passengers, Salzburg – 1,717,991 passengers, Innsbruck – 1,144,471 passengers, Graz 1,036,929 – passengers, and Linz – 436,018 passengers.
About one-third of Austria’s energy consumption is covered by the national energy industry, with 70% from renewable sources.
Austria Workforce
The estimated Austria’s labour force is around 3.739 million (2020 est.). 67% of the labor force work in the services sector, which comprises banking, tourism, real estate, education, transportation, and communication.
27% work in the industrial sector dominated by the iron and steel industry and includes petroleum products, power generation, chemicals, and food processing. At 5.5%, a minor proportion of the workforce work in agriculture, producing grain, vegetables, dairy products, wine, and beef.
The labour force is predominantly Austrian, with a small proportion of Turks, Germans, and Former Yugoslavs.
The Austrian government spends an estimated 4.7% of GDP (2018) on education. Its focus results in a skilled workforce and a high literacy rate of 98%. Austria has established an education system similar to those of Germany and Switzerland. School attendance is compulsory for nine years, and kindergarten education in most states is free. Secondary education consists of two main types of school Gymnasium geared toward university entrance and Hauptschule’s that are vocational schools. For students that are Austrian citizens and complete their studies in the minimum time, University fees are waived.
It is estimated that the unemployment rate in Austria is around at 5.77% (est. 2020).
Business Costs in Austria
Austria’s individual income tax rates work on a progressive scale of 0%-55%, with 7 tax brackets:
- Up to €11,000 0%
- €11,000 – €18,000 25%
- €18,000 – €31,000 35%
- €31,000 – €60,000 42%
- €60,000 – €90,000 48%
- €90,000 – €1,000,000 50%
- Over €1,000,000 55%
The Austrian corporate tax rate is 25%, making it an attractive place for companies and investors. Capital gains of companies were set at 25%, and corporations are also expected to pay municipal tax (non-profit related) and property tax.
The standard VAT rate in Austria is 20%, while some reduced VATs of 0%, 10%, 13%, and %20 can be applied to the tourism, food, and agriculture sectors.
Austria does not have an official minimum wage. Majority of the wage-earners in Austria are regulated by collective agreements which are negotiated by the social partnership. As per the current agreement, wage earners will earn at least 1500 € per month.