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Company Formations in Austria

General Conditions for Company Formations in Austria

Czechia is located in Central east Europe and became EU-member in 2004. Since then, the tax framework was altered from Flat-Tax to progressive tax system. However, the CIT tax rate (Corporate Income tax) is currently at 19% with a WHT (Witholding Tax) of 15% for residents and non-residents for dividends wheras interest and royalty is tax free. Dividends, Royalties and Interest paid to related EU-resident companies are not subject to WHT if certain conditions are met. 

Additionally, there is a special tax regime for entrepreneurs in place with a tax of just 15% minus deductibles.  The will lead to an effective tax rate in some cases between 6% and 9% but is capped to a maximum income. 

The labour market is good and workforce is affordable. 

Furthermore, one can enjoy reasonable cost of living and low housing costs if living in a hot spot is not required. Hence, numerous international companies are already doing business in and from Czechia. More and more firms and entrepreneurs heard about the benefits of company formations in Czechia and setting set up subsidiaries and branches in Czechia.

The banking sector is stable with a good choice of local and international banks, so banking is not an issue. 

Our experienced and highly qualified international tax and legal advisors will review your company structure, existing management or mandate contracts. We also offer review of your contractual arrangements at home and abroad. In addition, our tax and accounting department will be pleased to take care of your bookkeeping and tax returns.

Why not working with us – we offer company formations in Czechia at a fixed price of 1.680,00 € net all-in. Enjoy our fast, reliable and competent approach in your native language (German, English, French, Czech, Slovak, Greek, Russian)!

Ideal Tax Framework for Transport Companies

Before Czechia joined the European Union, Czechia introduced a modern tax framework. However, until nowadays there is no regime for group taxation in place. The Czech legislation thus today fulfills all relevant EU standards, EU regulations, the OECD- standards, the FATF and the FSF.

Czech companies are recognized throughout the European Union as EU companies with an extensive Tax Treaty Network. This circumstance is used particularly by holding companies. Czechia nowadays has one of the most favourable Tax Regimes in Central-Europe and competes within the EU with Slovakia and such as Poland at a split of the cost.

Why not speaking to us to about the advantages of a transport and logistics structure.

What you need to consider if relocating to Austria

A long-term stay in a country for more than 183 days will usually (and automatically lead)  to an unlimited tax liability for your world income. Some countries go even further and already assign this tax liability if you can permanently use your own apartment (this can even be the room in your parents’ house or a regularly visited hotel) which you can access with your own keys – knows as “Schlüsselgewalt” in German speaking countries. This rule establishes or maintains an unlimited Tax liability for your world income. If this subject is of interest, you may find out more on our dedicated website for Taxation.

The often cited and in general used “183-Days-Rule” is not entirely correct. It can be only used to a limited extend as few countries (Germany) deem a personal tax liability if one spends in total more than 183 days within the country in two consecutive years, spanning two tax periods.

One can therefore only advise that people interested in relocating their place of residence not to rely on start-up agencies and other jokers – the pitfalls are simply too great and sound advice is required. A few advisors (specialized lawyers, accountants) study tax law for years, others do a weekend seminar or attend the Google University – where do you feel better off?

It’s amazing what’s on offer on the internet. Believe us – there is no point in having no tax residency/residence anywhere. If in doubt, you never gave up your original tax liability (in your country of birth) or you are automatically subject to tax through your passport. 

If you have plans for company formations in Czechia, it make sense to speak about your relocation in detail. 

TOP Jurisdiction for EU-Residence in Central-Europe

Austria, however, offers ideal conditions for a tax residence. To obtain a tax residence, one need to stay more than 183 days in Austria. With close links to other European countries, good flight connections and travel times of roughly two hours into the center of Europe, is this an ideal place to conduct business of any kind.

Of course, you are not allowed to stay in any other country for more than 183 days which would trigger an unlimited tax liability there. This concept is therefore ideal for everyone who can live and work flexibly (e.g. digital nomads).

If you come to us, you can rely on well-founded and legally sound advice. Together we will find your ideal life concept.

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