OFFPLAN NEWS

(27.06.2007 )
Austria real estate Austrian Business Investment Incentives

Austria offers a comprehensive system of both national and local incentive programs for land investment in Austria. The incentives available for a specific project vary, depending on the geographic location, the number of jobs created, the technology used and various other factors. Even the range of incentives is wide: from cash grants and low interest loans to export guarantees. Therefore individual consultations are required to determine the available incentives. Austria, however, must not grant subsidies in excess of the level accepted by the EU.

Incentive Cash Grants
Jobs must be created in economically depressed areas. Companies invest a negotiated amount for each job created and the employment must last for at least 3 years.

Grants for company premises, machinery and equipment are not taxed as income;
Grants or subsidies to create or maintain jobs may be tax free depending on circumstances.
The Tax Reform Act 2000 provided for a substantial enhancement of the tax incentives for R&D. After the reform, Austria is among the most generous countries with respect to tax incentives to R&D. Within the framework of the Tax Reform 2000 the allowance for research expenditures in connection with “economically valuable” inventions was increased from 18% to 25% (maximum) and the allowance for additional research expenditures (over and above a moving average of the expenditure over the past three years) was increased to 35%. The aim of this new regulation is to give incentives to increase R&D expenditures; positive effects on the whole economy are expected, especially concerning Productivity and Job Creation.

Until 2006, 41% of Austria’s land area is eligible for support under various EU structural fund programs. The Austrian federal, provincial, and local governments also provide financial incentives within EU guidelines to promote investments in Austria. Incentives under these programs are equally available to domestic and foreign investors, and range from tax incentives to preferential loans, guarantees and grants. Most of these incentives are available only if the planned investment meets specified criteria (e.g., implementation of new technology, reducing unemployment, etc.). Tax allowances for advanced employee training and R&D expenditures are available.

The Innovation & Technology Fund
Grants are given up to a maximum of 50% of project costs for technology transfer, IT costs, transport projects, software engineering or energy projects.

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