3 January 2024

Austria Business Immigration: How to obtain a residence permit by starting a company?

 

Moving to Austria is a dream for citizens of many non-EU countries. It is not only a cultural state with Alpine nature, excellent education, and healthcare, but also a fertile ground for the development of international business projects. Austria’s Central European location, reasonable government policies, and history of international trade attract many innovative entrepreneurs.

Is it worth putting your family’s future on the line and trying to survive through entrepreneurial talents? Can success be achieved through business immigration to Austria? So, how can you relocate to this country and obtain permanent residence after starting your business? This is discussed below in the article.

CONTENTS:

  1. Austria: Business Immigration for Entrepreneurs
  2. How Does Business Immigration to Austria Work with Our Help?
  3. Real-Life Example
    1. Residence Permit in Austria for Financially Independent Persons
    2. Residence Permit in Austria When Starting a Business
    3. Solution to the Problem
    4. As a Result
  4. A Little About Business Immigration to Austria

Austria: Business Immigration for Entrepreneurs

When immigrating, entrepreneurs must follow the Niederlassungs-und Aufenthaltsgesetz. This is the only document that specifies this type of relocation.

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Main conditions:

  • Creation of a company or purchase of an existing one;
  • Investment in a company located in Austria;
  • The possibility to create new jobs or protect existing ones;
  • Implementation of new technologies in your company;
  • Providing a business plan for a project important for the Austrian region.

Required documents are as follows:

  1. Completed application form.
  2. Passport and identification card (copies of all pages).
  3. Photograph 35 x 45 mm.
  4. Birth certificate.
  5. Marriage certificate.
  6. Lease agreement or purchase contract for accommodation in Austria.
  7. Proof of health insurance in Austria.
  8. Bank statement confirming sufficient funds for your stay in Austria.
  9. Police clearance certificate (from Austria or an EU country, and from your country of residence).
  10. Business and financial plan.
  11. Registration documents for the Austrian company.
  12. Documents confirming your professional and/or commercial activities.

These are the main documents. However, depending on the businessman’s country of citizenship, this list may be supplemented.

How Does Business Immigration to Austria Work with Our Help?

We will consult you on the process of business immigration to Austria and the procedure for obtaining a residence permit. Each of our employees will answer all questions related to education, insurance, integration into the business chain, healthcare, administrative, and other aspects. We will help you carry out business immigration to Austria quickly and easily.

First, you will need to prepare and legalize the necessary documents. We have a team of translators who will translate all documents into German and review the application.

Next, we will submit your immigration application to the Arbeitsmarktservice AMS for the necessary supporting documents. Then, the complete list of documents will be sent to the Austrian consulate in your country for obtaining an Austrian immigration visa. This allows you to come to the country and apply for a residence permit in Austria.
The relevant authority issues a Red-White-Red Card, valid for one year with the possibility of extending it once for one year and then for another three years. After living in Austria for five years, you can apply for a permanent residence card valid for ten years.

Your family members are also included in the immigration process. They will receive a visa and residence permit allowing them to stay in Austria.

After living in the country for 10 years, you have the right to apply for Austrian citizenship.

Real-Life Example

One can talk a lot, but we suggest considering relocating to Austria in practice.

Given:

  • an entrepreneur in the gaming sector;
  • his unemployed wife;
  • two children — 7 and 5 years old.

Problem:

The businessman is a citizen of one of the CIS countries. He is a passionate and successful entrepreneur. However, as his business grew, he faced increasingly significant obstacles in international development. The economic and business culture, as well as the current politics of his country, made further growth impossible. Thus, he began looking for alternative places for himself, his family, and his lifelong work. His wife and children wanted to remain citizens of an Eastern European country but move to a more developed country — preferably with EU membership. They had vacationed in Austria many times and knew it had good ecology, the opportunity for a healthy lifestyle, and a good education for their children. Therefore, the businessman decided to open his business in this country.

So, what is the most correct solution in this situation?

Residence Permit in Austria for Financially Independent Persons

The easiest way for this person is to apply for a residence permit in Austria for financially independent persons (with the businessman as the main applicant). The prerequisites were all in place:

  1. The family had sufficient funds for a comfortable life.
  2. This residence permit does not provide access to the local labor market, but the family did not plan to work.
  3. The financial resources are legal and transparent with confirmed sources.
  4. With this document, the person can open and run a business in Austria.

The rules of this immigration program require applicants to reside in Austria for at least 183 days a year. Therefore, the businessman’s family must move to the country completely.

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Participation in this program is limited to a certain number of applications per year. There are quotas allocated by the state on the first working day of each calendar year. So, in most cases, one will have to wait until January.

Residence Permit in Austria for Starting a Business

The second option promoted by Austrian lawyers is the Red-White-Red Card. This is a permanent residence permit. It is available only to individuals who have successfully started a business in Austria. The conditions of the program are quite strict but achievable for a serious entrepreneur:

  1. A business plan clearly defining the amount of planned investments (from 100,000 euros). The amount can be reduced, but only if the entrepreneur will create new jobs or maintain existing ones that are at risk of disappearing. There is also the option to introduce innovative technologies or create a completely new product in Austria, or start a company of particular importance to the region.
  2. The business plan is reviewed by an expert committee, which decides on the viability and prospective regional significance of the proposed enterprise.
  3. The decision is sent to the immigration office (local magistrate or regional administration). Successful candidates receive a residence permit.
  4. Subsequently, the document can be extended (2 + 3 years) depending on the successful implementation and profitable functioning of the proposed business. Failure to meet the proposed business plan or persistent losses will hinder the extension.

If the person is a professional entrepreneur and plans to open a business in Austria regardless, this option will be the most attractive. Additionally, this solution avoids waiting for state quotas to be allocated in January of the following year.

Solution to the Problem

The aforementioned businessman initially did not agree to either option. The first — waiting for a long time, and the second — many risks. When starting a business in Austria, it is impossible to predict a positive outcome. And risking the future of the entire family on uncertain prospects is irresponsible.

Ultimately, the family did not make a decision and moved to Bulgaria. However, after some time, despite private schools for the children, the mild climate, and the similar mentality, the businessman returned to the idea of relocating to a more developed Western country. The chosen country did not offer the advantages he hoped for.

The businessman decided to apply for a residence permit in Austria. The document for financially independent persons was not selected again — there were not enough quotas. Therefore, the decision was made to try the business option.

To make everything work as needed, it is worth first finding and purchasing real estate in Austria. Here, one might encounter a problem — most properties are sold only to EU citizens or individuals with residence rights in the country. Austrian lawyers suggest making the purchase through a company registered in the European Union.

To make everything work as needed, it is worth first finding and purchasing real estate in Austria. Here, one might encounter a problem — most properties are sold only to EU citizens or individuals with residence rights in the country. Austrian lawyers suggest making the purchase through a company registered in the European Union.

At the same time, documents for setting up a limited liability company (GmbH) are being prepared. The process is quite lengthy. It will actually take almost a month: about two weeks to create a new company with limited liability and another two weeks to open a commercial bank account.

Delays are due to the thorough verification of the origin of funds conducted by Austrian banks when working with individuals from non-EU countries. After document approval and obtaining permission, purchasing real estate, living in the country is still not possible. One still needs to obtain a residence permit in Austria.

Therefore, the final step is to draft a proper business plan. It is advisable to involve an accountant and local lawyers. The business plan must appeal to the Austrian authorities. Then all necessary documents are collected and the application is submitted.

As a Result

Business immigration to Austria resolved favorably for all parties:

  1. Within two months, the businessman received a Red-White-Red Card, which allows him to stay in Austria and start a business.
  2. His wife received a Red-White-Red Card +. It is usually issued to spouses and provides access to the labor market in Austria.
  3. The children were included in the parents’ passports and cards. Thus, they also live in Austria legally.
  4. The country gained a young, promising businessman and a sought-after business.

If you are also attracted by the prospects and quality of life of business immigration to Austria or another EU member state, contact us today! We will help you weigh the risks and assess your advantages or limitations. INVESTMAKLER specialists will provide individual consultation on obtaining a residence permit or citizenship of a European country through business establishment.

Austria offers truly significant advantages: a European lifestyle, benefits for entrepreneurs in the international market, numerous investment opportunities, high positions and rankings. Many people strive for this.

A bit about business immigration to Austria

Since February 2018, the Labor Market Administration has introduced checks on wage payments and social insurance. These are strictly conducted one month after the start of work for a third-country national who has:

  • a red-white-red card;
  • a blue EU card;
  • an intra-corporate transfer permit (ICT).

In September 2018, the EU Directive 2016/801 was introduced into Austrian legislation. It regulates the conditions for the entry and residence of third-country nationals for study and work purposes. As a result, the residence permit was amended with the following changes:

  • mobility rights within the European Union;
  • faster registration processes;
  • the possibility of extending the stay in Austria for an additional 12 months after ceasing activities.

In 2019, the government issued a new directive applicable to foreign nationals — skilled workers intending to work in Austria. This list also includes shortage occupations applicable to each region of the country.

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Additionally, changes have been made to the point-based system for issuing red-white-red cards. The minimum capital for established companies is now higher (€100,000). The passing score for language knowledge (German or English) has also increased. This rule does not apply to older entrepreneurs without higher education.

Immigration matters are regulated by:

  1. The Immigration and Residence Act with amendments (BGBl I Nr 14/2019).
  2. The Police Act of 2005 with amendments (BGBl I Nr 56/2018).
  3. The Employment Act with amendments (BGBl I Nr 100/2018).
  4. The Wage and Social Contributions Act with amendments (BGBl I Nr 100/2018).
  5. The Integration Act (BGBl I Nr 37/2018).
  6. Several government regulations.
  7. The Temporary Workers Act with amendments (BGBl I Nr 100/2018).

Austria is part of the European Union, the European Economic Area, and the Schengen Area. Immigration matters concerning the residence of foreigners are handled by the regional authority where they reside. Residence permit applications are reviewed by the Federal Department, and visas are issued by the Austrian embassy in the applicant’s country of residence or by the immigration police.

Work permit issuance is managed by the local Labor Market Administration. Inspectors and officials from state health insurance or tax authorities may visit businesses without prior notice to check if everyone has the right to work in Austria. Wage dumping measures are monitored by the Financial Police, which is part of the Ministry of Finance.

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But a visa is not all that an entrepreneur needs to start a business. First, a preliminary work permit (also known as a “guarantee certificate”) must be obtained from the local Labor Market Administration. Then, you can apply for a work visa in person directly at the Austrian embassy. Some branches require an appointment in advance, while others use visa centers located throughout the country. After traveling to Austria, you need to apply and obtain a final work permit.

The red-white-red card is issued not only to entrepreneurs but also to highly skilled employees. Candidates must have a higher education, at least four years of practice (preferably in mathematics, information technology, natural sciences, or technical subjects). There is a point-based system of criteria according to which candidates receive additional points for:

  • a doctoral degree;
  • experience in managerial positions;
  • active research activities;
  • knowledge of German or English;
  • young age;
  • education in Austria.

The red-white-red card is given to entrepreneurs who employ:

  • mechanical engineers;
  • roofers;
  • turners;
  • data processing engineers;
  • agricultural machinery mechanics;
  • tool makers;
  • welders;
  • energy technicians;
  • high-level electricians;
  • carpenters;
  • lighting technicians;
  • fitters and tin smiths;
  • builders;
  • tilers;
  • artists;
  • pipe and paving installers;
  • woodworking industry workers;
  • blacksmiths and carpenters;
  • nurses.

Since January 2019, there is an additional list of professions for each region of Austria. This includes shortage occupations (e.g., bakers, butchers, or accountants for Upper Regions and waiters, hotel staff for Tyrol).

 

 

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