Austria offers “free trades” — which require no proof of qualification — and “regulated trades,” which do require certification, such as diplomas, proof of experience, or employer references.
Before you start as a sole proprietor, carefully consider what business activity you want to pursue. The Federal Ministry of Labour and Economy publishes online lists of all free and regulated trades — your business may fall into several categories.
Important: Sole proprietors have unlimited liability with both business and personal assets.
Registering as a sole proprietor
You register your sole proprietorship either online via the GISA portal or in person at the relevant authority or the Austrian Economic Chamber (WKO).
Required on registration:
- Business name or your personal name
- Business address (can be your home address)
- Full name, address, date and place of birth, nationality, social insurance number
Documents needed (attach scans for online registration): - Birth certificate and proof of citizenship OR passport
- Residence permit
- Proof of address
- For name changes: marriage certificate or official notification
Authorities may request further documents as required.
After registration
After the formation of a sole proprietorship (EPU), the tax office and the Social Insurance Institution for the Self‑Employed (SVS) must be notified. Compulsory insurance is based on the GSVG, with contribution rates of 6.80% for health insurance, 18.50% for pension insurance and 1.53% for the self-employed provision scheme; in addition, an accident insurance contribution of currently EUR 12.07 per month is payable. New entrepreneurs benefit in the first two calendar years from reduced, fixed minimum contributions, in particular in health insurance, while pension insurance may be subsequently adjusted.
For small businesses, where annual turnover does not exceed EUR 55,000 and income does not exceed EUR 6,613.20 (2025 values), it is possible to apply for an exemption from health and pension insurance. If this exemption is granted, only the accident insurance contributions have to be paid; if the thresholds are exceeded, the exemption ceases to apply retroactively and the contributions are recalculated.
Bookkeeping
Every sole proprietor is obliged to maintain proper records — all receipts for income and expenses must be saved. Bookkeeping can be managed personally or outsourced to an accountant.
- Simple income/expenditure account (EÜR) or voluntary double-entry bookkeeping: up to €700,000 turnover
- Double-entry bookkeeping mandatory: turnover exceeds €700,000 for two consecutive years, or more than €1,000,000 in a single year
In that case (under §189 UGB), entry in the commercial register (“Firmenbuch”) is compulsory.
Staff and liability
Sole proprietors have unlimited personal/business liability. You may hire staff or use subcontractors.
Taxes for sole proprietorships
Sole proprietors pay income tax like private individuals:
EUR 13,308–21,617 …………………………………… 20%
EUR 21,617–35,836 …………………………………… 30%
EUR 35,836–69,166 …………………………………… 40%
EUR 69,166–103,072 ………………………………… 48%
EUR 103,072–1,000,000 …………………………… 50%
Above EUR 1,000,000 ……………………………… 55%
In addition, value added tax applies (standard rate 20%, reduced rates of 10% and 13% on certain goods and services). Up to an annual turnover of EUR 55,000 (from 2025), the small business regulation can be used: no obligation to charge VAT, but also no right to deduct input VAT.
