1. business and industrial

Business Location Austria
Austria
Opens Up New Perspectives
for Your Company
www.investinaustria.at
INVEST IN AUSTRIA
BUSINESS LOCATION AUSTRIA
3h
All of Europe
by Air in 3 hours
Helsinki
Oslo
Stockholm
Tallinn
2h
Riga
Copenhagen
Dublin
Moscow
Vilnius
Minsk
Amsterdam
London
Berlin
Paris
Warsaw
1h
Brussels
Kiev
Prague
Luxembourg
Bratislava
Vienna
Berne
Kishinev
Budapest
Ljubljana
Madrid
Lisbon
Zagreb
Sarajevo
Belgrade
Pristina
Podgorica
Rome
Bucharest
Sofia
Skopje
Tirana
Ankara
Athens
Austria’s central location in Europe makes the country the
business interface hub for East-West business relations
2
INVEST IN AUSTRIA
Dynamic
Business Location
As a business location, Austria offers companies a
favorable business environment, qualified specialized staff
and a modern infrastructure.
Austria ranks among the most prosperous and innovative countries in the European
Union. According to Eurostat’s Prosperity Index, Austria is rated second in the EU
behind Luxembourg and Germany. The dynamic business location stands out thanks to
its modern infrastructure, high quality technologies, well trained and highly motivated
specialized personnel. It also offers a high level of reliability with respect to the energy
supply in addition to political, social and economic stability. In addition, Austria is considered to be the ideal East-West business interface in a central geographical location.
Austria is growing faster than the Eurozone average, and also surpasses the global
average for foreign direct investment due to its attractive business environment.
For example, investors profit from a wide range of research promotion and funding
programs, a business-friendly tax system and high productivity. In spite of this good
positioning, we are continually working on creating an even more favorable business
location conditions for the benefit of companies. In this spirit we would like to warmly
welcome you to Austria.
Reinhold Mitterlehner
Vice Chancellor and
Federal Minister of Science, Research and Economy
Contents
5
6
7
9
10
12
14
Austria – A Profitable Location
Secure Location for Your Investments
Innovation Focus Drives Growth
People as a Success Factor
Ideal Conditions for R&D
New Medicine from Vienna
East-West Interface
17
18
19
20
22
25
27
Positive Economic Climate and Quality of Life
A Country of Specialists
World Market Leaders from Austria
Lower Taxes, Higher profits
Productivity as a Trademark
Value Creation with Recreational Value
The Best Contact Partner for Business Location Issues
Editorial: December 2014; Owner&Publisher: Austrian Business Agency, Opernring 3, A-1010 Vienna; Editor-in Chief: René Siegl; Associate Editor: Maria Hirzinger, Karin Schwind-Derdak; Design: www.november.at; Photos: picturedesk.com, BMWFW, Istockphoto.com, Siemens, Takeda, Ottobock, Javier Larrea,
Henkel, Mahle, Julius Silver; Print: Print City Europe
3
BUSINESS LOCATION AUSTRIA
A profitable location: International investors take it for granted that the business
location of Austria will enable them to exploit top-notch know-how and quality, high
performance technologies, a state-of-the-art infrastructure and EU membership
with close proximity to Eastern and South Eastern Europe. They decide for surefire
success, and thus choose Austria.
4
INVEST IN AUSTRIA
Austria –
A Profitable Location
The success factors: stability, CEE know-how and
a prosperous market in the heart of Europe
Top marks for Austria as a business location: the latest report of the EU Commission attested the individual EU member states a rather mediocre level of
competitiveness on average. This did not apply to Austria. Thanks to its solid
economic performance and high labor productivity, the country ranks among the
leaders in Europe. International companies benefit from this stable and profitable business environment. The Italian automotive firm Bifrangi invested about
EUR 35 million in Austria in 2014. BMW expanded its diesel engine competence center at a cost of EUR 90 million, whereas the American pharmaceutical
giant Baxalta committed EUR 138 million and EUR 80 million respectively to
upgrade two production plants in Austria. Trumpf and DB Schenker also strongly
expanded their Austrian facilities in 2014. The German construction company
Bauder opened a factory for roof systems in Austria for the first time.
What makes the small country of Austria located in the heart of Europe so
attractive as a business location?
All advantages at a glance. One thing is certain: for a profitable company
many of the basic conditions must be suitable for business on a long-term basis.
Investors can exploit a comprehensive package of competitive advantages:
• Outstanding level of energy security and reliability and low industrial
electricity prices
• Political and social stability as well as a low crime rate
• Hardly any strikes thanks to the excellent relationships between employers
and employees
• Second most prosperous country in the EU – an attractive market with
above-average purchasing power on the part of consumers
• Highly developed infrastructure with the best-performing airport with respect
to flight connections to the Central and Eastern European region
• Ideal basis for business in South East and Eastern Europe with more than
1,000 CEE coordination headquarters of foreign companies
• Tax advantages based on a low corporate tax rate, a Group taxation scheme
and attractive research promotion incentives
• Efficient location with high labor productivity and low unit labor costs
• Highly-qualified employees with practice-oriented vocational training
5
BUSINESS LOCATION AUSTRIA
Secure Location
for Your Investments
Stability, predictability and security of the energy supply are
outstanding features of Austria as a business location.
No machines stand still. Companies operating internationally can rely on Austria’s
extremely high level of political stability. Austria’s economic and social partnership
between management and labor representatives is not only the basis for one of the
lowest strike rates anywhere, with only 2 strike days annually per 1,000 employees,
but also ensures a low unemployment rate and a policy of wage restraint.
In Austria businesspeople are on safe ground. Climate change and natural
catastrophes increasingly influence business location decisions. Austria ranks among
the top performers in the world with respect to the reliability of its energy supply.
Electricity is available more than 99 percent of the time. Austria is relatively free from
natural catastrophes. Accordingly, it is not even listed in the risk evaluations of prominent international insurance companies.
High level of personal security. The high level of legal certainty is not the only factor which is particularly attractive to companies. Austria is one of the safest countries
in the world with a low crime rate. Even in big cities, it goes without saying that
people can safely use public transportation late at night or take a stroll around town
after attending a theater performance.
Annual unplanned non-availability of the
electricity supply in minutes, 2012
Denmark
Germany
Netherlands
Austria
Italy
UK
France
Hungary
Portugal
Sweden
Czech Rep.
Poland
Slovakia
Romania
6
14.75
15.91
27.00
34.74
45.45
55.43
60.10
76.25
78.48
84.02
109.93
254.00
303.10
Source: CEER Benchmarking Report, 02/2014
630.00
Strike duration in international comparison
Working days lost per 1,000 employees
Annual average 2005 - 2012
Switzerland
Austria
Sweden
Poland
Netherlands
USA
Germany
UK
Norway
Spain
Belgium
Finland
Denmark
Canada
1
2
5
6
9
10
16
26
59
65
73
84
Source: WSI - Hans Böckler Foundation 03/2014
106
117
INVEST IN AUSTRIA
Innovation Focus
Drives Growth
Cutting red tape relieves
the burden on companies
How do you see the Austrian business location in international comparison?
“Austria more quickly and effectively mastered the challenges posed by the
financial and economic crisis than many other countries. We have achieved a top
position in Europe in conjunction with high purchasing power and the innovative
performance of companies and universities. However, we will not rest on our
laurels, but continuously work to improve the underlying conditions for investments, exports and startups. We have also begun to reduce auxiliary labor costs
and are working on tax reform measures.”
Reinhold Mitterlehner
Vice Chancellor and
Federal Minister of Science, Research
and Economy
What are the particular strengths of Austria as a business location?
“Companies setting up operations in Austria highly value our qualified employees, the country’s role as a business interface for Central and Eastern Europe
as well as the high level of stability and legal certainty. Moreover, Austria
offers broad-based research promotion programs and funding which we further expanded in recent years. This can be demonstrated by the increase in
the research premium to ten percent, preferential tax treatment for contract
research and the large number of new competence centers in which the business and scientific communities can efficiently cooperate. The strong focus on
innovation makes a significant contribution to the good positioning of Austria’s
economy and one of the lowest unemployment rates in comparison with the
rest of the eurozone. In contrast to other countries, strike duration in Austria
continues to be measured in seconds. Moreover, we also stand out due to the
high reliability of our energy supply and our quality of life.”
What measures are you implementing in order to facilitate company start-ups?
“We have made an important decision to implement the ‘Gewerbeinformationssystem Austria’ (Austrian Trade Information System). In this way companies
save time and money, because the system facilitates the registering, relocating
and launching of business. The motto of the new unified national commercial
register GISA is to process more online instead of having to personally appear
before public authorities. This will reduce costs for companies by about EUR 30
million annually. The additional reduction of official company representatives,
improvements in metrology and verification and decreased record-keeping
obligations with respect to working time are important steps towards cutting
red tape. On balance, our measures will lead to cost savings of up to EUR 125
million annually for companies starting in 2015. Our objective is to reduce the
bureaucratic burden and facilitate good economic management.”
→ www.bmwfw.gv.at
7
BUSINESS LOCATION AUSTRIA
Innovative small and medium-sized enterprises
Corporate structure in Austria
Employees
0-9
10 - 49
50 - 249
250 and more
8
% of companies
87.3
10.7
1.6
0.3
Source: Austrian Federal Economic Chamber, 2014
Prosperity in the EU
GDP per capita 2013 in purchasing power
standards (PPS), EU-27 = 100
Luxembourg
Austria
Netherlands
Sweden
Ireland
Germany
France
Eurozone
UK
Italy
Czech Republic
Poland
Hungary
Bulgaria
Source: Eurostat, June 2014
264
129
127
127
126
124
108
108
106
98
80
68
67
47
INVEST IN AUSTRIA
People as a Success Factor
Austrian employees: top qualified and top motivated.
Exemplary education. There is a close connection between the educational
system and economic success of a country. That is why Austria focuses on
providing sound education and training at all levels.
Dual education. Similar to Germany, Austria offers young people a dual education system, which combines practical vocational training with vocational
schooling. In cooperation with companies, the schools make sure that training
matches the requirements of the business community. In additional to vocational schools, higher technical schools provide courses of study in all fields. The
education provided usually corresponds to a Associate Degree. A full two-thirds
of all 14-18 year olds attend vocationally-oriented schools. Upon graduation,
students can either start their professional careers or continue their education
and study at one of the 21 universities of applies sciences, 22 public universities
or 11 private universities. The universities of applied sciences, which offer 550
different courses of study, are particularly tailored to the specific needs of companies. Close to one-half of all the study programs offered by the universities of
applied sciences enable people to continue their education alongside work.
Low youth unemployment – motivated employees. The sound educational
system has a positive effect. Austria has the second lowest youth unemployment rate within the EU, at 9.2 percent. It is particularly important to note the
strong identification of Austrian employees with the companies. In this regard
Austria is ranked 5th worldwide (World Competitiveness Yearbook, 2014).
Youth unemployment (15-24 years)
in percent
Germany
Austria
Netherlands
UK
EU-28
France
Ireland
Italy
Spain
Greece
Source: Eurostat 06/2014
Job-oriented training in the educational system
Share of pupils in the upper secondary level
in percent
7.9
9.2
11
20.5
23.3
23.9
26.8
40
55.7
58.3
Austria
Belgium
Czech Rep.
Netherlands
Switzerland
Italy
Sweden
Germany
Poland
OECD
France
UK
Hungary
Japan
76
73
73
70
65
59
49
48
48
46
44
39
27
23
Source: OECD, Education at a Glance 2014
9
BUSINESS LOCATION AUSTRIA
Ideal Conditions for R&D
Innovative ideas and customized solutions from Austria
Takeda now operates two companies in Austria where it develops,
produces and markets pharmaceuticals. What do you think are the
strengths of Austria as an internationally sought-after business location?
Stefan König, Managing
Director Takeda Austria
“Austria is a relatively small country, but favorable legal and economic conditions exist here. We benefit from competent specialized employees, high quality
industrial and research partners along with attractive funding and a moderate
corporate tax rate. In addition, the outstanding quality of life is another argument
which should not be underestimated as a means of luring and retaining talented
people for a long time.”
What business location factors did your company attach particular
importance to?
“Vienna’s central location in Europe was very important to us. The infrastructure
is excellent and one can reach all important markets from Vienna in just two to
three hours. Moreover, in the pharmaceutical industry Austria is frequently at
the forefront of certain trends and tendencies. We can directly profit from this
thanks to our local presence.”
You were born in Germany and have already lived, for example, in Slovenia
and Mexico. What do you think is special about Austria?
“Having been born in Germany, it is naturally very pleasant for me to live in a
German-speaking country. Furthermore, Austria is known around the world for
its high quality of life and unique cultural offering which I enjoy again and again.
Of course one should also not forget to mention Austria’s mountains and lakes
offering an ideal range of leisure activities. All this contributes greatly to the fact
that my family feels very much at home here.”
What are your future plans with respect to Takeda Austria?
“My clear objective is to enhance the importance of our Austrian operations within
the group. By commencing new production operations at the end of 2014, we not
only succeeded in securing attractive investments but also significantly increasing
output and value creation. On the other hand, as a research-intensive pharmaceutical
company, it is important for us to be able to make innovative health care solutions
available to patients, and we managed to do just that by successfully launching
several new products. Our work will continue to revolve around the patient. Takeda
operates two companies in Austria, namely in Vienna and Linz. Its core competence is mainly in the fields of diabetes, cardiovascular diseases, oncology and
gastrointestinal diseases. More than 730 employees currently work at the two
sites. Takeda is ranked 12th in terms of global sales of prescription drugs and is
among the top ten in Austria.“
→ www.takeda.at
10
INVEST IN AUSTRIA
“Global players such as the BMW Group invest in those locations
where all the basic conditions are just right. This includes the quick
and unbureaucratic handling of administrative procedures involving
public authorities. In this regard we have had very good experience
in Austria.”
11
BUSINESS LOCATION AUSTRIA
New Medicine from Vienna
Ottobock develops high-tech prostheses in Austria
Managing Director of Ottobock
in Austria and CTO of the
Ottobock Group
World-class. The German company Otto Bock HealthCare Products has always
been a cutting-edge trend-setter in the field of arm and hand prostheses. The
latest product development breakthrough of the company is the “Michelangelo®
Hand”. This new type of prosthetic hand comes closer than ever before to precisely resembling the human hand. The Michelangelo Hand will enable the user
to enjoy an enhanced quality of life that would have been previously unimaginable. The artificial hand was developed in Vienna. In the field of prosthetic leg
systems, Ottobock’s microprocessor-driven prosthetic C-Leg and Genium X3,
the next generation of intelligent leg prostheses, also allows for more natural
maneuverability and a higher quality of life. According to Hans Dietl, Managing Director and company spokesman of Ottobock Austria, new innovations
expected in the future include implants in the field of high-tech prosthetic systems, as well as artificial intelligence designed to coordinate prosthetic systems.
The Vienna workshop. Ottobock has operated a subsidiary in the Austrian capital since 1969, employing a work force of over 600 employees, a third of whom
are involved in research and development. The leading specialist in the field of
prosthetics has developed important milestones thanks to the research conducted in Austria. “Vienna offers us the required proximity to research facilities
and clinics now as it did in the past“, says Hans Dietl, explaining the decision
in favor of Austria. At the end of the 1960s, the Vienna subsidiary was the first
step in the internationalization process of this medical pioneer.
Customized labor market policies. According to Hans Dietl, ensuring optimal
conditions in the working environment as the pre-requisite for ongoing top-notch
performance in the field of research is extremely dear to his heart. “My top
priority has always been the implementation of labor policies tailored to today’s
business world. In order to conduct research, it is very important for research
companies to be able to recruit a sufficient number of specialists and employ
them at terms and conditions which will not endanger the international competitiveness of the company”. These pre-requisites exist in Austria.
Further expansion of the Viennese facility. Ottobock opened a new production building in 2012 after investing a total of EUR 16.6 million. An additional
R&D wing of about the same size is in planning.
Otto Bock HealthCare headquarters
Corporate headquarters are in Duderstadt, Germany. Ottobock Healthcare
GmbH operates sales and service companies in 50 countries around the world,
employing more than 7,000 people globally.
→ www.ottobock.at
12
INVEST IN AUSTRIA
“Vienna is the driving force for innovations in our company,
and one of the growth drivers.”
13
BUSINESS LOCATION AUSTRIA
East-West Interface
EU foothold for CEE companies,
CEE headquarters for Western companies
Austria is internationally considered to be the top business location for building
up business ties to South East and Eastern Europe. As a headquarters location,
Austria boasts a total of 314 headquarters, far ahead of the competitive CEE
locations of Poland, Slovakia, Czech Republic and Hungary. A study carried out
by the law firm Wolf Theiss concluded that only 84 international companies have
set up their headquarters in all the four above-mentioned locations combined.
On balance, about 1,000 international companies such as Siemens, Beiersdorf,
Hewlett-Packard, Eli Lilly, Henkel and FedEx coordinate their CEE business
operations from Austria. Approximately 40 international institutions with a focus
on the CEE region are based in Austria.
Location advantages. Outstanding Central and Eastern European know-how on
the part of Austrian service providers such as banks and law firms, an historically
matured cultural understanding of Austrians for the CEE region, political stability and security as well as transparent laws make Austria the ideal East-West
business interface. This is complemented by a high share of employees with
Eastern European language competence, based on the fact that 19 percent of
the population, after all, has a migration background.
Austria is the investment champion. Eastern Europe ranks among the most
popular targets of Austrian foreign direct investment, almost 47% go to the CEE
region. Tiny Austria is the largest single foreign investor in Slovenia, Croatia,
Bosnia and Serbia. In 2014, almost 21 percent of all Austrian merchandise
exports were destined for Central and Eastern Europe. Its most important CEE
trading partners are the Czech Republic, Hungary and Poland.
14
INVEST IN AUSTRIA
Headquarters in Austria
Head office of the parent company, in percent
Headquarters
of international companies
2011
Germany
USA
7.1
Switzerland
France 4.2
3.9
Italy
3.6
Japan
3.6
Sweden
3.2
UK
2.9
Canada
2.9
Netherlands
Source: List of Headquarters in Austria
34.0
18.4
Austria
Poland
Hungary
Czech Rep.
Slovakia
314*
25
24
23
12
Source: Wolf Theiss Rechtsanwälte GmbH, 2011, *2014
15
BUSINESS LOCATION AUSTRIA
Boom in start-ups from Eastern Europe. Prominent companies from Central
and Eastern Europe such as Lukoil, VTB Bank and Agrotec have long decided in
favor of Austria as an EU location. Austria is a reliable partner for EU expansion,
with the required know-how and competent service providers. The number of
firms established by Eastern European companies in Austria has increased
significantly in the period between 2003 and 2014, rising from 567 to 3,309.
Austria’s bonus points at a glance:
• A high level of interconnectedness
• Well-educated and loyal employees with Eastern European language skills
• Transparent legislation
• Excellent infrastructure
• Competent consultants, tax advisors, lawyers and financial service providers
• High quality of life
• High level of legal certainty and personal security
CEE junior executives “Made in Austria“. Three-quarters of all migrants in
Austria come from Central and Eastern Europe. These immigrants have aboveaverage qualifications, and the proportion of college graduates is also above
average. Austrian universities and educational institutions offer tailor-made
training programs, often developed in cooperation with the business community. An increasing number of Austrian educational institutions also offer training
programs in Eastern Europe.
The Red-White-Red Card for highly qualified employees. The Red-White-Red
Card has been available to highly qualified individuals, specialists and university
graduates from non-EU member states since July 2011. This enables companies
to employ, for example, technicians, chemists or managers as well as university graduates from non-EU countries educated in Austria without requiring any
further permits.
Austria: Investment champion
in Central and Eastern Europe
Investment
ranking
Slovenia
Croatia
Bosnia-Herzegovina
Romania
Serbia
Slovakia
Bulgaria
Albania
Czech Republic
Macedonia
16
1
1
1
2
1
2
2
3
3
2
Eastern European companies discover Austria
New companies set up in Austria by CEE firms 2003 September 2014, 2003 total: 567; 2014 total: 3,309
Total in
EUR
billion
11.7
24.1
5.6
59.1
14.9
42.3
37.3
3.5
103.5
3.7
Austria’s share in
percent
47.8
34.3
23.8
18.5
17.4
15.8
14.8
14.2
12.9
11.8
Source: Vienna Institute for International Economic Studies (WIIW),
FDI Report 2014
Russia
Ukraine
Rest of CIS
Bulgaria
Poland
Romania
Slovakia
Czech Republic
Hungary
Baltic States
Slovenia
Source: Compass Verlag, 2014
2003
Sept. 2014
39
31
9
29
40
26
116
75
149
12
41
377
135
69
135
102
169
526
325
1096
60
315
INVEST IN AUSTRIA
Positive Economic Climate
and Quality of Life
Corporate tax rate and group taxation are particularly
attractive to international companies.
Henkel Central Eastern Europe based in Vienna is responsible for coordinating business operations in 32 countries of Central and Eastern Europe
and in the Central Asia-Caucasus region, and a work force of about 9,500
employees. Why did Henkel Group select Austria as its CEE headquarters?
“Henkel has had a production plant in Vienna for more than 85 years and produces detergents and cleaners at the Vienna plant. Since 2005 we have also been
operating a central warehouse for Austria, Czech Republic, Slovakia, Slovenia
and Croatia. Moreover, there is also a factory located in Ebensee, Upper Austria.
In 1987, even before the fall of the Iron Curtain, Henkel also began to successively build up its business in the Eastern European region. In this regard, we take
advantage of the cultural proximity to Austria’s neighboring countries as well as
existing long-term contacts. Then as now, the central geographical location, the
positive economic climate and the quality of life are the most important assets of
Vienna and Austria.”
Günter Thumser
President, Henkel Central
Eastern Europe
At present, companies are quite cautious in making investments. Does
Austria have a special status within the Henkel Group?
“No, not at all. Every company, and Henkel is no exception, has to define its priorities. In Austria we have an investment program totaling approximately 10 million
euros annually. Investment promotion initiatives as well as the attractive corporate
tax rate and the group taxation system are particularly business-friendly measures
in Austria for international groups of companies.”
Henkel Central Eastern Europe
Henkel CEE headquartered in Vienna is one of the most important growth drivers
for the German Henkel Group. Henkel CEE with its approximately 9,500 employees is responsible for 32 countries in Central and Eastern Europe, and operates
more than 30 production facilities in the region. The Viennese location is being
continually upgraded. Henkel produces more than 230,000 tons of detergents and
cleansers annually here, of which 80 percent is designed for export.
→ www. henkel.at
17
BUSINESS LOCATION AUSTRIA
A Country
of Specialists
Innovative small and medium-size companies as global
market leaders
Austria as an industrialized nation. Tiny Austria has surprises in store for
everyone, serving as the location for numerous niche players in all sectors such
as ENGEL, Rosenbauer and Doppelmayer, which produce cutting edge products
and are world market leaders. GREENone Tec has supplied the collectors for the
world’s solar power plant at the Riad University for Women in Saudi Arabia. The
Salzburg-based high-tech company Skidata equipped the largest stadium in the
world, the Estádio Municipal do Maracanã in Brazil, with its modern access control technology for the FIFA World Cup 2014. Firms such as Red Bull, Swarovski
and Manner have gained international fame, conquering global markets from
their base in Austria.
The Austrian business location is attractive. Measured in terms of purchasing power, Austria ranks among the most prosperous countries in the world
and is rated second in the EU. Foreign investments have been rising continuously since 1993 in spite of cyclically-related fluctuations. In the year 2013
foreign direct investments in Austria reached a new record again of EUR 10
billion (according to UNCTAD data 2014). On balance, the value of passive direct
investments is more than 44 percent of GDP, higher than the global average of
around 34 percent.
Austria as an industrialized nation
Production sector’s share of GDP
in percent, 2010 - 2013
Germany
Austria
Japan
Switzerland
Netherlands
Italy
UK
USA
France
18
Source: OECD, Eurostat 2014
Most important industrial sectors
Industrial production 2013
in EUR billion
30.2
28.7
27.5
26.4
24.4
23.9
20.7
19.9
18.8
Machinery/Metal goods
Chemical industry
Automotive
Gas/Heating
Electrical/Electronics
Oil
Food
Mining/Steel
Wood industry
Construction industry
34.6
15.0
13.1
12.9
12.6
11.0
10.1
7.5
7.5
6.0
Source: Austrian Federal Economic Chamber
INVEST IN AUSTRIA
World Market Leaders from Austria
Company
Industry
Internet
Agrana
Fruit preparation
agrana.at
Alpla
Plastic packaging
andritz.com
AT&S
Mobile phone circuit boards
avl.com
Blum
Fittings
blum.com
Delfort Group
Cigarette paper
delfortgroup.com
Doka
Circuit technology
doka.com
Doppelmayr
Cable cars
doppelmayr.com
Engel
Injection molding machinery
engelglobal.com
Kapsch TrafficCom
Fully electronic toll systems
kapsch.net
KTM
Off road motorcycles
ktm.com
Lenzing
Cellulose fibers
lenzing.com
Mayr-Melnhof
Folding cartons from recycling materials
mm-holz.com
Magna Powertrain
Passenger car transmissions
magnapowertrain.com
Miba
Plain bearings for the automobile industry
miba.com
Novomatic
Slot machines
novomatic.com
Ottobock Healthcare
Prosthetics
ottobock.at
Palfinger
Truck knuckle boom cranes
palfinger.com
Plansee
High-performance powdered metal materials
plansee.com
Plasser&Theurer
Track tamping machines
plassertheurer.com
Red Bull
Energy drinks
redbull.com
RHI
Refractory materials
rhi-ag.com
Rosenbauer
Special firefighting vehicles
rosenbauer.com
Semperit
Medical gloves
semperit.at
Swarovski
Crystal glass jewelry
swarovski.com
voestalpine
Track switch technology, specialty stainless steel
voestalpine.com
Wienerberger
Bricks and brick wall systems
wienerberger.at
Zizala
Headlights
zkw-group.com
Zumtobel
Electronic lighting technology
zumtobel.com
Source: GEWINN, June 2014
19
BUSINESS LOCATION AUSTRIA
Lower Taxes, Higher profits
Tax incentives for research and education create a
business-friendly tax system in Austria
Since the corporate tax rate was reduced to 25 percent, Austria has been catapulted into the top ranks of the world’s most business-friendly nations. Among
the EU-15, only Ireland and Great Britain offers more favorable tax provisions.
But Austria also makes a strong showing in comparison with the new EU member states that are enticing investors with major tax reductions.
Lower effective tax burden. A comparison of the effective tax burden compiled by BAKBASEL and the Center for European Economic Research (ZEW)
concludes that Austria continues to boast extremely business-friendly conditions
within the EU despite massive tax competition from Eastern Europe. With a
total tax burden of 22.4 percent, the taxes paid in Austria are lower than in the
UK (23.8%), Italy (24.6%), Germany (29.3%) and France (32.5%).
No more inheritance tax since 2008. The abolition of the inheritance tax in Austria and the related tax relief for family-owned businesses is another good reason
for international investors to decide in favor of Austria as a business location.
Group taxation scheme a major competitive advantage for headquarters.
The modern and attractive Group taxation model serves as a role model in
Europe. The offsetting of profits and losses within a corporate group is of enormous importance for a globally intertwined economy. The basic idea underlying
the new Group taxation model is to combine all taxable results of financially
affiliated companies without the necessity of an economic or organizational
subordination or superordination.
Companies operating in Austria are only subject to a unified corporate tax of
25 percent and nothing else. Taxes commonly levied in other countries, such
as the trade tax or wealth tax, do not exist in Austria.
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INVEST IN AUSTRIA
Relocating business operations to Austria provides enormous benefits to multinationals as well as smaller foreign companies with subsidiaries. Thanks to the
new rules, Austria is outstandingly suited to serve as a headquarters location,
especially for business operations in Eastern Europe.
In the case of Group taxation, the losses of foreign group subsidiaries are offset
against the profits and losses of all domestic group members. In this way, the
basis for calculating taxes is reduced. The prerequisite for forming a corporate
group is a financial affiliation of more than 50 percent of the basic capital, share
capital or cooperative capital and of the voting rights. In the case of acquisitions,
the capitalized goodwill of acquired companies can be written off over a period
of 15 years, an advantage not available in other countries. The existing far-reaching network of double taxation treaties ensures minimal taxation at the source
for dividends, interest and licensing fees.
Research more, pay less. This principle applies to all companies operating in Austria. Companies can take advantage of the ten percent “research premium” for
R&D expenditures as well as contract research. These subsidies are paid in cash.
Education pays off. For the education and training of employees, employers
can reclaim a tax-exempt educational allowance of up to 20 percent. Alternately,
firms can claim a six percent education credit for education expenditures.
GmbH light – Start-ups made easy. Since March 2014, a minimum nominal
share capital of EUR 35,000 is required, of which half has to be paid in cash.
New startup privileges applying to the initial phase of entrepreneurial activities
were introduced (for a maximum of 10 years). Such provisions must be included
in the original articles of incorporation. The privileged status is derived from the
fact that such limited liability companies in Austria can now be founded on the
basis of a share capital of EUR 10,000, of which only EUR 5,000 has to be paid
in cash.
BAK Taxation Index 2013 for companies
Effective average tax burden
in percent
Corporate income tax rates 2014
Corporate taxes on undistributed profits
in percent
Ireland
Czech Republic
Poland
Hungary
Netherlands
Austria
UK
Italy
Belgium
Luxembourg
Germany
Spain
France
USA
Ireland
Slovenia
Czech Republic
Poland
UK
Sweden
Slovakia
Austria
Netherlands
Norway
Germany
Spain
Italy
France
Belgium
USA
14.1
16.2
17.0
18.9
20.9
22.4
23.8
24.6
24.7
24.8
29.3
31.2
32.5
41.1
Source: BAK Basel Economics and the Centre for European
Economic Research, 2013
12.5
17.0
19.0
19.0
21.0
22.0
22.0
25.0
25.0
27.0
30.0
30.0
31.4
33.3
34.0
35.0
Source: Deloitte International Tax Source 2014
*) incl. surcharges and local/national taxes
21
BUSINESS LOCATION AUSTRIA
Productivity
as a Trademark
Austria ranked among the best in labor productivity
Leading in productivity. According to the EU Commission, Austria ranks
among the top five within the 27 EU member states in terms of productivity per
employee in manufacturing industry. Thus Austria outperforms such industrialized
nations as Germany, Italy and Great Britain and is considerably ahead of neighboring Czech Republic and Hungary.
The level of industrial productivity in Austria is traditionally very high. In recent
years Austrian industry has achieved disproportionately high productivity gains.
The decisive reason for this is the highly motivated and qualified employees.
Moderate unit labor costs. Austrian industry can keep pace with international
competition very well when it comes to costs. Unit labor costs rose by one percent annually in the period 2010 – 2014, substantially lower than in most other EU
member states.
22
Unit labor cost development
in manufacturing industry
Annual change in percent, average 2007 - 2014
Labor productivity 2013 in EU comparison
GDP per person employed in PPS, EU-27=100
Germany
Poland
Austria
EU-28
France
Czech Republic
Netherlands
UK
Italy
Hungary
Luxembourg
Ireland
Belgium
France
Austria
Denmark
Italy
Netherlands
Euro area
Germany
UK
Poland
Czech Republic
Hungary
Bulgaria
0.9
1.1
Source: European Commission 2014
1.5
1.8
1.9
2
2.1
2.4
2.4
4.1
163.9
135.5
127.3
116.0
113.4
111.0
108.8
108.8
108.6
107.0
99.4
74.3
71.9
70.6
43.4
Source: European Commission, Eurostat, 09/2014
INVEST IN AUSTRIA
“In addition to the highly-qualified employees, the very high level
of work motivation (few strikes) and productivity rank among the
success factors in favor of Austria as a production location.“
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BUSINESS LOCATION AUSTRIA
“Austria stands out due to its long-term reliable and stable conditions. These
features are particularly important for a research-based company such as
Boehringer Ingelheim. Furthermore, Vienna is a city with a good research
infrastructure and a high quality of life, and is thus also an interesting place
for highly qualified employees from Austria and abroad.”
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INVEST IN AUSTRIA
Value Creation with
Recreational Value
Unsurpassed in the world: Austria’s quality of life
Managers working across the globe confirm it again and again: Austria has
everything required by highly qualified individuals. A well-preserved environment, green meadows and mountain pastures, crystal-clear waters, good air
quality combined with one of the most diverse cultural offerings and the world’s
highest quality of life make Austria a country which is pleasant to live in. According to the most recent “Quality of Living Survey 2012” prepared by Mercer
Consulting Group, Vienna is the most livable city in the world.
International educational opportunities, extensive recreational offering.
Foreign investors do not have to dispense with having their children educated in
their mother tongue. All required facilities are available, from the Vienna International School and the Japanese School Association in Vienna to the Swedish
School. Close to 5,000 tennis courts, around 80 golf courses, 22,000 kilometers
of ski slopes, 50,000 kilometers of hiking paths 10,000 kilometers of biking
paths and much more make Austria a leisure paradise.
Personal security. Quality of life also encompasses the highest possible level
of personal security, based on a low crime rate. There is hardly any other country in the world which matches Austria in respect to security of persons and
property. In addition, forward-looking climate protection policies, a pronounced
environmental awareness and ecologically-compatible production technologies
make Austria an environmental role model.
The most livable capital city in the world
Ranking by quality of life
Ranking
City
Country
1
2
3
4
5
11
16
27
38
43
43
50
51
68
75
Vienna
Zurich
Auckland
Munich
Vancouver
Amsterdam
Berlin
Paris
London
New York
Tokyo
Madrid
Rome
Prague
Budapest
Austria
Switzerland
New Zealand
Germany
Canada
Netherlands
Germany
France
Great Britain
USA
Japan
Spain
Italy
Czech Republic
Hungary
Source: Mercer Quality of Living Survey 2014
Unmatched quality of life
10 = Quality of life is very high
Switzerland
Austria
Norway
Germany
Netherlands
Belgium
France
USA
Japan
UK
Czech Rep.
Italy
Hungary
Poland
1
2
3
5
6
15
17
19
20
22
24
30
54
56
9.73
9.55
9.47
9.38
9.21
8.63
8.48
8.33
8.22
7.73
7.56
6.46
4.00
3.69
Source: World Competitiveness Yearbook, 2014
25
BUSINESS LOCATION AUSTRIA
ABA – Invest in Austria offers you comprehensive service – from
investment subsidies and market opportunities to tax laws. A team of 25
qualified employees put its know-how at your disposal to provide you with
unbureaucratic support, but at no cost to you.
26
INVEST IN AUSTRIA
The Best Contact Partner
for Business Location Issues
As a consulting company set up by the Republic of Austria,
ABA – Invest in Austria (ABA) is the top choice of
international investors
• Experienced investment consultants personally serve you and provide
all the necessary contacts required in Austria. Contact us when you start to
consider expanding so that we can provide you with optimal support.
• ABA – Invest in Austria offers customized information on Austria as a business location – sectors, technologies and markets, political and economic
conditions.
• We are happy to advise you on important issues relating to site selection
such as labor and tax regulations, incentives or real estate prices.
• Employees of ABA – Invest in Austria assist and support you in handling
formalities such as applying for public funding or operating licenses – also in
cooperation with the regional investment promotion agencies in the federal
provinces.
• ABA – Invest in Austria also provides extensive services to support expansion investments after project completion.
• Investors can also benefit from the international network of ABA – Invest
in Austria’s offices in Vienna, New York and Tokyo as well as the foreign
trade centers of the Austrian Federal Economic Chamber.
• Award-winning ABA. ABA – Invest in Austria has won several awards for its
consulting services: World’s Best Investment Promotion Agency, World Bank
Benchmarking (2009); Global Leader in Online Investment Promotion, World
Bank Benchmarking (2012); Second-Best Investment Promotion Agency and
third-place award for its program to strengthen Austria as a headquarters
location, FDI World Forum (2013).
• Specialized brochures. More detailed information on different topics and
industries can be found in numerous specialized brochures such as:
•
•
•
•
Business Location Austria
Automotive Industry
Research and Development
Environmental Technologies & Renewable Energies
• Information Technology
• Life Sciences
• Tourism
• Chemicals / Plastics
• Machine Construction / Mechatronics /
Electronics
• Logistics
• Starting a Business in Austria
• Tax Aspects of Investments
in Austria
27
Invest in Austria
ABA – Invest in Austria
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A-1010 Vienna
Tel.: +43-1-588 58-0
Fax: +43-1-586 86 59
E-Mail: [email protected]
Internet:
www.investinaustria.at
www.investinaustria.cn
www.investinaustria.jp
www.investinaustria.ru
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www.investinaustria.at