Upper Austria is the leading federal state with regard to industry, exports and technology. It has the lowest unemployment rate in the country, has been debt-free since 2002 and is Europe’s top “cluster region”.
German companies in particular use the advantages offered by the Upper Austrian location in order to serve both the Austrian, European and international markets. German investors have an interest in around 800 companies operating in Upper Austria. These include BMW with the largest engine plant in its group and MAN with its production and development centre for light and medium trucks.
Upper Austria offers companies ideal operating conditions:
- Highly qualified and motivated employees
- High levels of productivity
- Cost advantages as compared to the western part of Germany (labour costs, taxes)
Corporate income tax
One of Austria’s foremost attractions as a business location is its business-friendly tax system. Austria’s low corporate taxation, moderate income taxes, a moratorium on wealth and trade taxes and extremely favorable provisions for private foundations have already attracted the attention of the international investment community.
From 2005 Austria´s tax system will be even more attractive: the corporate income tax rate is lowered to 25% and a very attractive group taxation system will become effective. The subsequent comparison of taxes in Germany and Austria provides important information concerning the advantages of Austria as a business location, which one should not ignore when selecting a site.
Maximum taxation of profits in percent KPMG, 2004
More Information: http://www.aba.gv.at/en/pages/
