Starting as a sole trader in Austria (Einzelunternehmen with a Gewerbe)

What it is

• The Trade Code (Gewerbeordnung) covers every lawful activity carried on as a business (gewerbsmäßig), unless the law excludes it. An activity is a business if it is independent, regular and meant to make a profit. (GewO 1994 § 1 (Geltungsbereich, gewerbsmäßige Tätigkeit))
• Once entered in the company register (Firmenbuch), the business name must include "eingetragene Unternehmerin", "eingetragener Unternehmer" or "e.U.". The entry can be applied for online without certification. (Gründungsfahrplan Einzelunternehmen)

Who it is for

• Free trades (freie Gewerbe) need no proof of qualification; regulated trades do. Any trade the Trade Code does not expressly classify as regulated is free. (Gründungsfahrplan Einzelunternehmen)
• Requirements include full legal capacity from age 18 and no grounds for exclusion (for example certain convictions). (Gewerbeanmeldung Einzelunternehmen)
• A trade brings compulsory chamber of commerce membership and compulsory GSVG insurance with the SVS. On application you can be exempted if in 2026 income does not exceed €6,613.20 and turnover does not exceed €55,000; further conditions are in the GSVG. (Gewerbeanmeldung Einzelunternehmen; GSVG § 2 (Pflichtversicherung); GSVG § 4 (Ausnahmen von der Pflichtversicherung); Werte und Grenzen für das Jahr 2026)

What it costs

• Trade registration: no stamp duty and no federal administrative fees. Notifying the tax office and the SVS is free as well. (Gewerbeanmeldung Einzelunternehmen; Anzeige an das Finanzamt (Einzelunternehmen))
• Only if you register in the company register: a filing fee of €24 and an entry fee of €78 (since 1.8.2026). The entry fees are waived for a new business with a NeuFöG declaration. (Gerichtsgebührengesetz, Tarifpost 10 (Firmenbuch); Neugründungs-Förderungsgesetz (NeuFöG))
• Only for: Trade under the Trade Code (Gewerbe). Chamber of commerce (WKO): the basic fee (Grundumlage) is set by each trade group; there is no national amount. (Wirtschaftskammergesetz 1998, § 123 (Grundumlage))

Taxes and contributions

• Profit is subject to income tax (Einkommensteuer) under § 33 EStG; in 2026 the first €13,539 is tax-free, then the rate rises in bands (20 % up to €21,992, 30 % up to €36,458, 40 % up to €70,365 and higher above). (EStG 1988 § 33 (Steuertarif))
• Profit allowance (Gewinnfreibetrag): 15 % of the first €33,000 of profit (at most €4,950) is tax-free without any investment (Grundfreibetrag). Above that, the allowance applies only as far as qualifying investments cover it, up to €46,400 a year in total. With flat-rate profit methods only the basic allowance applies. (EStG 1988 § 10 (Gewinnfreibetrag))
• Basic flat rate (Basispauschalierung): if you keep no books and your turnover was at most €420,000 in the previous year, you can take business expenses as a flat 15 % of turnover (at most €63,000), or 6 % (at most €25,200) for commercial or technical consulting and for writing, lecturing, scientific, teaching or educational work. Only certain other expenses are deductible on top, such as goods purchased and wages. (EStG 1988 § 17 (Durchschnittssätze, Pauschalierung))
• Small business flat rate (Kleinunternehmerpauschalierung): if the small business VAT exemption covers all your sales, you can take expenses as 45 % of receipts (at most €24,750), or 20 % (at most €11,000) for a service business. (EStG 1988 § 17 (Durchschnittssätze, Pauschalierung))
• VAT (Umsatzsteuer): standard rate 20 %; reduced rates of 10 % and 13 % apply to the supplies the law lists. (UStG 1994 § 10 (Steuersätze))
• Small business scheme (Kleinunternehmerregelung): sales are VAT-exempt if they did not exceed €55,000 in the previous year and have not yet exceeded it in the current one (until 2024 the limit was €35,000). If the limit is exceeded by no more than 10 %, the exemption still applies until the end of the year. You can waive the exemption from the start of a calendar year; the waiver binds you for at least five years. (UStG 1994 § 6 (Steuerbefreiungen, Kleinunternehmer); Kleinunternehmen (Umsatzsteuer))
• Social insurance with the SVS (GSVG): pension 18.5 % and health 6.8 % of the contribution base (the state adds 4.3 % and 0.85 % respectively), self-employed provision (Selbständigenvorsorge) 1.53 % of the health insurance base, plus a fixed monthly accident insurance contribution that the insured person pays alone. (GSVG § 27 (Beitragssätze); BMSVG § 52 (Beitrag zur Selbständigenvorsorge); ASVG § 8 (Teilversicherung in der Unfallversicherung); ASVG § 74 (Unfallversicherungsbeitrag Selbständiger))
• The contribution base is your income as defined for income tax from the insured work, as a monthly average, plus the social insurance contributions prescribed; in 2026 at least €551.10 and at most €8,085.00 a month. According to the umbrella body of the social insurers (Dachverband), the health contribution in 2026 is therefore €37.47 to €549.78 and the pension contribution €101.95 to €1,495.73 a month. (GSVG § 25 (Beitragsgrundlage); ASVG § 810 (keine Aufwertung der Geringfügigkeitsgrenze 2026); BGBl. II Nr. 263/2025 (Aufwertungszahl und Höchstbeitragsgrundlagen 2026); Vorläufige Berechnung in den ersten drei Jahren; Beitragsrechtliche Werte in der Sozialversicherung 2026)
• In the first three years the SVS calculates provisional contributions from the minimum base. Once the income tax assessment is in, it recalculates (Nachbemessung), which can mean a credit or an extra payment. An extra payment for the first insured year and the two after it can be paid in twelve quarterly instalments over three years, if you apply by 31 March of the year after the final calculation. (GSVG § 25a (vorläufige Beitragsgrundlage); GSVG § 25 (Beitragsgrundlage); GSVG § 35 (Fälligkeit, Teilbeträge); Vorläufige Berechnung in den ersten drei Jahren)
• Only for: Trade under the Trade Code (Gewerbe). For traders with a Gewerbe, the minimum base is final for health insurance in the first two calendar years, with no recalculation, if there was no GSVG insurance in the 120 months before. (GSVG § 25a (vorläufige Beitragsgrundlage); Endgültige Berechnung in den ersten drei Jahren)
• From the fourth year the provisional base is that of the third preceding year, revalued; if current income differs substantially, you can apply by the end of the year to lower or raise it. (GSVG § 25a (vorläufige Beitragsgrundlage))
• The SVS bills contributions quarterly; they are due on 28/29 February, 31 May, 31 August and 30 November, or in monthly instalments on application. The full contribution is owed for the month in which insurance starts. (GSVG § 35 (Fälligkeit, Teilbeträge); Fälligkeit der Beiträge; GSVG § 27 (Beitragssätze))
• 2026 credit: anyone health-insured under the GSVG on 31 May with a monthly base of at most €2,900 gets a credit of €60 to €315 on health contributions, depending on the base, with the third-quarter bill. (GSVG § 27f (Gutschrift von Krankenversicherungsbeiträgen))

Bookkeeping

• Sole traders can work out profit as receipts minus expenses (Einnahmen-Ausgaben-Rechnung). Double-entry accounts under the Business Code (UGB) are needed only once a business has more than €700,000 revenue a year: from the second following year if that happens two years running, or from the next year if the limit is exceeded by at least €300,000. Members of the liberal professions are exempt from this duty. (Buchführungspflicht und Buchführung; UGB § 189 (Rechnungslegungspflicht))
• Cash register duty (Registrierkassenpflicht): from €15,000 annual turnover per business, cash takings must be recorded with an electronic system once they exceed €7,500 a year. The duty starts with the fourth month after the end of the VAT period in which the limits were first exceeded. (BAO § 131b (Registrierkassenpflicht))

Steps

1. New business relief (NeuFöG): if you hand in form NeuFö 2 before or together with each official step, you save among other things stamp duties, federal administrative fees and the court fees for entries in the company register (Firmenbuch). Handed in later, nothing already paid is refunded. (Neugründungs-Förderungsgesetz (NeuFöG); Gründungsfahrplan Einzelunternehmen; Gründungsfahrplan GmbH bzw. FlexKapG)
2. Register the trade with the trade authority, online through the trade information system (GISA) or with ID Austria through eGründung on the USP. (Gewerbeanmeldung Einzelunternehmen)
3. Within one month of starting, notify the tax office (Finanzamt Österreich); this is free of charge. (Anzeige an das Finanzamt (Einzelunternehmen))
4. Report the start of compulsory insurance to the SVS within one month. (GSVG, geltende Fassung (§ 18 Meldepflicht))
5. Only if required or wanted: entry in the company register, online without certification. (Gründungsfahrplan Einzelunternehmen; UGB § 189 (Rechnungslegungspflicht))