Freelancing in Austria: Gewerbe registration, the €55,000 Kleinunternehmer VAT threshold, and SVS contributions
An Austrian freelancer registers a Gewerbe with the district authority, which auto-notifies the tax office and the SVS social insurer. The Kleinunternehmer VAT exemption sits at €55,000 turnover from 2025, and social contributions run through SVS under the GSVG.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Setting up as a freelancer in Austria usually means registering a Gewerbe (trade), and the good news is that one registration triggers most of the downstream notifications for you.
Registration, in order
You register a Gewerbe with the district administrative authority (Bezirkshauptmannschaft or magistrate). That registration automatically notifies both the tax office and the SVS (Sozialversicherung der Selbständigen), so you rarely have to file with each separately. You can complete much of the process through the usp.gv.at business service portal, and membership of the WKO (Wirtschaftskammer, the chamber of commerce) comes with trade registration.
The €55,000 Kleinunternehmer threshold
Austria's small-business rule — the Kleinunternehmerregelung — exempts you from VAT up to €55,000 of annual turnover. That figure was raised from €35,000 effective 1 January 2025. There is a 10% tolerance for the running year, so turnover up to €60,500 does not immediately break the exemption. Under the rule you charge no VAT, file no periodic VAT returns, and cannot deduct input VAT. Cross the threshold and you move to standard VAT with periodic returns.
Income tax and social contributions
Freelance profit is taxed under the progressive personal income tax scale, running from 0% to 55% across the bands, applied to your net profit after expenses. Simplified lump-sum deduction options exist for smaller operations, letting you deduct a flat percentage instead of itemising every cost.
Social contributions flow through the SVS under the GSVG: pension insurance at 18.5% and health insurance at 7.65% of the contribution base, plus provisions such as the self-employment provision fund. As with income tax, contributions start provisional and are later reconciled to actual profit — so setting aside a fixed share of every invoice is the simplest defence.
General information about freelancing in Austria, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with the Finanzamt, SVS, WKO, or a qualified Steuerberater.
Frequently asked questions
What is the Kleinunternehmer VAT threshold in Austria?
€55,000 of annual turnover, raised from €35,000 effective 1 January 2025. There is a 10% tolerance up to €60,500 for the running year, so a modest overshoot does not immediately end the exemption. Under the Kleinunternehmerregelung you charge no VAT and cannot deduct input VAT, but you also skip periodic VAT returns.
How much do Austrian self-employed pay to SVS?
The SVS collects contributions under the GSVG: pension insurance at 18.5% and health insurance at 7.65% of the contribution base, plus further provisions such as self-employment provision. Contributions are provisional and later reconciled against your actual assessed profit, so a strong year can produce a top-up bill later.