Austria’s capital Vienna is the second most livable city in the world, it is home to a growing number of start-ups. This indicates that the environment in Austria is one that is favorable for businesses.
Understanding Austria culture and values
The Austrian way of life runs on a slower, more deliberate pace than other countries may be used to. The work ethic in Austria is very different from the work ethic in the United States. It is based on a “live to work” attitude more than a “work to live” attitude.
Talent
Ranked 21 most competitive nation in the world out of 140 countries ranked in the 2019 edition of the Global Competitiveness Report published by the World Economic Forum.
Labour Law
Austria has tried to increase flexibility on terminating employment relationships to fight possible periods of unemployment. As an employer, you can end employment without stipulating the reasons for the decision. The notice period depends on the length of the working relationship and the type of employment. (For salaried employees anywhere from six weeks to five months). If an employee wants to end the working relationship, one month’s notice is required.
Severence Pay
Austria tried to increase flexibility on terminating employment relationships to fight possible periods of unemployment. As an employer, you can end employment without stipulating the reasons for the decision, whereby the notice period depends on the length of the work relationship and the type of employment (for salaried employees anywhere from six weeks to five months). In case an employee wants to end the working relationship they have to give the employer at least one month’s notice, depending of the duration of their employment.
Commercial Law
There’s a general distinction between regulated & unregulated trades in Austria. Regulated trades are those that require a certificate of competence. For example, Carpenters, metal technology or engineering firms. To get the certificate, there are some requirements:
- citizenship or citizenship in an EEA/EU member state
- legal capacity (minimum age of 18)
- the lack of any reasons for exclusion (e.g. fiscal law felonies, court conviction)
- designation of the site
- an operating license
Government Bodies
The Austrian Business Agency (ABA) is a government body that helps businesses expand into Austria or enter the country for the first time. They have strong relationships with companies that are looking to expand their business. The agency’s close connection with them makes it easier for them to learn about what is going on in Austria’s economy and even create opportunities for these businesses to expand into new markets
Austrian Economy
The Austrian economic system is a market economy. The Ministry of Finance is the main institution for regulating the business. Austria has a high-quality, innovative and competitive economic environment. Also note that, unlike other countries, Austria does not levy trade tax. There are many opportunities for small and medium-sized enterprises (SMEs) in Austria. They represent 96% of all companies in Austria, create two-thirds of jobs and generate more than half of Austrian GDP. The country’s small size means that there is less competition compared to larger markets, so SMEs have an advantage.
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