Finance in Austria
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Financing a Business in Austria
There are many options to consider where grants, European aid and tax incentives play a major roll in considering the potential of Austria. Your accountant can be a valuable source of advice at this time. They will have the experience to advise what is the most appropriate form of funding for your business. They will also have valuable contacts within the finance industry that have been established over a period of time. Being introduced by your accountant should make a good first impression with a lender. Understand how taking different types of finance impacts on your business. If you are unsure, ask.
There are several different ways in obtaining possible finance:
- Personal finance work out what finance is required for your business, plan ahead and consider what you feel you can afford to use of your own assets to help your business on its ways.
- Government Tax Incentives Austria has an incredibly competition business friendly tax system, with profits being taxed at a standard rate of 25%.
- European Aid grants are direct financial contributions from the EU budget or from the European Development fund.
Austria offers foreign investors a wide range of subsidies for the following;
- Small to medium sized businesses
- Research and development
- Company start-ups
- New technology
There are key incentives when considering financial assistance in Austria, these are as follows;
Regional incentives normally available to companies which maintain an investment location in a regional assistance area. These can be a low interest loan or grant. Eligible projects include;
- Start up and relocation businesses
- New technology
- Modernisation and expansion of investments
SME investment promotion this is for small to medium sized enterprises and is offered in regardless of investment location, with exception of tourism and recreation sectors. Eligible projects include the same as regional incentives. A broad range is offered and are as follows;
- Low interest ERP loans
- Guarantees for bank loans
Investment promotion through loan guarantees this is aimed at small and medium sized enterprises. Eligible projects are as follows;
- Creation or supply of new, innovation or top quality products/services
- New technologies
- Building up new partnerships, cluster and networks
- Maintaining or strengthening of local supply of key goods by taking into consideration economic structure i.e. rural areas.
There are several foundations that are worth contacting to find out more about financial aid in Austria. These include:
- The Federal Law on the Small and Medium-sized Enterprises - www.bmsk.gv.at
- The Federal Law for the Establishment of the Austria Wirtschaftsservice www.awsg.at
- The ERP (The European Recovery Programme) Fund Act - www.help.gv.at
- The New Companies Promotion Act (NeuFoG) www.ris2.bka.gv.at