Published on and written by Cyril Jarnias
Moving to Austria with a local contract, a freelance status, or as a digital nomad means rethinking your banking life. Between a very dense banking system, a strong preference for cash payments, a progressive tax system up to 55%, and the rise of neobanks, managing your money internationally can quickly become a headache if you arrive unprepared.
This guide covers account opening, bank selection, daily payments, international transfers, taxation, real estate, and offers specialized support for complex profiles such as Americans, high-income earners, or investors.
A Dense, Heavily Regulated, and Generally Safe Banking System
Austria has one of the highest banking densities in Europe, with nearly 600 banks and about 3,600 branches. The country operates on a “universal bank” model, where major institutions combine retail banking, corporate financing, wealth management, and investment services. The sector is strictly supervised by two authorities: the Financial Market Authority (FMA) and the National Bank of Austria (OeNB).
Deposits are protected by the European deposit guarantee scheme up to €100,000 per person per bank.
A Highly Diversified Banking Landscape
The Austrian market is structured around three main families of players: private or listed banks, savings banks (Sparkassen), and cooperative banks (Raiffeisen, Volksbanken). In addition, there are foreign banks with local operations and an increasingly wide range of neobanks and fintechs.
Here is a simplified overview of the main types of banks found in Austria:
| Type of Institution | Main Role for an Expatriate |
|---|---|
| Retail Banks | Checking account, card, consumer credit, mortgage, everyday services |
| Savings Banks (Sparkassen) | Checking accounts, savings, local services |
| Cooperative Banks (Raiffeisen, etc.) | Strong regional presence, good branch and ATM network |
| Private Banks | Wealth management, estate planning, investment |
| Investment Banks | Market operations, large project financing |
| Neobanks / Fintechs | Online accounts, multi-currency, low fees, quick account opening |
The major names an expat will encounter include Bank Austria (UniCredit Group), Erste Bank / Sparkasse, Raiffeisen, Volksbank, BAWAG, Oberbank. International players such as Deutsche Bank, CitiBank, Santander, and even Bank of China are also present.
Currency, Payments, and Habits: A Country Still Very Attached to Cash
The official currency is the euro (EUR), with standard denominations from €5 to €500 and coins up to €2. Debit cards and credit cards are extremely widespread: an estimated 11 million debit cards and about 3 million credit cards are in circulation. In 2020, 2.24 billion non-cash transactions were carried out in the country.
Despite modernity, Austria remains very attached to cash payments. In 2019, cash still accounted for 54.3% of transactions and 96% of purchases under €10. Many cafés, restaurants, and small shops impose a minimum amount for card payments. It is therefore wise for an expat to always carry some cash, even in major cities.
Cards, ATMs, and Mobile Payments
ATMs (Geldautomaten) are plentiful in urban areas, less so in rural regions. Any card with a 4-digit PIN, or bearing the Cirrus or PLUS logos, should work at Austrian ATMs. Withdrawals are generally free within your own bank’s network but quickly incur fees elsewhere.
Percentage of expats finding it easy to pay without cash in France, compared to a global average of 85%
Popular solutions include:
– George, the app from Erste Bank / Sparkasse
– RaiPay (Raiffeisen)
– Wallets like Apple Pay, Samsung Pay, Bluecode (QR), PayPal, Amazon Pay
– Neobank apps: N26, Revolut, Wise
Google Pay is not yet universal across all networks in Austria, but the underlying trend is clearly toward mobile payments.
Opening a Bank Account as an Expatriate
Opening an account is a must for anyone staying longer than a few months. In practice, the difficulty depends heavily on your status: resident or non-resident, EU or non-EU, employee, freelancer, student, etc.
Who Is Considered a Non-Resident?
In banking terms, a “non-resident” is an individual whose main residence or habitual home is outside Austria and who does not stay in the country for more than three consecutive months. This distinction is important: many banks reserve their “standard” accounts for residents and are more demanding with non-residents.
Banks That Accept Non-Residents
Several institutions do agree to open accounts for non-resident clients, often with conditions or requiring an in-branch appointment:
Guide to the main banks and online solutions available for non-residents and expats.
Bank Austria (UniCredit) requires an in-person appointment. Erste Bank, Raiffeisen Bank, Volksbank, Addiko, Oberbank, DenizBank, Santander, and Deutsche Bank offer varying solutions depending on your residency profile.
Accessible digital alternatives: N26, Revolut, Wise, Bunq, Monese, and Western Union Digital Bank. Account opening is often simplified without physical presence required.
Some banks in the UniCredit group allow clients already banked with another subsidiary to open an Austrian account from abroad, subject to review.
Documents to Prepare
The exact list varies from bank to bank, but an expat will generally need to provide:
To open a bank account, you must provide several supporting documents: proof of identity (passport or national ID for EU/EEA citizens), proof of address (Meldezettel in Austria, lease, utility bill, or official statement from abroad), and proof of income or situation (employment contract, pay slips, tax returns). For non-EU nationals, an explanation of the reason for opening is often required. Your Austrian tax number (Steuernummer) may also be requested.
For online applications, a PostIdent-type identification procedure is almost always required, with several options: identification via ID Austria (digital identity), sending a photo and short video, video call with an agent, or visiting a post office with a coupon.
Types of Accounts Available
For most expats, two products are central:
– The Girokonto – checking account with IBAN, debit card, SEPA direct debits, possibly with an overdraft facility
– The Sparbuch – savings account, sometimes still in booklet form, or as a remunerated sight account or term deposit
You can also find joint accounts, youth/student accounts, securities accounts for investing, numbered accounts for wealth management (with high fees), and business accounts.
Austria is not an “offshore banking” jurisdiction: Austrian accounts are subject to international information exchange and transparency mechanisms (CRS, beneficial ownership register).
Bank Fees: A Cost Item Not to Be Underestimated
Unlike some countries where checking accounts are almost always free, Austria remains a market where bank fees are common, even for basic services.
Banks typically charge: account maintenance fees, fees for withdrawals at non-affiliated ATMs, overdraft fees, money transfer fees, and fees for financial advisory services.
– Monthly or quarterly account maintenance fees
– Transaction commissions on certain transfers or direct debits
– Fees for paper statements, over-the-counter transactions, bank cards, foreign currency transactions, etc.
A detailed example comes from Bank Austria’s fee schedule for international private clients. This schedule concretely illustrates the fee structure and conditions applied by a bank to a specific clientele, serving as a reference for analyzing pricing practices in the international banking sector.
| Service (Bank Austria) | Indicative Fee Level* |
|---|---|
| Account maintenance (quarterly) | 0.03% of credits or debits (whichever is higher), min. €23.85 |
| Transaction posting (quarterly) | €0.68/credit, €0.71/debit, min. €15.75 |
| Account statement on request | €0.83 to €1.67 depending on type |
| Phone banking | €2.19/month, billed quarterly |
| International transfers (non-SEPA) | Flat fee €16 (€0–5,000), €32 (€5,000–10,000), up to €109 |
| USD/CAD surcharge | Additional €8 fee |
| Paper order | + €11 processing fee |
| Urgent transfer | + €17.70 |
| Safe custody of securities (after 2002) | min. €4.11/line, €27.57/securities account/year |
| Numbered account | €69.09/quarter |
| Purchase/sale of foreign banknotes | Commission 2.1% (min. €8.10) |
| Currency exchange commission (“Loss”) | 1.7% (min. €25.40) |
Amounts provided for illustration, subject to change.
Market-wide, typical ranges are as follows:
| Type of Fee | Approximate Amount in Austria |
|---|---|
| Checking account (monthly) | ≈ €2.50 to €10 (or quarterly equivalent) |
| Service package (quarterly) | ≈ €1 to €15 or more |
| Debit card | Often included, sometimes up to €50/year |
| Currency exchange margin | Approximately 1% to 3% |
| Securities custody | ≈ 0.2% to 0.75% of assets/year |
| Out-of-network ATM withdrawals | Variable fees, free within own bank’s network |
Some institutions adjust their rates each year based on the consumer price index published by Statistik Austria. The moral for an expat is simple: it is essential to compare fee schedules and check whether a digital bank offers better terms for your daily use.
Neobanks and Fee-Free Accounts: An Interesting Alternative
For many expats or digital nomads, European neobanks provide a simple and inexpensive entry point into Austrian financial life, especially when arriving without a Meldezettel or local contract.
N26, Revolut, Wise & Co.
Several players stand out for international use:
| Provider | Type of Service | Strengths for Expats in Austria |
|---|---|---|
| N26 | German mobile bank with European license | Free or paid account, Mastercard, limited free withdrawals, very intuitive app, sub-accounts, investment options, travel insurance on premium plans |
| Revolut | British-European bank/fintech | Multi-currency account, interbank exchange rates on weekdays, virtual cards, crypto and stocks, eSIM on some plans |
| Wise | Payment institution (not a bank) | Multi-currency account, European IBAN, debit card, transparent transfer fees, mid-market exchange rate |
| Bunq | Dutch mobile bank | Multiple accounts with individual IBANs, cashbacks, “green” focus, detailed expense management |
| Monese, Monzo… | UK/EU neobanks (accessible depending on residency) | Mobile accounts, good for freelancers and nomads, but residency constraints to check |
For a newcomer, opening an N26 or Wise account from your home country allows you to have a European IBAN and a card upon arrival in Austria, without waiting for all residency formalities. You can then add a “classic” Austrian account for local needs (credit, local banking relationship, mortgage, etc.).
Fee-Free Accounts and Promotional Offers
The Austrian market also offers so-called “fee-free” accounts: either truly free offers (often with neobanks) or paid plans that are free for the first year. Benefits may include:
– Free account maintenance for the first year
– Free debit card
– Welcome bonus (cash bonus, travel vouchers, etc.)
Online offers often have limitations: online-only management, income conditions, higher fees outside the basic offer, and limited-time free service. It is crucial to read the terms and conditions for full details.
International Transfers and Multi‑Currency Management
Many expats continue to receive income, pay a mortgage, or provide financial support to family abroad. How you transfer money from Austria can make the difference between smooth management and hundreds of euros in fees and poor exchange rates each year.
SEPA, SWIFT, and Alternatives
Within the SEPA zone (EU, EEA, UK, Switzerland, etc.), a transfer in euros must be charged at the same rate as a domestic transfer. In practice, sending money in euros from Vienna to Paris or Berlin costs, in bank fees, the same as an internal transfer. In principle, only the beneficiary’s IBAN is needed.
Outside the SEPA zone, transfers go through SWIFT and involve often high fixed fees (sometimes over €30), plus a margin of 3% to 7% on the exchange rate. Required information includes the IBAN (or account number) and BIC/SWIFT code.
Many expats then turn to specialists like Wise, OFX, XE, CurrencyFair, Currencies Direct, or Remitly, or even more traditional operators like Western Union or MoneyGram for sending money to certain regions.
Fee charged by Wise to send the equivalent of $1,000 to an account in Austria, compared to over $25 for major US banks.
Multi‑Currency Accounts: A Key Tool for International Profiles
Multi‑currency accounts offered by Wise, Revolut, Bunq, or certain professional platforms (Airwallex, Statrys) allow you to:
– Hold and convert dozens of currencies (EUR, USD, GBP, CAD, SGD, etc.)
– Receive payments with local bank details in several countries
– Pay in the local currency without systematic reconversion
– Benefit from exchange rates close to the interbank rate, with a clearly stated commission
For a freelance consultant billing in dollars, an employee paid in euros but repaying a loan in British pounds, or an investor with rental income in several countries, this type of account often becomes the central tool for international cash management.
Austrian Taxation: What an Expat Needs to Know
Beyond everyday banking, moving to Austria requires a basic understanding of how income tax, social security, and indirect taxes work. Not paying attention can lead to unpleasant surprises: tax arrears, missed deductions you were entitled to, or even double taxation if you fail to coordinate your situation with your home country.
Income Tax: A Highly Progressive Rate Schedule
Austria applies a progressive income tax ranging from 0% to 55%, by income brackets. The main outline is as follows:
| Annual Income Bracket (EUR) | Approximate Tax Rate |
|---|---|
| 0 – 13,308 | 0% |
| 13,308 – 21,617 | 20% |
| 21,617 – 35,836 | 30% |
| 35,836 – 69,166 | 40% |
| 69,166 – 103,072 | 48% |
| 103,072 – 1,000,000 | 50% |
| Over 1,000,000 | 55% |
Austria is far from a tax haven, but the system is comparable to other Western European countries. The average expat, with an annual salary close to the national average (about €38,450), will pay around €7,000 in income tax.
Tax Residency: 183 Days and the Concept of Domicile
You are considered an Austrian tax resident if you have a domicile or habitual place of abode in the country. In practice, a stay of more than 183 days in a calendar year triggers “unlimited tax liability,” meaning you are taxable on all your worldwide income, subject to double tax treaties.
Non-residents in Austria are only taxed on their Austrian-source income. This includes salaries for work performed in the country and rental income from properties located in Austria. Specific rules apply regarding allowances and tax credits they may claim.
Social Security Contributions and VAT
Social protection is a significant cost item. Total contributions amount to approximately 40% of gross salary, split between employer and employee.
On the employee side, the main indicative rates are:
– Health insurance: ~3.87%
– Pension insurance: ~10.25%
– Unemployment insurance: ~2.95%
– Other contributions: ~1%
The employer adds approximately 3.78% health, 12.55% pension, 3% unemployment, 1.2% accident, and 0.85% miscellaneous.
The standard VAT is 20%, with reduced rates of 13% (e.g., for certain cultural events, domestic flights) and 10% (food, books, pharmaceuticals, transport). A few targeted activities benefit from a 0% rate.
For the self-employed, an automatic deduction from profit can reach €4,950 per year, which can significantly ease the tax burden.
Declarations and Obligations
Most employees have their tax withheld at source by their employer. However, it is often beneficial to file a tax return (Arbeitnehmerveranlagung) via the FinanzOnline portal to reclaim deductions (training costs, commuting expenses, etc.) or declare supplementary income.
Self-employed workers and taxpayers with complex income (investments, foreign income, real estate) must make quarterly advance payments and file a complete tax return. Penalties for late filing or underreporting can be up to 10% of the tax due, plus late payment interest, and in cases of fraud, criminal sanctions.
Double Taxation and Special Cases (Americans, British, etc.)
Austria has signed double tax treaties with more than 80 countries, including the United States, France, Germany, the United Kingdom, etc. These agreements determine which country has the right to tax which income (salaries, dividends, interest, capital gains) and provide mechanisms for exemption or tax credits.
For US citizens, the situation is more complicated: the United States taxes its citizens on their worldwide income, even if they live abroad. A US resident in Austria must therefore, in principle, file a tax return with the Austrian tax authorities and an IRS return (Form 1040) each year, possibly supplemented by:
– Form 2555 (Foreign Earned Income Exclusion)
– Form 1116 (Foreign Tax Credit)
– FBAR (FinCEN 114) once total foreign accounts exceed $10,000
– Form 8938 (FATCA) for financial asset thresholds above certain limits
The challenge then is to coordinate the two systems to avoid double taxation and comply with filing requirements, under penalty of heavy sanctions.
Real Estate and Credit: Buying as an Expat
Many long-term expats eventually consider buying an apartment in Vienna, Graz, or Salzburg, either to live in or as a rental investment. The mortgage process in Austria is reputedly relatively straightforward for residents, but more burdensome for non-EU nationals.
Access to Credit and Bank Requirements
Austrian banks generally require that the borrower has a local checking account and resident status (primary or secondary) or a local structure (company). For a mixed couple where one is an Austrian resident and the other is not, a joint application is possible.
Typical criteria include:
To obtain a loan, several criteria are examined: the borrower must be of legal age (minimum 18) and the maximum age at loan maturity is generally between 65 and 70. Income stability and level (salary or business income) are essential. Credit history, including sometimes in the home country, is taken into account. Finally, the debt-to-income ratio is checked: total monthly loan payments and expenses must not exceed 30 to 40% of net income.
For the self-employed, typically 2 to 3 years of tax returns are required. Non-EU nationals may need to provide 3 to 5 years of income history, a larger down payment, or even a local guarantor or additional collateral.
Down Payment, Interest Rates, and Ancillary Costs
Fixed-rate loans are common, with typical terms of 15 to 30 years (20 years is typical), sometimes up to 35 years. Mortgage rates historically range around 2–5%, with variations depending on the economic climate (the average recently came in around 3.4%).
The down payment is a particularly sensitive point for foreigners:
– Generally, 20–30% minimum for a creditworthy European resident
– 30–50% for a non-EU national, potentially rising to 50–70% depending on the profile
– For second homes, an average down payment of 50% is common
In addition to the purchase price, budget for 10 to 15% in additional costs, including transfer taxes (3.5%), land register entry (~1.1–1.2%), notary or legal fees (1–3%), and bank processing fees (3–4% possible). Building insurance is mandatory for a mortgage, and contents insurance is strongly recommended.
Restrictions for Foreigners and Acquisition Permits
Some Austrian federal states (Tyrol, Salzburg, Vorarlberg, etc.) impose restrictions on real estate purchases by non-residents, particularly for second homes or vacation properties. Non-EU nationals often need to obtain a permit from the Grundverkehrskommission or a comparable authority, explaining the intended use of the property (primary residence, investment, commercial use, etc.). The procedure typically costs between €500 and €1,100 and takes 2 to 3 months.
Note: owning property in Austria does not automatically grant a right to a residence permit. To stay long-term, you must go through the standard channels for residence permits or targeted schemes (Red-White-Red Card, EU Blue Card, etc.).
Fintech, Security, and Digital Risks
Fintechs fill many gaps left by traditional banks for a mobile and international clientele: remote account opening, clearer pricing, multi-currency, integration with invoicing tools, APIs, etc. However, their model relies heavily on technology, making them more vulnerable to outages, cyberattacks, or account freezes for compliance reasons.
Austrian banks are subject to strict regulation and deploy robust security measures, including SSL encryption, strong authentication (via TAN, one-time passwords, or biometrics), and transaction monitoring. While the country has seen some money laundering scandals or individual fraud, mass fraud is less common than elsewhere. Customers are regularly educated about phishing risks and fake authentication emails.
For an expat, the best strategy is often to combine:
– A main account with a solid Austrian bank for salary, rent, credit, and dealings with authorities
– One or two multi-currency accounts and neobanks for travel, international income, and online payments
All while always enabling two-factor authentication, monitoring transaction notifications, and having a backup solution (second card and bank account) in case of issues.
Specialized Services for Expats and International Investors
The complexity of certain situations – especially for Americans, senior executives, real estate investors, or entrepreneurs – has led to the emergence of financial advisory services specifically aimed at expats in Austria.
Independent Advisors for Expats
Firms like Invest Expat, based in Vienna and Innsbruck, position themselves as a one-stop shop for expats: investment, real estate, taxation, insurance, legal aspects. Their model is based on an annual fee (€199 for an individual, €299 for a family), possibly supplemented by an hourly rate (€250/h) or portfolio management fees between 0.5% and 2% per year depending on assets, with a recommended entry ticket of around €50,000 or €1,000/month. They work with tax specialists, lawyers, and notaries specialized in expat issues.
For American expats facing double US/Austria taxation, specialized firms like EuroAmerican Financial Advisors (EAFA) offer tailored support.
Our advisors are certified in US financial planning (CFP) and European financial planning (EFP) for cross-border expertise.
Specialized support to navigate and optimize your situation with US and Austrian taxes.
Personalized financial advice and strategies to secure your wealth and international projects.
– Setting up investment portfolios compliant with FATCA and Austrian regulations
– Retirement planning while minimizing currency risk and double taxation
– Coordination between US and Austrian taxation, including inheritance, education, etc.
– Transferring assets to “expatriate-compliant” brokerage accounts without realizing taxable gains
For an expat building wealth, specialized guidance is crucial to avoid costly mistakes such as choosing non-compliant financial products, setting up inappropriate legal structures, or facing double taxation.
Private Banks, Wealth Management, and Legal Services
Banks like UniCredit Bank Austria have Private Banking departments offering tailored portfolio management, asset allocation, fund selection (sometimes in partnership with major international managers), and sophisticated risk profiling tools, such as those developed with research institutes (e.g., Max Planck). These services primarily target high-net-worth individuals but remain part of the puzzle for certain expats.
In parallel, Austrian law firms have specialized in wealth management for foreign investors: asset structuring, banking and tax law, obtaining residence permits, legal security for real estate or corporate investments.
How to Organize Your Financial Management as an Expat in Austria
This obviously depends on your profile, but a few general principles emerge for most situations.
A European employee settling in Vienna would benefit from: learning about the Austrian tax system to understand their tax obligations and optimize their financial situation. It is also advisable to become familiar with the local job market and build a professional network to ease integration.
– Quickly open a checking account with a local bank (Erste, Bank Austria, Raiffeisen, etc.) once you have your Meldezettel
– Keep a multi‑currency account like Wise or Revolut for travel, side income, and international transfers
– Look into local taxation from the first year to optimize deductions and avoid missing declarations
A self-employed person or digital nomad, on the other hand, will rather need:
An overview of essential services for managing your finances and administrative obligations as a mobile worker.
Access to one or more neobanks offering multi-currency accounts, professional invoicing tools, and integrations with platforms like Stripe or PayPal.
Opening a local account in Austria to facilitate bill payments, social security procedures, and strengthen your administrative recognition.
Support to clarify your tax residence (183-day rule, international treaties) and secure your status with the authorities.
A foreign real estate investor should anticipate:
– Down payment requirements (often 30–50% for non-EU nationals)
– Permit timelines and costs in certain federal states
– Capital gains taxation (generally 30%, with exemptions under certain conditions for primary residences)
– Average rental yields (around 3.5–4% in Vienna, potentially up to nearly 7% in some neighborhoods)
In all cases, planning ahead – ideally before departure – allows you to choose the right combinations of banks and accounts, prepare documents, and avoid compliance blocks (KYC/AML) that are becoming more frequent as regulations tighten.
Conclusion: A Rich Ecosystem to Be Methodically Mastered
Financial management for an expat in Austria operates on several levels: a dense but fee-based banking system, a country still very attached to cash, an advanced but structured tax system, and a dynamic ecosystem of fintechs and specialized advisors.
By intelligently combining:
– A well-chosen Austrian checking account,
– One or more multi‑currency accounts for the international dimension,
– And, if necessary, appropriate tax and wealth advisory support,
It is possible to turn the complexity of cross-border operations into an advantage by optimizing your bank costs, securing your international financial flows, limiting the risks of double taxation, and serenely preparing your real estate or long-term investment projects.
Austria offers a stable framework, solid financial institutions, and increasingly effective digital tools. Provided you enter with the right information and a clear strategy, international financial management becomes a lever, rather than a constraint, in your expat journey.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
