How dividend tax works in Austria
Austrian dividends face 27.5% withholding for individuals, final with no return needed. Corporate recipients face 23% withholding creditable against corporate tax.
After 23% company tax, a full distribution to an individual costs about 44% combined. Treaties typically reduce portfolio withholding to 15% and substantial holdings to 5%.
EU parents with 10% held a year plus substance receive dividends free of withholding. Relief runs through refund or relief-at-source with residence proof.
Tax rates at a glance
- Individual withholding
- 27.5%Final
- Corporate withholding
- 23%
- Typical treaty rate
- 15% / 5%
- EU parent rate
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFamily officesHigh earnersCross-border shareholders
Watch out for
- Combined 44% exceeds the 27.5% headline dramatically. Founders comparing salary, dividend and retention must model both company and personal layers.
- Treaty relief needs forms before or after payment. Without residence certificates and filings, the full 27.5% sticks.
- EU parent exemption demands substance, not just a mailbox. Staff, premises and activity tests decide zero versus refund-with-conditions.
- Corporate recipients get 23% withheld but exempt treatment on qualifying participations. Classification of the holding decides cash flow and final tax.
Frequently asked questions
Does Austria tax dividends?
Yes, at 27.5% final withholding for individuals and 23% creditable withholding for corporations.
What withholding applies to dividends leaving Austria?
Domestic law withholds 27.5%, cut by treaties to 15% or 5% and to zero for qualifying EU parents with substance.
What is the total tax on distributed profit?
About 44% combined: 23% corporate tax plus 27.5% dividend tax on the remainder.