Because freelancers are not Solar Staff's employees and we don't pay taxes on their payouts, they must declare any income received via Solar Staff by themselves.
To carry on tax accounting in Austria for your Solar Staff income, you need to:
Be a tax resident
Determine the applicable tax obligations
Tax residence
Austria taxes its residents on their worldwide income, while non-residents are taxed on their income from Austrian sources only.
Individuals are considered tax residents of Austria if they meet at least one of the following criteria:
They have a permanent residence in Austria
The center of their vital interests is in Austria, which includes having a spouse and/or children permanently residing in the country
They spend more than 183 days in the country within any 365-day period
They own real estate in Austria and use it for more than 70 days in a year
Austria has double taxation agreements with a number of countries (full list), the provisions of which may override the applicable tax residence rules and other provisions of national legislation.
Taxpayer ID number
The tax number (Steuernummer) is a unique number assigned to individuals and legal entities for identification within the tax system, including for the purpose of filing tax returns. The tax number consists of nine digits in 99-999/9999 format and is assigned by a local office of the Austrian Tax Authority (Finanzamt).
The social security number (Sozialversicherungsnummer, SVNR) or policy number (Versicherungsnummer, VSNR) is a unique identifier consisting of a three-digit sequence number, a check digit, and the date of birth. It is used to identify individuals within the social security system and is issued by the Austrian Social Security Service (Österreichische Sozialversicherung, ÖSV). You can obtain this number by applying to one of the insurance companies or to the regional social security office (more details).
The VAT identification number (Umsatzsteuer-Identifikationsnummer, UID-Nummer) is an individual identification number for businesses and entrepreneurs registered for value added tax (VAT) purposes. This number consists of the prefix AT (Austria), the letter U to denote sales tax, followed by eight digits, and is assigned based on an application.
Taxes and contributions payable by freelancers
Tax liabilities in Austria depend on the chosen tax status and/or eligibility for certain criteria. Freelancers earning income through Solar Staff can choose between three tax statuses in Austria:
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Austria, but you can fill in your taxpayer ID in your account.
Read on for more details.
Freelancer
A freelancer (Freiberufler) is an individual engaged in one of the liberal professions (Freie Berufe) that require special qualifications but are not regulated by commercial law. Representatives of these professions are typically organized into chambers or professional associations.
The liberal professions include:
Pharmacists, doctors, veterinarians, dentists, psychologists, and psychotherapists
Architects and consulting engineers
Notaries, lawyers, and accountants
The registration process for freelancers involves the following steps:
Submitting a notice of commencement of activities to the Tax Authority (Finanzamt) (can be submitted online through the FinanzOnline service) within one calendar month from the date of commencement of activities (§120 of the Federal Tax Code (Bundesabgabenordnung, BAO) (the tax number is assigned automatically after registration, if it has not been assigned previously).
Submitting a notice to the Social Security Institution for the Self-Employed (Sozialversicherungsanstalt der Selbständigen, SVS) (same as for the new self-employed).
No additional types of registration or special permits are required to operate as a freelancer.
Learn more below.
Income tax (Einkommensteuer) is charged at a progressive rate based on the income amount (§33 of the Income Tax Act (EStG)):
Income in 2024, EUR | Income in 2025, EUR | Tax rate, % |
Up to 12,816 | Up to 13,308 | 0 |
12,816–20,818 | 13,308–21,617 | 20 |
20,818–34,513 | 21,617–35,836 | 30 |
34,513–66,612 | 35,836–69,166 | 40 |
66,612–99,266 | 69,166–103,072 | 48 |
99,266–1,000,000 | 103,072–1,000,000 | 50 |
Over 1,000,000 | Over 1,000,000 | 55 |
Taxpayers can deduct expenses related to their operational activities, including insurance contributions, advertising costs, and other expenses. Other available deductions and benefits include:
A one-time deduction of up to EUR 1,200 for conducting activities at the place of residence.
Various tax deductions based on marital status.
A basic tax deduction of 15% for income up to EUR 30,000 in 2024 and EUR 33,000 in 2025.
The option to apply a fixed rate of income tax on self-employment and commercial activities, allowing taxpayers to set operational expenses at either 6% of turnover (but not more than EUR 13,200) or 12% of turnover (but not more than EUR 26,400) (learn more).
Tax returns must be submitted annually using Form E1 (video instructions and supplementary materials) before April 30 of the year following the reporting year if submitted on paper or before June 30 if submitted online through FinanzOnline. A penalty of up to 10% of the tax amount may be charged for late filing without sufficient grounds (§135 BAO). Similar late filing penalties apply to other types of tax returns, including VAT returns.
Tax payments are due within one month of receiving the income tax notice (Einkommensteuerbescheid) issued by the tax office after reviewing the tax return. Taxpayers are also required to make quarterly advance payments (Einkommensteuervorauszahlungen) no later than February 15, May 15, August 15 and November 15, respectively. The payment amounts are calculated based on the previous year's actual income or self-assessed estimated income. A penalty of 2% of the late tax amount is applied for overdue payments (§217 BAO).
Value added tax (Umsatzsteuer) is calculated at a standard rate of 20% and applies to annual income exceeding EUR 35,000 (EUR 55,000 starting January 1, 2025). Freelancers earning below this threshold are classified as small business owners (Kleinunternehmer) and are exempt from paying VAT (§6 of the Sales Tax Act (UStG)). This exemption allows for a one-time exceedance of the income threshold by up to 15% over a period of five calendar years. Small businesses that are exempt from VAT do not need to specify VAT amounts on their invoices.
Taxpayers must file a preliminary VAT return (Umsatzsteuervoranmeldung, UVA) (more details) no later than the 15th day of the second month following the reporting period (Form U30). Depending on the amount of income for the previous reporting year, the VAT return must be submitted as follows:
Less than EUR 100,000 – quarterly
More than EUR 100,000 – monthly
At the close of the calendar year, taxpayers are required to submit the final annual VAT return (Umsatzsteuererklärung) before April 30 of the year following the reporting year (if submitted online via FinanzOnline – before June 30) (Form U1). The return filling out instructions can be found here. Small businesses are exempt from the obligation to file VAT returns.
Tax payments are typically due on the day the tax return is filed, no later than the 15th day of the second month following the reporting month.
Freelancers who sell goods or provide services to foreign clients registered in the European Union (EU) are further required to submit a summary report (Zusammenfassende Meldung, ZM) using the prescribed form and indicating the buyers' VAT numbers. The report must be filed electronically before the end of the calendar month following the reporting period (which can be either a calendar month or quarter). Depending on the sales amount for the reporting year, the summary report must be submitted as follows:
Less than EUR 35,000 – quarterly
From EUR 35,000 to EUR 100,000 – monthly
More than EUR 100,000 – monthly
The social security system (Sozialversicherung) sets forth obligations that vary by profession (learn more). Generally, freelancers are only subject to obligations related to pension insurance, as outlined in the Act on Social Security for Self-Employed Persons (Freiberuflich Selbstständigen-Sozialversicherungsgesetz, FSVG). The contribution rate for pension insurance is 20%, with calculation and payment requirements similar to those for the new self-employed.
New self-employed
New self-employed individuals (neue Selbständige) are those who earn income from independent activities in specific professions (§22 Z1-3 and Z5 EStG) that do not require a license or membership in the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich, WKÖ). Examples of these professions include artists, writers, journalists, teachers, and lecturers.
The registration process for new self-employed individuals involves the following steps:
Submitting a notice of commencement of activities to the Tax Authority (Finanzamt) (can be submitted online through FinanzOnline) within one calendar month from the date of commencement of activities (§120 BAO) (the tax number is assigned automatically after registration, if it has not been assigned previously).
Submitting a notice to the Social Security Institution for the Self-Employed (SVS) (for more information, see the description of social security contributions).
Learn more below.
Income tax (Einkommensteuer) is payable by the self-employed in the same way as by freelancers.
Value added tax (Umsatzsteuer) is payable by the self-employed in the same way as by freelancers.
Social security contributions (Sozialversicherungsbeiträge) are governed by the Commercial Social Security Act (Gewerbliches Sozialversicherungsgesetz, GSVG) and are required only if the annual income exceeds the insurance threshold of EUR 6,221.28 (or EUR 518.44 per month). Self-employed individuals must report the start and end of their insurance to the SVS within the following timeframes:
Within one month from the date of activity commencement if income is expected to exceed the insurance threshold; or
Within eight weeks from receiving the income tax notice by submitting the income threshold declaration (Überschreitungserklärung). Failure to submit this declaration may result in a penalty of 9.3% on the amount of pension and health insurance contributions.
If the self-employed individual does not exceed the established threshold, they can opt for voluntary insurance (more details).
Types of mandatory insurance and contribution rates:
Pension insurance (Pensionsversicherung, PV) – 18.5%
Health insurance (Krankenversicherung, KV) – 6.80%
Pension insurance for the self-employed (Selbständigenvorsorge, SVS) – 1.53%
Accident insurance (Unfallversicherung, UV) – a one-time payment of EUR 11.35 per month, regardless of income amount.
Mandatory insurance does not include unemployment insurance, but it can be obtained voluntarily.
The base (Beitragsgrundlage, BGL) for calculating insurance contributions is determined using the amount of taxable income (Einkünfte) specified in the notice and actual contributions paid for pension (PV) and medical (KV) insurance. Since the exact amount of income can only be determined at the end of the reporting year, a mechanism for provisional and final calculations of insurance contributions is in place.
The provisional calculation of insurance premiums occurs as follows:
If the self-employed individual is a newly registered participant in the mandatory insurance system (Neuzugänger), their provisional calculation for the first three years is based on a minimum/provisional base of EUR 518.44.
If the self-employed individual is an existing participant in the mandatory insurance system, then starting from the fourth calendar year of insurance, the provisional contribution base is set using the final contribution base from the first of the three preceding years (though a reduction of the provisional base is possible).
The final calculation is made after the SVS receives the income tax notice. The actual amount of contributions is then calculated based on the actual income received and the contributions paid during the year.
The base for calculating contributions is capped at a maximum of EUR 7,070 and cannot be lower than the established minimum base (applicable to both new and existing entrepreneurs).
Only contributions for pension (PV) and medical (KV) insurance are subject to final recalculation; contributions for self-employed pension insurance (SVS) at a rate of 1.53% are determined according to a provisional calculation. After the final calculation, the payer may either be entitled to a refund (application for refund) or may need to pay an additional amount. Payers can use a dedicated calculator to calculate their insurance contributions.
The deadlines for paying insurance contributions are as follows:
Provisional calculation – contributions must be paid either monthly or quarterly, with payments due by the end of the second month following the end of the quarter (payment frequency can be chosen when completing the application on the SVS website).
Final calculation – any additional contributions must be divided into four equal payments to be made in the year following the year of determining the additional amount due. For example, the additional amount payable for 2024 will be determined in 2025, with payments due on February 28–29, May 31, August 31, and November 30, 2026. New participants in the insurance system can spread their additional amount due for each of the first three calendar years over the next three years, resulting in twelve quarterly payments, by submitting the relevant application.
Sole proprietor
A sole proprietor (Einzelunternehmer) is an individual who carries out entrepreneurial activities and is fully liable for any obligations arising from these activities with their personal assets. This status is the most common in Austria. Unlike freelancers and new self-employed individuals, a sole proprietor must obtain a license.
To register as a sole proprietor, the individual must meet the following requirements:
Must be at least 18 years old.
Must hold citizenship from an EU member state or a country that is a party to the European Economic Area (EEA) Agreement, or have a residence permit in Austria.
Must not have any grounds for exclusion, such as a criminal conviction, as specified in §13 of the Commercial Code (Gewerbeordnung 1994, GewO).
The registration as a sole proprietor is free of charge (§333a GewO) and involves several steps:
Submitting a registration application in one of the following ways:
In person at the local administrative authority, or, depending on the location, at the district headquarters, city magistrate, or the relevant district magistrate's office in Vienna
Electronically through the Business Registration Service (WKÖ) (video instructions)
Via the Business Service Portal (Unternehmensserviceportal, USP) where registration can be completed online
Through the Austrian Business License Information System (GISA).
Obtaining a license. In Austria, there are two types of business licenses: free and regulated (freie/reglementierte Gewerbe). The requirement for a license depends on the type of activity, not the income level.
The Federal Ministry of Labor and Economy of Austria (Das Bundesministerium für Arbeit und Wirtschaft, BMAW) publishes a unified federal list of professions with free licenses (not to be confused with liberal professions available to freelancers), which do not require qualification verification. Professions on this list include media consultants, photographers, designers, copywriters, public relations consultants, and IT specialists.
The list of professions with regulated licenses is established by the Commercial Code of Austria (§94 GewO) and, among others, includes the following professions:
Guides and travel guides
Real estate agents (realtors) and property managers (trust management)
Management consultants and consultants on commercial assets
To obtain a regulated license, applicants must provide proof of qualifications through education and work experience or by passing an examination.
Sole proprietors can contact the WKÖ by email, phone or in person for free consultations on whether their chosen activity is a regulated/free activity or falls outside the scope of the Commercial Code of Austria, i. e. pertains to self-employed professions.
Registering in the Commercial Register (Firmenbuch), which is a public registry that contains information about all companies registered in Austria. Mandatory registration is required for sole proprietors if their annual turnover exceeds EUR 700,000 for each of two consecutive financial years or EUR 1,000,000 in a single year. Voluntary registration is also an option.
A sole proprietor registered in the Commercial Register may choose a business name different to their personal name, provided it includes the designation e.U. (eingetragener Unternehmer, registered entrepreneur). An unregistered sole proprietor must use their last name and at least one first name (if there are several) as their official name in formal legal relations and business documents.
IMPORTANT! To sign up for Solar Staff and obtain all the relevant documents, you must use your name and surname. You may not use any other business name as a sole proprietor.
Notifying the tax office about the commencement of activities and completing the application (Verf24) to obtain a tax number (Steuernummer) if it has not been already assigned. If one registers as a sole proprietor through the USP portal, the notice may be submitted online.
Notifying the social security authority. Unlike new self-employed individuals, sole proprietors are not required to inform the SVS about the commencement and termination of their activities, since the authority automatically receives this information from the Commercial Register. However, to be exempt from paying social security contributions, small business owners must submit a relevant application, which can be done online on the SVS website.
Mandatory accounting requirements apply only to sole proprietors registered in the Commercial Register (Firmenbuch). However, all taxpayers must retain all the necessary supporting documents for their transactions.
Learn more below.
Income tax (Einkommensteuer) is payable by sole proprietors in the same way as by freelancers.
Value added tax (Umsatzsteuer) is payable by sole proprietors in the same way as by freelancers.
Insurance contributions (Sozialversicherungsbeiträge) are payable by sole proprietors in the same way as by new self-employed individuals. However, there are several distinctions specific to sole proprietors:
Small business owners who are individuals may be exempt from paying social security contributions for health insurance (KV) and pension insurance (PV and SVS) if:
Their annual income (Einkünfte) does not exceed EUR 6,221.28, and
Their annual revenue (Umsatz) from all business activities does not exceed EUR 35,000
Additional mandatory criteria regarding the age of the insured are also established for this exemption (more details).
Sole proprietors who are newly registered in the mandatory insurance system have a benefit compared to new self-employed individuals: during the first two calendar years, their health insurance contributions (KV) are not subject to recalculation during the final calculation of insurance contributions. This means their monthly contribution remains fixed at EUR 35.25, regardless of income earned.
The municipal tax (Kommunalsteuer) is payable only by entrepreneurs and organizations with employees and is charged at a rate of 3% on total wages paid to employees each calendar month.
A municipal tax return (Kommunalsteuererklärung) is to be filed either online via the FinanzOnline service or by mail to the municipality's administration using Form KommSt 1 (with attachment KommSt 1a). This must be done no later than March 31 of the year following the reporting year.
Tax payments are due before the 15th day of the month following the month in which the relevant wage payments were made.
Additional information
FinanzOnline, an online service for interacting with the Tax Authority and submitting documents and tax returns
The Business Service Portal (Unternehmensserviceportal, USP), a central platform facilitating interactions between Austrian businesses and government agencies
Income received through Solar Staff is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].