Cost of Living

Austria's day-to-day costs are moderate for Western Europe — grocery prices are competitive (Hofer/Lidl/Spar are widely available), transport is among the cheapest in Europe per use thanks to the Klimaticket, and dining out ranges from excellent-value Gasthaus lunches to pricey restaurant dinners. The main cost driver for expats is rent, especially in central Vienna.

Rent is the dominant expense for most expats. Vienna's private rental market is skewed by the fact that ~60% of renters live in subsidized municipal housing (Gemeindebau or Genossenschaftswohnungen) — but new expats have no access to these. On the private market, prices have risen 15–20% since 2022. The best value for money lies in Vienna's outer districts (10th–20th) and in Graz.

Austria uses a progressive income tax system (Einkommensteuer) with rates from 0% to 55%. For 2026, all brackets have been adjusted upward by 1.73% to offset inflation (cold progression adjustment based on 2.6% inflation rate). Residents are taxed on worldwide income; non-residents only on Austrian-source income.

Opening a bank account in Austria requires a registered Austrian address (Meldezettel/Hauptwohnsitzmeldung). Most major Austrian banks offer accounts with English-language support. Neo-banks and international fintechs (Revolut, Wise, N26) are widely used by expats for day-to-day transactions while setting up a local account.

You become an Austrian tax resident if you spend more than 183 days in Austria in a calendar year, or if Austria is your primary place of habitual abode. Tax residents are taxed on worldwide income. Austria has double-taxation treaties with 90+ countries. Expats should take advice from a Steuerberater (tax advisor) in their first year — Austrian tax rules around foreign income, freelance income, and investment income are complex.