Filing US Taxes While Living in Austria: A Comprehensive Guide
June 30, 2025 | Country Guides | 12 minute read
Expat Tax Blog. Tax Tips for US Americans abroad.
Updated June 26, 2025
All blogs are verified by Enrolled Agents and CPAs
All blogs are verified by Enrolled Agents and CPAsUpdated June 26, 2025
Living in Austria as a US expat means you get to enjoy alpine views, excellent quality of life, and world-class public services—but you still have to deal with US taxes. The US–Austria expat tax situation can be confusing, especially when you’re juggling Austrian income tax and social security, and IRS obligations.
The good news? There are benefits that can help you avoid double taxation. Whether you’re teaching in Graz or working for an international firm in Vienna, knowing the rules can save you time and money. In this guide, we’ll walk you through everything you need to know about filing US taxes as an expat in Austria while staying compliant on both sides of the Atlantic.
US-Austria Expat Tax Deadlines
Navigate US-Austria Expat Tax Requirements
US-Austria Expat Tax Agreements
Avoid Double Taxation with US-Austria Expat Tax Strategies
Property Investment in Austria for US Expats
Retirement in Austria as a US Expat
Catch-Up on US-Austria Expat Taxes with the Streamlined Procedure
Simplify Your US Expat Filing with MyExpatTaxes
Who Needs to File US Taxes?
If you’re a US citizen or Green Card holder living in Austria and you meet the filing threshold, you’re still required to file a US tax return, even if you don’t owe any taxes. This is because the US taxes based on citizenship, rather than residency–there’s no escaping the IRS!
In 2025, if you are a US citizen or green card holder who meets any of the following thresholds, you’ll need to file your 2024 US taxes:
| Filing Status | Income Threshold |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $5 |
| Self-Employed | $400 |
| Qualifying Widow(er) | $29,200 |
| Head of Household | $21,900 |
If you meet the US filing threshold and are considered to be tax resident in Austria, you may face double taxation: owing taxes on the same income twice. But not to worry–the US offers certain tax benefits, such as the Foreign Earned Income Exclusion and Foreign Tax Credit, which can help you reduce or even eliminate double taxation.
FBAR & FATCA Compliance
The FBAR and FATCA are two key reporting obligations for expats. To target tax evasion, the US government requires you to report foreign financial accounts and assets once they cross specific thresholds.
If at any point during the year your combined foreign bank and investment accounts exceed $10,000, you’ll need to file the FBAR. This is submitted separately from your tax return using FinCEN Form 114.
Under FATCA, you need to report foreign accounts and assets over $200,000 on IRS Form 8938, which is filed with your federal return.
You won’t owe any taxes as a result of filing these forms, but failure to file can lead to steep fines, so staying compliant is essential.
Good to Know: Every MyExpatTaxes plan includes FBAR and FATCA reporting as standard.
US-Austria Expat Tax Deadlines
US Tax Deadlines
Expats automatically get a 2-month filing extension for their US taxes:
- April 15th: Normal filing and payment deadline
- June 16th: Automatic two-month filing extension for expats
- October 15th: FBAR & Tax Extension Deadline 1 (by digital request)
- December 15th: Tax Extension Deadline 2 (by written request)
Austrian Tax Deadlines
The Austrian tax year follows the calendar year (1 January-31 December) and returns are due the following year by:
- 30 April: Paper filing
- 30 June: Electronic filing on FinanzOnline
Navigate US-Austria Expat Tax Requirements
So you know if you’ll have to file US taxes, but what about Austrian taxes?
Residency Status in Austria
If you meet any of the following criteria, you’ll be considered resident in Austria for tax purposes:
- Physical Presence: If you live in Austria for more than 183 days in a year, you’re considered a tax resident.
- Permanent Home: Having a permanent home in Austria also qualifies you as a resident.
- Residency Status: You applied for and received residency.
Residents are taxed on worldwide income, while non-residents are only taxed on Austrian-sourced income.
Austrian Income Tax Rates
Austria’s income tax rates are progressive, with rates starting at 0% and going up to 55% for income exceeding €1,000,000.
Here’s a breakdown of Austrian tax brackets for the 2025 tax year:
| Income Range (€) | Tax Rate |
|---|---|
| 0 – 13,308 | 0% |
| 13,309–21,617 | 20% |
| 21,618–35,836 | 30% |
| 35,837–69,166 | 42% |
| 69,167–103,072 | 48% |
| 103,073–1,000,000 | 50% |
| Above 1,000,000 | 55% |
Social Security Contributions
Social security contributions amount to 39.05%, split between the employer (20.48%) and employee (17.07%), with a maximum assessment basis (gross salary) of €6,450 per month, and a maximum assessment basis for special payments of €12,900 per year (2025).
Visa Options for Expats
Before diving into US–Austrian expat tax rules, let’s review your visa options.
In 2025, you don’t need a visa for stays of under 90 days within any 180-day period. However, from 2026, you’ll need to apply online for the ETIAS travel authorization, which allows Americans to visit Austria and any other Schengen Area country for 90 days within any 180-day period.
For stays of between 91 days and six months, you can apply for the Type D Long Stay Visa for travel within Austria or other Schengen Area country.
For stays of over 6 months, temporary residence permits are available for purposes such as study and work secondment. Several types of permanent residence permit are available; for example, for startup founders, very highly qualified workers and those in shortage occupations.
As a minimum, all temporary and permanent residence permits require proof of adequate means of subsistence (€1,273.99/month for single people in 2025), health insurance coverage, and accommodation.
US-Austria Expat Tax Agreements
The US–Austria tax treaty, signed in 1996, helps clarify which country has the right to tax different types of income. Generally, if you’re a resident of Austria and earn income there, Austria gets primary taxing rights. However, due to the Savings Clause, most treaty benefits don’t apply to US citizens—meaning the IRS can still tax your worldwide income as if the treaty didn’t exist. That said, the treaty still plays a key role by supporting the use of foreign tax credits, which help reduce or eliminate double taxation.
The US–Austria totalization agreement ensures you won’t pay social security taxes to both countries at the same time. You’ll usually contribute only to the system of the country where you’re working. Plus, if you’ve paid into both systems over your career, you may be able to combine those credits to qualify for retirement or disability benefits, which is especially helpful for expats with split work histories.
Avoid Double Taxation with US-Austria Expat Tax Strategies
Double taxation is a major concern for many expats, but the IRS offers some key benefits to help minimize or eliminate the need to pay tax twice on the same income.
Foreign Tax Credit (FTC)
The Foreign Tax Credit lets you reduce your US tax bill by the amount of income tax you’ve paid in Austria. It applies to both earned income (like wages) and passive income (like dividends or interest), but the IRS requires you to apply the credit by category—so Austrian tax paid on passive income can only offset US tax on that same type of income. This credit is especially useful for US expats in Austria, where income tax rates are often higher than in the US. In many cases, you can eliminate your entire US tax liability and even carry any extra credits back one year or forward up to 10 years. To use the credit, file Form 1116 with your US tax return.
Foreign Earned Income Exclusion (FEIE)
Through the Foreign Earned Income Exclusion, you can exclude up to $126,500 of foreign-earned income from US taxation, provided you meet one of the following:
- Physical Presence Test: You were physically present in a foreign country for at least 330 full days during any 12-month period.
- Bona Fide Residence Test: You are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
As the name implies, you can only use the FEIE for earned income, such as salaries and self-employment income. You can file Form 2555 to claim the FEIE.
Foreign Housing Exclusion
The Foreign Housing Exclusion is a further benefit that lets you deduct up to $20,240 in housing expenses such as rent and utilities, provided your costs exceed the base housing amount (16% of the FEIE limit).
You can claim the Foreign Housing Exclusion if you meet the FEIE eligibility. While the average cost of living in Austria is 31% less than the US, the exclusion could still come in handy in more expensive cities like Vienna or Salzburg.
Child Tax Credit
US citizens living abroad may be eligible for the Child Tax Credit (CTC), which can reduce your US liability by up to $2,000 per qualifying child under age 17. Up to $1,700 is refundable (meaning you can receive it as a refund even if you don’t owe taxes) through the Additional Child Tax Credit (ACTC). You can claim the ACTC if you earn between $2,500 and $200,000, ($400,000 for joint filers). However, you won’t be able to claim the ACTC if you use the FEIE.
To claim the Child Tax Credit, you need to file Schedule 8812 along with your tax return.
Self-Employment in Austria
Registering as an independent contractor (either Self Employed or Freelance) in Austria can involve a lot of red tape. You can apply for residency with a Red-White-Red Card for Self-employed Key Workers with investment capital of €100,000, or a Red-White-Red Card for Start-up Founders with €50,000 upfront investment, amongst other requirements.
Once you have residency that gives you the right to work, you can register for your taxpayer identification number, social security, health insurance and accident insurance. Self-employed workers pay the normal Austrian progressive tax rates on personal income. VAT at 20% comes in when you earn more than €35,000. Thanks to the US-Austria Totalization Agreement, you don’t need to pay US self-employment taxes while you pay into the Austrian social security system.
Property Investment in Austria for Expats
US citizens are allowed to purchase real estate in Austria, whether for personal use or as a rental investment. However, property laws can vary by province, and there are restrictions on non-EU citizens buying agricultural and forestry land.
Cities like Vienna, Graz, and Salzburg are popular for their strong rental markets and long-term property value. The buying process is relatively straightforward, though transaction costs are high at around 9-13% of the property value.
For US tax purposes, any rental income from Austrian property must be reported on your tax return using Schedule E.
Read More: 8 Things to consider when buying property abroad
Retirement in Austria as a US Expat
Austria is a popular choice for retirees thanks to its high quality of life, clean cities, stunning scenery, and excellent healthcare system. While there’s no specific retirement visa, US citizens can apply for residence with “Settlement permit except gainful employment”. A limited number of permits are available on a first-come-first-served basis at the start of the year. To qualify, you’ll need proof of income (€2,547.98 per month for singles, €4,019.70 for couples in 2025), health insurance, and accommodation.
Public healthcare is available to residents and offers outstanding care at relatively low cost, though retirees must secure private insurance until they’re eligible to join the public system. You can receive your US pension while living in Austria, and as an Austrian resident, it will be taxed at the standard progressive tax rate along with any other worldwide income.
Salzburg, Innsbruck, and the lakeside towns of Carinthia are especially popular among retirees for their beauty, safety, and easy access to nature. Whether you’re drawn by the culture, fresh air, or relaxed pace, Austria offers a serene and secure place to retire.
IRAs and Retirement Accounts
As a US expat, you can continue contributing up to $7,000 per year ($8,000 if you’re over 50) to your US-based Individual Retirement Accounts (IRAs) while living abroad, as long as you have eligible earned income and meet the income thresholds.
Read More: IRA Contribution Limits for Expats
If you are thinking about your future, MyExpatInvest can match you with a financial expert to help you craft your global investment and retirement strategy.
Catch-Up on US-Austria Expat Taxes with the Streamlined Procedure
If you’ve never filed a US tax return while living abroad, you might be eligible for the Streamlined Procedure. This allows you to catch up on your taxes without facing penalties, provided your failure to file was non-willful. The catch? You need to file BEFORE the IRS contacts you, or you become ineligible and could face hefty fines.
Simplify Your US Expat Filing with MyExpatTaxes
Navigating US tax laws while living in Austria can be challenging, but you don’t have to do it alone. Whether you’re a seasoned expat or a first-time filer, MyExpatTaxes can help you stay compliant and maximize your tax benefits. Don’t wait until the last minute—let us take care of your taxes so you can focus on enjoying your life in Austria.
Sign up for MyExpatTaxes today and ensure your US tax filing is done right, stress-free!
Written by Nathalie Goldstein, EA
Nathalie Goldstein, EA is a leading expert on US taxes for Americans living abroad and CEO and Co-Founder of MyExpatTaxes. She contributes to Forbes and has been featured in Forbes, CNBC and Yahoo Finance discussing US expat tax.
June 30, 2025 | Country Guides | 12 minute read
