Introduction

Austria is an excellent location for regional headquarters. According to a survey of the University of Maastricht Austria is one of the top three tax havens in Europe. The effective tax rate in Austria is 17,67% whereas the European average is 26,86% and the tax burden in Germany is up to 38,53%. Dividends received by an Austrian parent company from domestic and foreign subsidiaries are not subject to taxation, with the exception of a minimum corporate income tax of EURO 1,750 per annum which can be deducted from such taxes in future insofar as it is not adequate to profit or loss of the relating year, and in the case of foreign participation in an Austrian firm there is no taxation on gains resulting from its sale.
 
Incomparably strict bank secrecy laws, a stable EURO currency and a working knowledge of English by the Austrian population are additional factors that have made the country one of the major European economic centres.