Austria is a prosperous, democratic country located in Central Europe with well-developed market economy, skilled labor force, and high standard of living.
The Austrian economy has well-balanced sectoral structure. The largest share of gross value added (GVA) is generated by private sector services: quarrying, manufacturing, electricity and water supply, trade, transportation, hotels and restaurants.
The Austrian banks generate their profit largely from traditional interest income rather than from more risky trading income. The major Austrian banks have extensive operations in Central, Eastern, and Southeastern Europe. Private banking in Austria enjoys a long and successful history.
Austria joined the Euro Area on 1 January 1999.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|349.5 bln EUR (+0.04%)||40 000 EUR (+0.02%)||1.5 % (2015: 0.9 %)|
According to Eurostat, nominal GDP of Austria in 2016 was 349.5 bln EUR.
Austria underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.3% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 1.5% which was below the Euro Area average (1.8%) and below the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Austria. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Austria was 40 000 EUR.
Austria has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 19.9% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Austria; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|1.4 % (Aug 2017: 0.0 %)||2.6 % (Aug 2017: 2.1 %)||1.0 % (2015: 0.8 %)|
According to Eurostat, inflation rate in Austria in 2016 expressed as annual percentages of average consumer prices was 1.0% which was above the Euro Area average (0.2%) and above the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Austria. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|6.0 % (2015: 5.7 %)|
|Government Bond Yield (Sep 2017)|
|0.59 % (Aug 2017: 0.61 %)|
Chart 4. Government bond yield of Austria. Source: Eurostat.
|AA+ (very high credit quality), outlook stable||Aa1 (high grade), outlook stable|
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Austria are shown in Table 1.
|Natural person, resident||25.0 %||25.0 %|
|Natural person, non-resident||25.0 %||0.0 %|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Austria signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Austria and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Austria signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Austria and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Austria signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2018.
Austria has signed bilateral agreements with 50 jurisdictions to automatically receive information:
Austria has signed bilateral agreements with 55 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Austria|
|IGA in effect since 29 April 2014, Model 2|
Austria has FATCA agreement with the U.S. in effect since 29 April 2014 (Intergovernmental Agreement Model 2).
|Financial Market Development|
|4.6 (max 7.0), 30th out of 138 countries|
|5.2 (max 7.0), 57th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Austria is scored 4.6 out of maximum 7.0 and ranked 30th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.6 (48th place).
Chart 5. Financial Market Development in Austria. Source: WEF.
Soundness of banks is scored 5.2 bringing Austria into the 57th place.
Chart 6. Soundness of Banks in Austria. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Austria are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Austria (including branches of foreign banks), branches of Austrian banks abroad|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||all balances on interest-bearing and non-interest bearing accounts|
|Covered Currencies||EEA currencies|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 2. Deposit guarantee scheme in Austria.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.
So, only the deposits made with Austrian banks in the following currencies are covered by the deposit guarantee scheme of Austria
|RON||Romanian new leu|
It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Austrian deposit guarantee scheme.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|Aaa (prime)||Aaa (prime)|
Local currency (Euro) deposit ceiling for Austria is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Average Deposit Rate (Aug 2017, EUR)|
|0.25 % (unchanged)|
Chart 7. Deposit Rates in Austria. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|946.25 bln EUR (-10.45%)|
|Recent Changes (2016)|
|new banks: 1, closed banks: 61|
Currently there are 587 credit institutions operating in Austria.
In 2016 consolidated banking assets in Austria were 946.25 bln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.
Chart 8. Consolidated banking assets in Austria.
Recent structural changes (2013 - 2016) of the banking sector of Austria are summarised in Table 3.
|Number of Opened Banks||1||1||1||1|
|Number of Closed Banks||13||24||28||61|
Table 3. Recent structural changes in the banking sector of Austria.
The list of the most recently opened banks in Austria is provided in Table 4.
All the credit institutions operating in Austria can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Building and loan associations||4|
|Institutions defined under § 9 BWG||27|
|Joint stock banks and private banks||39|
|Raiffeisen credit cooperatives||419|
|Special purpose banks||21|
|State mortgage banks||8|
|Volksbank credit cooperatives||19|
There are 27 branches of foreign banks from 8 different countries in Austria. Table 6 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
|1||Erste Group Bank AG|
|2||Raiffeisen Zentralbank Österreich Aktiengesellschaft|
|3||UniCredit Bank Austria AG|
|4||Hypo Alpe Adria International|
|6||BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft|