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.
|Population (2016)||8 700 471 (+0.01%)|
|EU Status||member since 1995|
|National Currency||EUR (Euro) since 1 January 1999|
|Nominal GDP (2015)||337.2 bln EUR (+0.02%)|
|Nominal GDP per Capita (2015)||39 100 EUR (+0.02%)|
|Real GDP Growth (2015)||0.9 % (2014: 0.3 %)|
|CPI, MoM (Dec 2016)||0.7 % (Nov 2016: 0.1 %)|
|CPI, YoY (Dec 2016)||1.6 % (Nov 2016: 1.5 %)|
|CPI, Year Average (2016)||1.0 % (2015: 0.8 %)|
|Unemployment Rate (2015)||5.7 % (2014: 5.6 %)|
|Government Bond Yield (Dec 2016)||0.53 % (Nov 2016: 0.49 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||AA+||very high credit quality, outlook stable|
|Moody's||Aa1||high grade, outlook stable|
|Withholding Tax||0.0 - 25.0%|
|Double Taxation Agreements||87 signed agreements|
|Exchange on Request||6 signed agreements|
|Automatic Exchange||starts in September 2018|
|FATCA||IGA in effect since 29 April 2014, Model 2|
|Financial Market Development||4.5 (max 7.0)||rank: 34th out of 138 countries|
|Banks' Soundness||5.0 (max 7.0)||rank: 65th out of 138 countries|
|Banking Industry Country Risk||2||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Nov 2016, EUR)||0.29 % (Oct 2016: 0.31 %)|
|Banking Sector Structure|
|Number of Banks||629|
|Recent Changes (2016)||new banks: 1, closed banks: 61|
|Consolidated Assets (2015)||1 056.70 bln EUR (-2.05%)|
|Erste Group Bank AG||Hypo Alpe Adria International|
|Raiffeisen Zentralbank AG||Oesterreichische Volksbanken AG|
|UniCredit Bank Austria AG||BAWAG PSK|
|List of Banks in Austria|
Austria joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of Austria in 2015 was 337.2 bln EUR.
Austria underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.4% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 0.9% which was below the Euro Area average (1.6%) and below the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Austria was 39 100 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 22.2% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
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 - 2021 are IMF's estimates.
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 01 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 01 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.
Austria signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 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 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Austria signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2018.
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).
Austria has FATCA agreement with the U.S. in effect since 29 April 2014 (Intergovernmental Agreement Model 2).
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Austria is scored 4.5 out of maximum 7.0 and ranked 34th out of 138 analysed economies. Soundness of banks is scored 5.0 bringing Austria into the 65th place, trustworthiness and confidence of financial market is scored 4.4 (53rd place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Austria is included into group '2' with economic risk scored '2' and industry risk scored '3'.
|Economic resilience||very low|
|Credit risk in economy||intermediate|
|Government support assessment||supportive|
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 3.
|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 3. 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.
Deposit Guarantee Schemes in Europe
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) deposit ceiling for Austria is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Compare Bank Deposits in Austria
Currently there are 629 credit institutions operating in Austria.
Recent structural changes (2013 - 2016) of the banking sector of Austria are summarised in Table 4.
|Number of Opened Banks||1||1||1||1|
|Number of Closed Banks||13||24||28||61|
Table 4. Recent structural changes in the banking sector of Austria.
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||30|
|Joint stock banks and private banks||39|
|Raiffeisen credit cooperatives||448|
|Special purpose banks||22|
|State mortgage banks||9|
|Volksbank credit cooperatives||27|
The list of the most recently opened banks in Austria is provided in Table 6.
There are 31 branches of foreign banks from 10 different countries in Austria. Table 7 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|