Austria has four things that contribute to it being ranked as an offshore banking center:

1. holding companies
2. private foundations
3. bank secrecy, and
4. citizenship by investment

Austrian Holding Companies

Austrian holding companies are better than average for the high tax world of the EU.  However it is certainly not at the top of the list—the Denmark Holding Company is generally considered among the best for a holding company that needs a network of tax treaties to make it efficient.  Austria has such a network, but at a higher price than Denmark.

Austrian Private Foundations 

Austrian Private Foundations (Privatstiftung) are another civil law version of the common law trust. Assets transferred into foundations are taxed at 5% (8.5% for real estate). Austrian Foundations are generally taxed at the 25% corporate rate, but there are major tax concessions on dividend income (as little as 0%) and income from bank deposits, bonds or mutual funds as well as capital gains (12.5%). Finally, distributions from the private foundation are subject to a withholding tax of 25%, but this may be reduced by tax treaties.

Austrian Bank Secrecy 

Austrian Bank secrecy is reputed to be among the best in the world. Austria refused to change its constitution and sell out bank secrecy as demanded by the EU. That being said, private banking in Austria is expensive and will definitely require references and a personal visit in almost all cases.

Austrian Citizenship by Investment  

Austrian Citizenship by Investment requires an active investment in the Austrian economy. Generally a significant direct investment (US$1 million plus) is required. Passive investments in government bonds, real estate, etc. do not qualify. The average time frame of an application is between 6 and 9 months. Successful applicants receive full Austrian citizenship, and a passport can be issued within a few days. The grant of citizenship is not published and not reported to any other country as it falls within the Government privacy/official secret provisions. As an Austrian citizen one can live and work anywhere in the European Union or Switzerland at any time. Unless you decide to actually reside in Austria, you are not subject to tax in Austria.

As noted, Austria’s offerings are very limited in scope, but those offered have very great depth and utility if they fit your specific needs.