By Marion Biber, managing director of ABA – Invest in Austria

As the ramifications of the UK’s departure from the European Union (EU), Single Market and Customs Union become fully realised, many UK firms who rely on European markets or want to grow their presence on the continent are looking for an EU base where they can trade without barriers. One country that is attracting particular attention as a place to set up shop is Austria. Here’s why.

The agreement of the UK-EU Trade and Co-operation Agreement (TCA) has caused huge disruption in UK-EU trade since coming into force on 1 January 2021. Some UK businesses were already preparing to set-up subsidiaries and bases in the EU Single Market prior to the UK’s departure, and the UK Department for International Trade (DIT) even advised that UK firms set up EU-based subsidiaries to avoid borders and customs issues. This guidance started a rush of interest from UK firms looking to set up a base in the EU market.

With the ‘teething problems’ many UK businesses are experiencing trading into the EU set to continue for several months; I want to highlight why Austria is the perfect EU base for UK businesses looking to trade without barriers within the EU market. In 2019 and 2020, the Austrian Business Agency (ABA) helped nearly 50 companies from the UK to either set up subsidiaries or relocate altogether in Austria.  Since the turn of 2021, we have received interest from more than 50 companies already.

Why Austria? As recently as 2019, Vienna was rated in one survey as the best place for startups to set up shop. It excels at its access to talent, incredibly good commuting, world-leading healthcare provision, high quality of life and excellent value for office space.

Let’s take a closer look at four key pillars as to why British firms are choosing Austria as their EU base:

Fantastic Infrastructure and Location

More than 380 multinational corporations have already chosen Austria as their European headquarters. Austria is at the heart of Europe with great road and rail access across the continent, acting as a perfect East-West hub for European businesses, with huge market potential. Austrian companies enjoy digital services that are way above the EU average in terms of speed and reliability. British businesses who chose Austria as their base will be well connected to a vibrant European market of more than 447 million people, both physically and electronically.

Access to Skills

A recent survey the ABA conducted among 300 business decision makers across Europe showed that 41% of British firms believe access to talent to be more important than ever. Austria has long prided itself on its world-beating education system – in fact, Austrians’ grasp of English as a second language is among the best in the world. Companies that invest in Austria are tapping into some of the best skills available in the EU.

Competitive Business Environment

Corporate tax and Value Added Tax (VAT) rates in Austria are highly competitive compared to its neighbours, and Austria enjoys the second-highest research and development (R&D) per Gross Domestic Product (GDP) ratio in the EU at 3.19%. Our research shows that nearly three quarters of British businesses are view Corporation Tax as a key concern – however those who settle on Austria as their EU base will enjoy a highly competitive business environment.

High Quality of Life

Vienna regularly features either at – or near – the top of global liveability indices. Statistically, Austria is one of the safest countries on earth and Vienna is also one of Europe’s greenest cities. The Austrian capital is a cosmopolitan crucible of ideas, art and culture, and Austria is famous for its great natural spaces and vibrant historic cities. British businesspeople who set up an EU base in Austria will find the facilities and activities they and their families need.

One British company that has already opted for a base in Austria is cloud services provider, Green Edge.

Dr. Mariza Wellesley-Wesley, CEO and co-founder of Green Edge Cloud Austria, commented: “In our decision as to location of our first subsidiary, Austria impressed us with its crisis-resilient economic environment, its internationally competitive investment opportunities and incentives, as well as excellent research institutions and a highly skilled labour market. In addition, Austria’s forward looking, ambitious and focused Governmental digitalisation manifesto convinced us to select Austria as the pioneer within Europe for our innovative and decentralised cloud solution of the future and to implement a country-specific cloud.”

How to set up a subsidiary in Austria

Austrian law allows for different types of companies to be established, which are tailored to specific needs and considerate of stipulations in tax and liability laws. Moreover, Austria’s system includes a generous research tax credit, which has amounted to just 14 percent since the beginning of 2018. Applications for this can be submitted by every company investing in research, innovation, and development, regardless of the company’s size, sector, or corporate structure. Importantly, even companies who don’t turn a profit within a given year are eligible for this credit, which takes the form of a cash payment, paid quickly and with minimal red tape.

ABA helps companies through the process, providing non-bureaucratic support, putting expertise at their disposal – completely free-of-charge. In addition, they can consult on selecting a site, dealing with public authorities, and funding bodies on tax and labour issues or identifying contact partners.

If you are thinking about setting up a subsidiary in the European Union to enjoy seamless business, then make sure you think seriously about Austria. It has all you need to thrive, and much more.