Corporate Immigration 2023

Last Updated June 27, 2023

Austria

Law and Practice

Authors



Oberhammer Rechtsanwälte GmbH was founded in 2014 and, since then, has since been able to continuously expand its team of proven experts in the area of corporate migration, with a special focus on posting regulations, labour law, corporate law and capital markets law. Oberhammer Attorneys is an Austrian-based, full-range immigration law firm serving national and international large, medium-sized and small companies, as well as individuals in all aspects of corporate immigration law. The firm has a special team dedicated to individual clients looking to settle in Austria without undertaking gainful employment. It has a special interest in digitalising immigration compliance requirements and is developing and running self-produced software programs to monitor compliance with minimum remuneration principles, job replacement rules and document-keeping compliance requirements.

Austria has a high demand for foreign skilled workers. However, the current regulations regarding the immigration of qualified workers, especially in shortage occupations, are not yet able to sufficiently fulfil this important goal in times of labour shortages, as obtaining Austrian permits is still considered to be too complicated, time-consuming and bureaucratic. The amendment to the Alien Employment Act, the Labour Market Promotion Act, the Settlement and Residence Act and the Aliens Police Act, which entered into force in October 2022, has led to simplifications, streamlining of procedures and clarifications, some of which result from the rulings of the administrative courts. The amendments have led to a noticeable acceleration of the administrative procedure. However, many administrative hurdles still need to be removed, and partly antiquated procedures need to be modernised and digitalised. 

Additional changes to the immigration process were enacted in April 2023 to facilitate the employment of skilled workers with Spanish, French, Bosnian, Croatian and Serbian language skills.

There are currently no announced additional changes. The market expects that the filing processes and procedures will become optimised in order to attract skilled workers to cover the market demand in Austria.

Austria distinguishes between “local hire” (employee will be employed by the sponsor) and “posting” (the employee will be posted from a foreign employer to an Austrian receiving company which has to provide the work permit). Both categories are considered as “sponsor-based” work permit.

The following are Austria’s most common sponsor-based permits.

Local Hire – Red-White-Red Card

The Red-White-Red Card is a combined work and residence permit for third-country nationals (applicants who are not EU/EEA/Swiss citizens). This permit is employer linked and therefore does not allow free access to the labour market.

Red-White-Red Cards are obtainable for different types of employees:

  • highly qualified workers;
  • skilled workers in a shortage occupation;
  • other key employees;
  • graduates of an Austrian university or higher education college;
  • entrepreneurs (self-employed key workers); and
  • start-up founders.

General requirements for all categories are:

  • adequate means of subsistence – applicants are required to generate personal income which is sufficient to cover the living costs in Austria. The following net amounts must be available: EUR1,110.26 for singles; EUR1,751.56 for couples; EUR171.31 for each child (these figures are applicable for the calendar year 2023);
  • all-risk health insurance cover – locally hired employees are insured through the public social insurance system. Such insurance cover provided by the public social insurance system is sufficient;
  • adequate accommodation – the principal must provide an intended residence address and the dependants must provide a proof of accommodation (eg, rent agreement); and
  • minimum remuneration compliance – the applicant’s salary must meet the minimum remuneration requirements as determined by the applicable collective bargaining agreement. In case of a Red-White-Red Card for other key employees, an additional card-related minimum remuneration requirement is applicable (see below).

The Red-White-Red Card for highly qualified workers can be obtained by applicants who obtain at least 70 out of 100 available credit points: up to 40 points are awarded for special qualifications and skills (especially for candidates with a university degree in mathematics, IT, natural sciences or technology, post-doctoral or equivalent qualification); up to 20 points are awarded to work experience (reflecting the applicant’s qualifications); up to ten points are awarded for language skills (German, English, French, Spanish, Bosnian, Croatian, Serbian); up to 20 points are awarded for age; up to ten points are awarded if the applicant has completed studies in Austria. The permit can be issued with an initial validity period of up to two years. Provided that the applicant is working for at least 21 full months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible, which allows free access to the labour market. 

Shortage occupations are determined and published year by year in a regulation. There are Austrian-wide shortage occupations and shortage occupations applicable to the single regions. The Red-White-Red Card for skilled workers in a shortage occupation can be obtained by applicants who obtain at least 55 out of 90 available credit points: up to 30 points are awarded in case of a completed vocational education in the shortage occupation; up to 20 points are awarded to work experience (reflecting the applicant’s qualifications); up to 25 points are awarded for language skills (German, English, French, Spanish, Bosnian, Croatian, Serbian); up to 15 points are awarded for age. The permit can be issued with an initial validity period of up to one year. Provided the applicant is working for at least 21 full months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible, which allows free access to the labour market. 

The Red-White-Red Card for other key employees can be obtained by applicants who obtain at least 55 out of 90 available credit points: up to 30 points are awarded for a qualification; up to 20 points are awarded for work experience (the work experience does not have to be linked to the qualification); up to 25 points are awarded for language skills (German, English, French, Spanish, Bosnian, Croatian, Serbian); up to 15 points are awarded for age. Special credit points (five) are available if English is the predominant working language of the future employer, provided that the candidate is able to prove English language skills. For professional athletes and professional sports coaches, 20 bonus points are available. In addition to the minimum remuneration according to the applicable collective bargaining agreement, the applicant’s monthly gross salary (to be paid 14 times per year) must be at least EUR2,925 (figure valid for 2023); if this figure is below the minimum remuneration amount determined by the applicable collective bargaining agreement, the respective higher amount must be paid. Applicants for this type of residence permit have to undergo a labour market replacement test. The permit can be issued with an initial validity period of up to two years. Provided that the applicant is working for at least 21 full months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible which, allows free access to the labour market. 

The Red-White-Red Card for graduates of an Austrian university or higher education college is not linked to a credit point system. A labour market replacement test is not required. The permit can be issued with an initial validity period of up to two years. Provided that the applicant is working for at least 21 full months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible, which allows free access to the labour market. 

A Third Country National can apply for a Red-White-Red Card for entrepreneurs (self-employed key workers), if their occupation in Austria creates macroeconomic benefit. This macroeconomic benefit is assumed if the entrepreneurship involves a sustained transfer of investment capital to Austria amounting to at least EUR100,000 or creates new jobs or secures existing jobs in Austria. This is also the case if the transfer of know-how introduces new technologies or if the business activity is of considerable significance for the region.

The Red-White-Red Card for start-up founders can be obtained by third-country nationals if the applicant establishes a company in order to develop and launch innovative products, services, processing methods or technologies. The applicant must have a controlling influence on the management of the company, prove capital for the company to be founded amounting to at least EUR30,000 (therefore at least 50% equity). Applicants need to obtain at least 50 out of 85 available credit points: up to 30 points are awarded for a qualification; up to ten points are awarded for work experience (the work experience must have a link to the qualification); up to 15 points are awarded for language skills (German, English, French, Spanish, Bosnian, Croatian, Serbian). Bonus points are available in case of an additional investment of EUR50,000 (ten points), in case of admission to a business incubator or funding by a start-up funding agency in Austria (ten points) and in case of an age of up to 35 years (ten points).

Dependant family members can accompany the third-country national; unless they hold a university degree or a high school graduation which allows university access, German language requirements apply for dependants. Dependants receive a permit in the form of a Red-White-Red Plus Card, which allows free access to the labour market. 

Local Hire – Blue Card EU

The EU Blue Card is a combined residence and work permit, available for highly skilled local hires who meet a high salary threshold. A third-country national can apply for a Blue Card EU, if the applicant has completed university studies or other tertiary education with a minimum duration of three years. For applicants in the area of information and communications technologies (job codes 133 or 25 ISCO-08-classification), the proof of at least three years of relevant professional experience is sufficient and replaces the university degree, if the experience is comparable to a university degree with at least three years of study and has been acquired within the last seven years prior to the application.

Applicants are required to obtain a binding job offer for at least six months and the employment must have a link to the education and qualifications of the applicant. The card-related annual minimum gross salary amounts to EUR45,595 (annual salary and special payments).

Applicants for this type of residence permit have to undergo a labour market replacement test. The permit can be issued with an initial validity period of up to two years. Provided that the applicant is working for at least 21 full months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible, which allows free access to the labour market. 

Dependant family members can accompany the third-country national; unless they hold a university degree or a high school graduation which allows university access, German language requirements apply after a residence permit in Austria of two years. Dependants receive a permit in the form of a Red-White-Red Plus Card which allows free access to the labour market. 

Local Hire – Confirmation Certificate for Volunteers

Volunteers are third-country nationals who are employed for up to three months per calendar year exclusively for the purpose of expanding and applying knowledge for the acquisition of practical skills without any obligation to work and without any entitlement to remuneration and who do not perform unskilled work, simple semi-skilled work or work on construction sites.

Third-country nationals who are employed as volunteers do not require a work permit. However, the employment must be reported by the employer to the competent regional labour office and the Central Co-ordination Office for the Control of Illegal Employment at least three weeks prior to commencement. The competent labour office must issue a Confirmation Certificate within two weeks. After expiry of this period, the employment may be taken up before the confirmation of notification has been issued. If the issuance of the Confirmation Certificate is rejected after the expiry of the initial period of two weeks, an already started employment must be terminated immediately, at the latest, however, within one week after delivery of the rejection order.

In addition to the Confirmation Certificate, the applicant requires a working visa or a residence permit which allows the applicant to reside in Austria. Thereafter, the applicant can start working.

Local Hire – Confirmation Certificate for Holiday/Professional Trainees

Holiday/professional trainees are students who perform an activity prescribed within the framework of a regulated course of instruction or study at a domestic educational institution under public law.

Third-country nationals who are employed as holiday/professional trainees do not require a work permit. However, the employment must be reported by the employer to the competent regional labour office and the Central Co-ordination Office for the Control of Illegal Employment at least three weeks prior to commencement. The competent labour office must issue a Confirmation Certificate within two weeks. After expiry of this period, the employment may be taken up before the confirmation of notification has been issued. If the issuance of the Confirmation Certificate is rejected after the expiry of the initial period of two weeks, an already started employment must be terminated immediately, at the latest, however, within one week after delivery of the rejection order.

In addition to the Confirmation Certificate, the applicant requires a working visa or a residence permit which allows the applicant to reside in Austria. Thereafter, the applicant can start working.

Local Hire – Confirmation Certificate for Trainees

This permission applies to trainees within the meaning of Directive (EU) 2016/801 on the conditions of entry and residence of third-country nationals for the purposes of research, studies, traineeships, voluntary service, pupil exchange programmes or educational projects and au pair work (Researcher and Student Directive). For this purpose, the term “trainee” means foreign nationals who are pursuing studies leading to a higher education qualification in a third country or have obtained a higher education qualification not more than two years ago and are employed under a study-related traineeship agreement with a host institution at an appropriate level of qualification for a period of 91 to 180 days to acquire knowledge, practical skills and experience in a professional environment.

Third-country nationals who are employed as trainees do not require a work permit. However, the employment must be reported by the employer to the competent regional labour office and the Central Co-ordination Office for the Control of Illegal Employment at least three weeks prior to commencement. The competent labour office must issue a Confirmation Certificate within two weeks. After expiry of this period, the employment may be taken up before the confirmation of notification has been issued. If the issuance of the Confirmation Certificate is rejected after the expiry of the initial period of two weeks, an already started employment must be terminated immediately, at the latest, however, within one week after delivery of the rejection order.

In addition to the Confirmation Certificate, the applicant requires a working visa. Once the Confirmation Certificate and the working visa have been obtained, the applicant can start working.

Local Hire – Project Workers

A third-country national who is to be temporarily employed as a specialist in the course of a specific project for a period not exceeding six months, is eligible to obtain a work permit. In this context the term “specialist” means an employee who has indispensable, specialised knowledge and a high level of qualification for specific work or activities with specific technical knowledge, including appropriate professional experience.

In addition to the work permit, the applicant requires a working visa. Once the work permit and the working visa have been obtained, the applicant can start working.

Local Hire – Researcher

To obtain a residence permit as researcher, an admission agreement with a certified research facility or a research facility which does not require certification according to the Austrian Residence and Settlement Act is required. For researchers there is no need to obtain an additional work permit.

The residence title “Settlement Permit – researchers” shall be issued for the total duration of two years. Thereafter a switch to the unsponsored title Red-White-Red Plus card is possible.

Local Hire – Special Cases of Dependant Gainful Employment

For certain special cases of employment in Austria the residence permit “Special Cases of Dependant Gainful Occupation” can be obtained.

This permit applies, for example, to foreign media respondents, university professors or teachers at international schools. This permit also applies to so-called “Special Managers”; Special Managers are third-country nationals who hold executive positions at the board or management level in internationally active groups of companies or are internationally recognised researchers and whose employment serves to develop or expand sustainable economic relations or to create or secure qualified jobs in Austria and who consistently receive a monthly gross remuneration of at least 120% of the maximum contribution basis pursuant to Section 108 paragraph 3 of the Austrian General Social Insurance Act (ASVG) plus special payments (for 2023: at least EUR7,020 gross/month).

Local Hire or Posting – ICT Permit

The Intra-Company-Transferee (ICT) Permit is a combined work and residence permit available for managers, specialists or trainees seconded to a European country by their non-EU based employer. The foreign seconding employer and the Austrian receiving company must belong to the same group of companies.

“Manager” refers to an executive who heads the receiving branch or a division or subdivision of that branch and is mainly under the general supervision of, or receives general instructions from, the management body or shareholders or equivalent persons of the transferring company, group of companies or branch. It is a requirement that the applicant belongs to the group of companies for an uninterrupted period of at least nine months. For this category, the permit is issued with an initial validity of 12 months; it can be extended for a total period of three years.

“Specialist” refers to an employee possessing indispensable, specialised knowledge of the receiving establishment’s fields of activity, procedures or management and a high level of qualification for specific work or activities with specific technical knowledge, including appropriate professional experience. It is a requirement that the applicant belongs to the group of companies for an uninterrupted period of at least nine months. For this category, the permit is issued with an initial validity of 12 months; it can be extended for a total period of three years.

“Trainee” is an employee holding a university degree who is being supported in his or her professional development or is undergoing sector-specific, technical or methodological training. It is a requirement that the applicant belongs to the group of companies for an uninterrupted period of at least six months. For this category, the permit can have a maximum validity period of one year.

It is essential that the applicants have their residence and employment outside the European Union.

Dependant family members can accompany the foreign principal.

If the ICT candidate is posted into Austria, during the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements. 

Posting – Training Permit

Third-country nationals who are:

  • posted by their foreign employer within the framework of a joint venture and on the basis of an in-company training programme for no longer than six months for in-company training in a company with its place of business in Austria the Federal territory;
  • posted within the framework of an internationally active group of companies on the basis of a qualified group-internal training and further training programme from a foreign group company for no longer than 50 weeks to the headquarters located in Austria; or
  • are seconded by their internationally active employer as qualified employees assigned to the management, who are obliged to undergo internal training or further training (management trainees) and to rotate with regard to the place of employment to a branch office belonging to the same enterprise or to the same group of enterprises within Austria for a period of no longer than 24 months,

require a Training Certificate instead of a work permit. The training or further education measure must be notified by the owner of the domestic training enterprise (first bullet point above), the headquarters (second bullet point above) or the domestic branch (third bullet point above) to the competent labour office no later than two weeks prior to commencement, together with evidence of the joint venture agreement and the training programme or further education programme, in which the objectives, measures and duration of the training or education are specified. The training may only be started after (i) the Training Certificate and (ii) a respective working visa (for stays up to six months), respectively a residence permit (for stays exceeding six months) have been obtained.

During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements, unless one of the several exemptions applies. 

Posting – Short-Term Work Permit for Posting Purposes (Betriebsentsandter)

Third-country nationals who are engaged in Austria by an employer based outside the EU/EEA/Switzerland for up to six months require a work permit and a working visa. The engagement can start once the work permit and the working visa have been obtained. Certain exemptions apply for certain short-term business meetings not exceeding three to four days and for citizens of countries with which Austria/the European Union have entered into trade and co-operation agreements. During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements.

Posting – Long-Term Work Permit for Posting Purposes (Betriebsentsandter)

Third-country nationals who are engaged in Austria by an employer based outside the EU/EEA/Switzerland for more than six months require a work permit and a residence permit. The engagement can start once the work permit and the residence permit have been obtained. During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements. 

Posting – Intra-EU Mobility of EU/EEA/Swiss Nationals Employed by an Undertaking Based in the EU/EEA/Switzerland

EU/EEA/Swiss nationals posted from an employer based in the EU/EEA/Switzerland into Austria require a so-called posted worker notification (ZKO declaration). During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements.

Posting – Intra-EU Mobility of Third-Country Nationals Employed by an Undertaking Based in the EU/EEA/Switzerland

Third-country nationals posted from an employer based in the EU/EEA/Switzerland into Austria require a so-called posted worker notification (ZKO declaration). In addition to the posted worker notification (ZKO declaration) an EU Secondment Declaration must be obtained from the labour authority and visa/residence permit requirements may be required, depending on the duration of the posting into Austria. During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements.

Posting – ICT Short-Term Mobility

Third-country nationals holding an ICT permit issued by another member state of the European Union can be posted to Austria for a period of up to 90 days, provided that a so-called posted worker notification (ZKO declaration) has been filed. In addition to the posted worker notification (ZKO declaration) an EU Secondment Declaration must be obtained from the labour authority. During the posting, document-keeping requirements apply to show compliance with the minimum remuneration requirements.

Posting – Mobile ICT

Third-country nationals holding an ICT permit issued by another member state of the European Union can be posted to Austria for a period exceeding 91 days provided that a Mobile ICT permit has been applied for in due time.

The following are Austria’s most common unsponsored permits.

Red-White-Red Plus Card

A holder of a Red-White-Red Card or a Blue Card EU, if employed for at least 21 months during the preceding 24-month period, can apply for the Red-White-Red Plus Card which grants free access to the labour market; this means that the candidate is no longer bound to work with a specific employer mentioned on the residence title.

Dependant family members of Red-White-Red Card or Blue Card EU holders can obtain this unsponsored permit. In certain cases, the same applies to dependant family members of holders of a Red-White-Red Plus Card, who previously held a Red-White-Red Card or a Researcher permit, or a Special Cases of Gainful Employment permit. Dependant family members are (i) spouses, (ii) registered partners, (iii) unmarried minor children, including adoptive and stepchildren (up to the age of 18). Spouses and registered partners must be at least 21 years of age to qualify as family members.

Residence Card (Aufenthaltskarte)

Third-country nationals who are relatives of EU/EEA citizens entitled to residence under European Union law and are entitled to stay for more than three months in Austria. Such applicants have to apply for issuance of the unsponsored permit Residence Card (Aufenthaltskarte) within four months of entry into Austria. This permit shall be issued for a period of five years or for the planned shorter period of residence. This group of candidates, as of the first day of stay in Austria, benefit from free access to the labour market.

Dependant of Austrian National (Family Member)

Third-country nationals who are relatives of Austrians or EU/EEA citizens or Swiss citizens who are permanently resident in Austria and who have not made use of their right of residence under European Union law or the right of residence granted to them under the EC-Switzerland Agreement on the Free Movement of Persons for a period of more than three months, can obtain a permit as Family Dependant. This permit shall be issued for an initial period of one year and can be extended in Austria. The applicant has free access to the labour market after collection of the permit.

Permanent Residence EU (Daueraufenthalt EU)

The residence title “Permanent Residence EU” can be obtained by third-country nationals if they have legally resided in Austria without interruption for the last five years and have fulfilled Module 2 of the Austrian Integration Agreement (German language test for the B1 level plus integration exam). This permit entitles the holder to unlimited settlement with unrestricted access to the labour market. It can be obtained by third-country nationals who were holding one of the following permits: Blue Card EU, Red-White-Red Card, Red-White-Red Plus Card, Artists, Special Cases of Gainful Employment, Researcher, Settlement Permit – Except Gainful Employment, Dependant, Blue Card EU, Family Member. Also, beneficiaries of asylum who have had the status of beneficiary of asylum or subsidiary protection for an uninterrupted period of the last five years can apply for this permit.

The period of five years shall be deemed to have been interrupted if the third-country national stayed outside of Austria for a total of more than ten months or continuously for more than six months during this period. In the case of holders of a Blue Card EU, the five-year period shall only be deemed to have been breached if the third-country national has stayed outside the EU/EEA for a total of more than 18 months or for a continuous period of more than 12 months within this period. In these cases of interruption, the period of five years starts from the beginning and a new application may be filed once this new five-year period has been reached.

Asylum (Asyl) or Subsidiary Protection (Subsidiary Protection)

Third-country nationals holding the permits Asylum (Asyl) or Subsidiary Protection (Subsidiary Protection) have free access to the Austrian labour market.

ID Card for Displaced Persons

The ID card for displaced persons, also called “Blue Card”, is a temporary right of residence for displaced persons from Ukraine. Ukrainian displaced persons have a right to reside in Austria and once they have obtained the ID card for displaced persons, they also benefit from free access to the Austrian labour market.

The general rule is that third-country nationals require a work permit and a working visa in order to do business in Austria. In addition, “business meetings” fall under this general rule. For certain short-term activities in Austria, there is an exemption from the work permit requirement, and as a result also from the working visa requirement.

Activities which are permitted under the exemption regime are not clearly defined in the immigration rules. Exempted business visit activities must be of short term (maximum three to four days) and comprise the following activities: (i) short-term business meetings, discussions and negotiations by persons which cannot be replaced on objective grounds; (ii) meet-and-greet meetings; (iii) attending conferences, exhibitions and trade shows.

(i) The Comprehensive Economic and Trade Agreement (CETA) entered into between Canada and the EU, (ii) the Trade and Co-operation Agreement (TCA) entered into between the EU and the UK and (iii) the Economic Partnership Agreement (EPA) entered into between Japan and the EU, grants to UK citizens, Canadian citizens and Japanese citizens, each under the applicable agreement, several work permit and working visa exemptions going beyond this “three-to-four-day” rule and for a broader range of business activities (not typically allowed for other non-EU business visitors).

Third-country nationals holding a Blue Card EU issued by another member state of the European Union are falling under the exemption for a maximum of 90 days in a rolling period of 180 days if they perform sales and marketing activities, explore business opportunities and attend training courses.

If a “business meeting” exemption applies, visa-free nationals do not require a visa to attend the business meeting in Austria. Visa nationals require a Schengen visa C.

EU, EEA, Swiss and third-country nationals employed by an employer based in the EU/EEA/Switzerland are generally exempted from the work permit requirements. For this group of employees, posting-worker notifications may apply, if none of the exemptions of the LSD-BG Act apply.

Austria does not have a remote working permit in place. Remote workers are therefore considered as posted workers from an immigration perspective and this requires posted workers to apply for work permits and working visa (if the stay is up to six months) respectively residence permits (if the stay exceeds six months).

EU/EEA/Swiss nationals employed by an employer based in the EU/EEA/Switzerland do not require work permits in order to work remotely out of Austria.

Generally, all individuals applying for a settlement permit must comply with the so-called integration agreement. Within two years of the issuance of the first permit in Austria, immigrants must present a German language certificate proving they have obtained level A2. Dependants of these applicants must present a German language certificate already at the time of the submission of the first application proving they have attained level A1. This requirement can be waived where the dependant has completed a high-school education qualifying them to get enrolled at university. The dependants of individuals applying for an EU Blue Card do not have to present a German language certificate upon the first application.

After five years, the integration agreement regarding German language skills must be fulfilled in case the individual is planning to apply for the long-term EU permit.

There is no general requirement to pass a medical examination and provide a medical certificate or vaccination to the immigration authority to be granted with a visa or residence permit.

For a sponsor-based employment permit in Austria, the following minimum threshold requirements need to be met:

Minimum Salary

The monthly salary needs to be in accordance with the legal regulations:

  • of the Foreign Alien Employment Act (figure valid for 2023):
    1. for Blue Card EU – EUR45,595 annual gross salary plus special payments; and
    2. for Red-White-Red Card for other key employees – EUR2,925 monthly gross salary (to be paid 14 times per year); and
  • of the Collective Bargaining Agreement (CBA), which applies in the selected business entity of the employer.

Education/Special Qualification

The following permits require that the applicant is a holder of a higher education college/university certificate or achieved special qualification:

  • Blue Card EU – university/higher college education college degree, corresponding with the planned occupation in Austria required;
  • Red-White-Red Card for highly qualified workers – university/higher college education college degree;
  • Red-White-Red Card for shortage occupation – special certificate/degree in the chosen shortage occupation required;
  • Red-White-Red Card for graduates of an Austrian university or higher education college; and
  • Settlement Permit for Artist – special qualification or artistic skills are requested.

Achievement of the Requested Point System and Labour Market Replacement Exam

  • Red-White-Red Card for highly qualified workers – applicant needs to obtain at least 70 out of 100 points in the available criteria;
  • Red-White-Red Card for shortage occupation – applicant needs to obtain at least 55 out of 90 points in the available criteria; and
  • Red-White-Red Card for other key employees – at least 55 out of 90 points in the available criteria required. In addition, applicants for this type of residence permit must undergo a labour market replacement test.

Requirements for Upgrade Red-White-Red Card into Red-White-Red Card Plus

The permits for:

  • Blue Card EU;
  • Red-White-Red Card for highly qualified workers;
  • Red-White-Red Card for shortage occupation;
  • Red-White-Red Card for other key employees;
  • Red-White-Red Card for graduates;
  • Red-White-Red Card for entrepreneurs (self-employed key workers); and
  • Red-White-Red Card for start-up founders,

can be issued with an initial validity period of up to two years. Provided that the applicant is working for at least 21 full months within period of 24 months, at the extension stage an upgrade to the unsponsored Red-White-Red Plus Card is possible, which allows the applicant free access to the labour market.

Holders of an EU Blue Card, Red-White-Red Card, settlement permit for artist and work permit are allowed to work for the employer who sponsored the application. In addition to their employment in Austria, these holders are allowed to do business in Austria as self-employed in case this activity is compared to their employment only as subordinated.

Employees assigned to Austria under the ICT regime are allowed to work for the Austrian group company and can also work on client projects of the Austrian group company.

Promotion is not an obstacle to the validity of the existing permit.

Only if the candidate:

  • starts to earn less salary than declared to the authority;
  • if they change the sponsored employer; or
  • lose the employment at the sponsored employer,

the candidate must report such changes to the immigration authority and apply for a new residence permit.

Holders of a Red-White-Red Card Plus or a Permanent Residence Permit – EU have unlimited access to the Austrian labour market and can work for any employer without any further permission.

Processing times vary between different immigration offices and types of applied residence permits. Generally, issuance of a residence permit in combination with a work permit requires a period of eight to 12 weeks calculated from the day the respective application was filed either at the Austrian Embassy or directly at the local immigration authority. This timeline does not include the time required for the preparation of the application package for the submission.

The applicant is not allowed to await the outcome of the process in Austria, when applying for the first residence permit card. Thus, the applicant needs to leave Austria on time, ie, before their visa/or visa-free days expire, in case the immigration authority has not issued the residence permit card during the applicant’s stay in Austria.

It is also forbidden by law that an applicant has more than one pending application in the whole of Austria at the same time.

The applicant should also be aware of the fact that some of the Austrian embassies are refusing to issue a tourist visa to applicants who have pending residence permit applications in Austria.

There is no official priority service/fast-track service available in Austria.

The individual should specifically be aware of the following post-visa requirements:

  • main residence needs to be registered at the local townhall registration office in Austria within three days after moving into the apartment;
  • the official start of the employment must be reported to the local labour market service with three days, calculated from the 1st day of the applicant’s starting work;
  • the first residence permit card for a principal Red-White-Red Card is usually issued for 24 months. The principal will be granted with a Red-White-Red Card Plus in case they remained employed at least for 21 months out of 24 months;
  • any changes in the employment during the first 24 months must be immediately reported to the immigration authority;
  • holders of residence permit cards are obliged to settle down in Austria and spend significant time here; eg, more than 180 days;
  • residence permit cards need to be extended on time (eg, before expiry date); and
  • generally, all applicants for residence permits must comply with the integration agreement. Within two years of issuance of the first permit, immigrants must present a German language certificate proving they have attained level A2 by passing a so-called integration exam A2. This requirement is also fulfilled in case the individual is a holder of an accredited high school diploma or university degree.

Visa Costs

The applicant needs to consider the following costs during the application process:

  • residence permit application fees of approximately EUR180.00 per application;
  • collection visa fees of approximately EUR150 per application (if applicable);
  • costs for document translations (if applicable); and
  • costs for document verification (if applicable).

The authority will address its fees directly to the applicant. The fees can be paid by the employee or the employer. This has no impact on the application.

The authority strictly monitors compliance of the employment with the labour and immigration law regulations and will not hesitate to start investigations in case of any breach.

Employers are allowed to hire only employees (whether locally hired or on assignment) holding valid work permits. Violating this obligation can lead to a penalty of up to EUR50,000.

Sanctions for not complying with the minimum remuneration requirements may result in a penalty of up to EUR400,000. Financial penalties may be imposed on every single managing director of the sending or receiving entity.

Further consequences for non-compliance with immigration rules are that certain violations will be registered in a central penalty register. If the employer is penalised several times for illegal employment of foreign nationals, it can be prohibited from employing new foreign nationals for a period of up to five years. Further, the employer’s trade licence may be revoked for the recurring illegal employment of foreign nationals.

There is no formal right to work check process in place. However, Austrian employers and receiving companies, regardless of whether they are sponsors or non-sponsors, are obliged to make sure that all their employees and visitors, as well as posted workers, hold a valid working permission as determined by the Austrian Alien Employment Act. If a working permission is not in place, fines are applicable to the managing directors or appointed responsible persons of the Austrian employer (in case of local employment) or receiving entity (in case of business visits and postings).

Eligibility

Dependants are the person’s spouse or children under the age of 18, including adopted children and stepchildren. The term “spouse” refers to opposite-sex marriages and registered partnerships, as well as same-sex marriages and registered partnerships. Further, the spouse must be at least 21 years old at the time of their application submission. Co-habiting partners do not qualify as dependants (exemptions apply to EU nationals). 

Conditions and Restrictions

All dependants of principals holding a Red-White Red Card or EU Blue Card can apply for a family reunion permit, which will be granted in the form of a Red-White Red Card Plus. Notably, in the case of family reunion applications for Red-White-Red Card holders, dependants may be required to obtain a German language certificate at level A1 before they can file their reunion application. The Red-White-red Card Plus grants the family member free access to the Austrian labour market and also gives them the possibility to do business as a self-employed person in Austria.

For dependants of intra-company transfer (ICT) permit holders, a family reunion is also possible, and the dependant can obtain a residence permit card in Austria. If the dependant has a job offer at the time the ICT permit application is filled, the ICT permit will also serve as a work permit for that specific employer. In case the assignee does not fall under the ICT regime, a family reunion is not possible.

Children are obliged by law to attend school in Austria form the age of six until the age of 15. Hence, for children within this age bracket, it is compulsory to attend a school while living in Austria. A school can be attended with any residence permit or settlement permit.

Oberhammer Rechtsanwälte GmbH

Karlsplatz 3/1
1010 Vienna
Austria

+43 150 33000

+43 150 33000-33

immigration@oberhammer.co.at www.oberhammer.co.at
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Trends and Developments


Authors



GRAF ISOLA Rechtsanwälte was founded in 1994 and is one of the leading independent Austrian commercial law firms with offices in Vienna and Graz. The full-service firm advises in all fields of Austrian and European business law with a client base from all sectors of domestic and foreign industry and public authorities. It has 25 qualified lawyers including seven partners – most are recognised experts in their field and have years of international experience. The firm is internationally known for its hard-work approach and efficient and creative way of handling complex cases. GRAF ISOLA has an extensive network with international leading law firms across the globe on a best friends’ philosophy. The firm regularly advises clients in respect to residence and work permits for Austria. Thanks to the highest level of professional competence and communication skills, procedures can be handled quickly and practically always positively, even in the difficult environment of the Viennese residence authorities.

Amendments Facilitate Employment of Workers From Third Countries in Austria

The growing shortage of skilled workers has become a major challenge for companies and industries not only in Austria, but in general throughout the European Union (EU) in the past few years. On the one hand, the cause of this gap is due to factors such as low birth rates, ageing populations, and the increasing demand for specialised skills. On the other hand, especially in Austria, the rather long residence procedures and so far, rather onerous requirements for residence titles for third-country nationals are a possible further reason for shortage of skilled workers. The problem is particularly noticeable in sectors such as – eg, healthcare, engineering, information technology, as well as hotel and catering industry, leading to concerns about the long-term economic outlook for the regions. These shortages are expected to persist over the next few years, posing significant challenges for the industries’ growth and competitiveness. Therefore, policymakers and companies are looking for new strategies to attract as well as retain skilled workers and address this exigent issue.

For this reason, Austria enacted a legal reform of the Act Governing the Employment of Foreign Nationals (Ausländerbeschäftigungsgesetz – AuslBG) and the Settlement and Residence Act (Niederlassungs- und Aufenthaltsgesetz – NAG), which entered into force on 1 October 2022. The amendments also transposed – exceptionally early – Directive (EU) 2021/1883 on the conditions of entry and residence of third-country nationals for the purposes of highly qualified employment and repealing Directive 2009/50/EC (“EU Blue Card Directive”) (the deadline for transposition would have been 18 November 2023).

The aim of the reform is to simplify the procedure for recruiting skilled personnel from third countries (ie, EU/EEA or Swiss citizens) and ease the admission criteria in order to make a significant contribution – in addition to the qualification and promotion of the domestic workforce – to solving the increasing shortage of skilled and key workers through qualified labour migration.

The main legal changes are discussed below.

Statutory easement for obtaining the Red-White-Red Card

There are seven different categories of Red-White-Red Cards, namely “very highly qualified workers”, “skilled workers in shortage occupations”, “other key workers”, “self-employed key workers”, “start-up founders”, “graduates” and “regular workers in in tourism, agriculture and forestry”.

Changes in the minimum wage for “other key workers” and “graduates”

Until the amendment came into force, the Red-White-Red Card for “other key workers” differentiated between under 30-years-old and over 30-years-old workers in terms of minimum salaries. The reform lapsed the higher minimum salary for workers above 30 years, which means that regardless of age, applicants for the Red-White-Red Card for “other key workers” must earn a minimum gross monthly salary of EUR2,925 (2023). The minimum salary increases every year.

To apply for the Red-White-Red Card for “graduates” of an Austrian university, it was so far a prerequisite to earn a minimum monthly gross salary. This requirement has been adjusted in the way that graduates must get paid the locally customary gross minimum salary which comparable Austrian graduates (junior employees) would earn.

Adjustment of the points system 

Some subcategories of the Red-White-Red Card (for “very highly qualified workers”; “other key workers”, “skilled workers in shortage occupations” and “start-up founders”) are based on a points system. To obtain a Red-White-Red Card, the applicant has to achieve a certain number of minimum points (70 points for “very highly qualified workers”; 55 for “other key workers”; 55 points for “skilled workers in shortage occupations” and 50 points for “start-up founders”) on the basis of determined criteria (eg, for education/qualification, professional experience, age, language skills).

In order to make it easier to achieve the minimum number of points, the following adjustments have been made:

  • applicants receive one point for each half-year of work experience (instead of previously two points per year);
  • “other key workers” and “skilled workers for shortage occupations” receive additional points for English language skills, if English is predominantly spoken at the respective employer (eg, English as group language of Austrian subsidiary of a multinational company) and the applicant can furnish a respective language certificate;
  • “other key workers” are awarded points for work experience regardless of whether the completed professional training or qualification corresponds to the employment sought; and
  • “skilled workers for shortage occupations” are treated as follows:
    1. uniform award of points in the case of completed training or education (regardless of university or non-university education, as was the case before the amendment) in the respective shortage occupation; and
    2. workers aged over 40 but under 50 years at the time of application now also receive points (five points) for their seniority (previously, one could only receive points until the age of 30 (15 points) and 40 (ten points), respectively).

Proof of language skills (Red-White-Red Card)

Any language diplomas and course certificates submitted as proof of German or English language skills must not be older than five years (instead of the previous one-year requirement) in order to receive points within the respective points system.

Permanent Labour Market Access for Regular Workers (Red-White-Red Card as “Regular Worker”)

Workers who have been employed for two years as registered regular workers in the fields of tourism, agriculture and forestry for at least seven months per year and who can proof German language skills at A2-level may apply for the Red-White-Red Card as a “regular worker”. This new sub-category of the Red-White-Red Card scheme does not require a minimum salary, nor is a labour market test carried out by the Austrian Public Employment Service (Arbeitsmarktservice – AMS).

In some categories of the Red-White-Red Card and the EU Blue Card, a labour market test must be carried out by the regionally competent Employment Agency (AMS). If such test shows that there is no equally qualified worker registered as a job seeker for the specific job in question, the residence title will be granted provided all the other requirements are fulfilled. Otherwise, the application will be denied. It is therefore of paramount importance to provide a very specific job description when filing the application so that the risk of a negative labour market test can be minimised.

Employment Permits for Specialists Within the Framework of Six-Month Projects

Particularly qualified workers from third countries (specialists) who are to be temporarily employed in addition to regular staff to carry out temporary projects, especially in the IT sector, without the intention of immigration, can be granted the necessary employment permits for a maximum duration of six months.

Statutory Easements Regarding the EU Blue Card

Professionals in the sector of information and communications technology

One of the requirements for obtaining the so-called “EU Blue Card” is evidence of a university degree or a degree from another tertiary educational institution with a minimum duration of three years. An exception has now been made for certain skilled workers in the field of information and communications technology. Accordingly, they may obtain an “EU Blue Card” without an academic degree if they can provide evidence of at least three years of professional experience comparable to the level of a university degree, under the condition that such experience was acquired during the seven years preceding the application.     

Gross annual salary

The salary threshold of previous 1.5 times average gross annual salary of full-time employees (2022: EUR66,593 including special payments) has now been lowered to the average gross annual salary of full-time employees (2023: EUR45,595 including special payments).

Holders of an “EU Blue Card” of another Member State

Third-country nationals holding a valid “EU Blue Card” of another Member State do not require a posting permit or employment permit to perform a specific business activity (such as attending internal or external business meetings, conferences or seminars; negotiating business deals, sales or marketing activities; exploring business opportunities, or participating in trainings) in Austria for a period of 90 days within any 180-day-period.

Procedural simplification in case of change of employer

A “EU Blue Card” is issued for a 24-month period. Previously the employee was bound to the initial employer for 21 months during the 24-month period. The law has been changed to allow the holder of a Blue Card EU to change employer after 12 months of employment without the need for a new labour market to be carried out by the AMS. The “EU Blue Card” holder can start working for the new employer, even if the modification application for the new “EU Blue Card” has not yet been completed.

If the “EU Blue Card” holder has not yet been employed for 12 months with the initial employer, they still can switch to a new employer, however, there is a 30-day waiting period from filing the modification application. After 30 days, the “EU Blue Card” holder can start working at the new company even if the procedure of the new “EU Blue Card” has not yet been finalised.

In case the “EU Blue Card” holder no longer meets the requirements for the “EU Blue Card”, they shall be granted a period of six months within which they are entitled to seek new employment in Austria.

Lodging an application for a “EU Blue Card”, a “Red-White-Red Card” in Austria

Until now, foreigners and their family members who wanted to apply for a residence title “EU Blue Card” or a residence title “Red-White-Red Card” for the first time had to apply abroad, unless the application for the applicant was submitted by the employer. Now, foreigners and their family members can apply for these residence titles in Austria, provided they have entered the country legally and are staying legally.

Additional waiver of the labour market test in the following cases

If the applicant is a holder of a Red-White-Red Card as a “very highly qualified worker”, “other key worker” or “graduate”, and they wish to switch to the “EU Blue Card”, the labour market test does not apply, if the employment is continued with the same employer. 

Other Changes

Joint application for family members

Until the amendment came into force, the employer could submit an application for a new employee to the competent residence authority only. Family members of the applicant had to file their applications abroad. To facilitate the procedure for the entire family of the applicant, the law has been adapted to allow employers to also simultaneously submit an application for the employee’s family members in Austria (key word being “simultaneously” – if the family members are not ready to file their applications the old rule applies).

Employment of foreigners for artistic productions

Foreign nationals who are concert or stage artists, band members, film, radio or television workers, or musicians, may be employed without an employment permit for eight weeks (instead of the previous four weeks) as part of an overall artistic production to secure a concert, an event, a performance, an ongoing film production, a radio or television live programme.

Self-employed secondary employment

Foreigners who have been issued an “EU Blue Card”, a “Red-White-Red Card” or a “Settlement Permit – Artists” are entitled to pursue self-employed professional activities, if such activities are subordinate to the foreigner’s main employment.

Reduction of the share capital in case of a Red-White-Red Card for “start-up founders”

In order to facilitate the acquisition of the Red-White-Red Card for “start-up founders”, the amount of the share capital to be contributed was reduced from EUR50,000 to EUR30,000.

New service point: Austrian Business Agency (ABA) – Unit “Work in Austria”

The ABA – Unit “Work in Austria” is a platform for advice and assistance in the admission of specialists and key personnel. Companies and applicants are provided with multilingual and digitally supported information and advice in the submission of application for a residence title such as the “Red-White-Red Card” or “EU Blue Card”.

GRAF ISOLA Rechtsanwälte GmbH

Stadiongasse 2
A-1010 Vienna
Austria

+43 1 401 17 0

office@grafisola.at www.grafisola.at
Author Business Card

Law and Practice

Authors



Oberhammer Rechtsanwälte GmbH was founded in 2014 and, since then, has since been able to continuously expand its team of proven experts in the area of corporate migration, with a special focus on posting regulations, labour law, corporate law and capital markets law. Oberhammer Attorneys is an Austrian-based, full-range immigration law firm serving national and international large, medium-sized and small companies, as well as individuals in all aspects of corporate immigration law. The firm has a special team dedicated to individual clients looking to settle in Austria without undertaking gainful employment. It has a special interest in digitalising immigration compliance requirements and is developing and running self-produced software programs to monitor compliance with minimum remuneration principles, job replacement rules and document-keeping compliance requirements.

Trends and Developments

Authors



GRAF ISOLA Rechtsanwälte was founded in 1994 and is one of the leading independent Austrian commercial law firms with offices in Vienna and Graz. The full-service firm advises in all fields of Austrian and European business law with a client base from all sectors of domestic and foreign industry and public authorities. It has 25 qualified lawyers including seven partners – most are recognised experts in their field and have years of international experience. The firm is internationally known for its hard-work approach and efficient and creative way of handling complex cases. GRAF ISOLA has an extensive network with international leading law firms across the globe on a best friends’ philosophy. The firm regularly advises clients in respect to residence and work permits for Austria. Thanks to the highest level of professional competence and communication skills, procedures can be handled quickly and practically always positively, even in the difficult environment of the Viennese residence authorities.

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