From Slovakia to Austria
How to Handle Taxes, Social Security, and Vehicle Registration

1. More than just changing your business location

Many entrepreneurs from Slovakia are considering moving their company headquarters — or at least part of their business — to Austria. There are various reasons for this: an attractive market, better growth opportunities, or the desire to establish themselves in a larger economic area.

However, moving across the border often comes with bureaucratic challenges. Alongside your personal move (if you are also relocating your residence to Austria), there are primarily business-related questions to consider: What taxes will apply in the future? What steps need to be taken regarding social security for yourself and your employees? And what happens to any vehicles (whether company-owned or private) that will now be used in Austria?

2. Taxes: What changes when you move your (company) residence

Entrepreneurs who run a business in Slovakia and plan to expand or move it to Austria need to understand clearly where future income will be taxed. This includes income from self-employment, profits from product sales, or other services.

Not only is the double taxation agreement between Austria and Slovakia relevant for companies, but also local laws and regulations regarding business structures. Depending on whether you set up a branch office, a permanent establishment, or a subsidiary, different legal obligations apply.

What to keep in mind:

• Permanent establishment vs. subsidiary: Are you establishing just a permanent establishment in Austria, or founding an independent company? The tax consequences can vary.
  
  Our tip: Check the double taxation agreement and the criteria for establishing a permanent establishment to avoid double taxation.


• Accounting and bookkeeping: Austria has different rules for bookkeeping and financial reporting than Slovakia. Local regulations must be followed.
  
  Our tip: Ensure compliance with legal requirements by using local accounting software and proper systems.


• Tax return deadlines: Companies often face stricter deadlines than private individuals, especially if you employ staff or if VAT and payroll taxes are involved.
  
  Our tip: Get familiar with your tax obligations early to reduce the risk of penalties.

3. Social security: New obligations for self-employed and employees

Entrepreneurs expanding into Austria need to consider not only their own social security but also that of their employees. In many cases, the Austrian system applies as soon as you register your business location or permanent establishment in Austria, or if employees are working in the country.

This affects contribution levels and the scope of benefits. This is especially important for companies that continue to employ staff in Slovakia while others work in Austria.

What to keep in mind:

• Social security in cross-border employment: If you employ people in multiple countries, check where contributions are due and which authorities must be informed.
  
  Our tip: Compare insurance packages to understand potential additional costs, for example in case of work accidents or sick leave.


• Differences in benefit coverage: Health, accident, and pension insurance can provide different levels of coverage in Austria than in Slovakia.
  
  Our tip: Compare insurance packages to understand potential additional costs, for example in case of work accidents or sick leave.


• Social security for the self-employed: In Austria, self-employed individuals usually register with the Social Insurance Institution for the Self-Employed (SVS). Different contribution rates and assessment bases apply here.
  
  Our tip: Clarify whether your activity is considered self-employed or employed, and in which country this income is subject to social security contributions.

4. Vehicle registration: Focus on company vehicles

Many companies own a fleet or at least one company vehicle. If you move your business (or parts of it) to Austria, questions about registration and taxation of these vehicles will arise. In addition to the NoVA (standard consumption tax) and vehicle tax, different insurance conditions may apply to business vehicles.

Especially for company cars, it is crucial to know whether the vehicle is used in Austria or assigned to employees in the Austrian part of the business. In such cases, entrepreneurs usually need to complete additional formalities.

What to keep in mind:

• Deadlines for registration: Company vehicles should be registered promptly once a permanent business location in Austria exists.
  
  Our tip: Compare your expected company start date with the registration deadlines to avoid fines.


• Insurance and tax differences: Business insurance and taxes may be higher or lower than in Slovakia, depending on the type of vehicle and your claims history.
  
  Our tip: Compare specialised commercial or fleet insurance to secure better rates for multiple vehicles.


• Technical inspections ("Pickerl"): In Austria, regular inspections are mandatory. Intervals and requirements may differ from those in Slovakia.
  
  Our tip: If you operate a larger vehicle fleet, adjust your maintenance and service schedules to meet Austrian regulations.

5. When professional advice is worthwhile

For entrepreneurs looking to expand their business across borders, it is essential to carefully review taxes, social security, and vehicle registration. For companies with multiple locations or employees in different countries, things can quickly become complicated.

Specialised advice helps coordinate steps and meet deadlines. This way, you can avoid unexpected costs and lengthy bureaucratic procedures — and keep your focus on your core business rather than paperwork.

(This article does not replace legal or tax advice. For specific questions and individual support, please feel free to contact us.)