For Austrian entrepreneurs much of what we have set out for Germany applies — but with different figures, a different tax code, and one decisive quirk on departure that German guides do not cover. Anyone leaving Austria for Georgia meets a rule that makes the timing of the decision more expensive than it would be in Germany. This article gives the balance sheet and the planning order.
The starting position
Austria has been in Europe’s top group for tax burden for years. The tax-to-GDP ratio stood at 44.3 percent in 2025; in the 2024 European comparison only France (45.3%) and Belgium (44.8%) sat above it. In the OECD ranking Austria records the fifth-highest tax and contribution ratio, and the tax wedge for single average earners came to 47 percent.
Among businesses the pattern matches the one north of the border: in 2025, according to KSV1870, 6,810 companies filed for insolvency, up 3.4 percent — an average of 19 businesses per day. Retail (1,192 cases) and construction (1,080) were worst affected; the sharpest rise, at plus 35 percent, fell on real estate and housing (447 cases).
The point that hits Austrians harder than Germans
This is the most important section of the article, and German-language emigration guides routinely miss it because they describe German law.
Where a natural person moves their residence out of Austria and Austrian taxing rights are thereby restricted, the exit tax under § 27(6) EStG applies: the unrealised gains in capital assets — holdings in GmbH and AG, securities — are treated as deemed disposed of at the moment of departure and taxed, without a single euro having changed hands.
| Move within EU/EEA | Move to a third country (e.g. Georgia) | |
|---|---|---|
| Tax trigger | deemed disposal at the moment of departure | deemed disposal at the moment of departure |
| When it falls due The decisive difference for a Georgia scenario | payment can be deferred or made in instalments | **immediate assessment** — the tax falls due at once |
| Liquidity effect | plannable across several years | full amount at the moment of departure, from available liquidity |
| Planning horizon | the instalment model softens the timing | the timing determines the entire burden |
The practical consequence is not “better to stay” but a different order: for Austrians, valuing the shareholdings belongs at the start of the planning — before any foreign incorporation.
The planning order for Austrians
Four steps, in this order
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1 — Have the shareholdings valued
What would exit tax under § 27(6) EStG amount to today? Since third-country moves face immediate assessment, this is not a side question but the basis for everything else. Only an Austrian tax adviser can answer it.
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2 — Prepare structure and account
A Georgian bank account and company can be built while you remain resident and filing in Austria. Georgia has participated in CRS since 2024 — the accounts are reported in any case.
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3 — Test on the ground
Austrian nationals can stay in Georgia visa-free for 365 days. That is enough to assess the country, the banking and daily life before anything irreversible happens.
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4 — Relocate with genuine substance
Only then move your residence: genuinely give up the Austrian home, establish Georgian tax residency, take decisions on the ground and document them.
What sits on the other side
For location-independent business models the counter-calculation looks the same as for German entrepreneurs: 1 percent on turnover up to GEL 500,000 under the Small Business Status, the Estonian model for corporations with 15 percent only on distribution, tax-free foreign dividends under the territorial principle and 0 percent on private crypto disposal gains. Alongside that, living costs roughly 46 to 55 percent below central European levels depending on the survey, and Tbilisi rents around 57 percent below Berlin.
What you have to organise yourself in return is the same as for Germans: health, care and retirement provision do not replace the Austrian social insurance system on their own. The Georgian side is set out in Location Comparison 2026 and the 1% tax in Georgia.
And the ground rule holds regardless of country of origin: a Georgian company alone achieves nothing while you live in Austria and decide from there — why that is so is set out in Georgian company, German authorities; Austrian law knows the place-of-management connecting factor described there in comparable form.
Frequently asked questions
FAQ
How high is the tax burden in Austria?
The tax-to-GDP ratio stood at 44.3 percent in 2025. In the 2024 European comparison only France (45.3%) and Belgium (44.8%) were above it; in the OECD ranking Austria holds the fifth-highest value. The tax wedge for single average earners came to 47 percent.
What is exit taxation under § 27(6) EStG?
Where a natural person moves their residence abroad and Austrian taxing rights are thereby restricted, unrealised gains in capital assets — such as GmbH holdings and securities — are treated as deemed disposed of at the moment of departure and taxed. No money changes hands; the tax arises regardless.
Is moving to Georgia more expensive for Austrians than moving within the EU?
In timing, yes. For a move within the EU and EEA, payment can be deferred or made in instalments. Georgia is a third country — there the exit tax is in principle assessed immediately. The rules were additionally tightened in 2026, which is why the calculation must come before the decision.
Does Austria have a wealth or inheritance tax?
Not at present: the wealth tax was abolished in 1994 and inheritance and gift tax in 2008. The SPÖ and Greens want an inheritance tax on large estates; the ÖVP and FPÖ reject substance taxation, and the National Council rejected reintroduction by a majority on 25 February 2026. Unlike Germany, where the wealth tax is merely suspended, these taxes were genuinely removed in Austria.
How many Austrian companies go insolvent?
According to KSV1870 around 6,810 companies filed for insolvency in 2025, up 3.4 percent year on year — an average of 19 businesses per day. Retail (1,192) and construction (1,080) were most affected; the steepest rise, at plus 35 percent, fell on real estate and housing.
Do Austrians need a visa for Georgia?
Not for the stay: Austrian nationals are among the citizens of around 95 countries who may remain in Georgia visa-free for 365 days. That allows an extensive test phase before you decide on moving residence and tax residency.
This article is general information and does not constitute legal or tax advice. The figures come from the OECD, the Austrian Parliament’s budget service and KSV1870. Exit taxation under § 27(6) EStG is a case-specific question with significant financial consequences and was tightened in 2026 — you must involve an Austrian tax adviser before making decisions. As of August 2026, subject to changes in the legal situation.