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How to survive as a freelancer in Austria

Freelancing in Austria has a reputation for being tough, with high taxes and an expensive cost of living.

Published: 20 July 2021 12:55 CEST
Updated: 5 September 2022 13:07 CEST
How to survive as a freelancer in Austria
Photo by Joseph Frank on Unsplash

It doesn’t mean working as a freelancer in the Alpine republic is a bad idea though – it just means there might be a few more hoops to jump through.

Here’s what you need to know about how to survive as a freelancer in Austria.

Get an accountant

Navigating the world of tax is confusing at the best of times. Throw in a foreign language and a new country and it can be overwhelming.

This is why hiring a tax accountant (Steuerberater) is a good idea for freelancers – especially for international residents or people without a high-level of German language skills.

EXPLAINED: What can I deduct from my tax bill in Austria?

Toni Krainz, a self-employed Business Development Engineer from Ireland, told The Local: “A tax advisor can give you some smart tips about your entitlements as a business owner, which more than cover the cost of hiring a Steuerberater.”

A tax account can also help with setting up health insurance, which is compulsory in Austria.

James Tibbles, from the UK, spent four years working as a freelance web developer when he first moved to Tyrol in Austria.

He said: “My tax advisor explained it all to me and picked out the correct one for my circumstances, so whenever I received a letter from them I just immediately passed it on to her.”

The downside of hiring a tax accountant is the cost. But in most cases the fees are worth the peace of mind when it comes to submitting a tax return or dealing with Austrian bureaucracy.

Find a way to lower expenses

Austria is well known for expensive living costs and freelancing has a reputation for sporadic work and payment – especially for those just starting out.

Put the two together and it can be a recipe for financial instability, but finding a way to lower expenses can significantly reduce stress for freelancers.

READ MORE: Cost of living: Seven tips to save money in Austria

A good starting point for staying on top of finances is to be honest about your expenses (rent, health insurance, food, bills) and identify areas where costs can be cut.

For example, working from home can save money otherwise spent while working in cafes, and joining a coworking space is usually much cheaper than renting an office.

Another option is downsizing or moving to a cheaper area to reduce living costs.

Even making smaller changes, such as shopping at lower cost supermarkets, can save money on grocery bills each week.

In the end, all the small savings can add up to make a big difference.

Consider income protection insurance

Income insurance protection is exactly what it sounds like – payments to cover part of your income if you cannot work due to sickness or an accident.

This is especially useful for self-employed people and, according to other freelancers, should be considered to provide some extra financial security. 

Toni, from Ireland, said: “As a freelancer, you’re not entitled to sick pay so I highly recommend getting income protection insurance. 

“The fees are tax deductible and there are varying levels of cover available, so it doesn’t have to be expensive.”

Austria can be a great place to freelance. Photo by Galymzhan Abdugalimov on Unsplash

Learn German

Although many people in Austria speak English at a high level, it is still a German-speaking country. 

This means having German-language skills can be a big advantage for a freelancer – even for people with clients in different parts of the world.

READ MORE: Everything you need to know about becoming a freelancer in Austria

The reason for this is because bureaucracy and official communications in Austria are mostly conducted in German. 

So, even if all you can do is make a simple phone call or write an email in German, it will make life as a freelancer in Austria much easier. 

Network with other freelancers

In pre-corona times, freelancers could attend professional networking events to meet new people and scope out work opportunities.

However, the past 18 months has seen most events cancelled in the interests of public health, which means networking has moved online.

There are some advantages to this, such as the possibility to network with people from all over the world, not just in your region or country.

But the downside is it can be harder to forge strong professional relationships with others by only communicating online.

Despite the disadvantages to online networking, getting to know other freelancers in your industry is a great way to establish a local support network, and can even generate referrals for future business.

Essential websites for freelancers in Austria

Social insurance: sozialversicherung.at

Austrian Health Insurance Fund (ÖGK): gesundheitskasse.at

Austrian Federal Economic Chamber (WKO): wko.at

Self-employed information in English: self-employed.at

SVS (for self-employed insurance): svs.at

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LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

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