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The five big reasons people choose to retire to Austria

Retiring overseas is a dream for many of us, with Austria becoming a popular location for people searching for mountains and culture.

Published: 15 July 2021 15:30 CEST
Updated: 3 April 2024 13:02 CEST
The five big reasons people choose to retire to Austria
A woman sits by a lake in Austria. Photo by Mateusz Sałaciak from Pexels

Austria is known for having a high standard of living, so it’s no surprise that it’s an attractive place to live for people from around the world – including retirees.

There is even a special visa for retirees known as a settlement permit, which offers financially independent people the opportunity to retire in Austria and live in the country on a long-term basis.

But what makes life in Austria so favourable for retirement?

It’s a mixture of safety, an affordable cost of living, access to nature and a vibrant cultural landscape.

Access to nature

Austria is renowned as the winter sports capital of Europe and enjoys some of the best skiing conditions in the world.

This is a big attraction for active retirees looking for somewhere to indulge in winter sports and other mountain activities – especially in the provinces of Tyrol, Vorarlberg and Salzburgerland.

Emma Barr lives in St. Johann, Tyrol, with her husband, but is originally from Reading in the UK where she used to work as a HR Manager.

Emma told The Local earlier this year: “We moved here over 10 years ago, and it was the best decision we ever made.

“Spending time walking or skiing in the mountains on a regular basis is life enhancing.”

Austria isn’t just about exploring the Alps though.

Residents in Vienna and other major cities are also within easy reach of nature, which makes the country ideal for hiking, swimming in lakes, visiting wine growing regions or just enjoying the fresh air.

Houses by the lake in Hallstatt, Austria. Photo by Joss Woodhead on Unsplash

Affordable housing

It’s no secret that Vienna has repeatedly been voted as the world’s most liveable city for many years.

The reason for this is the high quality of life that resident’s enjoy with affordable housing costs, a reliable transport network and low unemployment figures.

READ MORE: Eight weird and wonderful Austrian place names

But Vienna isn’t the only place in Austria where international residents can enjoy a high quality of life.

In many parts of the country, housing costs are affordable when compared with countries like the UK and the USA, and low unemployment rates are mostly reflected nationwide.

For example, the average rent for a three-bedroom city centre apartment in Austria is €1,357, while outside of the city centre it’s €1,030.

This makes rent in Austria, on average, 31.53 percent cheaper than the USA and 13.25 percent cheaper than the UK.

Safety

Austria has a global reputation as being a safe place to live and this is backed up by the Global Peace Index by Vision of Humanity which lists Austria at number six.

The Index considers societal safety and security, ongoing domestic and international conflict, and the level of militarisation in its assessment of countries.

Austria also has one of the lowest crime rates in Europe and violent crime is rare, making it a sought-after destination for international residents.

Healthcare

An important consideration for retirees is access to good healthcare, which is something that is widely available in Austria.

According to Expatica, Austria’s healthcare system is “excellent, affordable and accessible”.

However, insurance is needed to access healthcare in Austria (without a large fee). This is also a requirement for granting retirees a settlement permit.

But once insured, healthcare is universal for all legal residents in Austria, no matter a person’s age or income.

FOR MEMBERS: Where in Austria do all the British residents live?

Culture

Austria’s cultural and intellectual legacy was shaped by Mozart, Beethoven and Sigmund Freud, as well as the Austro-Hungarian Empire.

The latter brought grand palaces and architecture to Vienna such as Schönbrunn Palace, Schlosspark and The Hofburg. 

Whereas the country’s musical heritage led to a vibrant cultural scene with events like the Salzburg Festival and the famous New Year’s Concert by the Vienna Philharmonic taking place every year.

In fact, Vienna is known as the capital of classical music and there is no shortage of concerts to enjoy with 15,000 events in the city’s concert diary (in non-pandemic times).

However, it’s not all about classical music in Austria and there is plenty of modern art and culture to sample, such as Ars Electronica Center and the OK Center for Contemporary Art Austria in Linz, Upper Austria.

Member comments

  1. Austria is also rated by expats as one of the most unfriendly countries in Europe. I can attest to that.

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STUDYING IN AUSTRIA

Why Austria wants to overhaul its contentious ‘educational leave’ scheme

Austria's so-called "Bildungskarenz" allows workers to take paid time off from work to invest in their education, but the government claims there's an urgent need to reform the system. Why is that?

Published: 11 April 2024 13:26 CEST
Why Austria wants to overhaul its contentious 'educational leave' scheme

People in Austria looking to develop new skills or change careers can take advantage of a state program offering financial support during any time off work for educational reasons.

The program, called Bildungskarenz (educational leave), allows employees to take time off work to pursue studies or training relevant to their professions while receiving payments from the state.

This program isn’t just for university degrees – professional development courses like business German or technical training are also covered. The courses can be taken abroad, although domestic options are also available.  

The leave itself is flexible, ranging from a minimum of two months to a maximum of twelve months, depending on what you arrange with your employer.

There’s a catch, though: the total amount of leave cannot exceed one year within a four-year period. This allows employees to structure their Weiterbildung in a way that best suits them. One person might take a full year off at once, while another might prefer to spread their leave out over several two-month blocks.

READ ALSO: What to know about Austria’s paid leave for further education

What’s the controversy?

The federal government has been discussing an overhaul of the system. The criticism is that educational leave has not been used by the target groups: low-skilled workers and people looking to change careers. Instead, an industry of Bildungskarenz courses has boomed in Austria since the COVID-19 pandemic: mostly online, self-paced courses, and many very basic language courses that comply with the minimum requirements for Bildungskarenz.

In some, the online class takes a few hours a week, with the rest of the mandatory hours assumed as “study hours.”

Famously, in Austria, Bildungskarenz has been used by new parents as a way to “extend” their parental leave—and there are entire websites aimed at targeting new moms with easy-to-follow courses so they can continue at home with their kids.

According to a study by the economic think tank Agenda Austria, it’s not the poorly qualified who are predominantly learning new skills and increasing their market value with state support, instead it’s those who already have a good education.

“Quite a few apparently see it as an opportunity to take a sabbatical at the general public’s expense,” they wrote.

According to the study, educational leave is becoming increasingly popular, and the costs are rising rapidly. Between 2013 and 2023, expenditures—not to mention social security contributions—rose from €109 million to €337 million. Costs have almost doubled since 2020 alone.

According to the study, the proportion of people receiving continuing education allowance directly after parental leave was already more than 50 percent in 2021 (no more recent figures are available). 

READ ALSO: EXPLAINED: What you need to know about parental leave in Austria

Saving at the expense of the Bildungskarenz

There is another front on which educational leave is being used differently to what its creators originally intended, according to Agenda Austria. 

Companies can misuse educational leave as a cost-cutting measure in difficult economic times or during crises in individual sectors. This was evident, for example, during the economic and financial crisis from 2008 onwards, when many employers—particularly in the industrial sector—motivated their employees to take educational leave to save on wage costs and bridge crises without having to fire people. 

Another use for the educational leave is as a “golden handshake”, the writers explained. It “is s sometimes used as a nice transition to a subsequent termination by mutual agreement. The “golden handshake” means that employment remains in place for a few more months without an active employment relationship still existing. 

READ ALSO: Am I entitled to any severance pay from my job in Austria?

The employer does not incur any costs, and the departing employees have plenty of time to reorient themselves or take a short break at the general public’s expense.”

Reforms proposed

The think tank suggests several reforms to tighten access to the benefits. The recommendations include raising the requirements for type, duration, and tracking of education progress, but they also suggest that companies cover part of the costs of educational leave themselves. 

Austria’s Labour Minister Martin Kocher (ÖVP) has also proposed key points for a reform of the system. One of the main proposals is that the applicant must go through a consultation with the Labour Market Agency AMS before taking the leave so that it’s clear what are the goals of the person and which qualifications they already have – it aims to improve statistical recording of those getting the benefit.

Another significant proposal is that any “self-study” period be recognised only as supplementary in the future. In that way, a course would have to offer all 20 hours a week of classes instead of providing the minimum amount and then assuming “reading” and “studying” time for the rest of the hours. 

Of course, the debate is ongoing. Mothers, a group that could be particularly affected by reforms, have come forward in Austrian media to defend the use of educational leave following parental leave—in many cases, there simply aren’t enough childcare options in Austria.

READ ALSO: How does childcare work in Austria?

Some studies also show a slight increase in the employment rate of those who took educational leave after the parental leave twelve years later, with monthly income also a few percentage points higher for those with Bildungskarenz. However, Minister Kocher sees only a “moderate” benefit and still recommends reform.

Freelance mothers in Germany aren't entitled to as many benefits as employees.

Mothers looking to extend their parental leave have often resorted to the educational leave in Austria. Photo: Matilda Wormwood/Pexels

So, when will there be reforms?

That’s difficult to say. The junior coalition partner, the Greens, have not been too keen on controversial changes to the current rules, mainly because they affect their own student voters. 

The Greens also point out that around half of those receiving continuing education allowance earn more three years after parental leave than before. “Of course, we are available for improvements in the interests of those affected, but not for a tightening of access to educational leave,” said Markus Koza, the Greens’ labour market policy spokesman.

And this is an election year in Austria, with the ruling coalition not very popular among voters – this without the approval of laws that could make the lives of many people harder. 

Without the support of the coalition partners, it’s unlikely that anything will change soon.

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