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LIVING IN AUSTRIA

EXPLAINED: Everything you need to know about retiring in Austria

Retiring to Austria to spend time in fresh alpine air is a dream for many people, but who is actually eligible to retire to the Alpine Republic? Here’s what you need to know.

Published: 10 May 2022 14:33 CEST
Updated: 3 November 2023 10:46 CET
EXPLAINED: Everything you need to know about retiring in Austria
People from all over the world can retire to Austria as long as they meet the immigration requirements. Photo by Nikolett Emmert on Pexels.

People from all over the world can retire to Austria, but unlike some other European countries, Austria does not have a specific retirement visa.

Instead, it has a residence permit that can be applied for by people that don’t intend to work in Austria – like retirees.

This means anyone wanting to retire to Austria has to go through the standard immigration channels, with different rules for EU and non-EU citizens.

Here’s what you need to know about retirement in Austria and who is eligible to retire in the Alpine Republic.

FOR MEMBERS: How can British second home owners spend more than 90 days in Austria?

What are the rules for retiring to Austria as an EU citizen?

The process for citizens from EU and EEA countries to retire in Austria is relatively simple due to freedom of movement across the bloc.

There are a few rules though.

To stay in the Austria for longer than three months, retirees will need to be able to support themselves financially (e.g. through a pension) and have sufficient health insurance.

When it comes to accessing a pension from another EU member state, this is typically taken care of by an insurance provider in Austria who will deal with the approval process between the states. Access to public healthcare in Austria is also available to all EU/EEA citizens.

Currently the pension age in Austria is 60 for women and 65 for men. More information about pensions in Austria can be found on the European Commission website.

FOR MEMBERS: Five reasons to retire in Austria

What are the rules for retiring to Austria as a non-EU citizen?

According to immigration lawyer Patrick Kainz, the most popular visa route for non-EU retirees hoping to live out their golden years in Austria is to apply for a settlement permit. 

This is issued to people that do not intend to work in Austria and is referred to as “residence permit gainful employment excepted” (Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit) by Austrian immigration.

Kainz said: “As the name suggests, it will allow you to live in Austria, however you do not get access to the Austrian job market.

“Austria even expects that you do not pursue gainful employment anywhere outside Austria – be it employed or self-employed – while you are holding this residence permit.”

To qualify for the settlement permit, applicants must prove they have sufficient funds, comprehensive health insurance and a place to live.

Proof of sufficient funds means applicants must have a regular monthly income from a pension, profits from enterprises abroad, income from assets, savings or company shares. 

The minimum amount is €1,030.49 for a single person, or €1,625.71 for married couples or those in a partnership. 

READ ALSO: Baking away solitude: Vienna cafe hopes to unite world’s grandmas

There is also a limit on how many settlement permits are issued to retirees each year (at the beginning of the calendar year) – something that Kainz says could be a barrier.

Kainz said: “These residence permits with gainful employment excepted are in high demand in most of the regions Austria.

“Many regions, such as Vienna, have implemented a pre-registration procedure, with a strict deadline and only people who managed to get a spot during pre-registration will be entitled to file their application.

“For this reason, potential candidates should explore the options and requirements to be granted such a permit well in advance of actually planning to move.”

As well as proof of funds, third-country nationals have to provide evidence of basic German language skills at Level A1, in line with the Common European Framework of References for Languages. The diploma must be no older than one year when submitted with the application.

However, the application process will be entirely in German so for people that don’t have advanced German language skills, it’s best to hire an English-speaking immigration lawyer.

Additionally, Austria has a social security agreement with several non-EU states, including the UK, Canada and the USA. This allows some people to access their pension directly from Austria, depending on the agreement.

Again, it can be useful to find an English-speaking advisor to help with the bureaucratic part of accessing a pension in Austria if you don’t have strong German language skills.

After five years of living in Austria with a settlement permit, visa holders can then apply for permanent residence.

Want information on pensions? Then check out the following link. 

EXPLAINED: How does the Austrian pension system work?

Useful vocabulary

Retirement – Ruhestand

Pension – Rente

Social insurance – Sozialversicherung

Health insurance – Krankenkasse

Settlement permit – Niederlassungsbewilligung

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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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