Money in Austria

Personal experience

Catherine Kondria

Sales Specialist

I came to Vienna for the first time in 2009 and fell in love with the city. The beauty and pomp of the local architecture, the measured way of life, the friendly people and the absolutely special, in my opinion, atmosphere of the capital conquered me.

In 2012, after graduating from university, I came to Austria to live with my future husband and stayed here. I already had a European residence permit, so it wasn’t difficult to move. But I needed to learn German: English alone is not enough here, so I did. Now I am looking for a part-time job.

Taxes

Austria has a progressive tax scale and taxes can be as high as 50% of income. There are 7 rates in total, but no income tax is due on earnings up to 11,000 € per year.

In Austria, there are tax deductions if you have children, if you are the sole breadwinner or if you are a single parent.

You also have to pay radio and television tax if you have a TV set at home. The amount depends on the region: in Vienna, the tax is 26.33 € per month. Every time you move in, a check comes and finds out if you have a TV receiver.

If you own a dog, you have to pay an additional tax of 72 € per year.

Car owners need to pay a road use tax, here called a “vignette”. A vignette is a small sticker on the windshield of your car that indicates that you have paid the tax; you can also opt for an electronic vignette. A vignette will cost €9.40 for 10 days and €91.10 for a year.

Savings and investments

According to a study conducted by Erste Group, the most popular types of investments in Austria are:

• the deposit is 76%,
• construction investments (savings account for the purpose of purchasing real estate) – 58%;
• life insurance – 40%.

Most Austrians are conservative: they prefer to keep their money in a bank account, despite negative rates, or in cash, despite inflation. Most of the people I know invest in real estate.

Medicine

Austrian medicine is of a very high standard. The health care system is financed from the state budget, i.e. from social insurance payments and tax deductions, to a lesser extent from private insurance premiums. This means that all salaried workers automatically become insured.

The monthly amount of health insurance payments is 7.65% of the salary, of which 3.87% is paid directly from the salary of an employee and 3.78% is paid by the employer. Self-employed and self-employed persons are also required to pay the same percentage for health insurance, but all from their own pocket. You can add your spouse or children to your insurance card. For students, insurance costs about 50 €  per month, for the unemployed 90 €.

Appointments with various specialists, tests, ultrasounds, even surgeries are covered by general insurance. Once I had to call an ambulance for a friend who was visiting me from Russia: she had twisted her leg while walking. The bill for the ambulance, X-rays and the appointment was 500 €.

Dentist appointments may be fully covered by general insurance, but if you decide to have anesthesia and a tooth-colored filling, it will cost at least 25 € for the medicine and 200 €  for the material. More complex treatment cases can run into several thousand euros. That is why Austrians often go to Slovakia and Hungary for dental treatment – it is cheaper there.

Housing

Housing prices in Vienna vary depending on the meter size, location, year of construction and condition of the building. The average price per square meter in a small 30 m² apartment is approximately 5,077 € , in a 60 m² apartment 4,890 €, and in a 100 m² apartment 5,295 €. In the regions, you can buy housing at lower prices: approximately 3,400 – 4,000 €  per square meter. Given the high prices, many Austrians live in rented apartments all their lives, especially since contracts with no expiration date can be found in Austria.

For people with low incomes, Austria offers social housing with reduced rental rates. The main criteria for obtaining social housing in Vienna are citizenship or residence permit and an income of no more than 44,210 €  per year for one person and up to 66,180 € per year for two family members. The demand for social housing is high, so the waiting time for an apartment can take up to a year and a half.

Average prices for apartment rentals in Vienna:

• 30 m² – 695,7 €
• 60 m² – 752,4 €
• 100 m² — 1 267 €

Utility costs are paid separately. For example, the average monthly utility bill for a 70 m² apartment will be around 150 € per month.

Usually apartments are rented unfurnished, but with a kitchen set. Housing is sought through real estate agents, whose fee is two or even three months’ rent.

I often come across advertisements for companies that give you a free estimate of the rental price of your apartment. If the price is too high, you can legally get back the difference in overpayment.

“My husband and I bought an apartment as soon as our financial situation allowed us to do so. The mortgage rate in Austria
compared to Russia is very low, less than one percent,
but prices on the real estate market are quite high (about €5000/m²).
In the end, our monthly payments are not much higher than the amount we were paying for rented accommodation. At the same time, we live in a very attractive area of Vienna: within walking distance of the center of Vienna, with lots of restaurants, cafes, galleries, but relatively quiet, without the crowds of tourists typical of the first district.

Lisa J.

Meals

There are several supermarket chains in Vienna. Price and quality, of course, depend on the level of the store. For example, the average check for shopping at Billa, Spar or Mercur will be higher than at Lidl, Hofer or Penny.

With the trend towards bio-products and vegan food, the Denn’s Biomarkt chain has appeared in the city, and regular stores have separate counters for eco-goods. Prices for such products are higher than usual by about 20%.

According to statistics, Austrians spend about 350 € a month on food. This expense ranks third in the family budget. In my opinion, this amount is quite modest: you can live, but the food is unlikely to be of high quality. My husband and I have at least 500 € per month allocated for food, not including meals out. About 34% of local spending goes on eating out in cafes and restaurants.

The most famous Austrian dishes are Wiener Schnitzel, goulash, and tafelspitz (boiled beef fillet with apple horseradish). For quite a long time I did not share the love of locals for schnitzel, but now I can cook it at home with pleasure: apparently, the integration was successful. By the way, you can drink tap water in Austria, it comes from high alpine springs.

Transportation

Public transportation in the Austrian capital is very well developed, and its traffic is scheduled by the minute. A one-way fare with transfers on any mode of transportation costs 2.40 €. Unlimited travel for a month is 51 €, for a year 365 €. The Vienna Metro is being redesigned and expanded, with 9 new stations being built and a sixth branch of the U5 line being added. If you live within the city, you can get around without a car.

In Vienna it is very convenient and safe to travel by bicycle. There are many designated bike lanes and bike parking lots in the city. Even if you have to ride on the road, cyclists have priority over cars – drivers must keep a two-meter distance.

A liter of diesel costs €1.18 and gasoline costs €1.28.

Parking tickets are sold at tobacco stores: parking for 30 minutes costs €1.10 and for 2 hours costs €4.40. Parking in garages is much more expensive, especially in the central part of the city.

“In my opinion, living in Vienna is very stressful: the daily routine, the rhythm is very fast. Vienna is also very expensive, prices are inflated. On the other hand, there are so many opportunities for a great life here.”

Sandra Horvatova

Children, education and pension

Public kindergartens are free if you are registered in the city. The cost of food at a day care center per month is about 68.23 € plus the cost of special classes and courses.

Primary, secondary and tertiary levels of schooling in Austria are free and compulsory. The quality of education in private schools is considered to be better than in regular schools, but tuition can vary from 1,500 € per year to 7,700 € per semester, depending on the institution. As an example, a year at the renowned Theresianum Gymnasium costs from 5,800 €.

Higher education institutions in Austria are ranked among the top 100 universities in the world. Education in public institutions is free for Austrians, EU and European Economic Area citizens, provided they graduate on time. Otherwise, the semester fee is €363.36. For third-country nationals, tuition costs €726.72 per semester plus a mandatory ÖH-Beitrag student fee of €20.20. Private university tuition costs from about €6,160 per semester and up, depending on the university and the degree earned.

The retirement age in Austria is 65 for men and 60 for women. The national average pension for 2018 for men equated to €2,268 and for women €1,292. If the pension falls below 933.06 € , a compensation allowance can be requested.

Salaries

Full-time work in Austria is 38.5 hours and the average pay per hour is approximately €10. Overworked hours are paid at the end of the month or taken as time off. By law, the minimum wage in Austria must be at least €1,500 per year. The national average income is 2,900 €.

Austria has a 13th and 14th salary: an extra month’s salary in June and before the Christmas holidays.

“In our professional environment (IT)
with our salary and especially in our company – a really good work-life balance. For the most part, we can organize our own work tasks together with the customer and thus determine our free time.”

Stefan Zapotocki

Entertainment

The cultural program in Vienna is always rich. The city has a large selection of theaters and museums, both classical and modern. In the central part of the city you can always get to some festival: food, music or movie. The square in front of the city hall is rarely empty and hosts events almost year-round.

Admission to museums ranges from 8 to 18 euros, and under 18 years old is free.

A standing-seat ticket to the state opera can be bought for around €5 after waiting in a long line beforehand. Regular tickets can cost up to €300.

Skiing is one of the favorite activities of Austrians. A day ticket to Semmering, the closest ski resort to Vienna, costs between €20-36. In the warmer seasons, rock climbing, forest walks, and cycling. A bicycle route along the Danube to the Black Sea runs through Vienna and is also popular.

Austrians also like to spend time in thermal springs, there are about 38 organized spas in the country. There is also a thermal complex within Vienna, and a three-hour visit costs €20.50. Be prepared for the fact that thermal springs do not always have separate areas for men and women: in the saunas, everyone must remove their swimsuits; in the nude areas with outdoor pools, you may see naked couples strolling through the park.

TOTAL

Despite the high taxes, Vienna does not take the first place in the ranking of the most comfortable cities in the world for nothing. The state provides everyone, regardless of social status and age, with many social support programs and subsidies, free good secondary and higher education, excellent medicine and a wide range of leisure activities.

All prices in $ are based on the exchange rate as of 1.03.2023