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An Expat’s Guide To Banking And Financial Management In Austria

Austria, with its robust economy and vibrant culture, is an attractive destination for many expats. However, adjusting to a new banking system can be challenging, especially when dealing with a different language and unfamiliar procedures. This comprehensive guide aims to equip expats with the necessary knowledge about the Austrian banking system, facilitating seamless financial management in their new home.

Deep Dive into the Austrian Banking System

Austria boasts a diverse and secure banking industry. It consists of different types of financial institutions, including joint-stock banks, savings banks, cooperative banks, and specialized mortgage banks. Each bank type serves specific financial needs, providing a wide range of services to both domestic and international clients.

At the helm of Austria’s banking system is the National Bank of Austria (Österreichische Nationalbank), which is responsible for implementing the country’s monetary policy. The Austrian Financial Market Authority (Finanzmarktaufsicht, FMA) is another critical institution that supervises the financial market, ensuring its integrity, stability, and transparency.

Commercial banks in Austria offer an array of services to their customers. These include, but are not limited to, savings and current accounts, loans, investment advice and services, and digital banking solutions. Technological advancement has also been embraced by these banks, with most offering online banking, mobile applications, and digital services for seamless, convenient, and real-time financial management.

To gain insights into the licensed banks operating in Austria, you can visit the FMA’s official website.

Understanding Different Types of Bank Accounts in Austria

Austrian banks offer several types of accounts, each designed to cater to different financial needs and preferences. As an expat, understanding these account types can help you make informed decisions about your banking needs:

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  • Girokonto (Current Account): The Girokonto is the most popular type of account, typically used for everyday transactions. It allows you to deposit and withdraw money, receive your salary, pay bills, and perform cashless transactions. Most banks provide a debit card associated with the Girokonto.
  • Sparkonto (Savings Account): The Sparkonto is ideal for individuals looking to save money over time. It offers interest on the deposited amount, but it may come with some restrictions on withdrawals to encourage saving.
  • Gemeinschaftskonto (Joint Account): A Gemeinschaftskonto is shared between two or more individuals, commonly used by couples, families, or business partners. All account holders have access to the account, making it easier to manage shared expenses.
  • Geschäftskonto (Business Account): If you’re self-employed or own a business in Austria, a Geschäftskonto is likely a necessary requirement. These accounts are designed to support business operations, providing services like invoicing, payment processing, and cash management.

For more detailed information on the various types of bank accounts in Austria, you can refer to this official government site.

Opening a Bank Account in Austria: A Detailed Walkthrough

As an expatriate in Austria, you can conveniently open a bank account known as a ‘Girokonto’. Here’s a step-by-step guide to help you through the process:

  1. Choose a Bank: Austria has a wide selection of banks offering excellent services to expats. Some of the most popular ones include Bank Austria, Erste Bank, Raiffeisen Bank, and BAWAG. While choosing a bank, consider factors such as the availability of English-speaking staff, online and mobile banking services, bank fees, ATM locations, and the bank’s reputation. Remember, each bank has different offerings, so it’s essential to choose one that aligns best with your financial needs.
  2. Visit the Bank or Apply Online: While some banks still require you to physically visit a branch to open an account, many banks now offer the convenience of online applications. If you prefer a face-to-face interaction, make an appointment and visit the bank’s local branch. If the bank supports online applications, you can follow the instructions on their website to open an account.
  3. Submit the Required Documents: You’ll need to provide some essential documents to open a bank account in Austria. These typically include a valid passport or ID card, proof of Austrian address (rental agreement or utility bill), an employment contract or proof of income, and a registration form (Meldezettel), which you receive upon registering your Austrian address at the local registration office. Some banks may require additional documentation, so it’s always a good idea to check beforehand.
  4. Deposit an Initial Amount: Some banks may ask for an initial deposit to activate your account. This amount varies between banks and can range from a few euros to a few hundred euros.

Online Services

Austria’s banking sector is not just limited to physical branches. The digital transformation wave has hit Austrian banks too, with most providing online banking and mobile app services.

Online banking allows you to manage your financial matters conveniently from your computer. You can track your transactions, check account balances, make transfers, and pay bills online, eliminating the need to visit a bank branch.

Mobile banking apps take convenience a step further. With these apps, you can manage your finances on the go, right from your smartphone. These apps often provide additional features like budgeting tools, spending analysis, and instant transaction notifications.
Here are the links to some popular Austrian banking apps:

Sending and Receiving Money

As an expat, you’ll likely need to send money to your home country or receive money from abroad. While traditional banks offer international transfer services, these can sometimes be expensive due to high fees and unfavorable exchange rates.

Online transfer services like TransferWise and Revolut provide a cost-effective and efficient alternative. They offer competitive exchange rates and typically charge lower fees than traditional banks. Moreover, these services are swift, usually transferring funds within 1-2 business days.

Tax and Banking in Austria

Understanding tax obligations is a critical aspect of managing finances as an expat in Austria. The country operates on a worldwide income principle, which means that residents are taxed on their global income. Non-residents, on the other hand, are taxed only on their income from Austrian sources.

When you open a bank account in Austria, the bank is obligated to report the account holder’s information to the Austrian tax authorities under the Common Reporting Standard (CRS). This global standard for sharing financial account information is intended to combat tax evasion.
Interest earned on savings in your Austrian bank account is subject to a capital gains tax known as the “Kapitalertragsteuer”. In September 2021, the rate was 27.5%, however, tax laws can change, so it’s advisable to check the current rates and regulations.

To better understand your tax obligations in Austria, you might want to seek advice from a tax consultant or refer to the official Austrian Finance Ministry website.

Loans and Mortgages: Financing Larger Expenses

Austrian banks offer various loan and mortgage options to help finance larger expenses like home purchases, car purchases, or higher education.

Personal Loans: These are typically unsecured loans that you can use for any purpose. The interest rates and terms for personal loans vary among banks, so it’s worth shopping around for the best deal.

Home Loans/Mortgages: If you’re planning to buy property in Austria, you’ll likely need a mortgage. Austrian banks offer different types of mortgages, including fixed-rate, variable-rate, and interest-only mortgages. The amount you can borrow usually depends on your income, credit history, and the value of the property.

Car Loans: If you’re looking to buy a car, many banks offer car loans. Some banks even have partnerships with car dealerships, allowing you to get financing directly at the dealership.
Student Loans: If you or your dependents are studying in Austria, you might need a loan to cover tuition and living expenses. Some Austrian banks offer student loans with favorable terms.

For more information about loans and mortgages, it’s best to visit the individual bank’s website or consult with a financial advisor.

Unique Challenges and Advice for Expats Banking in Austria

While the Austrian banking system is expat-friendly, there are a few unique challenges that you may encounter:

Language Barrier: Not all bank staff may be proficient in English, and some banking documents may be in German. It can be helpful to learn basic banking terms in German or seek help from a German-speaking friend or colleague.

Banking Fees: Austrian banks often charge fees for services such as account maintenance, ATM withdrawals, and money transfers. Be sure to understand these charges to avoid any surprises.

Limited Banking Hours: Unlike in some countries, Austrian banks typically do not operate during evenings or on weekends. However, online banking and mobile banking apps provide 24/7 access to your account.

Local Registration: Banks in Austria require proof of local registration (Meldezettel) to open an account. Ensure you register your local address at the municipal office upon your arrival in Austria.

Austria’s banking system, with its diverse services and advanced digital infrastructure, can meet the needs of expats from all walks of life. Remember, the key to successful banking as an expat is understanding your financial needs and aligning them with the right banking services.

Making Payments in Austria

When it comes to making payments in Austria, there are several options available:

  • Cash: Despite the rise of digital payments, cash remains widely used in Austria, especially in rural areas and small businesses. It’s always a good idea to carry some cash with you.
  • Cards: Debit and credit cards are widely accepted in Austria, especially in urban areas and larger businesses. Visa and MasterCard are the most commonly accepted, but American Express is less widely accepted.
  • Mobile Payments: Mobile payment systems like Apple Pay and Google Pay are becoming increasingly popular. Many banks now offer these services to their customers.
  • Bank Transfers: For regular expenses like rent or utilities, bank transfers are commonly used. Your bank can help set up automatic transfers to ensure you never miss a payment.
  • Contactless Payments: Contactless payments have become the norm in many Austrian businesses, contributing to a more streamlined and speedy transaction process.

Distinct Features of Austrian Banking

Austrian banking is characterized by its stability, customer-oriented service, and embrace of technology. Here are some unique features:

  • Banking Packages: Many Austrian banks offer banking packages, bundling various services like a current account, debit card, credit card, and online banking for a monthly fee.
  • Multilingual Services: To cater to the diverse population, many Austrian banks offer services in multiple languages, including English.
  • Advanced Digital Services: Austrian banks have embraced digital transformation, offering advanced online banking services and mobile apps. Some even offer innovative features like digital wallets and budgeting tools.
  • Eco-Friendly Banking Options: Some Austrian banks emphasize sustainable and eco-friendly practices, offering “green” investment opportunities and supporting environmentally friendly projects.

List of resources

  • Austrian National Bank: The central bank of the Republic of Austria and, as such, an integral part of both the European System of Central Banks (ESCB) and the Eurosystem. It provides comprehensive information about the Austrian economy, financial statistics, and banking regulations.
  • Austria’s Financial Market Authority (FMA): An independent, autonomous, and integrated authority for the Austrian financial market. The website provides up-to-date regulatory information and oversees banking operations in Austria.
  • Austrian Finance Ministry: Official website of the Austrian Finance Ministry, providing information about tax laws and regulations in Austria. A good resource for understanding your tax obligations as a resident or non-resident.
  • Banking Apps: These apps provide a convenient way to manage your finances on the go. Links to the apps of popular Austrian banks: Bank Austria iOS / AndroidErste Bank iOS / AndroidRaiffeisen Bank iOS / Android.
  • Banks in Austria: A useful site that lists all the banks operating in Austria, along with brief descriptions and links to their websites. Great for comparing the services and facilities offered by different banks.
  • CurrencyFair: An online peer-to-peer currency exchange marketplace. It provides a platform for secure, low-cost international money transfers without the need for traditional banks.


Navigating the Austrian banking system as an expat can seem daunting at first, but with a thorough understanding of how things work, you’ll find it to be efficient, secure, and accommodating. This guide aims to provide you with a comprehensive overview to help you make informed financial decisions as you start your new life in Austria.

Remember to conduct your research, compare different banks and services, and choose the ones that best fit your needs. If you need more personalized advice, consider seeking guidance from financial advisors familiar with the Austrian banking system. With the right information and resources, you’ll be able to manage your finances confidently in Austria.

Remember, while the prospect of managing finances in a new country can be intimidating, taking the time to understand the banking system can alleviate stress and set you up for financial success. Whether you’re planning to work, study, retire, or start a business in Austria, having a firm grasp on the local banking system will undoubtedly prove beneficial. Happy banking in Austria!

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