Fiscal Representative in Austria – Managing Tax Duties for Perpetual Travelers

The lifestyle of “Per­pet­u­al Trav­el­ing” – always on the move, with­out a per­ma­nent res­i­dence – has become increas­ing­ly pop­u­lar. The idea of escap­ing rou­tine while being free from tax­es is appeal­ing. How­ev­er, those who believe they can escape tax oblig­a­tions through con­stant relo­ca­tion are mis­tak­en. In Aus­tria espe­cial­ly, tax rules are strict and com­plex. A fis­cal rep­re­sen­ta­tive in Aus­tria becomes essen­tial for many inter­na­tion­al entre­pre­neurs to meet their oblig­a­tions.

Fiscal Representative in Austria – Obligations and Practice for Foreign Businesses

A fis­cal rep­re­sen­ta­tive in Aus­tria is a local­ly estab­lished tax agent rep­re­sent­ing for­eign com­pa­nies before Aus­tri­an tax author­i­ties. Any for­eign entre­pre­neur gen­er­at­ing tax­able turnover in Aus­tria must reg­is­ter for VAT – and appoint­ing a fis­cal rep­re­sen­ta­tive is often manda­to­ry, espe­cial­ly for busi­ness­es from non-EU coun­tries.

Even for so-called per­pet­u­al trav­el­ers – peo­ple liv­ing with­out per­ma­nent res­i­den­cy – cer­tain tax oblig­a­tions may still apply. This is the moment where myth meets real­i­ty.

Tax Traps for Perpetual Travelers

Even if some­one has nei­ther res­i­dence nor habit­u­al abode in Aus­tria, they may still be sub­ject to lim­it­ed tax lia­bil­i­ty for income linked to Aus­tria. This includes:

• Employ­ment income from Aus­tri­an employ­ers
• Div­i­dends or dis­tri­b­u­tions from Aus­tri­an pri­vate foun­da­tions
• Cap­i­tal gains from sales of Aus­tri­an cor­po­ra­tions (1%+ shares)
• Rental income or real estate sales in Aus­tria
• Income from self-employed work per­formed in Aus­tria

Espe­cial­ly the lat­ter is under­es­ti­mat­ed. Many dig­i­tal nomads offer ser­vices through glob­al plat­forms – yet under Aus­tri­an VAT law, the place of ser­vice may be con­sid­ered Aus­tria. If this is the case, a fis­cal rep­re­sen­ta­tive and VAT reg­is­tra­tion are often required. Fail­ure to com­ply can lead to back tax­es, penal­ties, and forced reg­is­tra­tion.

Exit Taxation: An Overlooked Challenge

Anoth­er rel­e­vant rule is Austria’s exit tax­a­tion: when a per­son moves abroad, cap­i­tal gains on cer­tain assets may be sub­ject to tax if Austria’s tax­a­tion rights are lim­it­ed or lost. This often applies to shares or busi­ness assets.

Per­pet­u­al trav­el­ers should not take this light­ly. Leav­ing Aus­tria with­out prop­er plan­ning and doc­u­men­ta­tion can result in unex­pect­ed tax bills – espe­cial­ly if no fis­cal rep­re­sen­ta­tive is appoint­ed to man­age the tran­si­tion.

VAT Registration and Fiscal Representation

From Jan­u­ary 2025, Austria’s small busi­ness thresh­old will be raised to €55,000 per year. Once this thresh­old is exceed­ed, VAT reg­is­tra­tion becomes manda­to­ry. For busi­ness­es out­side the EU, appoint­ing a fis­cal rep­re­sen­ta­tive in Aus­tria is required regard­less of turnover.

Many wrong­ly believe that using plat­forms like Ama­zon, Etsy, or Upwork pro­tects them from local VAT oblig­a­tions. This is false. Reg­u­lar­ly sup­ply­ing ser­vices or goods to Aus­tri­an cus­tomers often requires an Aus­tri­an VAT num­ber – and thus fis­cal rep­re­sen­ta­tion.

Conclusion: Don’t Risk It Without a Fiscal Representative

The Per­pet­u­al Trav­el­ing lifestyle is attrac­tive but comes with legal and fis­cal risks – par­tic­u­lar­ly in a high­ly reg­u­lat­ed coun­try like Aus­tria. If you’re earn­ing Aus­tria-relat­ed income or con­duct­ing busi­ness with­in Aus­tri­an bor­ders, tax reg­is­tra­tion is manda­to­ry. A fis­cal rep­re­sen­ta­tive in Aus­tria is not just help­ful – it’s often legal­ly required.

Heinz Kobled­er – Tax Advi­sor is your expert part­ner for man­ag­ing Aus­tri­an tax oblig­a­tions. We han­dle fis­cal rep­re­sen­ta­tion, VAT reg­is­tra­tion, and ensure your busi­ness activ­i­ties in Aus­tria com­ply with all legal require­ments.