What Americans Living in Austria Need to Know in 2025

Austria offers a rich cultural experience and a high quality of life, making it an attractive destination for many Americans. However, living abroad comes with its own set of challenges and considerations. This guide provides essential information for Americans living in Austria in 2025, covering topics such as residency, taxation, healthcare, and cultural differences.

Americans living in Austria: Visa types

For U.S. citizens aiming to establish permanent residency in Austria, several visa options are available. Below are the primary visa types tailored for long-term stays:

Red-White-Red Card

Who it’s for: Highly qualified workers, skilled professionals in shortage occupations, and other key workers.

Overview: This visa allows you to live and work in Austria for up to 24 months with a specific employer. It’s designed to attract skilled professionals to the Austrian labor market.

Requirements:

• Secure a job offer from an Austrian employer.
• Meet the points-based criteria, which assess qualifications, work experience, language skills, and age.
• Provide proof of adequate means of subsistence, health insurance, and suitable accommodation.

EU Blue Card

Who it’s for: Highly qualified professionals with a university degree and a binding job offer in Austria.

Overview: The EU Blue Card is valid for up to 24 months and facilitates the mobility of non-EU nationals within the EU.

Requirements:

• Possess a university degree or equivalent qualification.
• Have a job offer with a minimum annual salary of €51,500 (as of 2025).
• Ensure the employment corresponds to your qualifications.
• Provide proof of health insurance and adequate accommodation.

Red-White-Red Card Plus

Who it’s for: Holders of the Red-White-Red Card or EU Blue Card who have been employed in Austria for at least 21 months within the past 24 months.

Overview: This card grants unrestricted labor market access and is valid for up to three years.

Requirements:

• Demonstrate continuous employment in Austria for the required period.
• Meet general requirements such as adequate means of subsistence, health insurance, and suitable accommodation.

Settlement Permit – Self-Employed Key Worker

Who it’s for: Entrepreneurs and self-employed individuals whose business activities are of significant economic interest to Austria.

Overview: This permit allows self-employed individuals to reside in Austria and conduct business activities that provide substantial economic benefits.

Requirements:

• Demonstrate that your business will transfer capital investment to Austria, create or secure jobs, or be of considerable regional importance.
• Provide a viable business plan and proof of sufficient funds.
• Meet general requirements such as adequate means of subsistence, health insurance, and suitable accommodation.

Settlement Permit – Gainful Employment Excepted

Who it’s for: Financially independent individuals who do not intend to engage in gainful employment in Austria.

Overview: This permit is for those who wish to reside in Austria without working, such as retirees or individuals with sufficient passive income.

Requirements:

• Provide proof of sufficient funds: €1,217.46 per month for singles, €1,921.96 for couples, plus €187.93 for each child (as of January 2024).
• Obtain comprehensive health insurance covering all risks.
• Show proof of suitable accommodation in Austria.

Navigating the visa application process can be complex. It’s advisable to consult with Austrian immigration authorities or legal experts to ensure you choose the visa that best aligns with your circumstances.

How to apply for an Austrian visa as a U.S. citizen

Applying for an Austrian visa as an American is a step-by-step process. Here’s how you can get started and what to expect:

1. Choose your visa type

Decide which residence permit best matches your situation—such as the Red-White-Red Card, EU Blue Card, or Settlement Permit. Each type has specific eligibility criteria.

2. Gather your documents

Prepare the required paperwork. Common documents include:

• A valid U.S. passport
• Proof of health insurance
• Proof of adequate funds
• Proof of accommodation in Austria
• Employment contract or business plan (depending on visa type)

3. Submit your application

File your application at the Austrian consulate or embassy in the United States. In some cases, you may apply directly in Austria if you have legal entry.

4. Attend an appointment

You’ll likely need to attend an in-person appointment. Be ready to provide biometrics (like fingerprints) and answer questions about your application.

5. Wait for processing

Processing times can vary, often taking several weeks to a few months. Track your application status online or by contacting the consulate.

Once approved, you’ll receive your visa or residence permit—allowing you to live, work, or retire in Austria according to your chosen visa type.

Healthcare options for Americans living in Austria

Navigating healthcare as an American in Austria can feel daunting at first, but the country offers reliable and comprehensive coverage. Understanding your choices and how the Austrian system compares to what you’re used to back home can help you feel more confident about your move.

How the Austrian healthcare system works

Austria has a universal, public healthcare system that covers most residents. Here’s how it operates:

• Mandatory insurance: Most people, including employees and self-employed individuals, are required to join the public health insurance system (Österreichische Gesundheitskasse or ÖGK).
• Automatic enrollment: If you work for an Austrian employer, you’re typically enrolled automatically. Dependents are usually covered as well.
• Access to care: Public insurance gives you access to doctors, hospitals, and specialists, with most medical costs covered or heavily subsidized.
• Private options: Private health insurance is available for those who want extra comforts—like private rooms or shorter wait times.

Healthcare options for Americans living in Austria

As an American expat in Austria, you have a few main options for healthcare:

• Public health insurance: If employed or self-employed, you’ll likely be enrolled in Austria’s public system. This covers most medical needs, including doctor visits, hospital care, and prescriptions.
• Private health insurance: You can purchase private coverage for additional benefits, like more flexible appointment times and extra amenities during hospital stays.
• International health insurance: Some expats, especially those on temporary assignments or awaiting public coverage, choose international insurance plans for added flexibility and global coverage.

Pros and cons to healthcare for American expats living in Austria

Like any system, Austria’s healthcare model has its strengths and challenges for Americans living abroad:

Pros:

• High-quality care with well-trained medical professionals
• Broad coverage under the public system, including preventative care
• Affordable out-of-pocket costs compared to U.S. standards
• Emergency care is accessible and efficient

Cons:

• Language barriers in smaller towns or rural areas
• Waiting times for certain specialists or elective procedures
• Navigating the bureaucracy can be confusing at first
• Private insurance can add extra costs if you want enhanced services

By understanding your options, you can make informed decisions about your health coverage while enjoying life in Austria.

Cost of living for American expats living in Austria

Adjusting to Austria’s cost of living can be both a relief and a challenge, depending on where you’re moving from in the U.S. While some expenses—like healthcare and public transportation—are often more affordable in Austria, you might notice differences in areas like housing or groceries, especially in Vienna or other major cities.

Here’s a side-by-side look at average monthly costs for a single person, comparing Vienna (Austria’s capital) and a mid-sized U.S. city like Denver:

Expense	Vienna, Austria (USD)	Denver, U.S. (USD)	Notes/Comments
Groceries	$300 – $400	$400 – $600	Fresh produce and staples are generally cheaper in Austria, but imported goods can cost more.
Housing (1BR apt, city center)	$1,100 – $1,400	$1,800 – $2,300	Vienna is more affordable than major U.S. cities, but prices rise in popular districts.
Public transport	$55 – $60	$100 – $120	Austria’s public transit is efficient, widespread, and much cheaper than most U.S. cities.
Phone plan	$15 – $30	$50 – $80	Mobile plans are more budget-friendly in Austria, with plenty of prepaid options.

Prices are approximate and can vary based on lifestyle, location, and currency fluctuations.

Pros and cons to the cost of living in Austria for Americans

Pros:

• Public transportation is reliable, extensive, and easy on your wallet—no car needed for most city-dwellers.
• Health insurance and out-of-pocket medical costs are much lower than in the U.S.
• Utilities and mobile phone plans are generally less expensive.
• Many public amenities, like parks and cultural events, are free or low-cost.

Cons:

• Housing in Vienna and other popular cities can be competitive—expect to budget for a deposit and sometimes agency fees.
• Eating out or buying imported U.S. brands (think peanut butter or certain cereals) can be pricey.
• Income tax rates may be higher than what you’re used to, especially for higher earners.
• Setting up services (utilities, internet) may require paperwork in German, which can be stressful at first.

We know moving to a new country means facing a whole new set of financial realities. By understanding what to expect, you can plan your budget, avoid surprises, and settle in with confidence—whether you’re grabbing groceries or choosing your new neighborhood.

Where do American expats tend to live in Austria?

• Vienna: Austria’s capital is by far the most popular destination for Americans. The city’s international schools, embassies, thriving arts scene, and strong job market make it especially appealing. Districts like Landstraße, Neubau, and Döbling have active expat communities and plenty of English-speaking services.
• Salzburg: Known for its stunning alpine scenery and musical heritage, Salzburg attracts Americans seeking a smaller city with a high quality of life. The presence of international companies and universities adds to its international flavor.
• Innsbruck: Nestled in the heart of the Alps, Innsbruck is a favorite for outdoor enthusiasts and those working in tourism or academia. The city’s relaxed pace and access to nature are a major draw.
• Graz: Austria’s second-largest city is home to a vibrant student population, several universities, and a growing tech sector. Americans here enjoy a blend of urban amenities and a more laid-back atmosphere than Vienna.

Tax implications for Americans living in Austria

As an American living in Austria, you’ll face a unique set of tax considerations that can quickly feel overwhelming. From keeping up with U.S. tax filing requirements—yes, even after you move—to understanding how Austrian taxes fit into the picture, every expat wants to avoid double taxation and stay compliant. Let’s break down what you need to know, step by step, so you can navigate your tax obligations with confidence.

American expat tax obligations

Even as an American abroad, you’re still required to file an annual U.S. federal tax return with the IRS—no matter where you live or where your income is earned. This applies if your income is above the standard IRS filing threshold, which varies by filing status and age.

• Key point: You must report your worldwide income, not just what you earn in Austria.
• Good news: The IRS grants an automatic two-month extension (until June 15) for expats, but taxes owed are still due by April 15 to avoid interest.

Austrian taxes

Austria taxes residents on their worldwide income. Once you’re officially a resident (generally if you have a primary home or spend more than six months per year in Austria), you’ll file an Austrian tax return.

• Austrian tax rates are progressive, ranging from 0% up to 55% for high earners.
• Austria has a comprehensive social security system and mandatory health insurance, typically deducted from your paycheck.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows you to exclude up to $130,000 (for tax year 2025; this amount changes annually) of foreign-earned income from your U.S. taxable income.

• You must meet either the Physical Presence Test (330 full days in a foreign country during a 12-month period) or the Bona Fide Residence Test (a full calendar year as a resident).
• This is especially helpful if you’re earning a salary in Austria, but it doesn’t apply to passive income (like dividends or rental income).

Foreign Tax Credit (FTC)

If you pay income taxes to Austria, you can typically claim a Foreign Tax Credit on your U.S. return. This helps prevent double taxation.

• The credit directly reduces your U.S. tax bill dollar-for-dollar based on taxes paid to Austria.
• You can’t “double dip”—if you use the FEIE on certain income, you can’t also apply the FTC to that same income.

Tax treaty between Austria and the U.S.

The U.S. and Austria have a tax treaty that can help clarify which country gets to tax certain types of income and can help prevent double taxation on pensions, dividends, and more.

• The treaty spells out specific rules for things like social security, retirement, and business income.
• Treaties can be complex—sometimes the IRS requires you to file Form 8833 to explain how you’re using the treaty.

Reporting foreign bank accounts

If you have more than $10,000 across all your non-U.S. financial accounts at any point during the year, you need to file an FBAR (Foreign Bank Account Report) using FinCEN Form 114.

• This includes checking, savings, investment accounts, and even some pensions.
• Some Americans in Austria may also need to file FATCA Form 8938 with their tax return if their foreign account balances exceed certain thresholds.

Social Security

If you’re employed in Austria, you’ll typically pay into the Austrian social insurance system rather than U.S. Social Security.

• The U.S.-Austria Totalization Agreement helps ensure you’re not paying social security taxes to both countries on the same income.
• Time spent contributing to the Austrian system can sometimes count toward your U.S. Social Security benefits—especially important if you’re planning for retirement.

Remember, your situation is unique and tax rules can change. We’re here to help you make sense of the details, answer your questions, and help you file with confidence—so you can get back to enjoying your life in Austria.

Frequently Asked Questions