Working remotely from abroad for an Austrian employer: tax pitfalls in 2026

If you live outside Austria and work for an Austrian employer, including from home, several questions can arise: which country may tax your salary, whether you must file an Austrian tax return, and how remote-work allowances apply. The place where you physically perform your work is particularly important.

What is a cross-border commuter under Austrian tax law?

A cross-border commuter (Grenzgänger) generally lives in one country and regularly travels to another country to work. People who travel to Austria from abroad are often described as inbound commuters.

The Austrian “Grenzgänger” residence permit (Aufenthaltsbewilligung) applies only to third-country nationals, meaning people who are not citizens of the EU, EEA or Switzerland. Tax rules are separate from residence-permit rules and may still apply to your situation.

Where are you taxed if you live abroad?

If you do not have a residence in Austria, you are generally subject to limited tax liability (beschränkt steuerpflichtig) in Austria. This normally means that only your income from Austria is taken into account, while income from other countries is not.

Special treaty rules for cross-border commuters exist for Germany, Italy and Liechtenstein. Under those rules, the country of residence may have the taxing right. There is no such special rule in every treaty. Austria may therefore generally tax commuter income as the country where the work is carried out, while different methods are used to avoid double taxation.

Be careful about overnight stays

If you sleep in Austria for at least part of your working days, you may establish a habitual abode (gewöhnlicher Aufenthalt) after six months. In that case, you may become subject to unlimited tax liability in Austria.

Why does the place of remote work matter?

As a general rule under double taxation agreements (Doppelbesteuerungsabkommen, DBA), employment income is taxed in the country where the work is physically performed. The country of residence must then exempt the income or take foreign tax paid into account.

This creates one of the main remote-work pitfalls: days worked from your home abroad may be treated differently for tax purposes from days worked in Austria. Treaties differ, so the treaty position should be clarified professionally in individual cases.

If the other country has the right to tax the income, the filing and payment obligations must be handled under that country’s rules. The employee and/or employer must ensure that the tax treatment is correct; the Austrian tax office cannot provide assistance with this issue.

How is Austrian tax paid?

The Austrian employer usually deducts wage tax (Lohnsteuer) when paying your salary and pays it directly to the tax office. The calculation generally works in the same way as for other Austrian employees.

Even with limited tax liability, an employee tax assessment (Arbeitnehmerveranlagung) may be mandatory. You can also file voluntarily to claim work-related expenses (Werbungskosten). In that case, an annual amount is added to the tax base:

• 2024: 10 486 euros
• 2025: 10 888 euros
• 2026: 11 077 euros

If a voluntary return would result in additional tax, you can withdraw it provided there is no mandatory filing requirement.

When can you choose unlimited tax liability?

As an EU/EEA citizen without an Austrian residence, you may choose unlimited tax liability in your tax return if your main income comes from Austria. The conditions are that 90 percent of your income comes from Austria, or that your foreign income does not exceed the annual tax-free threshold (tarifmäßige Steuerfreigrenze).

• 2024: 12 816 euros
• 2025: 13 308 euros
• 2026: 13 539 euros

Only your Austrian income is still taxed, but the additional amount is not applied. You may also claim personal allowances, such as Familienbonus Plus, the single-earner allowance, the single-parent allowance and the maintenance payment allowance, as well as extraordinary expenses.

Remote-work allowance: how much can be tax-free?

Since 2025, the former Homeoffice-Pauschale has been called the remote-work allowance (Telearbeitspauschale). Remote work includes regularly working in your home or another location that does not belong to the company, including a coworking office.

• Employer allowance: up to 300 euros per year, calculated as 3 euros per day for a maximum of 100 days; a remote-work agreement is required.
• Ergonomic furniture: up to 300 euros if you work remotely on at least 26 days per year.

For example, if the employer pays 1 euro per day for 100 remote-work days, a total of 100 euros, the remaining 200 euros automatically appears as an expense in the tax return if the days are recorded on the payslip (Lohnzettel). Each allowance requires a remote-work agreement (Telearbeitsvereinbarung) with the employer.

Social-security rules must be considered separately from tax rules. The remote-work location may therefore require a separate assessment.

Frequently asked questions

Do I need a Grenzgänger residence permit?

No. This residence permit applies only to third-country nationals. The application fee is 218 euros.

What can I do if I disagree with my tax assessment?

You can submit an appeal (Beschwerde) to the tax office within one month of receiving the assessment. The Federal Fiscal Court decides the case.

How can I submit the tax return?

You can file electronically through FinanzOnline, by post or in person at the competent tax office.

Can I claim the remote-work allowance for work performed abroad?

The allowance requires regular remote work in your home or another non-company location, together with a remote-work agreement. The double taxation agreement determines which country may tax the work performed abroad.

Practical steps

1. Record where you physically work each working day, including days worked in Austria and abroad.
2. Check your residence position and whether overnight stays in Austria could create a habitual abode after six months.
3. Review the applicable double taxation agreement to determine which country may tax the relevant workdays.
4. Ask your employer to document the remote-work arrangement in a Telearbeitsvereinbarung.
5. Check that eligible remote-work days appear on your Lohnzettel and keep records of related expenses.
6. Determine whether an Arbeitnehmerveranlagung is mandatory or whether a voluntary filing is beneficial after considering the 2026 additional amount of 11 077 euros.
7. Submit the return through FinanzOnline, by post or in person, and seek professional advice where the treaty position or social-security treatment is unclear.

This information is based on publicly available sources and is not professional advice. Use it at your own risk and consult a lawyer, tax professional, employment specialist or other relevant professional for advice on your individual circumstances.

Source: oesterreich.gv.at