NEWS AND EVENTS
Austria
The Republic of Austria offers one of the highest living standards in the world. Although one of the smaller states of Europe, it has a world-class capital, Vienna, with a rich cultural and historic heritage. But Austria also boasts beautiful countryside with Alpine peaks and spectacular scenery. It is an excellent place to establish residence within the European Union and is the only EU country with an established practice of offering citizenship and a passport to substantial investors without prior residence requirements on the basis of investment in the country.
Since 1985, Austria has allowed the acquisition of citizenship on the basis of making an investment in the country. To qualify for citizenship without prior residence under the provision of the Austrian Citizenship Act § 10 (6), an applicant must provide extraordinary scientific, cultural or economic benefits to Austria. Satisfaction of this condition must be confirmed by the Austrian Government. Following such confirmation, citizenship is granted to the successful applicant.
Requirements
Under the citizenship-by-investment provisions, an applicant is required to actively invest in the Austrian economy, for example in the form of joint venture or a direct investment in a business creating jobs or generating new export sales. Generally a minimum investment of at least EUR 2 million (US $ 2.5 – US$ 3 million) is required. Passive investments in government bonds, real estate, etc. do not qualify. There are various sundry expenses which mainly consist of government charges, translation costs and notary fees (usually amounting to approximately EUR 2,000 to EUR 5,000 depending on the case).
A completely clean personal record (certificate of no criminal record), a comprehensive CV, business background information as well as impeccable references must be provided by an applicant.
A spouse and children up to 18 years of age can be included in the same application. Children who are over 18 cannot be included and no exceptions are possible. However, a separate application may be prepared and lodged at the same time. That application may then be included under the same investment, although it would then be somewhat higher that the minimum requirement.
The previous requirement that every applicant needed to show a basic knowledge of the German language was abolished in early 2006. Accordingly, for applicants applying under the citizenship-by-investment provisions, language requirements no longer apply.
Procedures and Timeframe
The average time frame for an application is between 9 and 18 months. The successful applicant receives full citizenship of the Republic of Austria, and a passport can be applied for immediately afterwards. The procedure leads to citizenship status and a passport which is identical to those issued to other citizens. The passports are valid for ten years and are easily renewable at a nominal cost. Citizenship is irrevocable unless the application was fraudulent or involved a misrepresentation.
The grant of citizenship is not published or reported to any other country, as it falls within the strict Austrian official secrecy provisions.
Dual Citizenship
The Austrian Citizenship Act generally requires the abandonment of the current citizenship of an applicant as a prerequisite to the grant of Austrian citizenship. However, in case of a grant of citizenship under the provisions of § 10 (6) of the Citizenship Act, the former citizenship can legally be maintained, i.e. the applicant is not required to give up his present citizenship.
Advantages of Austrian Citizenship
As an Austrian citizen, an investor will be considered an EU citizen. EU citizens have the freedom to settle anywhere within the European Union with no restrictions. Since June 1, 2002 the same also applies to EU citizens who wish to reside in Switzerland. Therefore, after obtaining Austrian citizenship, the person has the rights to live anywhere in the European Union, and in addition has the right to move to Switzerland, where s/he can qualify for very attractive flat-rate taxation. An Austrian passport is one of the best travel documents in the world – it allows extensive visa-free travel (more than 120 countries, including the USA).
It is important to note here that the acquisition of Austrian citizenship has no tax consequences. An applicant would personally become subject to Austrian taxation only if s/he actually decides to move to Austria and take up residence there, which of course s/he is not required to do.
Residence for Persons of Independent Means
Besides citizenship-by-investment, Austria offers the possibility for persons of independent means to become resident in the European Union with minimal requirements. The key criteria are that a person can show sufficient funds, accommodation in Austria, and health insurance that provides full coverage. An Austrian residence permit allows to travel to all Schengen states without the need for a visa.
After ten years of legal residence, a person of independent means may apply for Austrian citizenship under the regular naturalization provisions.