Legal blog by Mag. Osai Amiri, Msc

Working as a third-country national in Austria on a self-employed basis

This post examines the opportunities of third-country nationals who wish to work on a self-employed basis in Austria. A key focus in this regard is the process of applying for the Red-White-Red Card for Self-employed Key Workers, which enables non-EU citizens to work in Austria because of their economic contributions. The necessary requirements and the procedure for obtaining this special residence permit are described below.

Red-White-Red Card for Self-employed Key Workers (“Rot-Weiß-Rot – Karte für selbstständige Erwerbstätige“).

Third-country citizens who come to Austria as self-employed key workers may apply for a Red-White-Red Card for Self-employed Key Workers if the activity pursued in Austria represents a macroeconomic benefit that goes beyond a purely operational benefit.

In principle, however, certain general requirements must first of all be met by the applicant:
 
  • A health insurance covering all risks
  • Not pose a threat to public order or security

The specific requirement of macroeconomic benefit is made, in particular, by presenting evidence of
 
  • transfer of investment capital to Austria amounting to € 100.000 minimum or
  • creation/preservation of new/existing jobs or
  • transfer of know-how or the introduction of new technologies or
  • considerable significance of the business for the entire region.

For example, the Austrian Administrative Court speaks of a macroeconomic benefit when
 
  • the occupation of an alien as managing director of a company that employs two persons on a permanent basis, has a sustainable clientele and achieves annual sales between € 300,000 and € 500,000
  • the alien is the sole managing director of a limited liability company (“GmbH”) that employs nine employees and five workers and generates continuously increasing profits
  • a consistent business plan, which includes the recruitment of 30 employees, is in place.

This residence permit is valid for a period of 24 months.

Family members of holders of the Red-White-Red Card for self-employed persons may in turn apply for a Red-White-Red Card plus (“Rot-Weiß-Rot – Karte plus”).

Red-White-Red Card for Start-up Founders (“Rot-Weiß-Rot – Karte für Start-up-Gründer”).
 

Third-country nationals who intend to establish Start-ups in Austria can apply for this residence permit.

In addition to meeting the general requirements, the applicant must provide the following:
 
  • Evidence of the development of innovative products, services, processing methods or technologies
  • Business plan for establishing and running the company
  • Evidence of a personally exerted significant influence on the management of the company by the applicant
  • Capital for the company of at least € 30.000, of which at least € 15.000 equity capital
  • A minimum of 50 points according to a specific points system (e.g. for German language skills at C1-C2 level; for an age of up to 35 years; for the completion of a university degree in Austria etc.)

Products, services, processes or technologies are considered innovative if, among other things, they are new to the Austrian market and a high market demand for them is expected. The products etc. are also identified by the fact that an original or creative approach has been taken to their production, for example by combining different products or sectors or by creating new offerings.

This residence permit is valid for a period of 24 months.