The biggest business trends for 2023
05/05/2023
I´m sure you know Austria´s many facets – Mozart, Sisi, cake and coffee, New Year´s Concerto, Blue Danube Waltz, Beethoven, the mountains, Falco, and The Sound of Music. Well, that´s not all………..by far.
I deeply believe that Austria´s economy is of more interest for you. And so be it……
It is best known for its skilled workforce and market economy, what Austria represents in trade, service, tourism, or agricultural sectors. Foreign trade is a growing area given the close ties the country has with Germany and other EU nations. And it became more than an insider tip for profitable investments.
Austria is classified as one of the most ecologically natural and beautiful countries. It is also a great place to run a profitable business. World Bank ranked Austria high for its business conditions.
Austria plays an important role as part of the EU, because of the border with eight countries. Austria has a consistently high quality of life, and low crime rates. This all contributes to making the country an attractive location for setting up a business or relocating the family.
Benefits of starting a business in Austria
In addition to this, businesses pay only 24% corporate tax and are entitled to other government benefits such as research and development tax credits. The chances that talented and skilled workforces form a new business are extremely high.
And the country has also invested in state-of-the-art telecommunications and transportation systems that are favorable for business scalability.
Austria also protects foreign investors with strict legal frameworks. In addition, it also provides investors with benefits for the purchase of real estate and grants for starting small businesses – or bigger ones. There are less bureaucratic costs and a business can be started easily by following well-established government procedures.
[By the way, – talking PLPG, we can say that our company delivers cutting-edge support to companies who would like to develop in Austria (or abroad) through advisory, knowledge management, and different grant opportunities.]
Companies also have many investment opportunities in:
- Real estate
- Techcompanies ( Fintech, Fidomoney etc. )
- Vienna Stock Exchange
- Health Sector
Real estate
Business real estate in Austria mainly consists of objects in numerous industries, like hospitality, office towers, factories, and the like. Both commercial and residential real estate are great investments, but you should remind that the Austrian market has a number of specifics that everyone who wants to become a real estate owner in this country must know.
- A foreigner has the right to buy real estate only after receiving permission from the competent authorities of the federal state.
- The growth of real estate prices in Austria is insignificant due to the low mortgage rate for citizens (about 5% of the value of the real estate itself)
- The western federal states – Salzburg, the Tyrol, and Vorarlberg – have the strictest real estate laws
Tech companies
Tech companies are on the rise in Austria. The field is numerous, so be assured: concerning investments – you will be able to find your match. Therefore, and also because of the latest successes, we focus on FinTech companies in this article.
Fintech (the fusion of finance and technology) is a rising industry that affects more and more spheres of activity, especially investors.
Not only crypto currencies are topic, much more interest cause financial services, e.g. international money transactions in real time. How big Austrian startups – or even scale-ups – are, shows the 263 million US-dollar Series-C-Round of the Austrian FinTech Bitpanda.
The following are just a few examples of Austrian based or represented FinTech companies:
- Bitpanda
- Fidomoney
- Addiko Bank
Vienna Stock Exchange
Who owns the Vienna Stock Exchange?
Wiener Börse AG
It is operated by Wiener Börse AG and is subject to supervision by the Austrian Financial Market Authority (Finanzmarktaufsichtsbehörde – FMA). Wiener Börse AG, an Austrian joint stock corporation, is a member and subsidiary of CEE Stock Exchange Group (CEESEG), which also operates the Prague Stock Exchanges.[1]
At the end of December 2021, the market capitalization of domestic companies listed on the prime market segment was €127.50 billion (approximately US$144.31 billion) (December 2020: €94.27 billion (approximately US$106.70 billion)). The aggregate market capitalization of all companies listed on the regulated market as of December 2021 was approximately €157 billion (approximately US$177.70 billion).
Health Care
Thanks to excellent medical care, the Austrian healthcare system is among the best in the world. Due to high investments in medical progress, Austrian healthcare institutions are equipped with state-of-the-art technology. Optimal patient care, health promotion in accordance with needs and consistent prevention are among the priorities of the Austrian healthcare system.
In Austria, the health care system is mostly financed by contributions for social insurance and taxes, and to a lesser extent by private funds such as, for example, prescription co-payments, cost-sharing, daily hospital co-payments and private health insurance contributions.
Based on just a few examples it is obvious that Austria offers a lot of opportunities in the business area. Let me give you a last opportunity: as a bridge to Europe, Austria offers entrepreneurs from non-EU-countries the whole European single market. So, give it a thought! Just in case…………
[1] https://resourcehub.bakermckenzie.com/en/resources/cross-border-listings-handbook/europe-middle-east–africa/vienna-stock-exchange/topics/overview-of-exchange#:~:text=It%20is%20operated%20by%20Wiener,operates%20the%20Prague%20Stock%20Exchanges.
Photo: pixabay.com // Graphic OTA & Tomka
