Austria

Austria's Investment Control Act (Investitionskontrollgesetz — ICA) continues to apply a wide-scope, low-threshold screening framework to non-EU/EEA/Swiss acquirers, with the BMWET taking a broad and formalistic approach to sector coverage. Internal corporate restructurings remain notifiable on a case-by-case basis, and no clear pattern of non-notifiable restructurings has emerged from BMWET practice, elevating transaction-planning risk for inbound investors.

White & Case LLP · 2026-03-31

The Austrian Business Agency (ABA) has recorded a significant increase in consultations from international companies, indicating sustained inbound interest in investment, talent, and expansion opportunities despite the subdued macroeconomic backdrop. Austria's Federal Government has concurrently emphasised competitiveness-enhancing measures, including streamlining approval procedures and facilitating international skilled-worker mobility.

Chambers and Partners — Global Practice Guides · 2026-01-20

FDI inflows into Austria in the first half of 2024 stood at USD 2.6 billion according to OECD data, with the professional, technical and scientific activities sector accounting for 60.1% of the stock, followed by financial intermediation at 10.4% and real estate at 7.3%. Government approval thresholds under the ICA are set at 25% stake acquisition, reduced to 10% for highly sensitive sectors including military technology, critical energy infrastructure, digital infrastructure, and medical research and development.

Lloyd's Bank Trade — International Trade Portal · 2026-03-01

Austria's Economy and Energy Minister Wolfgang Hattmannsdorfer publicly urged the European Union to accelerate free-trade agreement negotiations with the United Arab Emirates on 20 May 2026, citing stalled progress after one year of talks and six negotiating rounds. The minister's intervention followed the completion of a USD 60 billion-plus merger between state-owned chemical companies in both jurisdictions and framed the EU-UAE trade gap as a strategic risk to Austrian export and investment opportunities.

Bloomberg · 2026-05-20

The United States International Trade Commission (USITC) completed preliminary determinations on 18 May 2026 in investigations (Nos. 701-TA-791 and 731-TA-1781) finding a reasonable indication that the U.S. industry is materially injured by imports of Oil Country Tubular Goods (OCTG) from Austria, Taiwan, and the United Arab Emirates. The determinations, published in the Federal Register on 21 May 2026, initiate a formal countervailing and anti-dumping duty investigation track that could result in additional U.S. import duties on Austrian steel tubular products.

U.S. International Trade Commission / Federal Register · 2026-05-21

Austria's Foreign Trade Act (Außenwirtschaftsgesetz) is being amended and renamed the Security Export Act (Sicherheitsexportgesetz), introducing expanded dual-use notification obligations — including for domestic sales — new national general export authorisations for goods not covered by EU Regulation 2021/821, and longer authority review deadlines. Companies with dual-use or defence-adjacent product lines face increased compliance burden, particularly given the proposed extension of notification requirements to intra-Austrian transactions.

CMS Law-Now · 2026-03-02

The European Commission's Spring 2026 Economic Forecast, published in the week of 21 May 2026, projects Austrian real GDP growth of 0.6% for 2026, unchanged from 2025, with risks tilted to the downside. The Iran conflict has generated an energy price shock that disrupted a nascent recovery — industrial confidence had reached a two-year high in January before deteriorating — and the government deficit is projected to remain above 4% of GDP through 2027, with the debt-to-GDP ratio rising to 84.9% by 2027.

European Commission — Directorate-General for Economic and Financial Affairs · 2026-05-21

Bank Austria's May 2026 economic update projects average inflation of 3.0% for 2026, driven by energy price increases linked to the Iran conflict, with the unemployment rate expected to edge up to 7.5% before stabilising. The governing coalition has agreed on the cornerstones of a double budget for 2027–28 targeting deficit reduction to 3% of GDP by 2028, with EUR 2.5 billion earmarked for consolidation and EUR 2.6 billion for offensive measures including a one-percentage-point reduction in non-wage labour costs.

Bank Austria — Austrian Economy Research · 2026-05-15

The OECD's 2026 Economic Survey of Austria identifies eroded industrial price competitiveness — driven by rising energy costs and rapid post-inflation wage growth — as a structural constraint, alongside a substantial fiscal deficit. The OECD projects GDP growth of 1.1% in 2026 and 1.3% in 2027, contingent on implementation of fiscal consolidation and structural reforms including easing product-market regulation, accelerating digitalisation, and upgrading electricity grid infrastructure to support renewable energy uptake.

OECD — Economic Surveys: Austria 2026 · 2026-03-19

Austria's residential rental market has undergone a structural reform effective 1 January 2026, raising the minimum fixed-term lease duration from three to five years for professional landlords, with rent increase caps phased in from April 2026 and April 2027. The reform affects a large share of the regulated rental market and has direct implications for workforce mobility planning and expatriate housing cost structures for market entrants.

Recom Relocation Blog · 2026-01-18

Employers in Austria hiring third-country nationals in 2026 face updated immigration rules including increased salary thresholds, higher financial reference rates, and revisions to the shortage occupation list that may restrict access to the simplified Red-White-Red Card process for certain roles. These changes elevate hiring costs and extend recruitment timelines, with material implications for workforce planning in sectors dependent on non-EU skilled labour.

Vialto Partners · 2026-01-22

Austria is transposing EU Directive 2023/970 on pay transparency, with a compliance deadline of 7 June 2026 for employer-scope confirmation and reporting obligations. Concurrently, the EU Consumer Credit Directive (2023/2225) requires application to new contracts from 20 November 2026, broadening the definition of 'credit' to encompass buy-now-pay-later arrangements, zero-interest financing, and deferred payment instruments, expanding compliance obligations for financial-services market entrants.

Global Law Experts / Chambers and Partners — Banking Regulation 2026 · 2026-05-01