Red-White-Red Card for Self-employed Key Workers
Austria is open to foreigners who invest in the economy. If your investment is deemed to be of special value, you can apply for a residence permit for the whole family. It is not required to donate or freeze the amount in the accounts: the capital must work for the benefit of the investor and the country. The red-white-red card allows you to move to Austria, do business there, teach children, enjoy social benefits, buy real estate without restrictions and travel to the Schengen countries without visas. After five years you can apply for a life-long residence permit, and ten years later you can apply for Austrian citizenship.
Program's details
- €3 mln approximate capital for participation in the program
- Profitable investment no donations and non-refundable payments
- 4-6 months fast obtaining a residence permit
- Moving to Austria required, but soft rules for staying abroad
- For the whole family the application includes spouse and children
- The right to work doing business, teaching children, social guarantees
- Visa-free travel unlimited travel within the Schengen area
- The term of the residence permit is not limited permanent residence in 5 years, citizenship in 10 years
The official website of the program
-
About the Program
A foreign investor can obtain a residence permit in Austria for himself and his family members if he qualifies as a “self-employed top manager”. According to the law (AuslBG § 24 Abs. 1), this status is granted to a person who “transfers investment capital” to Austria and thus “creates or maintains a number of job positions”. These job positions must be of particular value to the Austrian economy as a whole ("besonderer gesamtwirtschaftlicher Nutzen") or regional significance ("Bedeutung für eine Region").
There are no exact requirements for the number of created job positions. The law specifies the minimum investment threshold of about €100,000. But this amount is nominal, since in practice it is impossible to create a business, which will be recognized as “economically significant” with such capital. Each project is considered individually. According to the experience of immigration lawyers, significant projects under this program require about €3 mln.
A self-employed top manager does not have to be involved in the day-to-day activities of the company. It is enough for the applicant to bear economic risk, to control the strategy and major decisions of the company, for example, as a member of the supervisory board.
The first residence permit (red-white-red card) is issued for a period of two years, then it may be extended for three years. After five years of residence, you can apply for a permanent residence permit (Daueraufenthalt - EU), which allows you to reside not only in Austria, but also in all EU countries. This permit does not need to be renewed and is valid "forever". Ten years later the applicant receives the right to apply for Austrian citizenship.
ПThe Austrian "Red-White-Red Card for Self-employed Key Workers" program(exists since 2011) is popular among wealthy non-Europeans planning to relocate to Austria, as the chances of success are high and the time period for obtaining a status is four to six months.
Investment Options
-
€5 mln +
Commercial real estate
The purchase or construction of a commercial property that maintains or creates job positions and has regional economic significance. As a rule, these are hotels or resort chalets.
-
€4 mln +
Private joint-stock
Purchase of a controlling interest in an already existing Austrian company. The transaction must ensure the continuation and/or expansion of the business.
-
€3 mln +
Innovative startup
Establishment or funding of a start-up in innovative fields of IT, biotechnology, pharmaceuticals, artificial intelligence, precision engineering, etc. Typical venture capital funding.
The purchase of ordinary residential real estate, regardless of its value, the purchase of government securities or the placement of funds on a deposit account in an Austrian bank will not qualify as an “economically significant project” under this program.
All amounts shown are indicative, based on the experience of immigration advisors.
-
Residence Permit for Family Members
Relatives can also obtain a residence permit called "red-white-red card plus":
- an officially registered spouse (the spouse must be at least 21 years old);
- children under 18 years old, as well as children over this age, if they are studying in Austria.
Investor requirements:
- to present an investment project that "meets the interests of the economy as a whole".
- to have necessary funds to invest in liquid assets.
- to have no criminal record.
- German language is not required for the investor themselve, but is necessary for the family members, with the exception of children under 14 years of age. It is necessary to submit the EU A1 level certificate (the most basic).
-
Documents
The business plan and company incorporation documents are required to be submitted in German. Papers issued in other countries must be translated into German. Official documents from countries outside the EU should be apostilled.
For the investor and their family members
- Valid passport
- Valid Austrian visa: Schengen type C visa or Austrian type D visa valid for six months
- 1 passport photo
- Birth certificate
- Proof of residence in Austria, such as a rental contract or housing ownership certificate
- Medical insurance
- No criminal record certificate from the last country of residence for all adult family members
- For spouse: marriage certificate or partnership registration
- German EU A1 level certificate - for family members over 14 years old
- Proof of constant sufficient income for the economic support of family members
For an investment project
- A detailed business plan showing the economic benefits, the number of created or saved job positions, the expected income from the investment project. The business plan must be in German.
- The documents of the company incorporation should be in German.
- Confirmation of investment funds with liquid assets - in an Austrian bank or in any other recognized large international bank.
- Proof of legal ownership of the investment funds. This will be required for the KYC-check at an Austrian financial institution.
Please note!The law does not set up restrictions on the type of legal entity - any company structure is possible. The most common option is a limited liability company (GmbH, Gesellschaft mit beschränkter Haftung).
Shareholders can be individuals (for example, the investor himself) or legal entities (for example, holding structures in Liechtenstein) that reduce the tax burden.
Expenses
-
State fees
State fee for registration of a residence permit:
– €160 for each applicant,
– €145 per child under six years old.
-
Administrative expenses
The fee for the translation of documents into German by a state certified translator is €1.5–3.0 thousand (rate - €180 per page).
Official documents in English from foreign banks or companies are usually accepted
-
Lawyer's fee
Company registration - € 5-15 thousand, depending on the complexity of the structure (holding companies, international beneficiaries, etc.).
Legal fees, tax advice, business plan development and general project management – from €20,000 for simple standard projects to €150,000 for complex large private equity investments
-
Rights and Obligations
- The red-white-red card permit for obtaining residency in Austria must be renewed after two years. The renewal procedure is a formality if the investment is working according to the plan.
- After five years of uninterrupted residence in Austria, it becomes possible to apply for the Daueraufenthalt - EU permanent residence permit, which will be valid "forever" in all EU member states. To obtain this status, it is necessary to prove knowledge of the German language at a level not lower than B1 in accordance with the mandatory EU standard (fluency in writing and speaking German in everyday life).
- After ten years of residence in Austria, the investor and his family can apply for Austrian citizenship. However, the procedure is strict and requires a good knowledge of the local language, Austrian culture and traditions, excellent integration into Austrian social life.
- An investor who has a red-white-red card has the right to work only as self-employed. His spouse may be self-employed or work for hire.
- Children under the age of 18 have the right and obligation to attend a kindergarten and school in Austria.
- Holders of an Austrian residence permit can freely move around all EU countries and stay up to 180 days a year anywhere in the Schengen area. In many federal states of Austria there are restrictions on the sale of real estate to foreigners without a residence permit. Holders of the red-white-red card can buy apartments and houses for personal residence without the need to obtain a special permit.
- The holder of a residence permit is obliged to pay contributions to the Austrian social security system: health insurance for each family member, pension contributions for each adult who has not reached the required age (retirement age - 65 years for a man, 60 years for a woman). As a result, all family members have access to Austrian medicine and in the future will be able to receive a pension in Austria in accordance with payments made during active business activities.
- Residence permit for a self-employed top manager imposes the obligation to implement the declared project in accordance with the business plan. The company's activities will be verified upon renewal of the status.
- Residence permit holders are required to actively reside in Austria, that is, to spend at least six months a year in the country. The status also leads to a change of tax residence. However, do not forget that Austria has agreements on the avoidance of double taxation with most jurisdictions.
The procedure for obtaining
