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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15436
Experience:  International tax
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I have moved to Austria and I am due to start my self employment

Resolved Question:

I have moved to Austria and I am due to start my self employment (freelance web design) with the Austrian tax system on March 1st after previously living and working in the UK.
I have registered but was a little surprised at the low none-taxable allowance and the high tax rate - also the monthly and yearly charges associated with working here. As a UK citizen previously self-employed in the UK is there anything I can do to bring these costs down? Are there any loopholes that would benefit me? All of my work will still come from the UK via my previous clients and I have moved here as my fiancee was secondered here for her job so obviously wanted to follow but it means taking a large hit on my finances.
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Income tax is charged at progressive rates (the more you earn, the more you pay). That is not a different concept really.
You will be entitled to a basic tax-free allowance (which may vary depending on your personal circumstances).
You may be entitled to deductions for some expenditure. Like in the UK and in the same way Travel Expenses are allowed as a deduction.
Depreciation is allowed as a deduction (the UK has a capital allowances system rather than a deduction for depreciation it is similar).
As a general rule, the taxable profit of a small business and
freelance professionals is calculated on a cash basis.
You would be allowed income producing expenses to deduct from your self employment.
Customer: replied 2 years ago.

Thanks. I understand the tax rates, but I was hoping there would be some alternative route I could take as a UK citizen to avoid paying the high tax rates in Austria, based on the fact that all my work is coming from the UK and that I am only in Austria rather than the UK to support my fiancee who was secondered here. It was a long shot.

Expert:  TaxRobin replied 2 years ago.
Your work will be coming from the UK but you will be performing that work in Austria.
TaxRobin and other Tax Specialists are ready to help you

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