Retiring in Austria comes with many benefits including a good standard of living. However, before you decide to live your golden years in the country, there are certain things you must know such as the cost of living, pension system, health insurance, tax policies, et cetera. You can always research these things online before checking out the housing options in the country. Offering its citizens a high quality of life, great social security, low crime, affordable cost of living, and several others, it’s not a mystery why millions of expats consider the country a retirement destination.
Who can retire in Austria?
The official retirement age for male employees is 65 while 60 years for female employees. However, there is an option of early retirement. To receive a pension after retirement, you must have made some savings for a minimum of 15 years. If you have contributed to a pension scheme in EU member states, there is no need to claim a separate pension. EU/ EFTA nationals pay social security contributions in one country, which leaves the country of residence to decide which system applies to them. Some non-EU countries such as the United States have agreements with Austria, which covers pension insurance for citizens with employment within the country.
Some important things to know if you want to retire to Austria are explained below.
Types of Pensions
There are two types of pensions; contributory, where the employer subtracts 10.25% of the total income earned by an employee as a contribution then adds up 12.55% as the employer’s contribution, and no-contributory, where the government contributes to certain citizens. To qualify for a pension, an employee must contribute up to 15 years of his or her income. You can have access to more information through the Austrian pension system.
Transferring a pension to Austria
For EU nationals moving to Austria, your pension can be easily paid into your new bank account. For UK citizens, the Qualifying recognized overseas pension scheme allows you to transfer your pension rights while providing an option of how and where to invest your pension fund. For non-EU citizens looking to retire in Austria, there is no such policy. However, there are certain countries with social security agreements with Austria. So, it’s best to see if your home country is one of them.
Taxes on your pension fund
Austria runs a pay-as-you-go tax system, meaning your pension fund is not subject to tax on investment income earned on your or your employer’s contributions. This is because taxes are defined by how much you earn in a year.
Inheritance policy
Austria currently offers no inheritance tax for residents. However, in the case of a property transfer, there can be a transfer tax of 2-3.5% depending on the type of relationship between you and your successor. You can choose to transfer your properties to your desire, but according to the Austrian civil code, your mandatory heirs are allowed to stop the donation of all your estate to another person. Should in case you don’t write a will, your entire property goes to the mandatory heirs. However, in the case where there is no relative to inherit your estate, everything goes to Austria.
Cost of living
For retirees looking to live in Austria, there are numerous cities in the country, each with its beauty and cost of living. Some cities in Austria have a relatively high standard of living, but the country’s cost of living is still preferable to some other European countries. If you are looking for a city with a good and affordable transport system, try Linz. You can live in Graz, one of the most affordable cities, and enjoy the beautiful landscapes, culture, and nightlife.
Healthcare for Retirees
Austrian healthcare is accessible to all residents in the country. Offering an excellent healthcare system, anyone can access medical care regardless of age or income. Public health insurance covers everyone who is working, physically disabled, studying, or retired. It is the duty of employers to register their employees for healthcare insurance. However, as a retiree, you will need to register as a resident in the country before taking out voluntary insurance, which earns you a European health insurance card. The E-card grants you access to public healthcare services in 27 European Union countries. Private healthcare can be taken as a supplement to your insurance.
As a country that loves seniors, Austria provides discounts to pensioners. The senior travel discount grants discounts to anyone above 64 years on Austrian trains.
