Why Expand to Austria?

Austria has long been recognized as one of Europe’s strongest economies, with a reputation for innovation and a stable, business-friendly environment. For many entrepreneurs, it represents an ideal opportunity for international growth. Its strategic location in the heart of Europe, access to a skilled workforce, high standard of living, and excellent infrastructure make it a compelling market for expansion. Together with Lucie Hašek, host of the DoDACHu podcast, we highlight the main advantages of entering the Austrian market.

A Stable Economy and Strong Market Demand

Austria is known across Europe for its economic resilience and low levels of financial risk. It ranks among the continent’s most developed nations, and Austrian consumers are distinguished by their strong purchasing power and willingness to invest in quality.

Lucie Hašek explains:

“Austria offers a stable and predictable business environment, underpinned by strong political and social stability. Since March 2025, a new government has been in office, but the country remains a reliable destination for business. Its excellent infrastructure, strategic location, and well-educated workforce contribute to the competitiveness of the local market. Even in the face of economic challenges like high energy prices and inflation in 2023, Austria continues to attract investors.”

“Thanks to its legal certainty, high quality of life, and supportive environment, Austria helps minimize economic risks for expanding companies. Many global firms, like BMW, have chosen Austria as the site for production and logistics centers precisely because of its strategic advantages and strong legal framework,” she adds.

Strategic Location in the Heart of Europe

Austria’s central position in Europe provides easy access to neighboring markets. It serves as a gateway to the broader DACH region, making it an ideal base for further expansion.

Austria also ranks among the world leaders in logistics. Deliveries are smooth and fast—a standard that Austrian consumers have come to expect. Well-developed digital infrastructure, efficient logistics, and cultural and linguistic proximity to Germany lay a strong foundation for thriving in e-commerce.

A Business-Friendly Environment

Austria offers a stable, transparent, and supportive setting for businesses. Attracting foreign investors is a priority for the Austrian government, which actively works to facilitate business establishment and growth.

Lucie Hašek notes:

“The Austrian Business Agency (ABA) plays a crucial role in supporting international firms. In 2024, the agency helped 309 companies launch or expand their operations in Austria, resulting in investments of approximately €1.1 billion.”

In addition, Austria has introduced new legal frameworks to make it easier to start a business. For example, a new company structure—the Flexible Capital Company (FlexKapG or FlexCo)—was introduced in 2024. Specifically designed for startups, it offers more flexibility in securing capital and allows employees to take part in company ownership. This move further enhances Austria’s appeal as a hub for innovation and entrepreneurship.

Access to a Skilled Workforce

Austria boasts a highly skilled labour force, supported by a high-quality education system. Local employees are well-trained, efficient, and accustomed to high-performance work environments. Language skills are another plus, as many Austrians speak both German and English.

Lucie Hašek emphasizes:

“Austrian universities are adapting to digital demands, offering programs in artificial intelligence, cybersecurity, and data science. On top of that, Austrian businesses invest heavily in the continuous education of their teams. This helps maintain a high level of technical knowledge and the flexibility to respond to evolving market needs.”

A High Standard of Living

One of the advantages of entering the Austrian market is the country’s high standard of living, which directly influences consumer behaviour. Much like in Germany, entrepreneurs can operate with higher margins, as Austrian customers are not necessarily focused on finding the lowest price. Instead, they tend to prioritize quality. In e-commerce especially, the perceived trustworthiness of an online store plays a crucial role in purchasing decisions.

But Austria’s quality of life is also attractive from a business operations standpoint. It makes the country appealing to skilled professionals and expats, which helps companies attract top talent more easily. The welcoming environment, modern infrastructure, and overall living conditions make Austria a desirable destination not just for doing business—but for living and working as well.

Innovation and Research Are Strongly Supported

Austria is known for its commitment to innovation, research, and technological advancement. This makes it a prime location for businesses in high-tech, biotech, and other research-driven industries.

While Austrian businesses may be cautious in their international marketing strategies, this opens the door for Czech and other international entrepreneurs to take the lead in branding and outreach.

Building Long-Term Business Relationships

Austria has a well-developed sense of business ethics and places strong emphasis on building long-term relationships between business partners. Thanks to its strict legal framework, corruption and unethical practices are effectively curbed, resulting in high levels of transparency and accountability in business dealings.

Lucie Hašek summarizes: “In Austria, strong and lasting business relationships are built on mutual trust and dependability. Once you gain the trust of an Austrian partner, you can expect a stable, long-term collaboration—a key element for sustainable success in the market.”

In Conclusion

There are several reasons to enter the Austrian market. Entrepreneurs can benefit not only from the strong economy, strategic location, and favourable business environment, but also from Austria’s significant support for innovation and research. Austrians are also open to various eco-friendly solutions, which makes it an attractive market for companies specializing in these areas.

Before diving into your expansion to Austria, it’s crucial to carefully weigh the pros and cons. Focus on understanding the local legal, economic, and cultural conditions to avoid surprises when entering the new market. We recommend reading our article How to Successfully Expand to Austria, which answers fundamental questions and provides essential guidance.

If you want to make the process smoother, it’s wise to seek the assistance of experts and legal advisors. They can make your expansion to Austria much easier. We’re happy to offer comprehensive support and assist with your specific needs.