Long-term residence permits for self-employed skilled workers

The Red-White-Red – Card for Self-Employed Key Workers targets third-country nationals who want to establish a company, which will offer high added value to the Austrian economy or will provide added impetus, or which will have an outstanding positive effect on Austria’s economic development (“macroeconomic benefits”).

This is reflected by the requirements which must be fulfilled when you become involved in the company. There are several options:

• the sustainable transfer of investment capital to Austria equalling a minimum of € 100,000.
• that new jobs are created, or existing jobs are secured
• that the subsidiary or branch office will involve a transfer of know-how or the introduction of new technologies
• that the company is of significant importance to the entire Austrian region.

The Red-White-Red – Card for Start-up Founders targets third-country nationals whose future company must comprise an innovative enrichment of the Austrian economy. Among the prerequisites is providing proof of an investment transfer of at least € 30,000.

A start-up within the meaning of the Red-White-Red – Card for Start-up Founders is a company which develops innovative products, services, processes or technologies and launches them on the Austrian market. Innovations mean that something new or a new idea or invention is involved. A characteristic feature of such a company is that the founding of the company goes hand in hand with the objective of growing strongly and generating a high value. This must be presented in the business plan.  

In practice, these companies are generally in the technology sector, above all in fields involving cutting-edge technologies and the internet (e.g., e-commerce, application software, financial technology, new manufacturing processes, Industry 4.0 or aeronautical and aerospace engineering). Generally, approval for start-up founders in connection with the establishment of handicraft businesses is not possible. A franchise is also not considered to be a start-up.

1. sustainable transfer of investment capital to Austria equalling a minimum of € 100,000.

The transfer of financial resources from abroad must have already taken place or there must be a realistic prospect of this taking place in the near future. For this purpose, you must show proof in which you demonstrate that you have a specific amount of financial funds at your disposal at any time. This involves the direct transfer of capital from abroad for the purpose of setting and building up a company. In practice, for example, you have to show that the funds are available on a bank account and present a business plan outlining which purchases or acquisitions are to be carried out with the investment capital. A declaration on your part is not sufficient to show the transfer of capital. The payment of share capital itself does not represent the transfer of investment capital. The Austrian Public Employment Service (“Arbeitsmarktservice”; short: AMS) carefully examines all these details.

2. new jobs are created, or existing jobs are secured

In principle, this means that several full-time jobs must be created. You have to show evidence of this (e.g., relevant details specified in the business plan) which is carefully reviewed by AMS.

3. transfer of know-how or the introduction of new technologies

In your business plan, you must explain in detail how know-how will be contributed to the company in connection with your participation, qualifications and position in the company. Qualifications can be shown, for instance, by presenting a university diploma and/or professional experience.

4. company is of significant importance to the entire Austrian region.

This means that you must explain in your business plan in which ways the company you will establish or your participation in an existing company will be of great importance to the entire region.

If you apply for a Red-White-Red – Card for Start-Up Founders, you have to show, first, that

1. you are actually able to exert a significant influence on the management.

This means that you make business and strategic corporate decisions and thus provide important impetus to determine the direction your company is taking. For example, you can demonstrate this by presenting the articles of association or shareholder agreement which shows that you not only have a substantial shareholding in the company but that you are appointed to be the managing director.

2. you have at least € 30,000 in capital at your disposal (of which at least half is equity capital).

In order to receive this Red-White-Red – Card, you have to receive a sufficient number of points in the legally stipulated point system. There are four categories of criteria in which you can collect points:

1. Qualifications (training or education)
2. Professional experience which you gained in your specialised area after your studies or training
3. Language skills in German and English
4. Additional points (e.g., additional capital of at least € 50,000, specified funding, age of up to 35)

Here you can find the entire point system regulating the Red-White-Red Card for Start-up Founders.