What's the best way to live in Vienna for 6-9 months?
June 20, 2015 5:54 AM Subscribe
My SO will be doing research in Vienna from September-June 2016, and we've decided our child will stay in Vienna as well, and I'm thinking about joining them. I have a good job in the US that I can not take with me, but I might be able to cobble together enough freelancing work (I'm a programmer) so that it's not a complete financial bloodbath. What should I look out for in terms of laws about taxes and working in the EU/Austria? (nb: US citizen)
I know I'll owe US taxes, and can't deduct Austrian taxes unless I live abroad for 330+ days, which is unlikely. Do I need to pay Austrian income taxes if I'm there for less than 330 days? Do I need to pay city/state taxes in the US on my income? Any gotchas I'm missing?
I know I'll owe US taxes, and can't deduct Austrian taxes unless I live abroad for 330+ days, which is unlikely. Do I need to pay Austrian income taxes if I'm there for less than 330 days? Do I need to pay city/state taxes in the US on my income? Any gotchas I'm missing?
I can't vouch for the accuracy of the answer because I just found it by a quick google, but this site has an answer re: paying Austrian income tax.
posted by flug at 8:04 AM on June 20, 2015
posted by flug at 8:04 AM on June 20, 2015
This site seems to have a good summary and links to resources about the U.S. tax side of things. From a quick read-through, it looks like you won't qualify for the Foreign Earned Income Exclusion (which would allow you to just exclude all income earned in Austria from your U.S. taxes) unless you live there for 330 days out of 365. Ditto for the foreign housing allowance.
BUT: Regardless of that, my understanding is you will be able to deduct the amount paid in Austrian income taxes from your U.S. income taxes. So, much like if you work in one U.S. state and live in another, you are likely to end up paying up to the higher of the two rates but not double-paying.
There are quite a lot of complexities there and a lot of angles due to the various types of taxes you might be subject to, and reporting both income and other related things like foreign bank accounts, so I would definitely find and hire a good tax accountant who is very familiar with all the rules and regulations in both countries.
posted by flug at 8:16 AM on June 20, 2015 [1 favorite]
BUT: Regardless of that, my understanding is you will be able to deduct the amount paid in Austrian income taxes from your U.S. income taxes. So, much like if you work in one U.S. state and live in another, you are likely to end up paying up to the higher of the two rates but not double-paying.
There are quite a lot of complexities there and a lot of angles due to the various types of taxes you might be subject to, and reporting both income and other related things like foreign bank accounts, so I would definitely find and hire a good tax accountant who is very familiar with all the rules and regulations in both countries.
posted by flug at 8:16 AM on June 20, 2015 [1 favorite]
The first thing to look at would be how to get a long-term visa.
posted by mkuhnell at 3:29 PM on June 20, 2015 [1 favorite]
posted by mkuhnell at 3:29 PM on June 20, 2015 [1 favorite]
nthing the visa issue should come first - find out how you will qualify for a visa.
Employment and the visa issue are closely linked in all Schengen member states.
You may not be allowed to work, it depends on your visa.
Secondly, Vienna housing is very expensive, hard to find and short term housing (eg furnished) especially so.
Possibly the institution your SO is invited by might assist in a search, but even so this could a serious obstacle.
Thirdly, how old is your child? If you child is 6 or over in September, school attendance will be compulsory.
I realise all this sounds so very negative - but I work at an academic institution in Vienna, and we host researcher for short term fellowships all the time, so I come across the exact issues daily.
Memail me if you like,
posted by 15L06 at 1:00 PM on June 21, 2015
Employment and the visa issue are closely linked in all Schengen member states.
You may not be allowed to work, it depends on your visa.
Secondly, Vienna housing is very expensive, hard to find and short term housing (eg furnished) especially so.
Possibly the institution your SO is invited by might assist in a search, but even so this could a serious obstacle.
Thirdly, how old is your child? If you child is 6 or over in September, school attendance will be compulsory.
I realise all this sounds so very negative - but I work at an academic institution in Vienna, and we host researcher for short term fellowships all the time, so I come across the exact issues daily.
Memail me if you like,
posted by 15L06 at 1:00 PM on June 21, 2015
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posted by rmhsinc at 6:19 AM on June 20, 2015