Today, startup ecosystems are developing at an incredible rate. Austria is no exception, having more than tripled in size in 2022 compared to 2021. It also leads the ranking of the fastest growing countries in Europe in terms of startup development. According to Startup Landscape Austria, there are currently 3,027 startups in Austria.
This is because the government is doing everything possible to promote the development of this industry and attract foreign capital – government funding, tax incentives, reforms that facilitate employment, etc. It is natural that foreigners, including third-country nationals, move to Austria to establish and develop their own startups. Moreover, Austria issues a special residence permit to such persons – the “Red-White-Red Card” (“Rot-Weiß-Rot – Karte”) for start-up founders (Start-up-Gründerlnnen), which, unlike the residence permit for financially independent persons (Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit), grants third-country nationals not only the right to reside but also the right to work.
The “Red, White and Red Card” for startup founders is similar to the permit for self-employed key workers (Selbständige Schlüsselkräfte) – entrepreneurs. However, the permit for startup founders is based on a point system and is characterized by a minimum threshold of 30,000 registered capital, while entrepreneurs also need to invest at least 100,000 euros in the business.
The following requirements are imposed on the applicant:
- development and launch of innovative products, services, processes or technologies;
- submission of a convincing comprehensive business plan and statutory documents;
- significant and real influence on the management of the company, which is exercised personally;
- proof of authorized capital of at least EUR 30,000, of which at least half is own capital;
- the applicant must score a minimum of 50 (out of 85 possible) points according to the following criteria:
In confirmation of these data it is necessary to provide appropriate documents.
Other required documents:
- valid ID/passport;
- birth certificate;
- photo taken no more than six months ago (size: 45×35 mm);
- proof of health insurance covering all risks (compulsory insurance or appropriate insurance policy);
- certificate of no criminal record;
- proof of kinship (if necessary);
- type D visa for entry to Austria (if required).
The documents must be translated into German and apostilled. Upon receipt of all the necessary documents, the settlement authority decides on the issuance of the “Red-White-Red Card” within 8 weeks.
This permit is issued for 2 years, after which it can be extended for 3 years at once, and later – to obtain a permanent residence permit.
If the holder of the “Red-White-Red Card” has worked for at least 21 out of 24 months, he or she is entitled to receive the “Red-White-Red Card Plus” (“Rot-Weiß-Rot – Karte plus”),, which gives unlimited access to the labor market in Austria.
If you have any questions related to obtaining this residence permit, you can contact the team of qualified VigoLex lawyers.