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Double Tax Treaty Between Austria and Israel

Double Tax Treaty Between Austria and Israel

A new tax treaty between Austria and Israel will replace the old one concluded in 1970. Compared to the old agreement, the new one will include a reduced withholding tax rate on dividends and interest.

Our lawyers in Austria can give you complete information about how the provisions of the tax treaty are important to foreign investors from Israel.

Changes in the new tax treaty

Austria and Israel negotiated the new tax treaty in November 2016 and the agreement passed the approval of two Austrian Councils in June and July 2017.

Compared to the previous agreement version, the new double tax treaty between Austria and Israel has the following changes:

– a reduction of the withholding tax on dividends from 25% to 0%;

– a reduction of the withholding tax on interest from 15% to 5%;

– the 183 days spent in the country which needed to be fulfilled by an individual for taxation purposes will be calculated for any period of twelve months which begins or ends in the respective fiscal year; the previous version stipulated that the 183 days were calculated in the fiscal year.

As far as the reduced tax on dividends is concerned, it will apply if the company receiving the dividends directly holds at least 10% of the capital of the company making the dividend payment.

The new double tax treaty between Austria and Israel passed the Austrian National and Federal Council in the summer of 2017. The tax treaty needs to be published and our team of attorneys in Austria can give you up-to-date information the status of the treaty and its applicability. 

Citizenship in Austria comes with a series of benefits, including the possibility to travel without a visa to approximately 192 countries in the world. If you are interested in this status and if you want to apply, we recommend that you collaborate with one of our lawyers with experience in immigration issues and aspects. We assure our clients that they will have a quick and simple process to be able to win the desired status.

Avoidance of double taxation in Austria

Austria has signed more than 70 double tax agreements with countries worldwide. The provisions of these agreements for the avoidance of double taxation concern the relief of double taxation on all types of income, including business income, salaries dividend income, pensions and special director’s wages and others.

You can contact the experts at our law firm in Austria for more information about double taxation relief under the unilateral provisions in the country and through a double tax treaty.