The legal system of Austria
A civil-law federation whose private law still rests on the ABGB of 1811, one of the oldest codes in continuous force. Austria is the birthplace of the centralised model of constitutional review: Hans Kelsen designed the 1920 Constitution around a dedicated Constitutional Court, and the design was copied across Europe and beyond. Administrative justice was rebuilt into a two-tier court system in 2014.
Legal tradition
Austria belongs to the civil law tradition. A civil-law federation whose private law still rests on the ABGB of 1811, one of the oldest codes in continuous force. Austria is the birthplace of the centralised model of constitutional review: Hans Kelsen designed the 1920 Constitution around a dedicated Constitutional Court, and the design was copied across Europe and beyond. Administrative justice was rebuilt into a two-tier court system in 2014.
How power is divided
Nine LĂ€nder hold their own constitutions, parliaments and governments, but the federation retains far more legislative power than in Germany or Switzerland; much LĂ€nder activity is administering federal law (mittelbare Bundesverwaltung). Three separate high courts sit at the apex, for constitutional, administrative and ordinary matters respectively.
Where law comes from
- Constitutional law
- The B-VG plus a large number of separate constitutional acts and provisions.
- EU law
- Directly applicable since accession in 1995 and takes precedence over conflicting domestic law.
- Federal statutes
- Voted by the Nationalrat, with the Bundesrat holding only a suspensive veto.
- LĂ€nder statutes
- Landesgesetze within the competences reserved to the nine LĂ€nder.
- Codes
- ABGB (1811) for private law, StGB for crime, plus the commercial and procedural codes.
- Ordinances
- Verordnungen issued under statutory authority; annullable by the Constitutional Court.
The legal profession
A Rechtsanwalt qualifies through a law degree, five years of practical training including at least three in a law firm and some months at court, and the bar examination. Admission is via the regional bar chambers under the umbrella of the Ăsterreichischer Rechtsanwaltskammertag. Notaries are a separate profession with appointments limited in number.
Law by topic in Austria
- Data Protection & PrivacyGDPR through the DSG, supervised by the DatenschutzbehördeData protection rests on the GDPR, supplemented by the Austrian Data Protection Act (DSG), which uniquely elevates a core right to data protection to constitutional rank. The Datenschutzbehörde is the single national supervisory authority for both the public and private sectors.
- Business & CorporateA cheaper GmbH since 2024 â and a new flexible company alongside itFrom 1 January 2024 the minimum share capital of the GmbH fell to EUR 10,000, of which at least EUR 5,000 must be paid in cash, and a new hybrid form, the Flexible Company (FlexKapG/FlexCo), was introduced to make employee share participation easier. Companies are formed by notarial deed and entered in the commercial register (Firmenbuch).
- Family LawSame-sex marriage since 2019, with divorce by fault or mutual consentMarriage has been open to same-sex couples since 1 January 2019, and both marriage and the registered partnership are now available to all couples. Divorce can be pursued on fault grounds or, most commonly, as an amicable divorce by mutual consent under §55a of the Marriage Act after at least six months of separation.
- Criminal LawProsecutor-led investigation, with lay judges and juries for serious casesThe Code of Criminal Procedure (StPO) puts the public prosecutor in charge of the investigation, assisted by the criminal police and supervised by a court on coercive measures. Austria retains lay participation: lay assessors (Schöffen) sit for mid-level offences and a jury (Geschworene) decides the most serious crimes.
- Tax LawProgressive income tax to 55%, corporate tax at 23% and 20% VATPersonal income tax is progressive with a top marginal rate of 55% on very high incomes, applied through banded brackets that are indexed for inflation. Corporate income tax is 23%, standard VAT is 20% (with reduced rates of 10% and 13%), and a minimum corporate tax applies even to loss-making companies.
- Human RightsThe ECHR has constitutional rank, enforced by the Constitutional CourtAustria incorporated the European Convention on Human Rights with constitutional status in 1964, so Convention rights are directly enforceable as constitutional rights before the Verfassungsgerichtshof. This gives the ECHR unusually strong force in the domestic order compared with countries where it ranks below the constitution.
- Constitutional LawA real constitutional court â with individual complaint and statute annulmentUnlike its western neighbours, Austria has a powerful Constitutional Court (Verfassungsgerichtshof) that can annul statutes for unconstitutionality. The federal constitution is spread across the core B-VG and many separate constitutional acts, and since 2015 individuals can bring a direct complaint (Parteiantrag) challenging a law applied in their case.
- Immigration & NationalityThe points-based Red-White-Red Card for qualified third-country workersEU, EEA and Swiss citizens enjoy free movement. Qualified third-country nationals are admitted mainly through the Red-White-Red Card, a points-based work-and-residence permit, while other residence titles fall under the Settlement and Residence Act (NAG). Longer stays and settlement require meeting integration conditions.
- Civil ProcedureThe 1895 Franz Klein code, still built around an actively managing judgeAustrian civil procedure rests on the Zivilprozessordnung of 1895, whose author Franz Klein gave the judge an active role in directing the case rather than leaving pace to the parties. Bezirksgerichte hear claims up to EUR 15,000 and the Landesgerichte above that.
- Property & LandOwnership through the Grundbuch, with a 3.5% real-estate transfer taxThe General Civil Code (ABGB) governs ownership, which passes only on registration in the land register (Grundbuch) following a notarised or certified contract. Standard real-estate transfer tax (Grunderwerbsteuer) is 3.5% of the consideration, with reduced rates for transfers within the family.
- Employment & LabourStrong dismissal protection through works councils and the labour courtsEmployment law splits historically between white-collar (Angestelltengesetz) and other staff, though rules have converged. Ordinary dismissal is possible on notice, but it can be challenged as socially unjustified or motivated by an improper reason, and a works council's stance strongly affects those challenges before the Labour and Social Court.
Found something out of date on Austria?
Corrections are reviewed against the primary source before anything changes.