Effective 1 January 2025, the legal framework for remote work has been expanded with the introduction of the Teleworking Act. This legislation extends beyond traditional home office arrangements, now allowing employees to perform their duties from locations outside the company’s premises.
In addition to home offices, employees can now legally telework from alternative locations such as co-working spaces, providing greater flexibility under a structured legal framework.
As with home office arrangements, teleworking requires a written agreement between employer and employee. Neither party can unilaterally impose or initiate teleworking without mutual consent.
Key updates on allowances and taxation
The previously available non-taxable home office allowance is now redefined as the teleworking allowance. Employees can claim up to EUR 3 per day for a maximum of 100 days per calendar year (EUR 300 annually). The eligibility criteria remain unchanged, except that work no longer needs to be performed exclusively from home.
Considerations for foreign employers
Foreign employers with teleworking employees in Austria should assess whether this creates a permanent establishment for tax purposes. Unlike secondments or assignments, cross-border teleworking does not trigger a ZKO notification obligation. However, if employees working remotely in Austria remain covered by foreign social security schemes, A1 certificates should
be readily available.
Regarding employer contributions, the obligation to contribute to the Family Burdens Equalisation Fund (FLAF) within the EU/EEA remains linked to social security requirements. Additionally, Austrian municipal tax liability generally does not arise, as the employer does not exert control over the employee’s home workspace. However, if a foreign employer leases
a coworking space in Austria on a long-term basis, the assessment could differ.
Permanent Tax Regulations
The tax provisions concerning home office activities, including the home office lump sum of EUR 3 per day, have now been incorporated into permanent legislation, ensuring continued clarity and consistency in tax compliance.
