Austria: Hub to CEE

The Bridge to New Markets

Central & Eastern Europe

INVEST IN AUSTRIAwww.investinaustria.at

Austria

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CENTRAl & EASTERN EURopE

BerlinWarsaw

Vienna

Ljubljana

Rome

Paris

OsloStockholm

Ankara

Sarajevo

Kiev

Kishinev

Riga Moscow

Prague

Sofia

London

Dublin Copenhagen

Brussels

Luxembourg

TiranaSkopje

Belgrade

Budapest

Zagreb

Tallinn

Amsterdam

Lisbon Madrid

Athens

Berne

Bucharest

Bratislava

MinskVilnius

Helsinki

1h

2h

3h

All of Europeby Air in 3 hours

Austria’s central location in Europe makes the country the ideal hub for East-West business relations

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INVEST IN AUSTRIA

Editorial: December 2012; Owner&Publisher: Austrian Business Agency, Opernring 3, A-1010 Vienna; Responsibility for contents: René Siegl; Editors: Maria Hirzinger, Karin Schwind-Derdak; Design: november design; Design: November Design Vienna; Photos: www.foto-julius.at (p. 1, 4, 6, 7, 18, 19, 20, 21, 22), APA (p. 3), Istockphoto (p. 5, 11), Richard Tanzer (p. 9, 14), Crystalsol (p. 10); Print: Gugler

Dynamic Business Location

The Austrian business location stands out in international comparison. Companies profit from a good business environ-ment, qualified employees and a modern infrastructure.

Austria ranks among the most prosperous and innovative countries in the European Union, and has more effectively coped with the economically turbulent period prevailing since 2008 than most other European nations. The business location scores points thanks to its modern infrastructure, top-notch technologies, well-educated and highly-motivated employees, and also offers a high reliability of energy supplies in addition to political, social and economic stability.

Austria is the ideal starting point for gaining market access to the dynamic markets of South East and Eastern Europe. More than 1,000 international companies which coordinate their CEE activities from Austria are already profiting today from this competitive advantage. In addition, more and more Eastern European firms are setting up business operations in Austria, using it as a base to conquer the EU market. In its traditional role as an East-West interface, Austria offers optimal locational advantages for companies looking to expand.

In this spirit we would like to welcome you to Austria.

Reinhold Mitterlehner Federal Minister of Economy, Family and Youth

Exploiting Opportunities to the UtmostUnrivaled Specialist for Eastern EuropeMultinationals Select AustriaTake Advantages of SynergiesConquer the EU MarketMultinationals with CEE headquarters in AustriaReservoir of Highly-Skilled Employees

Know-how for International BusinessEfficient Logistics – The Key to SuccessStable and Productive – Risk-Free PlanningHolding Location AustriaVienna – The Metropolis for ManagersBest Consulting on Business Location Issues

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Contents

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“If somebody wants to do good business in Europe, he is well advised not to overlook Vienna.”

Günter Thumser, Henkel Eastern Europe


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Exploiting Opportunities to the Utmost

Growth remains the main reason for doing business in CEE

Whereas the eurozone economy has plunged into turmoil, Eastern Europe continues to be a growth driver. Experts forecast GDP growth of more than three percent. This comprises a key motive for investors who see corporate growth as the highest priority in cultivating Eastern European markets, according to a recent survey implemented by the Competence Center for Central and Eastern Europe (Vienna University of Economics and Business Administration). At the same time, the International Monetary Fund (IMF) has concluded that Austria is the growth champion in the eurozone, and thus an extremely attractive market for Eastern European companies which also want to conquer the EU market.

Ideal business interface. Austria is considered to be the ideal starting point for a lucrative business in Central Europe. Multinational companies such as BMW, Metro, Iveco, Sandvik, Mitsubishi and Bridgestone, which have already set up subsidiaries in Austria, recently relocated their CEE headquarters to Austria. Some 310 international companies including Hewlett Packard, Samsung, Eli Lilly, Beiersdorf, Henkel and Fujitsu have long taken advantage of Austria’s competitive advantages to set up their regional headquarters in Austria (Source: Headquarters Austria). More than 2,000 Eastern European companies such as Lukoil and VTB already actively operate in Austria.

Competitive advantages at a glance.

• Geographical location: bridgehead between East and West • Market: third most prosperous country in the EU, and more than 50 million

people in a radius of 400 kilometers • Cultural ties: historically matured understanding of Eastern European cultures • Outstanding infrastructure: Vienna Airport is the leading flight hub to Eastern

Europe, serving 42 destinations in the region• Safe and stable: stability, personal security and legal certainty are very high • Optimal tax conditions: low corporate income tax, Group taxation scheme,

double taxation agreements and high level of research funding • Eastern European know-how: strong presence of Austrian banks and

business-related service providers in the countries of South East and Eastern Europe

• Eastern European language competence: About 19 percent of the population have a migration background

• High quality of life

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“Vienna is a fascinating melting pot. It was also interesting to observe the fall of the Iron Curtain and the opening of borders”, says football trainer Christoph Daum, enthusing about his time in Vienna. In fact Austria is considered to be the predominant interface between Eastern Europe and Western Europe.

longstanding traditions. The familiarity with the mindset of the country’s eastern neighbors and the business experience in the region has a long tradition in Austria. Until the end of the imperial monarchy at the beginning of the 20th century, Hungary, Slovakia, the Czech Republic as well as parts of today’s Poland, Romania and Croatia belonged to the unified Austro-Hungarian Empire.

Austria as the CEE investment champion. The historical ties were quickly renewed once again after the fall of the Iron Curtain. After all, more than 16,000 joint ventures between Austrian and Eastern European companies have already been established. Close to half of the Austrian direct investments in 2011 were destined for the Central and Eastern European markets. The Alpine Republic is the fourth most important investor in four countries. And the exchange of goods is flourishing: 21 percent of Austrian exports are to the CEE region and to the CIS countries, up a good twelve percent in 2011.

Unrivaled Specialist for Eastern Europe

Austria is the investment champion in the CEE region

Austria: Investment champion in Central and Eastern Europe

Source: WIIW Database on FDI 2012: Short-lived Recovery

47.928.9

19.718.517.8

16.015.4

12.912.813.7

SloveniaCroatia

Bosnia and HerzegovinaSerbia

RomaniaSlovakiaBulgariaCzechiaHungaryAlbania

Investment ranking

Total in EUR

billionAustria’s share in percent

1111222333

10.826.2

4.912.852.637.636.296.267.92.6

Most globalized economiesIndex = 100

BelgiumIreland

NetherlandsAustria

HungarySwitzerland

Czech RepublicGreat Britain

FranceGermany

Italypoland

USAJapan

12348

101314182224253555

Source: KOF Globalization Index 2012, Swiss Federal Institute of Technology, Zurich (ETH)

92.7691.95

90.5590.94

87.3886.6485.7685.5484.12

81.5381.02

74.8880.81

64.13


7

The big names spanning all sectors decided in favor of Austria a long ago: Siemens, Ericsson, Heineken, Henkel, Boehringer Ingelheim and Western Union. On balance, a total of about 310 multinationals have set up their CEE headquarters in Austria in the meantime. More than 1,000 international companies coordinate their Eastern European business operations from Austria, which serves as the starting point for their market development activities in an average of 10 to 15 countries. Earlier their CEE strategy largely focused on entering new markets and expanding their national subsidiaries. Now the priority is expanding their market position.

Austria scores high on proximity and know-how. The study “Headquarters in Austria” confirms that Austria’s predominant strengths are its cultural and geographical proximity to Central and Eastern Europe, its excellent infrastructure, qualified employees and the stability of the country. The favorable tax provisions also comprise an important incentive for international companies.

Multinationals Select Austria

1,000 international companies coordinate their CEE business operations from Austria.

Headquarters in AustriaHead office of the mother company, in percent

Sector mix for CEE headquartersIn percent

Source: List of Headquarters in Austria, September 2012

Source: The Current and Future Role of Regional Headquarters for Central & Eastern Europe, Competence Center for Central and Eastern Europe, Vienna University of Economics and Business Administration, October 2012

GermanyUSA

SwitzerlandFrance

ItalyJapan

SwedenUK

CanadaNetherlands

34.018.4

7.14.2

3.93.63.63.22.92.9

Industrial goods Consumer goods

TradeConsulting

Finance/InsuranceEnergy

ICTother

34.524.1

10.36.96.9

3.43.4

13.8

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Take Advantages of Synergies

The German BMW Group has bundled its Central and Southeastern European markets under a unified management.

BMW relocated its Eastern European headquarters to Austria in 2012. Why did you decide for Austria?

A really “large market” was created by bundling the CEE markets. As measured by an annual sales volume of about 45,000 automobiles and 3,500 BMW motorcycles, the region “Central and Southeastern Europe” (Poland, Czech Republic, Slovakia, Slovenia, Hungary, Romania, Bulgaria, Greece, Cyprus and Malta) is now the fourth largest market for BMW in the Region Europe and the seventh largest market for BMW worldwide.

In this case, the objective was mainly to proactively exploit the synergies offered by the Austrian business location. This mainly includes the know-how of our experienced employees, the tried and tested processes

Kurt Egloff, Managing Director BMW Group Austria

CEE is a …

growth market 3.5profitable location 2.8pool for new employees 2.2production location 2.1supplier of resources 2.0

0 = unimportant, 4 = very important

2012* 2013* 2014*

Austria 0.9 1.7 2.1Bulgaria 0.5 1.5 2

Czech Republic -0.3 1.5 2.4poland 2.3 2.4 2.6

Hungary -1 1.5 2.5Romania 1 2.5 3Slovakia 2.2 3 4Slovenia -1.5 0.5 1.5

Russia 3.8 4.0 4.2EU-27 0.0 1.3 -

What roles does Eastern Europe play in your corporate strategy?

Economic growthGDP growth in percent

Source: The Current and Future Role of Regional Headquarters for Central & Eastern Europe, Competence Center for Central and Eastern Europe, Vienna University of Economics and Business Administration, October 2012

*ForecastSource: Vienna Institute for International Economic Studies (WIIW), Austrian National Bank, Eurostat


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→ www.bmw.at

and the efficient systems which have made Austria one of the most successful markets for BMW. The facility in Salzburg is responsible for the management of the region and also assumes back office functions. In contrast, distribution, marketing, and after sales are set up in the individual countries to directly support the car dealers and customers.

Has BMW been able to profit from the CEE know-how of Austrian service providers such as banks, lawyers and transport companies?

We already benefitted from this in the past. Both BMW Austria as well as BMW Central Eastern Europe had already cooperated with an Austrian bank which is locally represented in almost all Eastern European countries. Similarly, Austrian transport firms were used for shipments to Eastern Europe. And we have already cooperated with Austrian tax consultancies and auditing companies on cross-border issues and transactions, for example within the context of the merger of BMW Vertriebs GmbH with BMW Poland and BMW Hungary.

What do you consider Austria’s main strengths to be?

Our biggest strengths are our employees! Here in Austria we have experienced, motivated and optimally trained colleagues who are doing a fantastic job. Another important factor is the central location between BMW corporate headquarters in Munich and the countries of Central and Southeastern Europe We also consider the existing double taxation agreements with all countries in Central and Southeastern Europe to be an advantage.

Multinational companies selected Austria for the following reasons:

Source: Headquarters Austria, 2009

proximitylocation/Infrastructure

Human resourcesStability

Tax system15%

32%44%

53%

11%

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“Austria’s success factors include not only highly qualified workers but also high levels of morale and productivity. The nation’s traditional business ties to the new member nations provide further reasons for the choice of Austria as a production site.”

Helmut Rankl


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For Eastern European companies which operate abroad, Austria has emerged as a central geographical and economic hub. Every second Russian company which has set up a subsidiary in Austria has also established its headquarters here. According to a study carried out by von Temmel, Seywald & Partner (2009), Austria is being systematically exploited by every third Eastern European company as a springboard for building up business ties to the European Union.

Boom in company start-ups. Lukoil, VTB-Bank, Agrotec and noble hotels such as Zedern Klang and Hotel Elisabeth are examples for firms in the CEE region which made Austria their first choice for establishing foreign subsidiaries – from heavy industry to service providers and tourism. Whereas only 66 CEE start-ups were registered in Austria in 2001, this figure had already risen to 364 CEE firms which made a choice in favor of the Austrian business location.

Austrian bonus points at a glance:

• High level of networking• Well educated and loyal employees with a knowledge of CEE languages• Transparent legislation• Outstanding infrastructure• Competent consultants: tax consultants, lawyers, financial service providers • High quality of life• High level of legal certainty and personal security

Conquer the EU Market

Every third Eastern European company uses Austria as a springboard to the EU.

political stability10 = Risk of political instability is low

SwitzerlandNorway

DenmarkAustria

GermanyGreat BritainNetherlands

USAFrancepoland

Czech RepublicItaly

JapanHungary

12369

131920252736454853

Source: World Competitiveness Yearbook, 2012

9.439.409.36

9.068.93

8.447.967.81

7.236.95

6.075.06

4.793.95

2001 2011

Russia 11 59Ukraine 2 10

Rest of GUS 2 10Bulgaria 1 17

poland 6 10Romania 7 21Slovakia 10 51Slovenia 5 17

Czech Republic 9 34Hungary 13 135

Eastern European companies discover AustriaSubsidiaries established 2001 to 20112001 total: 66; 2011 total: 364

Source: Compass Verlag, 2012

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Robert Gulla, Managing Director LUKOIL Holding GmbH

Oleg Bogdanov CEO Bogmed Trading

lUKoIl opens doors to Europe

LUKOIL, Russia’s second largest oil company, has been managing its foreign shareholdings in refineries and gas stations (for example, firms in 13 EU member states and the USA) for more than 15 years via its Viennese holding company LUKOIL INTERNATIONAL GmbH.

“Austria is an East-West business hub. We highly value the outstanding infrastructure (especially the excellent flight connections), the high quality of the labor market as well as the outstanding quality of life in Vienna. In addition to the geographical location, the high level of economic and political stability was an important factor in our headquarters decision.”

Bogmed Trading

The company Bogmed Trading markets and sells medical devices from leading global producers such Siemens, Haemonetics, PALL, Air Ambulance Technology, BINZ to hospital and other medical institutions in Eastern Europe. The firm has been operating in Austria since 1999.

“As a large market, the EU is extremely interesting to Russian companies. For this reason it is essential to have a base in the EU, which can offer competent partners and loyal employees with Eastern European language competence. Here Austria has effectively positioned itself. Even if one wants to export Western European products to Eastern Europe, as is the case with our company, Austria is well suited for this purpose, thanks to its geographical location and the outstanding infrastructure. In addition, the high level of transparency in the public administration is also a good pre-requisite for our success.


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“When it comes to outreach to the reform nations, Vienna has no real competition. Prague, Budapest and Zagreb can’t be reached any better from any other major Western city.”

Karl Aiginger

Multinationals with CEE headquarters in Austria

AAastra TechnologiesAgfaAir Liquide AlcatelAllianz VersicherungAlstomAtos Origin

BBanco do BrasilBeiersdorfBenQBerner DirektvertriebBMWBoehringer IngelheimBorealisBusiness Logic Systems

CC&ACanonCompuwareCSC

DDeka BankDHL Global Forwarding

EEgyptAirElectroluxEli Lilly ERGOEricsson Essilor

FFlextronicsFujitsu

GGefcoGlobal Refund International

HHeinekenHenkel CEEHitachi Data Systems

IIPICOIveco

JJeld-Wen/Dana

KKärcherKnaufKnorr Bremse

lLogwin LogisticsLukoil

MMagnaMagnesitaMANMarsMazdaMetro Cash & CarryMitsubishi Power SystemsMonier/Bramac

NNeckermann Versand

pPanasonicPeek & Cloppenburg

QQuintiles

RRehauReweRittal-GruppeRobert Bosch AGRohde & Schwarz

SSamsungSchenkerSchindler HoldingSharpSiemensSIG CombiblocSirona

TThalesTransearch International

UUGI Corp./FlagaUniCredit GroupUSU AG

VVestas Wind Systems A/SVolvo

WWestern UnionWolong

ZZTEZürich Versicherungen

MUlTINATIoNAlS SElECT AUSTRIA

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Reservoir of Highly-Skilled Employees

Highly-qualified employees with Eastern European language capabilities

Whether for a pharmaceutical company, research facility or a high-tech start up, every headquarters can find suitable employees for their specific needs. With respect to employee motivation, Austrians rank among the top three worldwide and are excellently trained. This can be largely attributed to Austria’s practice-oriented educational system. Some 20 universities of applied sciences and 35 public and private universities cultivate intensive contacts to industry.

Tops in Europe. Whoever aims to do business in Eastern Europe will find more qualified, specialized employees with Eastern European language capabilities than in other Western European countries. More than 19 percent of the Austrian population has a migration background, and every second inhabitant of Vienna. Close to two-thirds of all immigrants in Austria come from Central and Eastern Europe. People with a migration background speak an average of three languages, and boast above-average qualifications.

Eastern European junior executives “Made in Austria.” The proportion of people with academic qualifications (e.g. university degrees) is very high. Austria’s universities and educational institutions offer customized educational programs, frequently in cooperation with the business community. An increasing number of Austrian educational and training institutions also offer training programs in Eastern Europe in combination with a lively exchange of students.

Education Vienna University of Economics and Business Administration www.wu.ac.at/cee

www.wu-wien.ac.at/zas/out/studienprog/joszef

Vienna University of Technology newenergy.tuwien.ac.at/program/contents

FH OÖ – University of Applied Sciences Upper Austria www.fh-ooe.at/gsm

University of Applied Sciences Bfi Vienna www.fh-vie.ac.at

Graz University of Technology www.jdp.tugraz.at

University of Applied Sciences Burgenland www.fh-burgenland.ac.at


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Andreas Breinbauer Rector and professor at the University of Applied Sciences Bfi Vienna and Director of Studies in the fields of “Logistics and Transport Management”.

I think that in all of Europe there is no place where Eastern European know-how is bundled as much as it is in Austria, and especially here in Vienna. Austria and Vienna are absolutely a magnet for immigrants from Central and Eastern Europe. This comprises an unmatched and also heterogeneous potential for doing business with the “East”. The migrants living here master the relevant languages, are familiar with the culture and the ”mentality“ and are linked to their native countries via professional, social and family networks. In this way business contacts and market entry are facilitated. As a consequence, Austria is an ideal headquarters location. In particular Vienna is very attractive for students from Eastern Europe, and numerous educational facilities, particularly in higher education, offer special modules or entire programs focusing on the CEE region.

Moreover, there are numerous research and consulting companies as well as service providers which specialize in Eastern Europe. One should also not forget the large number of NGOs, which work on promoting cultural exchange. In my opinion the neutral position of Austria in Central Europe is particularly important, in addition to the high quality of life, the good infrastructure, security and stability. This not only strengthens Austria’s role as a business hub for Western European companies going east, but also increasingly as a business interface for CEE firms looking to do business in Western Europe.

Arnold Schuh Director of the Competence Center for Central and Eastern Europe, Vienna University of Economics and Business Administration

You are head of the Competence Center for Central and Eastern Europe at the Vienna University of Economics and Business Administration (WU). Since when has the center existed, and how does it benefit international companies which operate in Austria?

The Competence Center for CEE founded in the year 2007 is the WU’s central hub for research as well as professional training and further education initiatives relating to the CEE region. Central and Eastern Europe has always been a core strength of the university, which is reflected in cutting edge research, a separate institute for Slavic languages, further education programs in CEE, international summer universities (Alps Adriatic, South East Europe, St. Petersburg), an exchange network with 31 partner universities and 2,500 students at the WU who come from the CEE region.

The university offers companies direct contact to graduates with a CEE background or CEE-related competencies. Foreign companies are involved in WU programs in many different ways. As partners they offer students internships, cooperate with institutes on project seminars and also take advantage of the diverse educational offering at the WU by sending employees to take part in MBA programs or having the university tailor in-house seminars to their requirements, for example management development programs for high potentials from CEE.

Andreas Breinbauer

Arnold Schuh

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Know-how for International Business

Competence and contacts – Austria’s banks and consultants build bridges between East and West

As a North-South and East-West crossroads, Austria offers strategic advantages for international business transactions. Banks, tax and management consultants, lawyers and advertising agencies have a great deal of experience in dealing with international companies and organizations. On the basis of their expertise and contacts, they serve as reliable partners for regional headquarters. Austrian banks and management consultants traditionally boast extensive contacts and competencies in doing business in Eastern Europe, and are clearly number one in Central and Eastern Europe.

Tatiana Maksimova, Owner of Hotel Zedern Klang, East Tyrol “I recommend the Austrian business location at every opportunity I get. This is because I have had an extremely positive experience over the last five years. From the very beginning I was provided with friendly and competent support in all areas. Thanks to this assistance, the founding of the company proceeded smoothly from the outset.”

Tatiana Maksimova, Owner of Hotel Zedern Klang, East Tyrol

Source: Raiffeisen Bank International

The largest banks in South East and Eastern Europe

96.378.9 74.759.154.137.035.8

UniCredit (Italy/Austria)Erste Bank (Austria)Raiffeisen (Austria)KBC (Belgium)Société Général (France)Intesa Sanpaolo (Italy)oTp (Hungary)

Balance sheet total in EUR bn, 2011


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Herbert Stepic CEO of Raiffeisen Bank International AG (RBI)

Raiffeisen Bank International AG boasts a closely-knit network of subsidiary banks, leasing company and numerous specialized financial service providers in 17 CEE markets.

The involvement of Austrian banks in the Central Eastern European region has aroused criticism by rating agencies. How do you view the development of Eastern Europe? Do you still consider the CEE strategy of RBI to be the right thing to do?

I have not doubted for a single moment the rightness of our strategic decision to expand to Eastern Europe. For Raiffeisen Bank International AG (RBI), this step has proven to be sustainably successful. Since the crisis, we also have concluded our operations in the region with a profit in every quarterly period. In fact, in 2011 we were the Austrian company which achieved the highest profits. In economic terms, I also view our strategic focus on Eastern Europe to be perfectly on target. In nine out of the last ten years, Austria’s GDP growth surpassed the eurozone average, and the many thousands of jobs which were created thanks to CEE expansion have also made a major contribution to the fact that Austria has the lowest unemployment rate in the EU. I also think it is a positive development that more than 50 percent of Austria’s foreign investments are made in this region, which will continue to be Europe’s growth driver in the future. The rating agencies have an extremely undifferentiated, partly prejudiced and traditionally skeptical attitude towards Eastern Europe. In reality, it is a very inhomogeneous region with very mature markets in some cases. I would like to know how Austrian banks and the business community would have been criticized if we had not seized this once-in-a-lifetime opportunity. Perhaps some of them wouldn’t even exist anymore.

Herbert Stepic, CEO of Raiffeisen Bank International AG (RBI)

“The Austrian government significantly contributed to our expanding business operations in Vienna thanks to its reduction of the corporate income tax and its setting up of a Group taxation system.”

Günter Thumser, Henkel CEE

KNoWING WHo, WHERE AND HoW

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Efficient Logistics – The Key to Success

Austria offers top quality road, rail and air links

Good connections and outstanding storage logistics comprise the foundation for positive business location decisions. For example, Hewlett Packard says Austria’s geographical location and infrastructure is responsible for the success of its head office in Austria. Storage logistics for Eastern Europe are less expensive from Vienna than from Prague or Budapest, according to HP.

Some 300 transport companies offer freight services throughout Eastern Europe from their operational hubs in Vienna. Every CEE destination is targeted several times per week. Austria also offers the most highway connections to CEE countries. The Danube, Austria’s largest waterway, directly links West and East. The North Sea and Black Sea are only one ship’s journey apart from each other via the Rhine-Main-Danube Canal and the Danube.

Central processing of Eastern European logistics. Prominent multinationals such as Volvo and HP operate central warehouses in the Vienna Region for their CEE business, either themselves or via transport companies, which also coordinate the entire logistics operations in addition to providing storage services.

CEE destinations are a strong argument. At Vienna Airport flights depart to 42 different CEE destinations, a total of about 650 flights per week. Over the past few years the number of passengers carried to Eastern Europe has risen by about 15 percent. Top managers also appreciate this service.

Quick links going EastAverage truck transit times including border controls

Source: Austrian Federal Economic Chamber

Vienna-Bucharest

Vienna-Sofia

Vienna-Budapest

Vienna-ljubljana

Vienna-Zagreb

3 days

3 days

1 day

1 day

1 day

Vienna takes offNumber of CEE flight destinations

ViennaFrankfurt

Munichprague

RomeCopenhagen

parisAmsterdam

Zurichlondon

Source: Vienna Airport, summer 2012

4240

3832

2926

2324

22

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Which company would not simply love to save time and money in dealing with public authorities? The main pre-requisites are a business-friendly tax system and an efficient public administration. International companies find both in Austria. And this is accompanied by an extremely stable political, economic and social situation.

Transparent public administration: The public administration in Austria operates efficient, reliably and in a modern way. In a study on e-Government services implemented in 2010, Austria was once again the EU leader on the basis of the availability of online services. More than 80 of the companies in Austria make use of these services. Austria’s top position underlines the business-friendly, customer-oriented attitude of public authorities.

Stable conditions and digital administrative procedures. Austria not only ranks among the most prosperous countries in the EU, but also one of safest and most predictable spots on earth. The low crime rate and the high level of legal certainty are particularly attractive advantages for companies.

Top productivity and declining unit labor costs characterize Austria’s economic development. The EU Commission rates Austria as one of the best in the EU in terms of labor productivity i.e. number three in the EU-27. The ingredients for a healthy economy and profitable companies are high productivity, which rose by 7.2 percent in 2011, and unit labor costs which fell by four percent.

Stable and Productive – Risk-Free Planning

Austrian productivity among the top three globally

labor productivity per employee in manufacturing industry

E-GovermentAvailability of online public servicesin percent

Source: European Commission, EU Report on Industrial Policy, 10/2011

Source: European Commission, 2010

IrelandNetherlands

AustriaFinland

BelgiumGermany

Great BritainFrance

EU averageItaly

HungaryCzech Republic

polandBulgaria

AustriaItaly

SwedenGreat BritainNetherlands

GermanyFranceEU-27

Belgiumpoland

Czech RepublicSwitzerland

HungarySlovakia

1234589

10

1418192027

125.5 10072.9 10071.3 100

66.3 9865.4 95

60.1 9558.0 8557.3 82

49.9 7947.9 79

36.1 7434.1 70

31.4 6618 63

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Holding Location Austria

Group taxation is extremely attractive for multinational companies.

offsetting taxable profits and losses. In Austria, companies a 25 percent corporate tax rate but nothing else: no taxes on assets and no trade tax. Holdings represent an advantageous legal form of setting up firms from a tax perspective. If an Austrian company has a direct or indirect participatory stake in a domestic or foreign firm amounting to 50 percent plus one share, the group taxation system may be applied by forming a “tax group”. The existing dense network of double taxation treaties also ensures minimal taxation at the source for dividends, interest and licensing fees received.

Research pays off. This is something international companies value about Austria. Four out of five multinationals in Austria, and about one-quarter of the regional headquarters located here, carry out strategic research and development for the entire company. Approximately one quarter of Austrian R&D expenditures can be attributed to international firms such as Baxter, Siemens, Philips and BMW.

The government has created tax incentives for research, and promotes cooperation with the scientific community. A research premium of 10 percent can be claimed, which is subsequently paid out in cash.

Corporate tax rates 2012Taxes on undistributed profits in percent

Source: KPMG Int. 2012

IrelandSlovenia

polandSlovakia

Czech RepublicHungary

Great BritainAustria

NetherlandsSweden

GermanyItaly

BelgiumFranceJapan

USA

IrelandCzech Republic

polandHungary

NetherlandsDenmark

AustriaSweden

luxembourgBelgium

Great BritainItaly

GermanySpain

FranceUSA

12.514.118.016.219.017.019.018.9

29.526.3

19.021.8

25.022.624.022.4

19.022.1

25.024.226.324.7

31.426.734.028.034.4 31.2

38.031.940.034.7

BAK Taxation Index 2011 for companiesEffective average tax burden in percent

Source: BAK Basel Economics and the Centre for European Economic Research, 2011


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Vienna – The Metropolis for Managers

Austria is tops when it comes to quality of life, safety and the healthcare infrastructure. Vienna is one of the world’s most popular cities.

Anyone who has already worked and lived abroad knows that the decision for a particular business location is not only a rational one but also a gut decision.

Managers love Vienna. Expatriates are lured to the green city by its high level of social security, excellent cultural offering and appealing shopping and leisure time opportunities. The quality of life also entails the highest possible personal security thanks to a low crime rate. Even in the big cities, it is taken for granted that one can use public transportation late in the evening, or stroll through the city after going to the theater.

Employees of regional headquarters can enjoy an international community featuring kindergartens, schools and cultural facilities. This is due to the fact that Vienna is not only home to numerous headquarters, but also the seat of about 30 international organizations. Some 20,000 international employees and diplomats live and work here. The Expat Center Vienna set up by the Vienna Business Agency is available to provide assistance to them.

Moreover, Vienna is the world’s most popular destination for international congresses. According to the International Congress and Convention Association (ICAA), Vienna was the world’s most popular city for congresses and conventions in 2011 for the seventh straight year.

Unrivalled quality of life10 = Quality of life is very high

SwitzerlandAustriaNorway

DenmarkGermany

NetherlandsFrance

USAJapan

Great BritainCzech Republic

Italypoland

Hungary

12347

101719212425273953

Source: World Competitiveness Yearbook, 2012

9.769.659.459.429.28

9.098.168.13

7.777.487.337.19

5.264.05

Ranking City Country

1 Vienna Austria2 Zurich Switzerland 3 Auckland New Zealand12 Amsterdam Netherlands 16 Berlin Germany 20 Stockholm Sweden22 Brussels Belgium 29 Paris France38 London UK44 New York USA44 Tokyo Japan52 Rome Italy69 Prague Czech Rep.74 Budapest Hungary84 Warsaw Poland

Most liveable city in the world

Source: Mercer Consulting – Worldwide Quality of Living Survey 2012

INVEST IN AUSTRIA

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ABA-Invest in Austria offers you comprehensive services – from funding and market opportunities to tax laws. A total of 25 qualified employees are at your disposal to support you unbureaucratically every step of the way with their know-how – and this is offered completely free of charge.

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INVEST IN AUSTRIA

Best Consulting on Business Location Issues

ABA-Invest in Austria is the investment promotion consulting company of the Republic of Austria and the top choice of international investors.

• Business Location Austria• Bridge between East and West• Automobile Industry• Information Technology • Life Sciences• Environmental Technologies & Rene-

wable Energies• Tourism

• Financial and Real Estate Funds• Chemistry/Plastics• Research and Development• Mechanical Engineering /

Mechatronics / Electronics• Logistics• Starting Business in Austria• Tax Aspects of Industrial

Investment in Austria

• Experienced investment consultants personally serve you and provide all the necessary contacts required in Austria. Contact us right at the beginning when you consider expanding, so that you will receive optimal support.

• ABA-Invest in Austria offers customized information on Austria as a business location, no matter what the issue is – sectors, technologies and markets, political and economic conditions.

• We are happy to advise you on important issues relating to site selection such as labor and tax regulations, funding or real estate prices.

• Employees of ABA-Invest in Austria assist and support you in handling formalities such as applying for public funding or operating licenses – also in cooperation with the regional investment promotion agencies in the federal provinces.

• ABA-Invest in Austria also provides extensive services to support expansion investments after project completion.

• Investors can also benefit from the international network of ABA-Invest in Austria’s offices in Vienna, New York and Tokyo as well as the foreign trade centers of the Austrian Federal Economic Chamber.

• Specialized brochures. More detailed information on different topics and industries can be found in numerous specialized brochures such as:

INVEST IN AUSTRIA www.investinaustria.at

Invest in Austria

ABA – Invest in Austria

Opernring 3A-1010 ViennaTel.: +43-1-588 58-0Fax: +43-1-586 86 59E-Mail: [email protected]

Internet:

www.investinaustria.atwww.investinaustria.cnwww.investinaustria.jpwww.investinaustria.ru