Can I obtain a Red-White-Red Card through investment in Austria? If so, what requirements do I need to meet?
Red-White-Red Card for self-employed key workers
Individuals from third countries who wish to work as self-employed entrepreneurs in Austria have the option of obtaining a Red-White-Red Card as a key self-employed professional. To qualify, the self-employed activity must generate a macroeconomic benefit that goes beyond the operational benefit. Put simply, the business must generate added value that exceeds the entrepreneur’s pure profit.
What counts as a macroeconomic benefit, and how large does the investment need to be?
- The proposed business activity involves the transfer of investment capital amounting to at least €100,000.00, or
- the proposed business activity creates new jobs or safeguards existing ones, or
- the establishment involves the transfer of know-how and the introduction of new technologies, or
- the company is of significance to an entire region.
What does this mean?
Unlike the other Red-White-Red Cards, there is no points-based system for self-employed key personnel. The assessment of whether one or more of the necessary requirements are met is carried out by the locally responsible Public Employment Service (AMS). This draws up an expert report on the matter. As some of the terms mentioned above are open to interpretation, the Public Employment Service (AMS) plays a very important role in this process. For example, ‘investment capital’ means that the investment must have been contributed into the company and, ideally, already spent before the application for the residence permit is submitted. When it comes to creating new jobs, for instance, more than five jobs must be created for the application to have a chance of success. However, none of this is directly stipulated by law. The decision usually lies with the Public Employment Service.
What is the best way to prepare for an application for a Red-White-Red Card as a self-employed key worker?
To ensure that the application for a Red-White-Red Card through investment as a self-employed key worker has a chance of success, thorough preparation is essential. In addition to the standard application documents (such as a passport, passport photo and proof of health insurance in Austria), detailed evidence must also be submitted to demonstrate the overall economic benefit of the planned business. These include a detailed business plan, evidence of the transfer of investment capital (bank statements, invoices, contracts, etc.), company documents (extract from the commercial register, articles of association, trade licence) and proof that the applicant has significant influence over the management of the company (as a majority shareholder or with a blocking minority).
Where do I submit the application?
The competent authority is the immigration office of the provincial government department in the province where the applicant is resident. In Vienna, this is the Business Immigration Office of MA 35. Individuals who do not have a place of residence in Austria or who cannot enter Austria visa-free must submit their application for a Red-White-Red Card as a self-employed key worker, through investment, to the Austrian embassy responsible for their place of residence. Further information on this can be found at the Austrian Ministry of Foreign Affairs.
