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What is surprisingly cheap in Austria?

Despite doom and gloom reporting about the cost of living, not everything is more expensive in Austria. Here’s what is actually cheap (or cheaper) in the Alpine nation.

Empty wallet
Pictured: an empty wallet (Photo by Emil Kalibradov / Unsplash)

For anyone living in Austria, it’s no surprise that the cost of living has skyrocketed in the past year due to high inflation. 

But is everything really as bad as the news reports would have us believe? Or are some things in Austria cheaper than back home?

To find out more we asked readers of The Local to tell us what is surprisingly cheap in Austria.

FOR MEMBERS: Water, waste collection, parking: How Vienna will get more expensive in 2023

Affordable public transport

The results from our latest poll shows that 44 percent of those surveyed consider transport in Austria to be fairly cheap – especially when compared to their home countries.

Louise from England but living in Innsbruck said: “Buses are a lot cheaper than in the UK.”

And Olivier from France specifically referenced the annual pass for the Wiener Linien, Vienna’s public transport operator. The pass costs €365, which means Vienna’s residents can access to public transport for just €1 per day.

To compare, an annual pass for Berlin’s S-Bahn network is €761, and in Switzerland an adult annual pass for all zones is €2,226 for second class.

READ MORE: Tax cuts and bonus payments: Austria’s financial measures that will benefit people in 2023

“Reasonable” rent prices in Vienna

In second place was accommodation with 22 percent saying it was or cheap – or cheaper – in Austria.

Phillip from Australia said “rent in an Altbau apartment in a central location” is affordable in Vienna. This was echoed by Sean from New Zealand who described rent in Austria as “reasonable”.

But Tomas from Lithuania said: “Housing (rents) in Vienna is not cheap but cheaper when compared to other similar cities in Europe. This is all thanks to good regulation and a large supply of social housing in Vienna which helps to reduce prices on the private rental market.”

In Vienna, the average price for a one bedroom apartment in the city centre is €915, going up to €2,000 for a three bedroom apartment, according to Expat Arrivals

“Cheaper” alcohol

Almost 17 percent of respondents said food and drink was cheap in Austria. 

Louise in Innsbruck said: “Alcohol is surprisingly cheaper here too.”

However, Louise is from the UK where alcohol is often expensive to buy due to a sliding tax rate depending on the strength.

For example, beer with an alcohol strength of 1.2 to 2.8 percent is taxed at 8.42p per litre. This rises to 19.08p per litre for 2.8 to 7.5 percent alcohol, and up to 24.77p for beer that is stronger than 7.5 percent.

Whereas alcohol in Austria is taxed differently with a flat rate of €1,200 for every 100 litres of pure alcohol. The result is cheaper alcohol with a domestically produced 0.5 litre bottle of beer in an Austrian supermarket costing on average just 99c. In the UK, the average price is £1.99.

READ NEXT: EXPLAINED: How to keep energy bills down in Austria

Is Austria actually an affordable place to live?

When asked if Austria is affordable, many respondents said yes – but only when it comes to certain aspects of the cost of living. Location also plays a factor with several respondents living outside of Vienna saying Austria is not affordable.

Olivier from France said Vienna is “cheaper than lots of other European capitals for the quality of life”. And Nikola from Serbia said there is “good purchasing power” in Austria.

Tomas in Vienna said: “Yes, but only if you also work in Austria. The earnings to costs ratio allows most people to make ends meet. And some can maintain a really high standard of living.”

But Martina from Croatia, who lives in Neuhofen an der Krems in Upper Austria, said: “Everything is way more expensive than in my native country.”

Finally, Hiro from Japan described the cost of living in Austria as “so-so”.

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COST OF LIVING

What is considered a good salary in Vienna?

Vienna is known as the world's most liveable city and a popular place to move for those looking for jobs. Here is what actually counts as a good salary in the Austrian capital.

What is considered a good salary in Vienna?

Austria’s capital is a hub for many different companies, both local and international ones.

In Vienna, you can find a wide range of job opportunities, such as in IT, healthcare, finance, tourism, engineering, biotechnology, logistics, and creative industries.

Some of the largest and most notable employers in Vienna are the City of Vienna, the United Nations, the General Hospital, Erste Bank, Wien Energie, and ÖBB. 

Vienna is known for offering some of the highest salaries in the country, but the numbers can vary significantly depending on factors such as field, experience, and employer.

However, while looking at salary reports and living costs, it is possible to understand what is considered a good salary and what is not.

What can you expect to earn in Vienna?

According to Stepstone’s analysis, released at the start of 2024 and based on findings from the end of 2023, Vienna once again leads the cities and provinces in terms of the highest median income. 

In 2023, the median income in Vienna was €56,880 gross per year, while in Tyrol and Carinthia, it was about €10,000 lower.

Burgenland, with a median salary of €50,750, and Upper Austria, with €49,667, were positioned in the middle of the range.

While looking at the average salary in the city, current figures show that it is €2,532 after taxes.

In Vienna, you are considered to have a high income if you earn between €3,500 and €5,000 before taxes every month. 

With this income, you can generally expect to enjoy a high quality of life while living in the capital.

Vienna has the highest median income in Austria. Photo by Ibrahim Boran on Unsplash

Living costs in the capital

The latest figures show that a single person’s monthly costs in Vienna are estimated to reach €1,055 without rent.

The average rent in the city is €1,038 for a one-bedroom apartment in the city centre and €757 if you live outside the centre.

A meal at one of the cheaper restaurants and a drink will cost you around €16.50, while a three-course meal for two at a mid-range restaurant costs about €70.

A monthly public transport pass costs €51, while a yearly pass is €365. These are among Europe’s most affordable public transport prices for a major city.

When you go to the supermarkets, a litre of regular milk typically costs €1.47, a loaf of fresh white bread (500g) is about €2.66, and a kilogram of white rice is usually €2.36.

READ ALSO: IN NUMBERS: How much does it cost to live in Vienna in 2024?

Average and median salary in Austria

According to Stepstone’s analysis, the average gross annual salary for full-time employees in Austria in 2023 was €57,731. Meanwhile, the median gross income was €50,633, about €7,000 lower than the average salary.

Regarding salary differences, the gender pay gap in Austria, or the difference between men’s and women’s earnings, is 15.5 percent when looking at annual gross salaries.

In 2023, a full-time working woman earned an average of €45,500 gross per year, which is €8,340 less than the average earnings of a man.

This is based on the “unadjusted gender pay gap,” which includes characteristic differences such as occupational subgroup, industry, company size, professional experience, and educational qualification. 

READ MORE: Five well-paid jobs in Austria that nobody wants to do

What is left after taxes?

Knowing how the tax rates work is important for determining how much money you will be able to keep in your pocket every month.

Here are the current tax rates in Austria; 

  • If you earn under €12,816, you do not pay any taxes.
  • For earnings above €12,816, the tax rate is 20 percent.
  • For income ranging from €20,818 to €34,513, the tax rate is 30 percent.
  • For earnings between €34,513 and €66,612, the tax rate is 41 percent.
  • If you have an income between €66,612 and €99,266, the tax rate is 48 percent.
  • For salaries ranging from €99,266 to €1,000,000, the tax rate is 50 percent.
  • Earnings exceeding €1,000,000 are taxed at 55 percent.

Worth keeping in mind is that when you work in Austria, all your earnings are not highly taxed.

Special payments, such as the extra salaries you receive at Christmas or before the summer holidays (known as the 13th and 14th salaries), as well as bonuses, are taxed at a lower rate of around 6 percent.

Plus, the first €620 of these special payments are usually tax-free.

READ NEXT: IN NUMBERS: What are Austria’s most expensive cities to live in?

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