Freelancing in Austria: a Practical Guide

Your work as a freelancer is a type of self-employment. Knowledge workers—for example, IT professionals—can earn their living by selling their services on a contract or project basis. Instead of being hired by a company, freelancers can work under various legal forms. They’re responsible for paying their own taxes, pension contributions, and other personal expenses. In simple terms, being a freelancer is equivalent to running a small company.

Often, companies prefer to hire freelancers instead of new employees if they need to add a very specific skill to their team. Similarly, companies can turn to freelancers if they have a sudden but temporary increase in work volume and/or a specialist project. Plus, hiring regular employees can be pretty pricey for companies. If they hire a freelancer instead, they can fill a vacancy quicker, easier and, above all, cheaper.

Anyone can become a freelancer—you just need to have skills that are in demand. When you’re getting started, invest some time in working out your unique selling points (USPs) and defining your target group and your niche. This will help to set you up for success as a freelancer.

Yes! You can actually work as a freelancer alongside your studies or a full-time job. Lots of freelancers choose this option to avoid periods of financial difficulty or to gradually build up their portfolio and customer base. Even though you need a lot of dedication and discipline, freelancing while also working as an employee is a good way to transition to profitable self-employment and slowly but surely become your own boss.

Most freelancers decide to be sole traders (self-employed) because it’s the easiest and cheapest option for newbies. That said, there are other legal forms you can consider as a freelancer, like a limited liability entrepreneurial company (haftungsbeschränkte Unternehmergesellschaft, or UG). Find out more about these various legal forms and how to register your freelance business in this article.

When you’re just starting out, it’s easiest to calculate your daily rate on the basis of your last salary. You can use the following formula as a starting point: (your annual salary + 30%) divided by 220 days. The extra 30% is to make up for benefits like vacation, sick pay, or pension contributions. Similarly, the 220 days are an estimate of the total days you’ll likely work in a year. Find out more about how much freelancers earn, on average, in this article.

Yes, it’s crucial to register in Austria as a freelancer. When you start working for yourself, you’re automatically classed as a sole trader (self-employed). And regardless of when you inform your local tax office, you’ll be obligated to pay taxes on all your freelance income. Find out everything you need to know here about registering your own company.

As a freelancer, you’re not legally obliged to have a separate business account but many do, anyway. Separating your business and personal finances helps you to track your income and expenses better as a freelancer—plus, it makes your tax return easier. Our N26 Business You account for freelancers offers premium perks, like 0.1% cashback on all purchases and free online card payments. N26 Business Metal gives you even more—with 0.5% cashback!

The major difference between a personal bank account and a business account is what it’s used for. As the name suggests, personal bank accounts are designed for personal, day-to-day use. Conversely, business accounts are only intended for business transactions. A business account gives you a better overview of your business expenses and enables you to store the relevant receipts more easily. This blog post tells you more about the differences between these two kinds of accounts.

Online platforms for freelancers are a great way to find jobs and expand your skills and portfolio. Among the most well-known platforms for freelancers are Fiverr, Smartjobr, Twago, and Freelance.de. Each platform has its pros and cons, and it’s generally best to sign up to more than one platform to maximize your reach. Read more in our overview article: the 4 best freelancer platforms for expanding your business.

As a freelancer, you’re the face of your brand. Defining and carefully building up your personal brand is one of the most effective, long-term growth strategies to steer your company to success. Start by working out what makes you different from other freelancers. Then, you can communicate this via your website, email signatures, and all other media. Find out more information in our guide to personal branding for freelancers.

Some skills are more in demand than others in the world of freelancing. As a newbie, it’s key to stay up to date with trends in your sector so that you know what clients will expect. If you’re thinking about stepping into self-employment, you probably already have a strong skill-set in a particular area. Skills in demand at the moment include web development, design, and copywriting. Here’s our list of skills that could help you as a freelancer.

Before starting a new project, it’s a good idea to take the time to draw up your freelancer contract and the payment terms. You can then send these details to your customer for their approval or signature. Your agreement should also include information on the project scope and deadlines. There are lots of free templates online for freelancers that you can use for your business.

There are tried-and-true strategies you can use as a freelancer to find prospective clients and get new projects. We recommend starting by building a strong presence on relevant social media channels, building a meaningful portfolio, and setting up a personal website.

There’s no single piece of software that’s perfect for managing all freelance projects. That said, many freelancers recommend Trello, Asana, and Wrike as handy tools for organizing your work.

Getting paid for your work as a freelancer is pretty straightforward. The usual method is to issue an invoice for the hours you’ve worked or the projects you’ve completed. However, some freelancers go a step further and make the payment process even easier by accepting card payments and direct debits.

Your tax rate depends on your taxable business income and the country you work in. In Austria, it’s generally worth drawing up a budget for your taxes and setting aside 25 to 30 percent of your total income as a freelancer.

For sure! You can start freelancing at any time. Working as a freelancer alongside your studies is a great way to earn some money on the side and develop useful skills for your future career.

Make sure you’re writing your invoices correctly so you can be paid on time. The best approach is to use a simple design that clearly lists all the important information. You should include basic information like the names and contact information of both parties, as well as an itemized list of services and their costs. There are lots of free templates online.

One of the simplest ways to advertise your services is to publish your profile on freelance job portals and share stories and posts on the appropriate social networks. You could also turn to content marketing strategies like website optimization. Or, use word of mouth—it can be as simple as emailing your contacts about your availability and asking them to pass your name on.

Lots of freelancers turn to freelance platforms and job portals when looking for new customers and projects. LinkedIn is another place to find freelance jobs, and it’s growing in popularity. Depending on your services, other social media platforms can also be good starting points for getting your portfolio out there. If you’re a photographer, for instance, Instagram is perfect for sharing your best photos.

The uncertainties around your income and the difficulty in planning new projects mean that it’s usually not advisable to use credit cards if you’re a freelancer. However, once your workload has stabilized, there’s nothing stopping you from applying for a credit card for professional or personal use.

If you want to end a business relationship with a customer, you need to check your contract in advance and make sure you give sufficient notice. You don’t need to explain to your customer why you want to end your collaboration. That said, we recommend ending things on good terms, not burning any bridges, and giving them some brief reasons and an end date.

The short answer is yes. However, you need to bear in mind that different lenders have different rules and criteria. Take time to read the terms and conditions. Lots of freelancers need to make a larger down-payment than usual before being granted a loan.

Taking out the right insurance can help you protect yourself from errors, omissions, and any other kinds of issues with your services as a freelancer. The two most common options are business liability insurance and professional liability insurance. That said, there are other kinds of insurance out there—like personal property coverage or legal protection insurance. They can also be a wise option for freelancers, depending on the situation.