ABA Investment Promotion in Austria 2016 en

Investment Promotion in Austria *)
Targeted funding for maximum impact
Austria offers foreign investors a broad spectrum of funding programs embedded in EU-wide
thematic priorities: promotions for new businesses, small and medium-sized enterprises,
startups, research and development, technology and innovation, exports, tourism, and the
environment. The funding portfolio ranges from cash grants and low interest loans or interest
subsidies to loan guarantees. This extraordinarily large offering enables enterprises to take
advantage of incentive programs tailored to their individual requirements.
National promotion measures including EU co-financing schemes

In addition to national promotion measures, additional financial assistance from the European
Union is available provided that the relevant investments correspond to the regulations and
objectives of the EU Structural Funds Program. These resources are financed by the European
Regional Development Fund (ERDF co-financing during the Structural Funds programming
period 2014 - 2020).
Thematic objectives
In Austria direct enterprise subsidies are possible based on the following considerations:
Strengthening research, technological development and innovation
Improving the competitiveness of small and medium-sized enterprises (SME)1)
Promoting sustainable and high-quality employment as well as
supporting labor mobility
Environmental protection and efficient use of resources
Promoting education, continuing education and training
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*)
Note:
This brief information only provides an overview of the main prerequisites to qualify for
funding. Experts in the promotion agencies should be contacted to identify which funding
opportunities exist for specific cases as well as how funding can be structured.
1)
EU definition of SMEs (page 3)
www.investinaustria.at
Funding criteria
Regional funding schemes 2014 - 2020
The European Union has been using the European Regional Development Fund (ERDF) to
support investment projects in the approved Austrian development regions since 1995.
The regional aid map for Austria defines the regions eligible for national regional investment
aid under EU state aid rules and establishes the maximum aid levels ("aid intensities") for
enterprises in the eligible regions.
The regional aid map will be in force between 1 July 2014 and 31 December 2020.
The Structural Funds Program is processed by the responsible Austrian regional and federal
promotion agencies.
Austrian regional aid map 2014 - 2020 under EU state aid rules:
The Austrian regional aid map covers almost 26 percent of the population.
What is a SME?
The European Union considers small and medium-sized enterprises to be an eligible target
group for investment promotion. The following criteria apply to enterprises to be classified
as SMEs:
1. Number of employees and
2. either revenues or total assets
In accordance with EU competition law, a small enterprise is defined as a company
which employs 50 or fewer people, and either produces annual revenues of less
than EUR 10 million or total assets which do not exceed EUR 10 million.
In accordance with EU competition law, a medium-sized enterprise is defined as a
company which employs 250 or fewer people, and either produces annual revenues
of less than EUR 50 million or total assets which do not exceed EUR 43 million.
These upper limits apply only to the key figures of individual companies; a company that
is part of a larger group needs to include employee numbers, revenues and total assets
of the group as applicable.
What are the maximum aid levels?

In Austrian regions eligible for aid (c-areas), the maximum levels of aid (aid intensities)
that can be granted to investment projects amount to a maximum of 10 percent of the total
costs for large enterprises, to a maximum of 20 percent for medium-sized enterprises, and
to a maximum of 30 percent for small enterprises (=SME bonus) during the aid period
2014 - 2020.
In addition, small and medium-sized enterprises are entitled to claim an SME bonus for
research, development and environmental projects: + 20 percent for small enterprises;
+ 10 percent for medium-sized enterprises. These ceiling increases are not considered to
be regional aid.
What projects are eligible for regional aid?

Initial investments are exclusively eligible for regional aid; this includes investments in
both tangible and intangible assets for the
creation of a new business establishment
expansion of an existing business establishments capacity
diversification of an existing business establishments activity (launch of
new activity)
modification of the production process (process innovation)
acquisition of assets of a business establishment that would have been shut down
In Austrian regions eligible for aid, the only investment projects carried out by large enterprises
that are eligible for aid are initial investments in new business activities.
Additional criteria for regional aid

Minimum investment value
- For process innovations:
Depreciation of capital assets for all underlying project assets of the last
three years
- For product diversification projects:
Triple book value of all continuing assets (according to balance sheet)
Minimum share of own funding at 25 percent (without any aid)
Investment holding period:
5 years for large enterprises; 3 years for SMEs after project completion
Single investment:
All projects (initial investments) of a region initiated within 3 years are
considered to be one project.
Reduced aid intensities for large projects
(Large project = single investment of more than EUR 50 million)
- Maximum aid level:
Investment of more than EUR 50 million up to EUR 100 million: 5 percent
Investment of more than EUR 100 million: 0 percent
What projects are not eligible for regional aid?

Projects where the aid application is not submitted in time before the start of
the project.
Relocation of production within the European Economic Area (EEA) in a period
ranging from 2 years before application to 2 years after project completion.
Enterprises in financial difficulties
Investment projects in the sectors of
- Energy generation and distribution (including infrastructure)
- Transport and transport infrastructure (including airports)
- Fishing and aquaculture, agriculture
- Steel and synthetic fibers industry, coal, synthetic fibers, shipbuilding
De-minimis grants 2014 - 2020
De-minimis grants are subsidies

that an enterprise / a group of associated enterprises
may receive within a period of three years and that
may amount to a maximum financing volume of EUR 200,000
(EUR 100,000 for road freight transport).
In the context of the de minimis rule, all enterprises that are directly or on multiple levels
associated with each other are considered to be one single enterprise.
This period of 3 years applies to the current year as well as the two previous fiscal years.
The date of the binding grant commitment is considered to be the grant date.
The maximum financing volume of EUR 200,000 (EUR 100,000 for road freight transport)
depends on the amount of funding cash value (gross subsidy equivalent) that may be
significantly below the grants face value, e.g. in case of loans of guarantees. The maximum
financing volume refers to the de minimis grants of a member state; de minimis grants
for associated enterprises abroad are not to be considered.
The grant agreement shall state whether or not the approved subsidy is a de minimis grant.
The promotion agency shall be informed about any previous de minimis grants.
Key incentives in Austria (an overview) *)
General information
Austria offers foreign investors a broad spectrum of funding programs. Obtaining appropriate
incentives is only possible in close cooperation with federal and provincial promotion agencies.
They are the direct contact for submitting an aid application.
Overview of all responsible promotion agencies in Austria: (page 29)
Key criteria for investors:

Comprehensive business plan and project description
Early contact with promotion agencies
Aid applications must be submitted before the project begins!
The maximum financing value for a project essentially depends on the:

Location of the investment (e.g. EU regional aid map1))
Size of the enterprise (e.g. higher funding rate for small
and medium-sized enterprises 2))
Character of the investment (priority funding)
Key funding instruments include as follows:

Subsidies
Low-interest loans
Guarantees (e.g. export guarantees)
Equity capital (venture capital)
Tax incentives
Such granted funding is financed using public resources.
_____________________________________________________
*)
The following pages present a rough overview of the key promotion programs and incentives of
the Austrian promotion agencies.
Selected documents are available in English and may be downloaded. ABA-Invest in Austria and
the responsible Austrian promotion agencies offer their help and assistance.
1)
Regional aid map under EU state aid rules: (page 2)
2)
EU definition of SMEs: (page 3)
Funding of research, technology and innovation in Austria

Research, technology and innovation are fundamental elements of a competitive
economy.
The following funding agencies support research-oriented enterprises by offering an
extensive range of promotion measures and services:
Austrian Research Promotion Agency (FFG)
www.ffg.at
The Austrian Research Promotion Agency is the central research

promotion institution for promoting and funding application-oriented
research, technology and innovation.
Austria Wirtschaftsservice (aws)
www.awsg.at
The federal investment and promotion bank of the Republic of Austria

supports research and technology-oriented company startups by granting
low-interest ERP loans, awarding subsidies and issuing guarantees.
Research is promoted either directly by means of subsidies, loans and guarantees or

indirectly by means of the research premium, i.e. tax incentives relating to R&D
expenditures.
The criteria applying to research promotion are based on the type of the research project
as well as the size of the enterprise.
Tax incentives for research: the research premium

For research or experimental developmental expenditures, companies can subsequently
claim a research premium comprising twelve percent of the costs.
An application for the research premium can be submitted by every company in Austria
with taxable income whose financial year begins starting on January 1, 2016 or later,
and which
carries out its own research in a domestic company or operates
a domestic business or
awards research contracts to companies which carry out research
and experimental development projects, and whose headquarters
are either in a member state of the European Union or the European
Economic Area.
With respect to contract research, the research premium can be claimed for expenditures
of up to EUR 1 million per financial year.
An expert opinion of the Research Investment Promotion Agency FFG is required for
claiming entitlement to the research premium for in-house research.
The research premium is credited to the tax account of the taxable company.
Most important R&D funding programs of FFG
www.ffg.at/Funding
The extensive portfolio of the FFG ranges from the general funding program facilitating the
startup of research and development activities to the promotion and financing of top-level
research and centers of excellence.
All enterprises with a registered office in Vienna are eligible to receive funding, including
subsidiaries of foreign companies. The Competence Headquarters Program, for example,
promotes the targeted setting up or expansion of R&D competence headquarters in Austria.
General funding program for single R&D projects (FFG):

www.ffg.at/General-Program
The General Program of the Austrian Research Promotion Agency (FFG) provides support
to research, development and innovation projects carried out by companies of all sizes and
in all sectors. Applications can be submitted on an ongoing basis. There are no restrictions
with respect to content requirements or project size.
Service innovations and the implementation of clinical studies are funded by special
initiatives in addition to the open theme research promotion approach.
Application-oriented (bottom-up) research promotion serves as the foundation for promoting
research and innovation in Austria.
The incentives are designed to intensify corporate research activity. They encourage
companies to implement innovative ideas from all industries as well as fields of technology
and to create concrete, successful products and services.
Target group:
Small and medium-sized enterprises (SMEs), large enterprises, startups
Funding criteria:
Each submitted project is evaluated on its technical and economic aspects that
are fundamental to receive funding. From a technical point of view, the criteria are
based on the level of innovation as well as difficulty of the planned project. From
an economic point of view, the market potential and usability of the development
are assessed.
Fundable costs:
Financial assistance is provided for all relevant R&D expenditures (costs for staff,
acquisition (depreciation of capital assets) and use of R&D infrastructure, third-party
services, travel costs, costs for materials, and costs related to patent applications).
Type and scope of funding:
Single experimental development projects receive financial assistance of up to
50 percent up to 70 percent for startups of the total project costs based on a
funding mix consisting of non-refundable grants, low-interest loans, and bank loan
guarantees. Moreover, most federal provinces of Austria use additional provincial
funding to increase this promotion.
Know-how transfer projects (BRIDGE):
www.ffg.at/Bridge
The FFGs BRIDGE Program aims to promote know-how transfer from scientific research
to industrial innovations in companies. More specifically, it funds cooperative basic research
projects between research organizations (university, non-university research facilities) and
companies making use of the research findings. Primary responsibility for research
implementation is in the hands of the scientific partner.
Objectives:
Further development and utilization of basic research findings for business
applications
Intensification of research cooperation between the scientific and business
communities
Facilitation of access on the part of small and medium-sized enterprises (SMEs)
to scientific research
Funding of transfers of researchers from universities to corporate research
(dissertations, post-doc)
Target group:
Research institutes and companies are eligible to submit applications.
The consortium has to consist of at least two partners (one each for science
and industry).
Requirements and type of funding:
Funding is provided for projects without thematic restrictions
The majority of costs (at least 80%) must be borne by the scientific partner.
Funding amounts to between 60% and 75% of project costs depending on
the size of the company.
Funding takes the form of non-repayable subsidies.
Corporate partners assume the rest of the financing for the funded project.
A foreign partner is also eligible to participate.
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Competence Headquarters (FFG):
www.ffg.at/Competence-Headquarters
The Competence Headquarters Program focuses on strengthening and expanding existing

R&D headquarters as well as on establishing new research and development facilities so-called competence headquarters - of international enterprises in Austria. The long-time
cooperation with Austrian research facilities is designed to increasingly achieve structural
effects.
Attributes of a competence headquarters:
Internationally operating enterprise

Unique characteristics within the respective corporate group and
a clearly-defined and assignable thematic focus
Organizational and personnel visibility in the corporate group
Overall R&D responsibility for the relevant area of research
Objectives:
Strengthening and expanding existing competence headquarters

Support and sustainable strengthening of research competence and volume
in Austria
Establishing new competence headquarters

Setting up of competence headquarters of internationally operating enterprises
Target group:
Internationally operating large enterprises (LE) as well as small and medium-sized
enterprises (SME) that make use of their corporate group to expand an existing
or establish a new research and development center.
Funding criteria:
Long-time, binding cooperation with Austrian research facilities
Structural effects (particularly based on networking with Austria
as a research site)
Positioning of the project within the overall research portfolio of
the company and/or the business area of Austria as a business
location)
Sustainable R&D strategy (site guarantee, R&D expenditures,
R&D infrastructure, investments in R&D staff etc.)
Only one continuously funded competence headquarter project
per company
Key data:
Project duration: Minimum 24 months, maximum 36 months
Promotion:
The promotion is based on non-refundable grants and generally

amounts to 25 percent of staff costs and 50 percent of the
costs involved in cooperating with Austrian research institutions.
In addition, funding takes into account costs for materials and
research infrastructure.
Application:
Project applications may be submitted all year long.
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Startup Funding Initiative (FFG):
www.ffg.at/Startup-Funding
The FFG Startup Funding Initiative is comprised of financial measures to support young,
innovative and technology-oriented companies of all industries and business fields that
were set up no more than five years before submitting their application for funding.
The aim of the funding initiative is to enable an improved approach to project financing
and promotion, and thus to further improve development conditions for high technology
startups.
Target group:
Small and medium-sized enterprises (SMEs), startups
Eligible projects/Fundable costs:
Assistance is provided to research and development projects without
limitations or preference in respect to particular technological fields.
FFG finances up to 70 percent of all acceptable project costs relevant to R&D
(material and staff costs) based on non-refundable grants and low-interest loans.
HighTech Startup Funding (FFG):
www.ffg.at/HighTech-Startup-Funding
The focused funding program targeting high-tech startups comprises an expansion of

the startup funding program.
In order to receive funding, a submitted project must fulfill all the funding criteria of the
basic Startup Funding Initiative as well as the special criteria of the HighTech Startup
Funding initiative:
The research and development projects must satisfy the highest

technological demands.
A far above-average innovation content in the project must be
demonstrated.
The research and development projects must show a disproportionately
high level of risk.
The company has to fulfill general startup criteria.
The claim of being classified as a high-tech project is not related to the
particular sector but only to the contents of the project.
Objective:
The objective is to enable sustainable and improved project financing and
funding for young, technology-oriented companies involved in a high-tech
business.
This type of funding provides non-repayable grants and low-interest loans,
in which case up to 70 percent of the acceptable project costs are generally
funded, potentially exploiting the maximum cash value.
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COMET (FFG):
www.ffg.at/COMET
The COMET Program (Competence Centers for Excellent Technologies) promotes the
establishment of competence centers with a joint high-level research program defined
by science and economy at its core. The program is funded by the state and the federal
provinces of Austria.
The program encompasses three program lines which primarily differ with respect to
the demands imposed upon the funding research facilities promotes when it comes to
internationality, project volumes and duration:
K2 Centers:
Center based on a consortium with at least one scientific partner and
a minimum of five corporate partners.
Duration: 10 years
Promotion value: state funding of up to EUR 5 million per year
Promotion intensity: up to 55 percent
K1 Centers:
Center based on a consortium with at least one scientific partner and
a minimum of five corporate partners.
Duration: 8 years
Promotion value: state funding of up to EUR 1.7 million per year
K Projects:
Cooperative research project with at least three companies and
one scientific partner.
Duration: 3 - 4 years
Promotion value: EUR 0.675 million per year
In general, all centers and projects supported by the COMET Program are thematically
open and processed competitively.
Thematic programs (FFG):
Research priorities are established in the context of strategic thematic areas. These
areas are subject to calls for tender once or twice a year.
FFG provides assistance for cooperative R&D projects (funding volumes of up to
EUR 2 million), investigations (funding volumes of up to EUR 200,000) and key projects
(funding volumes over EUR 2 million depending on the available tender budget).
Target groups:
Research organizations (universities, non-university R&D facilities)
Companies: small and medium-sized enterprises (SMEs), large companies,
startups
Non-economic institutions (consumers) such as municipalities and nonprofit organizations
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Requirements and type of funding

Submitted projects must address the specific focal points stipulated
in the tender.
The cooperative character of the projects must be underlined by the
cooperation agreements.
The amount of funding is oriented to the respective research category
(industrial or experimental research) and the size of the company.
In practice, the range is between 35 percent (large companies) and
85 percent (research and development) of the project costs.
Funding is provided as non-repayable grants.
A foreign partner is also eligible to participate.
The thematic programs of FFG have the following research focal points:
Mobility www.ffg.at/Mobility
Energy and Environment www.ffg.at/Energy_Environment
Materials and Manufacturing www.ffg.at/Materials_Manufacturing
Information Technology www.ffg.at/Information-Technology
Safety and Security www.ffg.at/Safety_Security
Space www.ffg.at/Space
Service Innovation www.ffg.at/Service-Innovation
R&D Competences for Industry (FFG):
www.ffg.at/R&D-Competences
This program provides assistance for the establishment and development of qualification
networks to promote customized employee training for Austrian companies with universities,
universities of applied sciences and other educational and research institutions. It is designed
to systematically train existing research and innovation staff to reach a higher level of
qualification.
The program R&D Competences for Industry has the following three program lines:
Expertise increase: qualification seminars
Short-term customized training of employees enabling access to new
technology fields.
Duration: up to 6 months; promotion value: up to EUR 50,000.-;
target group: SME
Expertise development: qualification networks
Medium-term customized training networks between companies and
universities, universities of applied sciences and other educational and
research institutions enabling an increase in innovation skills.
Duration: 6 months up to 2 years; promotion value: up to EUR 0.5 million;
target group: SME
Expertise enhancement in applied research: innovation courses
Long-term, customized training networks; emphasize industry-driven
topics at a high scientific level.
Duration: 2 years up to 4 years; promotion value: up to EUR 1.0 million;
target group: large enterprises and SME
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Key R&D promotion programs of Austria Wirtschaftsservice
aws Seedfinancing:
www.awsg.at/aws-Seedfinancing
aws provides financial assistance in the founding and building up of innovative high-tech
companies focusing on information and communications technology (ICT), physical
sciences, nanotechnology, and life sciences.
The aws Seedfinancing-Program offers flexible assistance in both the development and
implementation phase of a company startup.
The program is designed to bridge the financing gap in the high-tech field and to increase
the number of high-tech company startups.
Criteria:
High technological intensity and international novelty
High growth potential of the company
High commitment and risk-taking attitude of the founders
Presentation of a business plan
Classification as an SME in accordance with the EU definition
No share of 25 percent or more held by medium-sized or large companies
Eligible projects:
Fundable are costs incurred as part of the founding process of a high-tech
enterprise or in the building up of a company in the first six years of its existence.
Fundable costs:
Fundable costs include: founding and market development costs, operating
resources, payroll costs, industrial property rights costs (patents, trademarks),
study and concept costs, and external consultants fees.
Provision of capital for the founding and building up of a high-tech
company
Consulting and support services during the funding phase
Funding is based on a success-oriented refundable grant, payable in several
tranches. The maximum funding amount is EUR 800,000 million.
aws PreSeed-Financing:
www.awsg/aws-PreSeed
aws provides financial assistance in the pre-founding phase of innovative high-tech

companies focusing on information and communications technology (ICT), physical
sciences, nanotechnology, and life sciences.
The program is designed to increase the number of innovative high-tech company
startups.
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Criteria:
Pre-founding phase
High technological intensity and international novelty
High chance of commercial success
High commitment and risk-taking attitude of the founders
Great market potential
Eligible projects/
Eligible for funding are costs related to the scientific implementation as well as
the exploration and preparation of the commercial utilization of the project as part
of the pre-founding phase.
Fundable costs:
Fundable costs include: market study and concept costs, costs for consumable
supplies, payroll costs.
Funding takes the form of a non-repayable grant. Over a period of, typically, up to two
years, a maximum total amount of EUR 200,000 may be allocated as a de minimis
grant. The grant is paid out to applicants directly in success-dependent tranches.
aws erp Technology Program:
www.awsg.at/erp-Technology-Program
The aws erp Technology Program provides assistance for research and development
projects, especially projects in the pre-competitive field in terms of experimental
research. One particular priority is support for development projects in specific futureoriented sectors and high-tech fields (e.g. aeronautics component supply industry,
biotechnology, environmental and energy technologies and electromobility). Other focal
points relate to locating the research departments of multinational companies in Austria,
setting up of a high quality research infrastructure and projects designed to optimize inhouse processes.
Target group:
Established companies with an operating site or research facilities in Austria
Eligible projects:
Research and experimental development projects aiming to launch
new or significantly improved products, production processes or services
Projects for developing prototypes, pilot or demonstration facilities
as well as experimental equipment
Investment projects of large companies aiming to significantly improve
in-house processes, particularly process innovations
Investments in the research infrastructure
Fundable costs:
Staff costs, laboratory facilities, consulting and service costs, material costs for pilot
and demonstration facilities, arising directly as a result of the research projects.
Low-interest aws ERP loan ranging from EUR 0.1 million to EUR 10 million.
The time to maturity of the loan is six years, featuring a grace period of three years.
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aws Guarantee R&D&I:
www.awsg.at/R&D&I-Guarantee
This program aims at enabling or facilitating the financing and promoting of promising
research, development and innovation projects carried out by companies in Austria,
particularly in cases where the projects do not have any or only insufficient bank securities.
Target group:
Small and medium-sized enterprises as well as medium-sized corporates (so-called
Mittelstand companies meaning enterprises with fewer than 3,000 employees) in
the following sectors: industrial or commercial production, research and development,
services and enterprises processing agricultural products.
Eligible projects:
Research projects
Development and innovation projects
Establishment of pilot and demonstration facilities
Investments in high-quality research infrastructure
aws provides assistance by assuming guarantees for bank loans at a guarantee rate
of up to 80 percent of the loan volume and a duration of up to ten years (maximum
20 years).
If investment and operating loans are combined, aws may in individual cases assume
liability for a commitment (=loan value same as guarantee rate) of EUR 7.5 million.
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Startup and Growth Funding

Austria Wirtschaftsservice (aws) offers promotion and consulting programs for projects
ranging from their startup to growth phase. Depending on the planned investment, financing
is based on low-interest funding loans, loans, guarantees, grants and equity-strengthening
measures. This spectrum enables aws to provide individual and tailor-made assistance.
Regional promotion:
This promotion measure is available to companies investing in an Austrian region eligible
for national regional investment aid1). A project applying for state funding automatically also
applies for grants based on financial resources of the European Union. It is not necessary
to submit a separate EU promotion application.
aws erp-Regional Program:
www.awsg.at/erp-Regional-Program
These incentives are designed to provide support to technologically sophisticated

investment projects leading to structural improvement and growth effects in economically
disadvantaged regions and rural areas.
Target group:
Companies with a business location in Austria carrying out investments in
a regional development area within the country are eligible1).
Eligible projects:
Startups and business relocations with significant regional economic impacts
Investments in connection with product diversification or process
innovations as well as innovative services based on the implementation
of research findings or the purchase and adaptation of new technologies
Modernization and expansion investments with employment or regional
economic impacts
Startup/purchase of startup, technology and innovation centers
Projects are only eligible for funding, if the project work is first carried out
after the application for incentives or an aws erp loan has been submitted.
Fundable costs:
The following costs are eligible for funding: investments and own work to
be capitalized (additions to machinery, mechanical equipment, IT hardware,
special tools etc.), building investments, land acquisition in the case of a
startup or expanding company operations, costs for intangible investments
(patents, licenses etc.), and consulting costs.
Low-interest aws erp loan ranging between EUR 0.3 million and EUR 10 million
per project at a duration of six to ten years (up to 15 years for infrastructure
projects), including up to three repayment-free grace years (up to 5 years for
infrastructure projects)
1)
Regional aid map under EU state aid rules (page 2)

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Funding programs for SMEs: 1)

Small and medium-sized industrial and service enterprises, in particular companies
manufacturing physical goods and production-related service providers as well as commercial
firms represent the growth drivers of the Austrian economy. A broad range of incentives are
offered to support SMEs:
Subsidies: Provide assistance for the challenging initial phase of startup

projects and offer incentives for innovative investments and measures
creating or securing jobs.
Low-interest erp-loans: Facilitate the implementation of modernization
and expansion investments as well as launching new products and
processes in growing enterprises.
Guarantees for bank loans: Extend the financial scope and reduce the
economic risk.
These incentives are generally available to all small and medium-sized enterprises,
regardless of the investment location, with the exception of companies operating in the
tourism and recreation sectors.
aws erp-SME Program:
www.awsg.at/erp-SME-Program
The objective is to provide support for innovation and growth projects on the part of small
and medium-sized enterprises, and thus to create or safeguard jobs in these companies.
The program particularly focuses on the field of environmental and energy technologies.
Target group:
Growth-oriented small and medium-sized companies with an operating site in Austria
which fulfill SME criteria 1)
Eligible projects:
Startups and business relocations
Product and process innovations as well as innovative services, for example
by implementing own research results or adapting new technologies
Modernization and expansion investments with a positive impact on
creating or safeguarding jobs
Construction/expansion of startup, technology and innovation centers
Fundable costs:
The following costs are eligible for funding: investments and own work to
be capitalized (additions to machinery, mechanical equipment, IT hardware,
special tools etc.), building investments, land acquisition in the case of a
startup or expanding company operations, costs for intangible investments
(patents, licenses etc.), and consulting costs.
Low-interest aws erp loan ranging between EUR 0.3 million and EUR 10 million
per project at a duration of six to ten years (up to 15 years for infrastructure
projects), including up to three repayment-free grace years (up to 5 years for
infrastructure projects)
1)
EU definition of SMEs (page 3)

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aws erp-Small Loan:
www.awsg.at/erp-Small-Loan
The aws erp-Small Loan Program is an instrument to improve the financing structure of
small enterprises.
Target group:
Economically independent, small commercial enterprises of all sectors.
The EU definition of SMEs applies.
Eligible projects:
Modernization and expansion investments
Launching entirely new or substantially expanding existing services or
business fields
Fundable costs:
Costs for tangible and intangible investments. Eligible project costs must amount
to a total value between EUR 10,000 and EUR 300,000.
Low-interest aws ERP loan of up to 100 percent of all eligible costs at a duration
of six years, of which one repayment-free grace year.
aws SME Guarantee:
www.awsg.at/SME-Guarantee
projects carried out by companies in Austria, particularly in cases where the projects do
not have any or only insufficient bank securities. Austria Wirtschaftsservice (aws) finances
measures of expansion/startup/modernization/innovation of a company in Austria; company
purchases or company shares.
Target group:
Small or medium-sized enterprises in the following sectors: industrial or
commercial production, research and development, services, tourism and
recreation, transportation industry, trade and enterprises processing
agricultural products.
Investments
Funding of operating costs related to investments
Funding of operating costs up to an aws commitment of EUR 2 million
related to company startups/take-overs or for growth projects leading to
an exceptional leap in the companys growth
Austria Wirtschaftsservice (aws) provides assistance by assuming guarantees
for investment and operating loans at a guarantee rate of up to 80 percent of
the financing volume and a duration of up to ten years (for investments) and up
to five years (for operating costs).
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aws Small Loan Guarantee:
www.awsg.at/Small-Loan-Guarantee
Austria Wirtschaftsservice (aws) facilitates the application for small loans of economically
independent, small commercial enterprises of all sectors, with the exception of companies
operating in the tourism and recreation sectors. The incentive promotes measures for
securing or improving a companys competitiveness.
Tangible and intangible investments
Operating costs (related to company startups/take-overs or for growth projects)
Eligible project costs may not exceed a total value of EUR 50,000.
Austria Wirtschaftsservice (aws) provides assistance by assuming guarantees for
investment and operating loans at a guarantee rate of up to 80 percent of the loan
volume and a duration of up to ten years (for investments) and up to five years (for
operating costs).
Guarantees are only granted up to a maximum loan value of EUR 30,000 per enterprise
and year.
Guarantees for medium-sized corporates (Mittelstand companies):
aws Guarantee Innovation & Growth:
www.awsg.at/Innovation_Growth
projects carried out by medium-sized corporates in Austria, particularly in cases where the
projects do not have any or only insufficient bank securities. Austria Wirtschaftsservice (aws)
finances measures of expansion/startup/modernization/innovation of a company in Austria;
company purchases or company shares.
Target group:
Medium-sized corporates (so-called Mittelstand companies meaning enterprises
with fewer than 3,000 employees) in the following sectors: industrial or commercial
production, research and development, services, tourism and recreation sector,
transportation industry, trade and enterprises processing agricultural products.
Investments as well as company take-overs and successions (including shares
in an enterprise in Austria)
Funding of operating costs related to investments
Austria Wirtschaftsservice (aws) provides assistance by assuming guarantees for
investment and operating loans at a guarantee rate of up to 80 percent of the
financing volume and a duration of up to ten years (for investments) and up to five
years (for operating costs).
21
Funding programs for startups:

Start-ups are of great significance for Austria as a business location. They serve as an
economic impetus and key innovation and growth drivers of any sustainable economy.
The step towards establishing own businesses was massively facilitated by public sector
funding in the case of more than 60% of all startups. The privileged limited liability
company whose minimum payment has been reduced to EUR 5,000 and the 12 percent
research premium complement the good starting conditions.
Startups comprise one priority of Austria Wirtschaftsservice (aws) and FFG, which support
company founders with an extensive range of funding instruments, particularly in the
startup phase.
Here are a few examples:
aws Startup Check:
www.awsg.at/Startup-Check
Austria Wirtschaftsservice (aws) supports the launch and/or takeover of economically

self-dependent, small commercial enterprises of all sectors (with the exception of
tourism and leisure industry) by guaranteeing premiums.
Target group:
Economically independent, small commercial enterprises that have recently
been founded or taken over
Funding criteria:
First-time independent business operations or no independent business

operations during a period of five years before founding or taking over the
company
Founding/acquisition of a small company, in which case the startup or takeover

must not be more than one year before the application was submitted
Termination of previous non-independent activities
The enterprise must be operated under its own name and for its own account
Associated companies must present a direct minimum stake of 25 percent,

while the young entrepreneur must be responsible for the companys
management under corporate law. Company takeovers need to assume the
majority ( 50 percent) of an enterprise.

Investments that are capitalized or accounted for as low-value assets
(e.g. machines, business equipment, interiors, hardware and software, building
activities)

A premium of EUR 1,000 is granted for investments between at least EUR 5,000
and EUR 20,000. The premium is paid as a lump sum.
22
aws Startup Guarantee:
www.awsg.at/Startup-Guarantee
Austria Wirtschaftsservice (aws) supports the launch and/or takeover of economically

self-dependent, small commercial enterprises of all sectors (with the exception of
tourism and leisure industry) by guaranteeing loans.
Target group:
Economically independent, small commercial enterprises that have recently been
founded or taken over
Funding criteria:
First-time independent business operations or no independent business
operations during a period of five years before founding or taking over the
company
Founding/acquisition of a small company, in which case the startup or takeover
must not be more than five years before the application was submitted
Termination of previous non-independent activities
The enterprise must be operated under its own name and for its own account
Associated companies must present a direct minimum stake of 25 percent,
while the young entrepreneur must be responsible for the companys
management under corporate law. Company takeovers need to assume the
majority ( 50 percent) of an enterprise.
Eligible projects/expenditures:
Tangible and intangible investments (e.g. machines, interiors, hardware and
software, building activities), costs for take-over, operating costs (e.g. purchase
of goods, staff costs, marketing costs).
Austria Wirtschaftsservice (aws) assumes guarantees for up to 80% of the
investment, leveraged and operating loans at a guaranteed value of up to EUR
2.5 million for a period of up to ten years, and up to five years for operating loans.
In individual cases, aws will assume liabilities (loan sum to the amount of the
guaranteed rate) of EUR 2 million.
General funding program for single R&D projects (FFG) (page 8)
Startup Funding Initiative (FFG) (page 11)
aws erp-Small Loan (page 19)
Funding for highly innovative technology startups:

FFG and aws offer the following funding programs for high-tech startups:
HighTech Startup Funding (FFG) (page 11)
aws Seedfinancing (page 14)
aws PreSeed-Financing (page 14)
23
Funding and Promotion of Venture Capital

Venture capital funding instruments present an alternative form of financing for growthoriented, innovative enterprises. In general, they are designed to provide assistance to
young research and technology-oriented companies in their startup or growth phase,
primarily small and medium-sized enterprises.
These initiatives are managed by the promotion bank Austria Wirtschaftsservice which
does not only allow access to other aws promotion programs but also supports young
entrepreneurs up to private investors. The provision of equity or quasi-equity resources
at market-compliant conditions perfectly supplements existing promotion programs.
Austria Wirtschaftsservice provides an extensive spectrum of measures to promote
Austrias venture capital market.
Participations: aws Founders Fund, aws Growth Capital Fund,

aws Business Angels Fund, Venture Capital Initiative
Provision of venture capital: i2 - Business Angel Network
Guarantees for companies:
aws Founders Fund:
Double Equity Guarantee Fund
www.awsg.at/Founders-Fund
The aws Founders Fund provides young small enterprises (less than 50 employees,
maximum EUR 10 million in revenues and total assets) with high growth-potential
venture capital by means of open or silent partnerships during the startup and first
growth phase. The participation volume is between EUR 100,000 and EUR 3 million
per enterprise at a duration of up to ten years.
aws Growth Capital Fund:
www.awsg.at/Mittelstandsfonds
The aws Growth Capital Fund participates in growth projects carried out by small and
medium-sized corporates (up to 1,000 employees, minimum revenue EUR 2 million)
during their expansion phase and invests long-term growth capital by providing
equity or quasi-equity resources at market-compliant conditions. The participation
volume is between EUR 300,000 and EUR 5 million at a duration of up to ten years.
aws Business Angel Fund:
www.awsg.at/Business-Angel-Fund
Business angels are private/industrial or institutional investors providing capital for

innovative projects as well as extensive business know-how and valuable networking
contacts for the development of an associate company. They often take a share at a
very early stage, when there is only an idea or first concept and the risk is extremely
high.
The aws Business Angel Fund doubles the venture capital of business angels provided
for young innovative/technology-oriented small and medium-sized enterprises (of all
sectors) based in Austria. The range of co-investments starts at EUR 250,000 and may
amount to several millions at a duration of up to ten years.
24
aws i2 - Business Angels:
www.awsg.at/i2-Business-Angels
aws i2 - Business Angels is the independent business angel network in Austria for
placing young, innovative and equity-seeking enterprises with business angels at
subsidized conditions. Placement requires a venture capital contribution of up to
EUR 500,000.
aws Venture Capital Initiative:
www.awsg.at/Venture-Capital
The aws Venture-Capital-Initiative supports the mobilization of private venture capital

to finance the startup and growth phase of young research and technology-oriented
enterprises by means of venture capital fund shares. The share value amounts to a
maximum of 30 percent of the fund volume at an individually set duration.
aws Double Equity:
www.awsg.at/Double-Equity
The aws Double Equity Program facilitates the financing small and medium-sized
enterprises by doubling a companys private equity. Financial assistance requires proof
of having raised the necessary amount of private equity. Private equity is considered to
include all deposits of corporate capital in cash (e.g. capital stock including reserves) or
other available quasi-equity deposits.
The aws Double Equity Program provides assistance for investments and
operating resources related to innovation and growth projects of companies
that have recently been founded or taken over (up to six years old).
Funding will be provided on the basis of a loan guarantee for up to 80 percent
of the financing amount up to a maximum of EUR 2.5 million per SME. The
total loan volume is limited to the project-related equity capital contributed to
the project over the last two years; duration up to 10 years; longer grace
periods are possible. The entrepreneur is not required to assume any personal
liability as long as the double equity principle is observed (no unscheduled
withdrawals, no sale of a majority stake in the company).
25
Export promotion
Companies based in Austria but oriented abroad benefit from a highly-developed export
promotion system, particularly attractive financing opportunities available to export
businesses from Austrias export credit agency, Oesterreichischen Kontrollbank AG
(OeKB)and the Export Fund. The needs of export businesses in Austria are met based
on federal guarantees as well as private loan insurers.
OeKB Export Financing Scheme:
www.oekb.at/Export-Financing
Oesterreichische Kontrollbank (OeKB) is Austrias central financing and information

provider of the export industry. It finances the exports of goods and services, primarily
with medium-term and long-term payment periods, giving special consideration to
exports of Austrian capital goods.
The Export Financing Scheme of Oesterreichische Kontrollbank (OeKB) offers enterprises
the opportunity of refinancing exports and acquiring stakes in companies abroad. This
depends, however, on sufficient credit rating according to criteria defined by OeKB.
Moreover, the transactions to be financed are required to comply with legal requirements
and need to be carried out within the framework of OeKBs standard procedures for
handling transactions.
Financing is based on the following criteria:
an assumption of liability by OeKB in accordance with Austrian

export promotion laws or
an assumption of liability by a private financial institution or
a guarantee provided by Austria Wirtschaftsservice (aws) or
a guarantee provided by an international organization
In addition, the underlying subsidized products or services exported abroad must

directly or indirectly contribute to improving Austrias balance of payments or must be
in Austrias special interest.
Austrian Export Fund export loans:
www.exportfonds.at
The Export Fund supports small and medium-sized enterprises (SME) based in Austria
by offering export loans to finance cross-border business transactions as well as the
development of new markets. This measure enables the funding of continuous export
orders and receivables while securing liquidity.
Export companies contracting with foreign partners to deliver domestic goods (goods
manufactured or significantly altered in Austria) or to provide services are eligible for loans.
The Export Fund requires continuous export activity to grant low-interest global loans up to
30 percent of the previous fiscal years export revenues or the anticipated export revenues
of the current fiscal year. The loan is processed by the companys principal bank.
26
Tourism Promotion
Austrias tourism and recreation industry benefits from numerous targeted and efficient
promotion measures. The spectrum of incentives ranges from catalyst project funding and
regional project-related support to special EU promotion programs for projects of specific
significance to tourism.
Austrian Tourism Bank (HT):
www.oeht.at
The Austrian Tourism Bank (sterreichische Hotel- und Tourismusbank) is a specialized

financial institution focusing on the financing and promotion of investments in the field
of tourism. The promotion portfolio encompasses grants, low-interest ERP loans and
the assumption of liabilities designed for small and medium-sized enterprises of the
tourism and recreation industry.
Moreover, the Austrian Tourism Bank offers consulting services primarily in the field of
investment and financing.
The promotion measures focus on providing support related to corporate take-overs,
business formations, modernization, portfolio development, business size optimization,
and active assistance in company reorganization.
27
Environmental Promotion
In Austria corporate environmental promotion is a key federal funding instrument for
enterprises investing in environmental and climate protection measures. Investment
subsidies are designed as incentives to implement environmental and climate protection
projects.
Kommunalkredit Public Consulting (KPC):
www.kpc-consulting.at
Kommunalkredit Public Consulting (KPC) manages environmental support programs

on behalf of the Republic of Austria. The promotion portfolio is designated to provide
assistance to enterprises of all sizes based in Austria.
The program supports measures of positive environmental impact (particularly
CO2 reduction), such as using renewable energy sources, increasing energy efficiency,
mobility measures but also projects for preventing or reducing air pollutants, noise or
hazardous waste.
The financing value is calculated by Kommunalkredit Public Consulting and is based on
eligible costs and several other factors, including legal requirements, type of measure,
and scale of the intended environmental impact. The exact financing value may only be
calculated after all required documents have been submitted.
aws Guarantee Environment:
www.awsg.at/Guarantee-Environment
Austria Wirtschaftsservice (aws) finances and promotes promising projects aimed at

manufacturing environmentally relevant products as well as general environmental
protection and energy efficiency measures, particularly in cases where the projects
do not have any or only insufficient bank securities.
Target group:
Small or medium-sized enterprises as well as medium-sized corporates (so-called
Mittelstand companies meaning enterprises with fewer than 3,000 employees) in
the following sectors: industrial or commercial production, research and development,
services, tourism and recreation sector, the transportation industry and enterprises
processing agricultural products.
Austria Wirtschaftsservice (aws) provides assistance by assuming guarantees for bank
loans at a guarantee rate of up to 80 percent of the financing volume and a duration of
up to ten years.
Initial investments aimed at manufacturing environmentally relevant products

Environmentally relevant application investments, e.g. energy efficiency
measures, use of renewable energy sources
Funding of operating costs clearly related to environmental projects
28
Creative Industries Promotion

Austria provides numerous contacts and funding schemes tailored to the special needs of
companies in the creative industries.
evolve
www.evolve.or.at
Initiative of the Federal Ministry of Science, Research and Economy for the promotion of
innovation in the creative industries
evolve combines national services for strengthening the creative industries under one roof
and develops an extensive portfolio. Operatively, evolve is provided by:
Creative Industries Austria
www.kreativwirtschaft.at
Representation of the interests of the creative industries, service and
consulting as well as networking activities
Austria Wirtschaftsservice (aws)
awsg.at/Creative-Industries
Prioritized promotion and offering education, continuing education and
further training for the creative industries
aws Kreativwirtschaft:
aws Kreativwirtschaft is the federal promotion program for the creative industries.
Austria Wirtschaftsservice (aws) provides assistance for enterprises of the creative branch
and seeks to visualize the relevance of the creative branch in our economy. The extensive
promotion spectrum ranges from funding and education, continuing education and further
training offers to targeted awareness measures.
aws impulse XS:

www.awsg.at/impulseXS
Grant for innovation projects in their early development phase in the
context of the creative industries. The target group is comprised of small
and medium-sized enterprises of all sectors (existing/startup) and natural
persons.
aws impulse XL:
www.awsg.at/impulseXL
Grant for innovation projects in their development and implementation
phase in the context of the creative industries. The target group is
comprised of small and medium-sized enterprises of all sectors (existing/
startup).
aws Creative Industries Voucher: www.awsg.at/Creative-Industries-Voucher
Promotion of existing small and medium-sized enterprises of all sectors
implementing innovation projects in cooperation with the creative branch.
aws impulse Training:
www.awsg.at/impulse-Training
Customized education, continuing education and further training offers (weworkshops for entrepreneurs, aws impulse lectures) for young enterprises
of the creative branch.
Film Location Austria (FISA):
www.filmstandort-austria/Filmlocation
Federal initiative designated to the financial support of film productions in Austria.
29
Responsible promotion agencies in Austria (overview)
ABA Invest in Austria does not only work closely with the federal and regional promotion
agencies in Austria but also supports foreign investors on their way to receive funding.
Federal promotion agencies

Austria Wirtschaftsservice (aws) / ERP-Fund: www.awsg.at
Responsibility: Corporate business promotion
Austrian Research Promotion Agency (FFG): www.ffg.at
Responsibility: Business-oriented research, technology and innovation promotion
The promotion compass (Frderkompass) of the Austrian Ministry for Transport,
Innovation and Technology gathers all promotion offers on one single website, thus
presenting an overview of all relevant promotion measures www.foerderkompass.at
Oesterreichische Kontrollbank / Export Fund: www.oekb.at, www.exportfonds.at
Responsibility: Export financing
Austrian Tourism Bank (HT): www.oeht.at
Responsibility: Investment promotion in tourism and the recreation industry
Kommunalkredit Public Consulting (KPC): www.kpc-consulting.at
Responsibility: Environmental and energy promotion
Regional promotion agencies

Burgenland:
Wirtschaft Burgenland GmbH (WiBuG): www.wirtschaft-burgenland.at
Carinthia:
BABEG Krntner Betriebsansiedlungs- und Beteiligungs GmbH
(Business Agency Carinthia): www.madeinkaernten.at
Krntner Wirtschaftsfrderungs Fonds (Carinthian Economic Promotion Fund): www.kwf.at
Lower Austria:
ECO-Plus: www.ecoplus.at
Land Niedersterreich (Province of Lower Austria): www.noe.gv.at
N Brgschaften und Beteiligungen (Lower Austrian Guarantees and Investments):
www.noebeg.at
N Grenzlandfrderungsges.m.b.H (Lower Austrian Border Region Promotion Agency):
infonet.grenzland.at
30
Salzburg:
Standort Agentur Salzburg GmbH: www.salzburgagentur.at
Land Salzburg (Province of Salzburg): www.salzburg.gv.at
Innovationsservice fr Salzburg (Innovation and Technology Transfer Salzburg):
www.itg-salzburg.at
Styria:
Steirische Wirtschaftsfrderungsgesellschaft (Styrian Business Promotion Agency):
www.sfg.at
Zentrales Frderungsservice Wirtschaftskammer Steiermark (Central Promotion Service
Austrian Economic Chambers Styria): www.foerderungsservice.at
Tyrol:
Standortagentur Tirol: www.standort-tirol.at
Land Tirol (Province of Tyrol): www.tirol.gv.at
CAST Grndungszentrum (Center for Academic Spin-Offs Tyrol): www.cast-tyrol.com
Upper Austria:
Business Upper Austria - O Wirtschaftsagentur GmbH: www.biz-up.at
Land Obersterreich (Province of Upper Austria): www.land-oberoesterreich.gv.at
O Kreditgarantie- und Unternehmensbeteiligungsgesellschaft
(Upper Austrian Loan Guarantee Company): www.kgg-ubg.at
Vorarlberg:
Wirtschafts-Standort Vorarlberg GmbH: www.wisto.at
Vienna:
Wirtschaftsagentur Wien (Vienna Business Agency): www.wirtschaftsagentur.at
LISAvienna - Life Science Austria: www.lisavienna.at
Wiener Kreditbrgschafts- und Beteiligungsbank (Vienna Loan Guarantee Company):
www.wkbg.at

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Investment Promotion in Austria *)

Targeted funding for maximum impact

National promotion measures including EU co-financing schemes

EU definition of SMEs (page 3)

Regional funding schemes 2014 - 2020

What are the maximum aid levels?

What projects are eligible for regional aid?

Additional criteria for regional aid

What projects are not eligible for regional aid?

De-minimis grants 2014 - 2020

De-minimis grants are subsidies

Key incentives in Austria (an overview) *)

Key criteria for investors:

Aid applications must be submitted before the project begins!

The maximum financing value for a project essentially depends on the:

Key funding instruments include as follows:

Regional aid map under EU state aid rules: (page 2)

EU definition of SMEs: (page 3)

Funding of research, technology and innovation in Austria

Austrian Research Promotion Agency (FFG)

The Austrian Research Promotion Agency is the central research

Austria Wirtschaftsservice (aws)

The federal investment and promotion bank of the Republic of Austria

Research is promoted either directly by means of subsidies, loans and guarantees or

Tax incentives for research: the research premium

Most important R&D funding programs of FFG

General funding program for single R&D projects (FFG):

Know-how transfer projects (BRIDGE):

Competence Headquarters (FFG):

The Competence Headquarters Program focuses on strengthening and expanding existing

Internationally operating enterprise

Strengthening and expanding existing competence headquarters

Establishing new competence headquarters

The promotion is based on non-refundable grants and generally

Project applications may be submitted all year long.

Startup Funding Initiative (FFG):

HighTech Startup Funding (FFG):

The focused funding program targeting high-tech startups comprises an expansion of

The research and development projects must satisfy the highest

Thematic programs (FFG):

Requirements and type of funding

R&D Competences for Industry (FFG):

Key R&D promotion programs of Austria Wirtschaftsservice

aws provides financial assistance in the pre-founding phase of innovative high-tech

aws erp Technology Program:

aws Guarantee R&D&I:

Startup and Growth Funding

aws erp-Regional Program:

These incentives are designed to provide support to technologically sophisticated

Regional aid map under EU state aid rules (page 2)

Funding programs for SMEs: 1)

Subsidies: Provide assistance for the challenging initial phase of startup

aws erp-SME Program:

EU definition of SMEs (page 3)

aws erp-Small Loan:

aws SME Guarantee:

aws Small Loan Guarantee:

Guarantees for medium-sized corporates (Mittelstand companies):

aws Guarantee Innovation & Growth:

Funding programs for startups:

aws Startup Check:

Austria Wirtschaftsservice (aws) supports the launch and/or takeover of economically

First-time independent business operations or no independent business