Austria scrapes profit exemption for freelancers, drawing political criticism

The Austrian Budget Supplement Law for 2027‑2028 proposes the removal of the investment‑related profit exemption that currently allows freelancers to receive a 13th and 14th month salary when they purchase qualifying securities and observe holding periods. Legal expert Dr. Alexander Mirtl warns this could trigger a wave of conversions to GmbH or FlexCo structures as freelancers seek tax mitigation.

FPÖ Upper‑Austria deputy governor and party chief Manfred Haimbuchner warns the measure will hit freelancers disproportionately and weaken Austria’s economic standing, noting the sector’s contribution to gross value added, tax revenue and employment. Budget spokesperson Mag. Arnold Schiefer adds that the federal government’s budget targets have been deemed unattainable by the EU Commission, the National Bank and the Fiscal Council, and calls for structural reforms and cuts to overspending rather than new taxes.

Critics argue the abolition will curb entrepreneurial activity and job creation, while the government frames it as necessary for a sustainable, balanced budget.