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THE CITIZENSHIP DESK

Austria vs Germany

Side-by-side comparison of Austria and Germany: residency, citizenship, tax, cost of living and lifestyle. Updated 2026.

Austria versus Germany — Alpine neighbours with similar living standards but different citizenship and tax regimes. Germany allows dual citizenship as of June 2024 (a major reform); Austria still requires renunciation in most cases, with §58c (descendants of NS victims) as a notable exception. Tax: Germany applies worldwide income tax with extensive treaty network; Austria's standard rules are similar but its capital-gains regime on portfolio investments uses a 27.5% flat KESt withholding. Healthcare and education are both world-class in either.

Field Austria Germany
Regioneurope / Central Europeeurope / Western Europe
CapitalViennaBerlin
Population9,120,00083,800,000
CurrencyEuro (EUR)Euro (EUR)
LanguagesGermanGerman
Passport rank63
Visa-free destinations191190
Dual citizenshipNot allowedAllowed
Tax systemresidence-basedresidence-based
Territorial taxationNoNo
Special tax regime (NHR-style)NoNo
Citizenship by investment
Citizenship by descentAvailableAvailable
Years to naturalisation10 years5 years
Cost of living (NYC=100)6767
Safety index8067
Healthcare index8078
Quality of life195195
ClimateTemperate continental / AlpineOceanic / Continental
SchengenMemberMember
EUMemberMember
Last reviewed: 2026-06-15. Verify with official sources before acting.