Business Succession

    Business succession in Austria

    By 2034 around 52,500 companies in Austria are due to be handed over — almost one in four employer businesses. Owners who plan succession early and in a structured way protect jobs, value and life's work. This overview sets out the situation, the routes and the specifically Austrian points to consider.

    The starting point: succession figures in Austria

    Between 2025 and 2034 around 52,500 companies (excluding one-person firms) are due for handover — close to 23 percent of all employer businesses, with roughly 705,000 employees affected (source: KMU Forschung Austria / WKO). In 2024, 7,792 businesses were successfully handed over — up 4.9 percent on the previous year. About half are transferred within the family, with a declining trend. External succession is therefore increasingly the norm.

    Deep dive: Business succession in Austria — data & trends.

    Routes to succession in Austria

    Several routes are available, differing in control, proceeds and time horizon:

    • family-internal handover;
    • Management Buy-out (sale to the existing management) or Management Buy-in (to an external manager) — see MBO vs. MBI;
    • external sale to a strategic buyer or financial investor;
    • partial sale with an investor participation;
    • in individual cases, a foundation solution.

    Which route fits depends on goals, family and profitability. Where no family successor is available, see Succession without a family successor.

    Legal and tax specifics in Austria

    Tax treatment differs depending on whether shares (share deal) or individual assets (asset deal) are transferred. If a private individual sells GmbH shares, the capital gain is subject to the special 27.5 percent rate. On the sale of an operating business, reliefs such as the half-rate or an allowance (§§ 24, 37 EStG) may apply under certain conditions.

    The Neugründungs-Förderungsgesetz (NeuFöG) can eliminate certain duties and fees on a business transfer. Real estate triggers real estate transfer tax. For tax valuation purposes the Vienna method (Wiener Verfahren) and the KFS/BW 1 valuation standard apply in Austria.

    This guidance is no substitute for tax or legal advice — please involve your tax advisor and lawyer.

    Process and lead time

    Succession is not an event but a process spanning years. A realistic lead time of several years protects value and negotiating position. The phases range from preparation and valuation through the search for a successor and negotiations to the handover.

    Details on the process: Business succession — the five phases.

    Points of contact in Austria

    Initial orientation is provided by the succession exchange (Nachfolgebörse) and the founder service of the Austrian Federal Economic Chamber (WKO), as well as its regional offices. Data on the succession wave is published by KMU Forschung Austria.

    How IGCP supports you

    IGCP Capital Partners supports owners in Austria independently and discreetly through the entire succession process — from valuation and buyer search to closing.

    Service overview: Business succession services.

    Frequently Asked Questions

    How many companies in Austria are looking for a successor?
    Between 2025 and 2034 around 52,500 businesses (excluding one-person firms), close to 23 percent of all employer companies (KMU Forschung Austria / WKO).
    What tax applies to a handover in Austria?
    When a private individual sells shares, capital gains are taxed at 27.5 percent; for the sale of an operating business, reliefs may apply (§§ 24, 37 EStG); the NeuFöG can reduce certain duties. This is guidance, not tax advice.
    How much lead time should be planned for succession?
    Ideally several years, in order to strengthen value drivers and enable an orderly process.
    What if there is no successor within the family?
    External succession via sale, MBO or MBI is now the rule rather than the exception.
    What does the NeuFöG do for a handover?
    It can eliminate certain duties and fees on a business transfer; your tax advisor will verify the requirements.

    If you are considering succession in Austria, talk to us confidentially and without obligation.

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