What would be an acceptable package to relocate to Austria
Discussion
Hoping for some advice on an offer I've had from work. I currently work for a global company, which has an office in Austria . They are going through a restructuring, through which they have offered me the option to relocate permanently to Austria. Alternatively I have been assured my role is safe, I can continue in the UK, but would be expected to travel regularly to Austria instead. with 2 young kids, I like the idea of moving to Austria, as both a family experience, and with less travel I'll see the kids more.
They've confirmed there will be a monetary relocation package, but not yet the value so I am wondering what people would consider a good or bad offer
Also, in general if anyone has done it, and how it went?
Thanks
They've confirmed there will be a monetary relocation package, but not yet the value so I am wondering what people would consider a good or bad offer
Also, in general if anyone has done it, and how it went?
Thanks
Hi,
I am in HR and have relocated a lot of people.
Firstly check what your net salary will be in Austria as tax is 50% and typically wages are lower than the UK.
You should also have full removal cost (a 20ft container) a disturbance allowance of somewhere between 5 and 10k
They pay all visas admin etc and for tax advice both in leaving UK and filing returns in Austria - usually from KPMG or Deloitte.
Finally if you sell a property in order to move it’s typically the pay agents fees or some reasonable cost.
If you have kids of school age then five years of international school fees is typical
Often companies pay your housing in the new country, but that’s often for ex pays only, if you move for a local contract then maybe you won’t get that.
Let me know if you need more.
I am in HR and have relocated a lot of people.
Firstly check what your net salary will be in Austria as tax is 50% and typically wages are lower than the UK.
You should also have full removal cost (a 20ft container) a disturbance allowance of somewhere between 5 and 10k
They pay all visas admin etc and for tax advice both in leaving UK and filing returns in Austria - usually from KPMG or Deloitte.
Finally if you sell a property in order to move it’s typically the pay agents fees or some reasonable cost.
If you have kids of school age then five years of international school fees is typical
Often companies pay your housing in the new country, but that’s often for ex pays only, if you move for a local contract then maybe you won’t get that.
Let me know if you need more.
Good advice from above - I've added a few things..
Check out tax as well as social charges and factor in the cost of living (there's an index that can compare between cities/locations).
Get into the detail as the number of holidays, standard working hours, company car, meals, medical insurance and other company add-ons, as they will be different if not on an ex-pat scheme.
The company bonus scheme and private pension could differ due to being a local legal entity. The Austrian pension system also needs to be sounded out if this is a long-term assignment as well as requesting your British pension entitlement to be transferred.
A Visa will be need to sponsored for you and the family (10 years).
If it's of interest to the company that you are relocated, I'd request an uplift and the first 3 months on full expenses whilst looking for accommodation as well as language courses paid for.
Ask that tax returns are filled out by E&Y/KPMG etc and paid for by the company for the first 5 years.
If it makes sense, go for it!
Check out tax as well as social charges and factor in the cost of living (there's an index that can compare between cities/locations).
Get into the detail as the number of holidays, standard working hours, company car, meals, medical insurance and other company add-ons, as they will be different if not on an ex-pat scheme.
The company bonus scheme and private pension could differ due to being a local legal entity. The Austrian pension system also needs to be sounded out if this is a long-term assignment as well as requesting your British pension entitlement to be transferred.
A Visa will be need to sponsored for you and the family (10 years).
If it's of interest to the company that you are relocated, I'd request an uplift and the first 3 months on full expenses whilst looking for accommodation as well as language courses paid for.
Ask that tax returns are filled out by E&Y/KPMG etc and paid for by the company for the first 5 years.
If it makes sense, go for it!
As an addition
Also check what position you would be in if you were made redundant or dismissed in Austria
You need a resident visa, not one that is tied only to your employment.
Should be transferable.
Every now and again I have to dismiss and international assignee, sometimes it means they have four weeks to leave the country.
Worth checking. Big companies with lots of internationals usually cover all this stuff.
Also check what position you would be in if you were made redundant or dismissed in Austria
You need a resident visa, not one that is tied only to your employment.
Should be transferable.
Every now and again I have to dismiss and international assignee, sometimes it means they have four weeks to leave the country.
Worth checking. Big companies with lots of internationals usually cover all this stuff.
2 GKC said:
Noting said expenses would likely be taxable
Living expenses for this period would not normally be taxable if using standard company expense reimbursement procedures. However, expenses to furnish accommodation are potentially taxable, but obviously dependent on local rules.Max5476 said:
they have offered me the option to relocate permanently to Austria
That is corporate-speak for "we may cover your initial relo, but not any return to the UK". Which if you take your family out and it doesn't work out for any of you professionally, educationally or personally, means you're likely facing 10K costs to return to the UK (housing, selling and buying vehicles and white goods, shipping, tax equalisation services).How's your German? I studied German at uni in the UK and in Germany, lectured there for a couple of years, worked in Germany on and off - and I struggle with Austrian German. What about your wife, would she want/need to work?
Visa situation, for both yourself and your wife, if she needs/wants to work?
As a single bloke, it sounds like an opportunity (depending on where in Austria - Innsbruck is very different from Vienna), With a family to support, I'd be thinking of looking for a fixed-term expat exec package unless you are financially self-sufficient
Gargamel said:
Oh they should also pay for a home search, Basically a local agent who can help you find a house to rent or buy.
Often these are useless but it’s always included in the relocation service.
When we moved to Switzerland this was invaluable because of the local knowledge and the language help. Renting is a bunfight over there, to be fair.Often these are useless but it’s always included in the relocation service.
We also got language lessons and a budget for the spouse to spend on career coaching/counselling. We were "expats on a local contract" so it was all about getting you set up and then you were just like a normal employee.
Thanks for all the comments, in particular Gargamel, Lotus Notes and MikeF, some of it I had thought of already, but others I will include on my list of items to check.
Cost of living looks similar to the UK, but certainly need to understand what the post tax income would be and then compare to my current salary.
None of us speak any German, so that will certainly be a culture shock. Work would be in English and moving to a country is going to give us the best opportunity to learn a language. We are in discussion about starting some evening German tutoring, as it looks like my wife will need an A1 German Language certificate to get a work visa.
It will be a transition to a local contract, so following the move I would be treated like a local employee, therefore I definitely want to ensure I get enough support up front. They have already confirmed no housing will be supplied, so the housing search is a good suggestion.
From a visa status, I can fortunately apply for Irish Citizenship, which will certainly give more certainty for the family than a work visa, but it typically takes 12 months! My wife also works for a global company, so has enquired about moving her contract to Austria as well, and initially they have suggested this could be possible.
Housing is currently the biggest foreseeable challenge, as you need your Austrian address before you can apply for residency permit, so can't quite see how the timing can work - unless we take a risk on a house we haven't seen.
It is clear there would be no support to return back to the UK, and my role would never transition back again (they would replace me with an Austrian Employee if I left) therefore coming back to the UK would involve a new job search and as mentioned the relocation costs.
In general we think we want to go, despite these challenges but presuming they offer a package that makes sense.
Cost of living looks similar to the UK, but certainly need to understand what the post tax income would be and then compare to my current salary.
None of us speak any German, so that will certainly be a culture shock. Work would be in English and moving to a country is going to give us the best opportunity to learn a language. We are in discussion about starting some evening German tutoring, as it looks like my wife will need an A1 German Language certificate to get a work visa.
It will be a transition to a local contract, so following the move I would be treated like a local employee, therefore I definitely want to ensure I get enough support up front. They have already confirmed no housing will be supplied, so the housing search is a good suggestion.
From a visa status, I can fortunately apply for Irish Citizenship, which will certainly give more certainty for the family than a work visa, but it typically takes 12 months! My wife also works for a global company, so has enquired about moving her contract to Austria as well, and initially they have suggested this could be possible.
Housing is currently the biggest foreseeable challenge, as you need your Austrian address before you can apply for residency permit, so can't quite see how the timing can work - unless we take a risk on a house we haven't seen.
It is clear there would be no support to return back to the UK, and my role would never transition back again (they would replace me with an Austrian Employee if I left) therefore coming back to the UK would involve a new job search and as mentioned the relocation costs.
In general we think we want to go, despite these challenges but presuming they offer a package that makes sense.
- If you are going over to be localised, try and ensure that there is some sort of repatriation package if you are made redundant in your first year or two.
- A1 German isn't going to be too tough, but is only a small step above completely useless.
- It's strange that the company isn't offering at least a month of temporary accommodation. I can't speak for Austria, but when I moved to Switzerland that made life a lot easier, particularly for things like permits and because landlords pretty much refuse to sign a lease with tenants who don't live in the country.
- If you really really have to do it all remotely, watch out for scams. They are very common. I echo the comment about getting a relocation agent in the package to help with the property search, but also setting up utilities etc and understanding local norms e.g. in Switzerland there are specific moving days each year and you have to give three month's notice, so most property is advertised a little under three months before the moving date and is snapped up.
When I moved to Switzerland on a local contract 15 years ago (the company is tighter now, but also I was junior, so I wouldn't expect it to be much different for you) from memory I got:
Moving costs
Flight
4 weeks temporary housing, extended to 6 due to moving in dates
Relocation agent
1 year tax return on both sides (I think that was more to protect them than me tbh)
German lessons
CHF 10,000 grant intended to cover purchasing of replacement white goods, incidental expenses
Some moving days
- A1 German isn't going to be too tough, but is only a small step above completely useless.
- It's strange that the company isn't offering at least a month of temporary accommodation. I can't speak for Austria, but when I moved to Switzerland that made life a lot easier, particularly for things like permits and because landlords pretty much refuse to sign a lease with tenants who don't live in the country.
- If you really really have to do it all remotely, watch out for scams. They are very common. I echo the comment about getting a relocation agent in the package to help with the property search, but also setting up utilities etc and understanding local norms e.g. in Switzerland there are specific moving days each year and you have to give three month's notice, so most property is advertised a little under three months before the moving date and is snapped up.
When I moved to Switzerland on a local contract 15 years ago (the company is tighter now, but also I was junior, so I wouldn't expect it to be much different for you) from memory I got:
Moving costs
Flight
4 weeks temporary housing, extended to 6 due to moving in dates
Relocation agent
1 year tax return on both sides (I think that was more to protect them than me tbh)
German lessons
CHF 10,000 grant intended to cover purchasing of replacement white goods, incidental expenses
Some moving days
We still pay temporary accommodation for the first month. Very hard to time a move so that all your stuff arrives and the house is ready to move etc.
Companies want employees focused on the job, relocation costs are designed to make it easy for the employee and take the risk/stress out of moving.
It’s a great adventure, do it, you won’t regret it. I shipped out in 2017 and it’s been great.
I just came to say congrats and well done. Apart from all the legal bits advices above, a few friends relocated to Vienna a few years ago. They are quite happy and we always try to visit. It is a great country, everything works well and there is a decent life/work balance. Good luck!
Newc said:
If you're on a local package what's happening with your kids? Are you putting them in international school at your expense? Are there places available?
The OP wrote young kids. From what I understand (not having kids myself) anything up to about 12 years will pick up the language quickly enough to integrate into the school system. Obviously the younger the better. At least in Switzerland and I’m sure Austria has its share of immigrant children too, the state schools go to a lot of effort to get the kids up to scratch with extra German lessons. It does sometimes mean dropping back a year though. Again may only be a Swiss thing, but most of the international school kids I’ve come across have been obnoxious little gits with a faux American accent. I can see why international school makes sense for older kids if you are on assignment, but not if you are intending to make a more permanent move.
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