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🇦🇹 Austria
Austria’s business culture is based on tradition, meticulousness, and a strong focus on quality.
Austrians are known for their professionalism, reliability, and adherence to rules.
Austria’s business culture is based on tradition, meticulousness, and a strong focus on quality.
Austrians are known for their professionalism, reliability, and adherence to rules.
Country Profile
Country information, demographics, geography, and system of government
Cultural Values
Cultural characteristics, values, traditions, and social norms
Business Culture
Practical insights on business meetings, appointments, gift-giving, and communication
Indicators
Indicators related to social and cultural factors, corruption, globalization and more
Country Profile
Formal Name
Republic of Austria
Capital
Vienna
Official Language
German
Population
9,1 million
Currency
Euro (EUR) (€)
GDP
521 milyar $
Land Area
82.520 km² (Land Area)
Region
Europe
Cultural Cluster
Germanic Europe
Other Names
Conventional Long Form: Republic of Austria
Conventional Short Form: Austria
Local Long Form: Republik Österreich
Local Short Form: Österreich
Etymology
Austria’s German local name, “Österreich,” means “eastern realm,” and this name first appeared in 996 in the Ostarrîchi Document, derived from the Old High German word “Ostarrîchi.” This term is most likely a translation into the local (Bavarian) dialect of the Medieval Latin term “Marchia orientalis,” which referred to the Margraviate of Austria.
Austria was originally a margraviate established in 976 and considered part of Bavaria. The word “Austria” is the Latinized form of the German name and was first recorded in the 12th century.
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Country Profile
Formal Name
Republic of Austria
Capital
Vienna
Official Language
German
GDP
521 milyar $
Population
9,1 million
Location
Europe
Cultural Cluster
Germanic Europe
Other Names
Conventional Long Form: Republic of Austria
Conventional Short Form: Austria
Local Long Form: Republik Österreich
Local Short Form: Österreich
Currency
Euro (EUR) (€)
Land Area
82.520 km² (Land Area)
Etymology
Austria’s German local name, “Österreich,” means “eastern realm,” and this name first appeared in 996 in the Ostarrîchi Document, derived from the Old High German word “Ostarrîchi.” This term is most likely a translation into the local (Bavarian) dialect of the Medieval Latin term “Marchia orientalis,” which referred to the Margraviate of Austria.
Austria was originally a margraviate established in 976 and considered part of Bavaria. The word “Austria” is the Latinized form of the German name and was first recorded in the 12th century.
Demographic Structure
Population:
9,1 million
1.3 milyon (14.3%)
6.0 milyon (65.5%)
1.8 milyon (20.2%)
Kadın 4.6 milyon (50.8%)
Erkek 4.5 milyon (49.2%)
Ethnic Groups
Austrian 80.8%, Other 10%, German 2.6%, Bosnian 1.9%, Turkish 1.8%, Serbian 1.6%, Romanian 1.3%
Spoken Languages
German 88.6%, Turkish 2.3%, Serbian 2.2%, Croatian 1.6%, Other 5.3%
Religious Beliefs
Roman Catholic 55.2%, Muslim 8.3%, Orthodox 4.9%, Evangelical Christian 3.8%, Jewish 0.1%, Other 5.4%, No religious belief 22.4%
Population, Age, 2023: World Bank
GDP, 2024: IMF
Ethnic Groups, Languages, Religious Beliefs: CIA Factbook
History and Government
History
After its defeat in the First World War, the Austro-Hungarian Empire was reduced to a small republic. Following the Nazi German occupation in 1938, Austria was occupied once again in 1945 by the victorious Allied forces. The country’s status remained uncertain for around ten years. In 1955, an agreement was signed that ended the occupation and restored Austria’s independence.
As part of this agreement, Soviet military forces withdrew, and a Constitutional Law was proclaimed declaring Austria’s permanent neutrality. After the collapse of the Soviet Union in 1991, this policy of neutrality began to be questioned, particularly with Austria’s accession to the European Union in 1995. In 1999, as a country with a high level of prosperity, Austria joined the European Union’s Monetary Union.
Independence
There is no official date of independence. The March of Austria was established in 976. The Duchy of Austria was founded on 17 September 1156. The Archduchy of Austria was recognized on 6 January 1453. The Austrian Empire was proclaimed on 11 August 1804. The Austro-Hungarian Dual Monarchy was established on 30 March 1867. The First Republic was proclaimed on 12 November 1918, and the Second Republic was proclaimed on 27 April 1945.
Government Type
Federal Parliamentary Republic
Administrative Divisions
Austria is governed through a three-tier administrative system.
1- States: Austria is divided into a total of 9 states.
2- Statutory Cities and 7 Districts: The states are subdivided into statutory cities and 7 districts.
3- Cities, 2 Statutory Cities, 66 Market Towns, and 92 Municipalities: These are the smallest administrative units and are generally located within statutory cities and the 7 districts.
States: Burgenland, Carinthia (Kärnten), Lower Austria (Niederösterreich), Upper Austria (Oberösterreich), Salzburg, Styria (Steiermark), Tyrol (Tirol), Vorarlberg, Vienna (Wien)
Major Cities
Graz, Linz, Innsbruck, Salzburg
Geographical Features
Geographic Location
Austria is located in Central Europe and encompasses a large part of the Alps.
Neighbors
Germany, Czech Republic, Slovakia, Hungary, Slovenia, Italy, Switzerland, Liechtenstein
Climate
Austria generally exhibits a continental climate, with cold winters and mild summers. In the Alpine regions, temperatures can drop significantly during winter, accompanied by heavy snowfall. Summers, especially in the lowlands and valleys, can be warm and humid.
Cultural Values
✦ Austria's cultural values are built upon a set of core principles and understandings, nourished by the country's rich history, artistic heritage, and social structure. These values shape Austrians’ interactions within society, daily life, and national identity.
✦ Austria places great importance on education and knowledge in general. The country pursues excellence in science, art, and literature through its world-renowned universities, research institutions, and extensive libraries. Education is seen as the foundation for individual development and societal progress.
✦ Austria is considered the cradle of classical music and art. The legacy of composers such as Mozart, Beethoven, and Strauss occupies a central place in the country’s cultural life. This deep commitment to music and the arts is maintained and celebrated through festivals, concerts, and art exhibitions.
✦ A strong social welfare system addresses citizens’ health, education, and social security needs. Social dialogue and cooperation are also encouraged in labor and employer relations.
✦ Austria’s remarkable natural beauty has contributed to the development of environmental awareness and respect. Sustainable living, the use of green energy, and the preservation of natural resources are among society’s priorities.
✦ Austrians successfully balance their rich history and traditions with modern lifestyles. The coexistence of historic buildings and traditional festivals with contemporary life reflects this balanced approach.
✦ Courtesy and politeness play an important role in social interactions in Austria. Formality and respect for personal space are integral parts of daily life.
✦ Austria’s cultural values reflect the country’s rich heritage and social structure. These values shape Austria as a dynamic society that honors its past while adapting to the contemporary world. Austrians continue to preserve and develop these values to maintain their national identity and social cohesion.
Business Culture
✦ In Austrian work culture, formality plays an important role. Meetings and business interactions are generally conducted in a formal manner. Communication maintains formality through the use of titles and last names. The dress code in the workplace is usually conservative and formal, and projecting a professional image is expected.
✦ Hierarchy is prominent in Austrian business, and management typically has an authoritative structure. Decision-making processes are controlled by senior executives, and employees are expected to respect and follow these decisions.
✦ Austrians place great importance on details in their work. During planning and project management stages, detailed and comprehensive work is carried out. High quality standards and meticulousness can be observed at every stage of business processes.
✦ The concept of "Gemütlichkeit" holds significance not only in the work environment but also in social relations within Austrian business culture. The workplace is seen not only as a place for professional duties but also as an area where good relationships among employees are developed and social interactions are encouraged.
Practical Information
First Names and Titles
Unless a genuine friendship has developed outside the office, make sure not to address your Austrian counterpart by their first name under any circumstances.
Titles such as Herr or Frau Ingenieur are very commonly used in Austria. Other frequently used titles include Herr Doktor and Herr Diplom Ingenieur.
Even if a degree of familiarity develops allowing first-name use, it is expected that you maintain formality in professional interactions, especially in front of third parties.
Business Meetings
In Austria, it is important to bring plenty of business cards; one side should be in German, clearly indicating your company position.
Punctuality is essential; being 5–10 minutes late is viewed negatively, and 15 minutes late can have serious consequences.
The number of female managers is low, with higher representation in fields like law; foreign businesswomen are generally accepted.
Meetings usually start with a brief introduction, and light personal topics can serve as icebreakers. Showing knowledge about Austrian culture is appreciated.
Decision-making is slow and methodical; Austrians avoid risk and prefer clear outcomes. Mutual benefit, respect, and trust are important.
Communication
Business discussions may include personal topics. Demonstrating knowledge of Austrian culture will be appreciated.
Avoid referencing Austrians or their culture as a subset of German culture.
During conversations, avoid giving words you cannot keep.
Austrians appreciate humor and will generally accept jokes you make.
They enjoy talking about classical music, opera, winter sports, and Austrian art and architecture.
Gift Giving
While gift exchanges are rare in Austrian business culture, it is advisable to carry small gifts in case of mutual exchange.
Gifts are generally opened immediately and should be simple and understated.
Items reflecting local culture or art (books, local products, art pieces) are good choices.
For private invitations, gifts for the host and their family are important; quality wine, champagne, brandy, chocolates, or flowers are appropriate.
For business achievements or special celebrations, choose premium alcoholic beverages or exclusive products not commonly found in Austria.
Business Attire
Austrians wear elegant, high-quality, yet understated clothing, valuing quality over brand names.
Men: dark wool suits, white shirts, and simple silk ties.
Women: tailored suits and silk blouses.
Traditional attire can be an evening alternative for business or social events: men may wear embroidered jackets, women may wear a Dirndl dress.
Heavy wool coats and hats are commonly worn by both men and women.
Appointments
Like in Germany, punctuality is highly valued in Austria. Being on time reflects professionalism and efficiency, requiring strict respect for schedules, calendars, and agendas.
Trains run on time, projects are meticulously planned, and organizational charts are detailed.
Avoid being late; even small delays can cause discomfort.
If you anticipate being late, notify in advance, and for important appointments, try to arrive 5–10 minutes early.
Indicators
Hofstede Cultural Dimensions
Power Distance Index (PDI)
Austria has a very low score (11) on the Power Distance Index (PDI). This indicates a culture that values independence, hierarchy only when necessary, equal rights, accessible superiors, leadership as coaching, facilitative management, and an empowering structure. Power is decentralized, and managers trust the experience of their team members. Employees are expected to express their opinions and generally dislike being closely controlled. Communication is direct and participative.
For more information, visit our Hofstede Cultural Dimensions post.
Other Indicators
Corruption Perceptions Index
(CPI)
World Ranking
25
KOF Globalization Index
(KOF)
World Ranking
7
Global Innovation Index
(GII)
World Ranking
17
Human Development Index
(HDI)
World Ranking
22
Rule of Law Index
(WJP)
World Ranking
13
Ease of Doing Business Index
(EODB)
World Ranking
27
Corruption Perceptions Index (CPI), 2024: Transparency.org
Human Development Index (HDI), 2023: United Nations Development Programme
KOF Globalization Index (KOF), 2024: ETH Zürich
Rule of Law Index (WJP), 2024: World Justice Project
Global Innovation Index (GII), 2024: WIPO
Ease of Doing Business Index (EODB), 2019: World Bank
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