AUSTRIA Law and Practice Contributed by: Clemens Philipp Schindler and Katharina Schindler, Schindler Attorneys
being liable for damages. Such liability is qualified by the business judgement rule, which is stipulated in the Austrian Act on Limited Liability Companies and in the Austrian Stock Corporation Act, and is also deemed applicable for board members of private foundations. 6.3 Fiduciary Regulation The general rules applicable for board members of corporations or private foundations are also applica - ble for fiduciary investments. Such rules include the An Austrian private foundation must not be actively engaged in a trade or business – ie, only the mere administration of assets is permissible, including the holding of participations. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship Domicile in Austria In general, an individual who has accommodation in Austria is deemed to have domicile in Austria; this may be a rented apartment or owned real estate property. In addition, Austrian law provides for a registration if someone permanently lives in a certain place in Aus - tria. Austrian Residency principle of risk spreading. 6.4 Fiduciary Investment EU citizens have no visa obligations and are allowed to reside in Austria for a period of three months (the same applies for EEA and Swiss citizens). EU citizens have the right to reside in Austria for more than three months in the following cases: • if they are employed or self-employed in Austria; • if they have sufficient resources and comprehen - sive health insurance for themselves and their fam - ily members; or • for educational reasons, provided they have health insurance and sufficient resources for living. Third-country nationals who stay or intend to stay in Austria for more than three months need to obtain a residence permit. Depending on the personal situa -
tion, there are various options for residence permits, with applications for the following being the most fre - quent: • Red-White-Red Card for employment and self- employment; • residence permit for students and scientists; • “Family Reunification” permit; and • “Settlement permit – residence without access to the labour market”. Generally, Austria has rather restrictive laws in place regarding residence permits for third-country citizens. Austrian Citizenship Citizenship by descent Children automatically become Austrian citizens at the time of their birth if their mother is Austrian; the same generally also applies if the father is an Austrian citizen. Citizenship by marriage A foreign spouse of an Austrian citizen may obtain Austrian citizenship if the applicant has been legally and continuously resident in Austria for at least six years and has been married for at least five years and lived in a joint household. Please note that the foreign spouse has to generally renounce their former citizenship if Austrian citizen - ship is granted. Citizenship by application Foreigners have the right to obtain Austrian citizen - ship if: • they have lived in Austria permanently for at least 30 years; or • they have lived in Austria permanently for at least 15 years and can evidence successful personal and professional integration in Austria, including German language skills. Foreigners may also apply for Austrian citizenship if they meet the following preconditions: • at least ten years of continuous stay in Austria (at least five years of which as a permanent resident);
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