Tax & income
Hard facts for musicians
Freelance musicians and composers are classified as so-called New Self-Employed ("Neue Selbstständige")
This means that they are subject to full insurance with the Social Insurance Institution for the Self-Employed (SVS) in accordance with the Commercial Social Insurance Act (GSVG). This social insurance includes accident, health and pension insurance as well as self-employment provision. (more info)
The amount of contributions depends on income. Social security contributions are payable from a profit of € 6.613,20 per year (as of 2025). If insurance is compulsory, musicians have the option of receiving support from the Artists' Social Insurance Fund (KSVF).
A trade license is not required for artistic activity. The practice of music is considered a fine art and - in contrast to the arts and crafts - is not subject to the trade regulations.
Income tax
Income tax is only due if the annual profit exceeds € 13.308 (as of 2025).
If you are employed - regardless of the activity - a tax return is mandatory from an annual profit of € 720.
How is profit calculated?
Profit is (usually) calculated using an income and expenditure account. The profit is usually calculated by comparing income and expenditure.
The so-called inflow-outflow principle is applied, which means that only actual cash flows are decisive for recognition and tax purposes. (An exception to this is the acquisition or production of fixed assets).
At the end of the year, all income and expenses recorded during the year are totaled. This involves a structured breakdown of operating expenses by category. The profit is then calculated from the difference between income and expenditure.
Turnover tax
From an annual turnover of € 55,000, VAT is payable and a VAT identification number (UID) is assigned, which must be stated for all fees. In principle, a fee note must be issued for each service provided.
Tax principles for music professionals
What is considered a self-employed service? How is income tax calculated in Austria? What expenses can artists deduct and who falls under the legal definition of an artist? What does the artist flat rate mean and what tax rates apply in Austria? How is it regulated for tax purposes if I play concerts abroad? Who is affected by the cash register obligation?
mica - music austria offers detailed information on the subject of tax and self-employment in the practical knowledge section as well as in individual, free consultations.
Recommendation for everyday life
It is advisable to keep an eye on threshold values, both those for social insurance and the threshold value for income tax liability. In general, it is advisable to set aside between 20% and 30% of your income for any claims, such as back payments for social insurance or advance income tax payments, to avoid any “nasty” surprises.
Finances and taxes are a topic that many people prefer to ignore. A little tip can help you overcome this fear of numbers:
We recommend regularly entering invoices, fee notes etc. in an income and expenditure statement in the form of an Excel spreadsheet and filing documents in an organized manner. It pays to establish a routine here, e.g. scheduling 1 hour once a week for these office activities in your weekly schedule.
Knowing about your own finances avoids stress and gives you the opportunity to proactively counteract financial difficulties.
Although tax advisors and tax firms are associated with costs (these are tax-deductible), they are highly recommended for the correct preparation and submission of the annual income tax return.
Despite careful research, all information is provided without guarantee.