The Settlement Permit Excluding Gainful Employment (Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit) is Austria's residence permit for financially independent third-country nationals — commonly referred to as Privatiers — who wish to settle in Austria without engaging in any form of work. It targets retirees, pensioners, and individuals living on investment income, rental income, or other passive sources. The permit is established under §44 of the Settlement and Residence Act (NAG) and operates under Austria's strict annual quota system; the Niederlassungsverordnung 2026 allocates 450 places nationwide for Privatiers (principal applicants and quota-bound family members combined), making availability limited and competitive.
The permit is initially issued for 12 months. The first renewal is also for 12 months. Subsequent renewals are for 3 years, provided the holder has completed Module 1 of the Integration Agreement (German A2), maintained continuous lawful residence for at least 2 years, and holds a passport valid for 3+ years.
Renewal applications must be submitted before the current permit expires (earliest 3 months prior) at the competent provincial settlement authority and are not quota-dependent. After 5 years of continuous lawful residence, holders may apply for the EU Long-Term Resident permit (Daueraufenthalt – EU) upon completing Module 2 of the Integration Agreement (German B1). Austrian citizenship by naturalisation is possible after 10 years of continuous legal residence.
Spouses/registered partners and minor unmarried children may each apply for their own Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit. Each family member requires a separate quota place from the same annual allocation, increasing competition for limited spots. Family members must independently satisfy all general issuance requirements: health insurance, adequate accommodation (assessed for the total household size), income contribution, and background checks. Family members file via the same embassy/consulate process simultaneously or subsequently.
Holders who establish domicile or habitual residence in Austria (or reside for 6+ months) become unlimited tax residents and are subject to Austrian income tax on worldwide income. Austria maintains an extensive network of double taxation agreements to prevent double taxation. Tax residents must file an annual income tax return (Einkommensteuererklärung) with the local tax office (Finanzamt).
The process begins with the annual pre-registration window, typically held in November for the following year's quota (e.g., 3–9 November 2025 for 2026 places). Applicants register online through the Austrian embassy or consulate responsible for their place of residence and receive a reservation code. They then book an in-person appointment at the embassy/consulate during the appointment window (e.g., 1–8 December 2025) and submit all required documents in person.
The embassy verifies completeness and forwards the application to the competent provincial settlement authority in Austria. Quota places are distributed on a first-come, first-served basis by application submission date each January. The authority must decide within 6 months of receiving a complete application. Upon approval, the applicant must request an entry visa within 3 months of notification (if not visa-exempt) and collect the residence permit card from the settlement authority within 6 months of notification.
The application fee is EUR 218 (as of 1 January 2026). Upon arrival in Austria, the holder must register their place of residence with the local registration office (Meldeamt) within 3 days of moving in.
Module 1 of the Integration Agreement must be completed within 2 years of initial permit issuance, requiring German language skills at A2 level and knowledge of fundamental Austrian democratic values. Failure to complete Module 1 within the deadline may result in non-renewal. Holders must register and update their address with the local Meldeamt and maintain valid health insurance throughout their stay.