Austria’s long-anticipated Residence Permit – Cross-Border Commuter entered into force on 1 December 2025, creating a dedicated immigration route for third-country nationals who live in a neighbouring EU Member State but travel into Austria’s border districts for work.
The permit, anchored in §12e of the amended Aliens Employment Act (AuslBG) and published in the Federal Law Gazette on 3 November 2025, fills a legal gap that had forced non-EU frontier workers to juggle short-term work approvals and Schengen stays. Holders may live permanently in Slovakia, the Czech Republic, Hungary or Slovenia while taking up dependent employment in an adjacent Austrian district for up to two years at a time. Employers must still pass a labour-market test with the Public Employment Service (AMS), but the procedure has been streamlined compared with the standard Red-White-Red Card.
![Austria launches new Residence Permit – Cross-Border Commuter]()
Commuters retain social-security coverage and tax residence in their home state under existing bilateral agreements; Austrian withholding tax applies only to income earned on Austrian soil. The AMS expects adjudication times of four–six weeks and has advised companies to keep commuters’ passports, work contracts and A1 certificates on hand for spot checks at temporary internal border controls.
Business groups, especially in logistics, manufacturing and elder-care services along the eastern frontier, welcomed the new pathway. They argue that Austria’s tight labour market—unemployment in the eastern border districts hovers below 4 per cent—cannot be relieved without tapping talent pools in neighbouring regions. Trade unions have called for strict monitoring to ensure wages and working conditions match local standards, warning that any downward pressure could provoke political backlash ahead of the 2026 provincial elections.
The permit, anchored in §12e of the amended Aliens Employment Act (AuslBG) and published in the Federal Law Gazette on 3 November 2025, fills a legal gap that had forced non-EU frontier workers to juggle short-term work approvals and Schengen stays. Holders may live permanently in Slovakia, the Czech Republic, Hungary or Slovenia while taking up dependent employment in an adjacent Austrian district for up to two years at a time. Employers must still pass a labour-market test with the Public Employment Service (AMS), but the procedure has been streamlined compared with the standard Red-White-Red Card.
Commuters retain social-security coverage and tax residence in their home state under existing bilateral agreements; Austrian withholding tax applies only to income earned on Austrian soil. The AMS expects adjudication times of four–six weeks and has advised companies to keep commuters’ passports, work contracts and A1 certificates on hand for spot checks at temporary internal border controls.
Business groups, especially in logistics, manufacturing and elder-care services along the eastern frontier, welcomed the new pathway. They argue that Austria’s tight labour market—unemployment in the eastern border districts hovers below 4 per cent—cannot be relieved without tapping talent pools in neighbouring regions. Trade unions have called for strict monitoring to ensure wages and working conditions match local standards, warning that any downward pressure could provoke political backlash ahead of the 2026 provincial elections.
