Austria’s New Rules on Settlement Permits for Cross-Border Workers
In the past, third-country citizens (citizens of a country outside of the European Union) always required a valid residence permit (“Niederlassungsbewilligung”) in order to obtain a work permit and be employed in Austria. As a consequence, many skilled workers, who were citizens of third countries and resided in regions close to the Austrian border, could not work in Austria, even if no suitable workforce was available on the Austrian labour market. Vacancies regularly remained unfilled, exacerbating the shortage of skilled workers in Austria. To address this shortage of skilled workers and to provide third-country citizens residing in neighbouring countries with access to the Austrian labour market, legislative measures have now been implemented in Austria.
Effective from 1 December 2025, a new settlement permit for ‘cross-border workers’ (“Aufenthaltsberechtigung Grenzgänger”) was introduced. The settlement permit for ‘cross-border workers’ is a combined work and settlement permit for individuals who reside in a country bordering Austria. It entitles the holder to stay in Austria temporarily for the purpose of employment without establishing a residence.
In order to obtain a settlement permit for ‘cross border workers’, the (future) employee must have a long-term residence permit with unrestricted access to the labour market in a neighbouring country of Austria. Consequently, certain individuals are not eligible, such as seasonal workers or students. Furthermore, the place of prospective employment must be located in an administrative district of Austria that borders the neighboring country directly. A further prerequisite for the granting of a settlement permit for ‘cross-border workers’ is a positive assessment by the Public Employment Agency, confirming that no suitable replacement worker is available on the Austrian labour market and that the general requirements for a national work permit are met. Finally, the employee must return to his main residence in the neighbouring country at least once a week. For example, a Japanese citizen, having a permanent residence- and work permit in Slovenia may work in the Austrian border region with Slovenia, provided that the other requirements are met.
An application for a settlement permit may be submitted to the competent residence authority at the (future) place of employment by either the employer or the employee him/herself. An employment contract and a statement from the employer confirming the employee’s (future) employment with him/her must be submitted with the application. The settlement permit is usually issued for a period of 12 months and can subsequently be renewed.
The introduction of this new status facilitates the recruiting of skilled workers in border regions and enables third-country nationals residing in a neighbouring country to access the Austrian labour market. It is expected that through this legislative measure, a contribution will be made towards addressing the shortage of skilled workers.
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For more information, contact:
Dr. Philipp Spatz, LL.M.
Mag. Markus Koroschetz
