Red-White-Red Card poorly designed? Minister wants to attract more entrepreneurs, not just skilled workers, to Austria

Austria is missing a crucial opportunity to attract entrepreneurs and investors, not solely skilled workers, according to a new Economica study. The research highlights that Austria is lagging in international competition for capital, founders, and key technologies, exacerbating ongoing discussions about labor shortages, declining competitiveness, and sluggish growth.

The current "Red-White-Red Card" system, which brought 12,623 foreign workers to Austria in 2025, is heavily skewed towards traditional employment. Out of these, two-thirds were skilled workers in high-demand professions, while a mere 60 individuals were self-employed or operated startups, representing only 0.5% of the total.

The study emphasizes that attracting entrepreneurial projects can generate significant economic value. A single successful project could create between 13.6 million and 155 million euros in gross value added over five years, along with substantial investments and an average of 157 new jobs per project. This potential highlights the need for predictable procedures, legal certainty, and reliable residency prospects to anchor larger business ventures in Austria.

Economics Minister Wolfgang Hattmannsdorfer intends to reposition the "Red-White-Red Card" from a "purely skilled worker instrument" to a genuine "location instrument." He envisions an economically driven approach that prioritizes individuals establishing real business operations and creating employment, explicitly ruling out a "Golden Visa" scheme. Proposed reforms include faster digital processes, clearer deadlines, and greater emphasis on entrepreneurial experience over mere formal qualifications.

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The Red-White-Red Card should no longer be a 'purely skilled worker instrument' in the future, but should attract more entrepreneurs.