Startups in Graz, Austria: 2027 guide

Startups in Graz: the short answer

Startups in Graz grow out of three universities, TU Graz, the University of Graz and the Medical University of Graz, and out of a heavy industry base in mobility and electronics. Graz ranks #202 of 1,000 cities in our startup city ranking (scores from 2024 ecosystem data). Styria’s business agency SFG calls the state Austria’s second-strongest startup region, and founders get an academic incubator, a university accelerator and federal grants of up to €1 million. If you start in 2027, plan to handle paperwork and part of your hiring in German.

Is Graz a good place to start a startup in 2027?

Graz fits technical founders. Mobility and powertrain startups can sell to AVL, headquartered in Graz with about 12,000 employees worldwide. Electronics, sensor and quantum teams sit near Silicon Austria Labs, which runs one of its three research sites in Graz. Space tech founders have their own incubator, ESA BIC Austria. Hardware for the home works too: smart lock maker Nuki was founded in Graz by two brothers at the end of 2014 and had more than half a million users by early 2024.

It suits you less if you need several local VCs for a fast Series A or want an English-only workplace from day one. Most public money here comes as grants, which is great for runway and slow for speed.

What does the Graz startup ecosystem look like?

• Science Park Graz: the high-tech incubator TU Graz points its students, doctoral candidates and staff to. It runs Austria’s AplusB incubator program in Graz, supports teams from first idea to market-ready product, and has managed ESA BIC Austria, the space tech incubator, since 2016.
• Gründungsgarage: the academic startup accelerator of TU Graz and the University of Graz. TU Graz admits 10 ideas per semester, and teams finish with a pitch to investors and business people.
• Unicorn Graz: the startup hub of the University of Graz with desks, event rooms, mentoring and two programs, Start-up Werkstatt and Spin-off Lab. In 2026 the Styrian Chamber of Commerce again paid 100% of the cost of six coworking places there for a full year, awarded by a jury (WKO Steiermark).
• TU Graz founder services: IP and funding advice for researchers, a FabLab, an E-Lab and a Business Model Lab.
• Startupmark: SFG’s statewide startup initiative that links universities, research centers, incubators, industry and investors.

Where do founders in Graz find funding?

• aws Preseed Deep Tech: a non-repayable grant of up to €267,000 at 80% of costs for founders up to six months after registration.
• aws Preseed for non-deep-tech startups: up to €89,000 for startups outside deep tech with social or ecological added value.
• aws Seedfinancing Deep Tech: up to €889,000, repaid without interest only if you make a profit or sell the company.
• FFG Basisprogramm Kleinprojekt: up to €88,500 for small R&D projects of up to €150,000, open until 31 December 2026.
• SFG: runs Startupmark and iCONTACT, its network that brings Styrian startups in front of private investors (SFG).

How do you register a company in Austria?

Founders who plan to raise money pick a GmbH (limited liability company) or the newer FlexCo (Flexible Kapitalgesellschaft). Both need €10,000 in share capital, half of it paid in cash, and both come into existence only once entered in the Firmenbuch, the commercial register (USP, WKO). A one-shareholder GmbH or FlexCo can be founded online through the USP eGründung without a notary; every other setup needs a notarial deed. The FlexCo also lets you hand staff non-voting company value shares worth up to 24.99% of the share capital.

What taxes does a startup pay in Austria in 2026?

• Corporate income tax (Körperschaftsteuer): a flat 23% (USP), with a minimum of €500 a year for a GmbH or FlexCo, even in loss years (WKO).
• What changes next: the Budgetbegleitgesetz 2027-2028, passed by parliament in July 2026, keeps 23% on the first €1 million of profit and taxes the part above it at 24% for financial years starting after 31 December 2027 (Parliament, WKO). A calendar-year startup pays 23% on all profit in 2027.
• VAT (Umsatzsteuer): 20% standard, with reduced rates of 10%, 13% and 4.9%. Small businesses with turnover up to €55,000 a year can skip charging VAT (USP rates, USP small businesses).
• Research premium (Forschungsprämie): 14% of qualifying R&D costs, paid as a premium. For in-house research you request a free annual expert opinion from FFG through FinanzOnline, then claim with form E 108c (USP).

Which visa can a foreign founder use to move to Graz?

EU and EEA citizens need no permit. Non-EU founders have two official options, both with a 24-month first card:

• Red-White-Red Card for start-up founders: you set up a company to bring new products, services, processes or technologies to market, hold controlling influence over its management, invest at least €30,000 with an equity share of at least 50%, submit a business plan and score 50 of 85 points. Points come from qualifications, work experience, German or English skills and bonuses: 10 points each for €50,000 or more of extra capital, admission to an incubator or startup funding program, and being 35 or younger. After two years you can move to the Red-White-Red Card plus.
• Red-White-Red Card for self-employed workers (Selbständige Schlüsselkräfte): no points; your business must bring a wider economic benefit, such as moving at least €100,000 of investment capital to Austria, creating jobs or bringing new technology. The AMS (public employment service) gives its opinion within three weeks, and the application fee is €218.

Pros and cons for founders in Graz

Pros

• Three universities feed one incubator, one accelerator and one hub.
• AVL, Silicon Austria Labs and ESA BIC Austria give hardware founders customers and partners.
• aws and FFG grants keep early rounds non-dilutive.
• The Chamber of Commerce paid for six coworking places at Unicorn Graz again in 2026.

Cons

• Expect German in official procedures and most local business.
• Few venture funds sit in Styria, so later rounds go through Vienna, Munich or further.
• Grant applications take time before money arrives.

What does Graz offer women founders?

Women made up only 21% of Austrian startup founders in the latest Austrian Startup Monitor, published by the economy ministry in 2026 (BMWET). Austria answers with money: aws pays a gender bonus when women own more than 25% of the company. It lifts aws Preseed Deep Tech to 90% of costs and up to €300,000, the non-deep-tech Preseed grant to €100,000 and Seedfinancing Deep Tech to €1 million. In Graz, Frau in der Wirtschaft Steiermark represents about 25,800 women business owners and runs FEMCON, a business convention that drew more than 200 women. Female Founders, a European network that runs events in Vienna, counts about 87,000 members and runs a four-week hybrid bootcamp for early-stage women-led startups.

FAQ about startups in Graz

Is Graz a good city for startups?

Yes for deep tech, mobility, electronics and space tech. Science Park Graz, the Gründungsgarage and Unicorn Graz support founders from idea to company, and aws and FFG grants fund the first steps.

How much money do I need to found a GmbH in Graz?

The minimum share capital is €10,000, with half paid in cash. A one-shareholder GmbH or FlexCo can be founded online through USP without a notary, and the minimum corporate tax is €500 a year.

Which visa lets a non-EU founder start a company in Graz?

The Red-White-Red Card for start-up founders: €30,000 of capital, 50 of 85 points and a business plan. Founders with bigger investments can use the self-employed card, which looks at benefits such as €100,000 of capital moved to Austria.

What is the corporate tax rate in Austria in 2027?

A flat 23%. From financial years starting after 31 December 2027, profit above €1 million is taxed at 24%.

Sources (checked October 2026)

• Science Park Graz
• Gründungsgarage
• Unicorn Graz
• WKO Steiermark: six coworking places at Unicorn, 2026
• TU Graz: founders at TU Graz
• SFG: Startupmark
• SFG
• AVL: about AVL
• Silicon Austria Labs
• Nuki press release, January 2024
• aws Preseed Deep Tech
• aws Preseed for non-deep-tech startups
• aws Seedfinancing Deep Tech
• FFG Basisprogramm Kleinprojekt 2026
• USP: GmbH
• USP: eGründung
• WKO: FlexCo
• USP: corporate income tax
• WKO: corporate income tax and minimum tax
• WKO: two-step corporate tax from 2028
• Parliament: Budgetbegleitgesetz passed, 8 July 2026
• USP: VAT rates
• USP: small business VAT exemption
• USP: research premium
• Migration.gv.at: Red-White-Red Card for start-up founders
• Migration.gv.at: Red-White-Red Card for self-employed workers
• BMWET: Austrian Startup Monitor
• WKO: Frau in der Wirtschaft Steiermark
• WKO Steiermark: FEMCON
• Female Founders

MeanCEO Index for Graz, Austria 🚀

Graz is a lesser-known startup city with real strengths. Here is how it scores for female entrepreneurs on the ten factors of the MeanCEO Index.

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1. Weather ☀️

• Score: 6/10
  • Graz has a temperate climate with a fair number of sunny days, and winters get quite chilly. It lacks a Mediterranean feel, but the weather suits plenty of outdoor activities.

2. Location 🏖️

• Score: 3/10
  • Graz is landlocked with no beaches nearby. Hills, vineyards and nature around the city make good weekend retreats for entrepreneurs.

3. Women Friendly 👩‍💼

• Score: 7/10
  • Austria respects gender equality, and Graz is no exception. Women take part in business, and programs such as the aws gender bonus and Frau in der Wirtschaft Steiermark back female entrepreneurs.

4. Foreigners Friendly 🌍

• Score: 6/10
  • Graz welcomes foreigners, helped by its large student population. The local community is less diverse than in bigger cities, which shapes the social life of newcomers.

5. English as a Business Language 📚

• Score: 8/10
  • German is the main business language, and English is widely spoken in the startup community. Non-German speakers can do business in English, with German needed for paperwork.

6. Delicious Cuisine 🍷

• Score: 6/10
  • Graz serves hearty, traditional Austrian food, onions included, along with tasty local wines. Healthy options exist, though the food scene is less famous than in other European cities.

7. Ease of Getting Married and Starting a Family 💍

• Score: 5/10
  • Graz has a friendly population and a pleasant setting for relationships. The dating culture is less focused on quick family formation.

8. Medicine 🏥

• Score: 7/10
  • Austria has a good healthcare system, and Graz is no exception. Appointments are accessible and fairly priced, which gives entrepreneurs peace of mind.

9. Ease of Transportation & Traveling 🚍

• Score: 7/10
  • Graz has decent public transport and train and bus links to other cities. International flight options are limited, while regional connections are solid.

10. Startup Mindset 💡

• Score: 7/10
  • Graz is building a startup mindset with university programs and a growing community. The smaller market sets limits compared to larger startup hubs.

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MeanCEO Index Score: 56/100 🎉

Graz gives female entrepreneurs a decent place to build a startup. It combines a commitment to gender equality, growing support networks and a rich culture. The small market and missing beaches hold the score back, while grants, universities and a friendly community make Graz a solid pick for women who want to start a company.

Happy entrepreneurship! 🚀