Austria doesn't have one tax-free gift allowance for employers, it has three, and unlike Germany's single Sachbezug rule, all three are separate, additive pots under §3 Abs 1 Z 14 EStG 1988. A company event allowance, a gift-at-that-event allowance, and a service anniversary allowance each cover a different situation and can be used alongside one another in the same year. There's also a gap that trips up anyone used to German rules: Austria has no separate exemption for personal-occasion gifts like a birthday, wedding, or the birth of a child, those are generally fully taxable. This article walks through all three Austrian allowances, the voucher rule, and where client gifts stand.
Three separate allowances, not one
All three allowances below sit under §3 Abs 1 Z 14 EStG 1988, and all three are true Freibeträge, not cliff-edge thresholds. That means if a gift exceeds the cap, only the amount above the cap becomes taxable, not the whole gift.
- €365/year — company event participation. Employees can take part in a company event, a Christmas party, a company outing, a cultural event, tax-free up to €365 per year. This covers the cost of venue, catering, entertainment, and transport for the event itself.
- €186/year — gifts given at a company event. Separately, gifts in kind handed out at such an event, for example a Christmas present given out at the Christmas party, are tax-free up to €186 per employee per year. This is a distinct pot from the €365 event allowance above; it doesn't share the same budget.
- €186/year — service or company anniversary gift. A further, independent €186/year allowance applies to a gift given on the occasion of a service anniversary (Dienstjubiläum) or company anniversary, marking 10, 20, or 25 years of service, for example. This one does not need to be tied to a company event at all and can be used entirely on its own.
No personal-occasion exemption. This is the biggest difference from Germany, where a separate €60 Aufmerksamkeiten allowance covers birthdays, weddings, and similar personal milestones. Austria has no equivalent. A gift for an employee's birthday or wedding doesn't fall under any of the three allowances above and is, as a rule, fully taxable as regular employment income. If you're building a gifting programme and are used to German rules, this is the point most likely to catch you out.
Vouchers only count if non-cash
Gift vouchers can count toward any of the three allowances above, but only if they cannot be redeemed for cash. A voucher qualifies when it's restricted to specific goods or services at a specific provider, a catalogue voucher, a retailer gift card tied to a defined range of products, or similar. A general-purpose voucher that functions like cash, or that can be exchanged for cash, doesn't qualify under any of the three allowances and is treated as taxable income from the first euro.
12 gift ideas within the allowances
Because the €186 gift allowances are the ones employers use most often for tangible, in-kind gifts, the 12 products below are priced to sit comfortably within €186 on their own, with plenty of room to spare for branding and packaging.
1. Hoodie – The Rex: the flagship piece
A heavyweight 280 gsm organic cotton hoodie that employees actually wear, and one of the most popular gifting items in the catalogue, well within either €186 allowance.
- Material: 90% organic cotton, 10% polyester.
- Branding: embroidery, print, or patches.
- Order: MOQ 100 · from €40.09/unit.
2. RollTop Backpack: the everyday bag
A water-resistant backpack with a laptop compartment that quickly becomes someone's everyday bag, and still leaves plenty of headroom under either €186 allowance.
- Material: GRS-certified recycled PU, water-resistant.
- Branding: print or embroidery.
- Order: MOQ 25 · from €24.57/unit.
3. Noise-Cancelling Headphones: the premium pick
The highest-value pick on this list, and still comfortably inside the €186 allowance for a service anniversary or event gift on its own.
- Material: recycled ABS, ANC + ENC, foldable.
- Branding: digital print or doming.
- Order: MOQ 50 · from €24.46/unit.
4. Bamboo Tea Bottle: the natural choice
A bamboo exterior over a durable stainless steel interior, a warmer-looking alternative to an all-metal bottle, and an easy fit under either allowance.
- Material: stainless steel, bamboo.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €18.70/unit.
5. Wireless Powerbank: useful everyday tech
A magnetic wireless powerbank in recycled ABS plastic, genuinely useful for any commute or business trip, and well within the €186 threshold.
- Material: recycled ABS plastic.
- Branding: pad print or digital print.
- Order: MOQ 50 · from €18.39/unit.
6. Recycled Steel Bottle: everyday hydration
Vacuum insulation in recycled stainless steel, a gift that gets used and seen every day, at a price that leaves almost the entire €186 allowance unused.
- Material: recycled stainless steel.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €11.00/unit.
View the Recycled Steel Bottle →
7. Baseball Cap: the everyday accessory
An affordable, highly visible accessory that works all year round and stacks easily with other small items within the same €186 pot.
- Material: 100% cotton.
- Branding: embroidery.
- Order: MOQ 100 · from €8.34/unit.
8. Espresso Mug: the desk essential
A proper espresso cup for the coffee obsessives on the team, a small gift that still gets used daily.
- Material: ceramic.
- Branding: debossed or printed logo.
- Order: MOQ 108 · from €8.44/unit.
9. Premium Tote Bag: the lightweight carry
A heavyweight cotton tote with a premium feel, everyday enough to actually get used, and comfortably under either €186 allowance.
- Material: 270gsm cotton.
- Branding: print or custom straps.
- Order: MOQ 100 · from €6.44/unit.
10. Knitted Scarf: the cosy extra
A high perceived-value item for a winter or year-end gift, priced well inside the €186 ceiling.
- Material: 80% viscose, 20% polyester.
- Branding: woven label.
- Order: MOQ 100 · from €7.66/unit.
11. A5 Notebook: FSC-certified paper
An A5 hardcover with elastic closure and ribbon marker, practical with a traceable material story, and one of the lowest-cost items on this list.
- Material: FSC-certified paper, PU cover.
- Branding: debossing or print on the cover.
- Order: MOQ 100 · from €4.58/unit.
12. Sports Socks: the safe favourite
Sunday's most-ordered item, a small, unexpected gift that always lands well, and leaves almost the entire €186 allowance untouched.
- Material: 80% cotton, 17% polyamide, 3% elastane.
- Branding: knitted-in logo zones.
- Order: MOQ 100 · from €4.00/unit.
What about client gifts?
Gifts to clients and business partners follow a different rule entirely, and it's not a favourable one. Under §20 Abs 1 Z 3 EStG 1988 (mirrored for corporations via §12 Abs 1 Z 3 KStG 1988), gifts to clients are classified as "Repräsentationsaufwendungen" (representation expenses) and are generally not deductible as a business expense in Austria.
There's one notable exception: gifts with genuine advertising character, think pens, calendars, or notepads printed with your company logo, remain deductible as an ordinary advertising expense rather than a representation expense. The distinction comes down to whether the item functions primarily as marketing material rather than as a personal gift.
Separately, there's a VAT (Umsatzsteuer) angle to watch too: a de minimis threshold of €40 per recipient per year applies. Stay below it and no self-supply VAT (Eigenverbrauch) is triggered on the gift. Go above it, and the full value of the gift becomes subject to VAT.
For the full detailed breakdown (in German), read Steuerfreie Mitarbeitergeschenke in Österreich.
Common mistakes
- Confusing the three allowances with each other. The €365 event allowance covers the cost of the event itself; the €186 in-event gift allowance covers a gift handed out at that event; the €186 service anniversary allowance is entirely independent and doesn't require an event at all. Treating them as one shared pot, or assuming spending on one eats into another, leads to miscalculated tax-free budgets.
- Wrongly assuming a personal-occasion exemption exists, like in Germany. Unlike Germany's €60 Aufmerksamkeiten rule, Austria has no equivalent allowance for birthdays, weddings, or the birth of a child. Gifts for these occasions are, as a rule, fully taxable in Austria, a frequent source of confusion for anyone benchmarking against German practice.
- Using a cash-convertible voucher. A voucher only counts toward any of the three allowances if it cannot be redeemed for cash and is restricted to specific goods or services at a specific provider. A general-purpose gift card that functions like cash doesn't qualify and is taxable from the first euro.
Note: this article is a general explainer, not tax advice. Thresholds and rules can change — confirm how they apply to your business with your Steuerberater.
Order gifts for your team
Every product above is fully customisable with your branding and available in business order quantities. Browse the full range in the Sunday catalogue to put together a gifting programme that stays comfortably within Austria's tax-free allowances.
