Austria vs Germany: how really different are they?

At first glance, Austria and Germany might seem nearly identical to the average foreigner. Both are German-speaking countries in Central Europe, boasting rich histories, a shared cultural background, and modern, efficient societies. Yet, behind the linguistic similarities lies a multitude of cultural, economic, and historical distinctions that separate Austrians from their northern neighbors. Read further to explore the key differences between Austria and Germany: from demographics and geography to coffee culture and national mindset.

Population & scale

Germany is a European giant – both geographically and demographically. With over 83 million inhabitants, it is the most populous country in the European Union. Austria, on the other hand, has a population of approximately 9 million – nearly one-tenth the size of Germany. This difference is not just statistical: it directly impacts everyday life, the pace of society, and the density of urban infrastructure.

The contrast in scale also means that Germany tends to dominate in terms of economic influence and global visibility, while Austria offers a more relaxed, small-country atmosphere. Cities in Austria often feel more intimate, less rushed, and more human-scaled, which many residents and visitors find charming.

Geography & nature

Germany is defined by its vast northern plains and rolling hills, especially in the central and northern regions. To the south, it borders the Alps, but most of the country is made up of lowland terrain. This made it ideal for agriculture, early industrialization, and infrastructure like the famous autobahns.

Austria, by contrast, is a country of mountains. Around 70% of Austrian territory is covered by the Alps. Even its lowest point – Lake Neusiedl – is 115 meters above sea level. This has shaped Austria’s identity as a winter sports haven. With 57 ski resorts, it’s a magnet for mountain lovers. But it also means that its infrastructure, agriculture, and urban planning had to adapt to alpine conditions.

The result? A deep national connection to nature, with hiking, skiing, and alpine wellness playing a major role in everyday life.

History & national identity

Germany’s national identity has historically been tied to the unification of many states into a single empire – a "Reich." The term has been used for centuries to describe this centralized idea of power and control.

Austria’s roots lie in the opposite direction. The name "Austria" comes from the German word "Osterreich" – the "Eastern Realm." During the era of the Holy Roman Empire, Austrian lands were at the empire’s eastern frontier. Over time, they developed under the Habsburg dynasty into a multi-ethnic empire of their own.

Modern Austrians are proud of their neutrality and independence. Since 1955, Austria has declared permanent neutrality and has not joined NATO. As a result, Austria is the only EU country that is not part of any military alliance. This has shaped a distinctly independent political identity.

Language & dialects

Austrians speak German – but not the German most learners are used to. While Germany uses "Hochdeutsch" (High German) as the standard, Austria uses its own variant, rich with regional dialects. We already talked about Austrian German in one of our articles – read it to learn the key differences with the standard Deutsch and find out cool dialect words and phrases.

The Viennese dialect, or "Wienerisch," is particularly melodic and full of unique vocabulary. Many everyday words differ dramatically between the countries. For example:

• A package is a Paket in Germany, but a Sackl in Austria.
• Horseradish is Meerrettich in Germany, but Kren in Austria (a Slavic loanword).
• The word for “cream” in Austria is Schlagobers, which can humorously be misread by Germans as "Schlag Ober!" – "Hit the waiter!"

These linguistic quirks often result in mutual confusion – and mild amusement. One thing’s for sure: if you call an Austrian a German, don’t expect a warm reaction.

Salaries & economy

In 2024, Germany faced some economic struggles. Its economy shrank slightly — by 0.1%, making it the only G7 country with negative growth this year (The Times). Unemployment also went up to 6.0% by December (Reuters). The average gross salary was around €51,876 per year (WeAreDevelopers) — but after taxes, the real income is significantly lower.

Austria, in contrast, showed more stability. The average gross salary was slightly higher at €52,665, and after taxes, Austrians earned about €2,996 per month (HousingAnywhere). Austria also maintained a lower unemployment ratethan Germany and stayed below the EU average.

So while Germany is still the economic powerhouse, Austria in 2024 offered more balance — with solid salaries, fewer job losses, and a stronger sense of security for many workers.

Rent & cost of living

Rent is one of the most emotionally charged comparisons between Austria and Germany.

In general, major cities in both countries (Vienna, Berlin, Munich, Hamburg) have seen rent prices rise. However, Vienna is internationally famous for its affordable and high-quality social housing system, which allows many residents to live comfortably without spending a massive portion of their income.

Munich and Hamburg, in contrast, are among the most expensive cities in Europe for rent. Berlin used to be cheap — but prices have skyrocketed in the past decade.

In Austria, smaller cities and towns remain relatively affordable, and the government maintains a strong commitment to housing access. Curious about how to actually rent a flat in Austria? We covered everything you need – from documents to deposits – in one of our recent articles.

Rhythm of life & social habits

One of the most striking differences lies in daily behavior and social rhythms.

Germans are often described as precise, punctual, and reserved. Smiles are saved for special moments. Schedules are strict. A business meeting starts on time — and ends exactly when planned. After work, people go home. Even cafés close early.

Austrians, however, live on a different frequency.

“We’re not in Germany!” they like to joke – especially when they show up 20 minutes late.

Coffee culture is sacred in Austria. People of all ages spend hours in cafés reading newspapers, playing chess, or simply watching the world go by. Even young mothers feed their children in cafés – no rush, no stress.

This love for relaxed public life stems from Austria’s historical position as a cultural crossroads. The famous Viennese café culture dates back to the Ottoman era, when Turkish traders brought coffee to the region. Today, this legacy lives on in the slow-paced, communal spirit of Austrian social life.

Wrapping up

Germany and Austria may speak the same language — but they don’t live the same life. From the mountains of Tirol to the autobahns of Berlin, these two countries represent different versions of Central Europe: one large, structured, and powerhouse-driven; the other smaller, more relaxed, and culture-focused.

In the end, it’s not about which is better. It’s about understanding the nuances that make each country unique. Just remember: never call an Austrian a German — and always order your coffee with Schlagobers, not Schlag Ober.

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