A company based in Vienna has held its business account with a bank in Germany for years, which is why its IBAN does not start with AT but with DE. Now a form asks for Austrian bank details, or a customer asks whether they can transfer money to a German IBAN at all. The answer is in an EU regulation: in euro payments, nobody may dictate in which EU country the other side’s account is held.
This article first explains how an IBAN in Austria is built and which bank is behind the digits. It then covers the German IBAN, the rules of the SEPA Regulation for credit transfers and direct debits, and how businesses state their IBAN correctly.
Key points at a glance:
- An IBAN in Austria always has 20 characters: the country code AT, two check digits, the former five-digit bank code and the former eleven-digit account number.
- The bank code inside the IBAN shows which bank holds the account.
- No BIC is needed for domestic payments and, since 1 February 2016, for euro payments within the EEA either.
- Under Article 9 of the SEPA Regulation, payers and payees may not dictate in which EU member state the other side’s account is held.
- According to oesterreich.gv.at, businesses should always state their IBAN on business letters and invoices.
How an IBAN in Austria is built
IBAN stands for International Bank Account Number. IBAN and BIC present bank details in the EU in a uniform way, which according to oesterreich.gv.at allows payments to be automated and makes faster, cheaper transfers possible. According to the official portal, the IBAN is built the same way in every country; only the length differs by country of origin. An Austrian IBAN always has 20 characters. In the structure of an IBAN in Austria, every position carries a specific piece of information:
| Positions | Content | What it contains |
|---|---|---|
| 1 to 2 | Country code | Always AT for an account held in Austria |
| 3 to 4 | Check digits | Two digits that help to prevent misdirected transfers |
| 5 to 9 | Former bank code | Five digits that identify the institution holding the account |
| 10 to 20 | Former account number | Eleven digits, shorter account numbers with leading zeros |
An IBAN starting with AT can therefore be recognised by its length of 20 characters and its country code. The IBAN combines the account number and bank code that used to be given separately. According to oesterreich.gv.at, the IBAN is entered without spaces in electronic payment orders. In handwritten orders it may be written in blocks of four characters for better readability.
What the SEPA Regulation means by an IBAN
The SEPA Regulation defines the IBAN as an international payment account number that unambiguously identifies a payment account in a member state and whose elements are specified by the International Organization for Standardization (ISO). Alongside it, the regulation defines the BBAN, the national account number. It also identifies an account unambiguously but can only be used for domestic payments; for cross-border payments, the same account is addressed by its IBAN.
For credit transfers and direct debits in euro, the annex to the regulation requires the IBAN as the payment account identifier. The recitals also state that, for the vast majority of payments in the Union, an account can be identified by the IBAN alone, without also giving the BIC. In a number of member states, banks have set up directories for this, which make it possible to find the BIC belonging to an IBAN; according to the recitals, the BIC is only needed in a very small number of cases.
Which bank belongs to an IBAN in Austria?
Which bank an IBAN in Austria belongs to is revealed by positions 5 to 9. They contain the former five-digit bank code of the institution that holds the account. If you know the bank code, you know with which bank or payment service provider the money ends up. According to oesterreich.gv.at, the check digits in positions 3 and 4 serve to prevent misdirected transfers.
Alongside the IBAN there is the BIC, the Bank Identifier Code. It is the unique identifier of a bank at international level, just as the bank code is at national level. A BIC has eight or eleven characters and is often also called a SWIFT code.
IBAN and BIC: when the BIC is still needed
For most payments today, the IBAN is enough. For domestic payments and, since 1 February 2016, also for cross-border euro payments within the EEA, no BIC is required according to oesterreich.gv.at, because the IBAN already contains the bank details. Anyone using the Zahlungsanweisung payment slip therefore only gives the payee’s IBAN.
Your own IBAN can be found in online banking under the account details or requested from the institution holding the account. The BIC appears on account statements and can also be found online. For business partners it is convenient to keep both in a fixed place, for example in the letterhead or on the invoice.
German IBAN: how to recognise it
An IBAN from Germany follows the same principle as the Austrian one but may have a different length. The country code in the first two positions is then DE instead of AT. This IBAN country code shows in which country the account is held. It says nothing about where the account holder is based: a company from Graz can have an account starting with DE, and a company from Munich one starting with AT.
In euro payments, this plays no major role in day-to-day business. Euro transfers within the SEPA area run under the same schemes, whether the payee’s IBAN starts with AT, DE or another country code. The more important question is whether a business partner may refuse an account from another country.
May a business in Austria use a German IBAN?
Yes, for euro payments. Anyone using a German IBAN in Austria for their business can rely on the SEPA Regulation. Regulation (EU) No 260/2012 deals in Article 9 with what is often referred to as IBAN discrimination. In essence it says: a payer making a transfer to someone holding a payment account in the EU does not specify in which member state that account is to be held. The same applies the other way round to a payee who accepts a transfer or collects by direct debit. In each case, the condition is that the account is reachable under Article 3 of the regulation.
For an Austrian business with a German IBAN, this means in euro payments:
The regulation covers payments in euro. Whether a particular account suits a specific purpose, for example a company formation or a particular authority, is a separate question to clarify with that body or an adviser. For euro payments with customers and suppliers, however, an account with a German IBAN may not be refused because of its country code.
Direct debits and reachability
Reachability is governed by Article 3 of the SEPA Regulation. A payment service provider that is reachable for domestic transfers must also be reachable for transfers initiated via a payment service provider in another member state. The same applies to direct debits, but under paragraph 3 only to direct debits available to consumers as payers under the scheme. For a business-to-business direct debit, reachability may therefore look different. For credit transfers, reachability goes even further since Regulation (EU) 2024/886: in the euro area, every payment account that can receive transfers must also be reachable for instant transfers, on every calendar day around the clock.
In practice this means: if a supplier regularly collects from the business account by direct debit, it may not refuse an account with a German IBAN solely because of the country code. For business-to-business direct debits, you should briefly check before the mandate whether both sides support the scheme.
Who monitors compliance
Under Article 10 of the regulation, member states designate competent authorities responsible for compliance with the rules. These can be public authorities or recognised bodies, expressly including the national central banks. Anyone whose payment is refused because of the country code can first refer to Article 9 when talking to the partner. A short note to the business partner is often enough, because some forms ask for Austrian bank details only out of habit.
Stating the IBAN correctly in everyday business
The SEPA IBAN is the address through which customers pay a business. According to oesterreich.gv.at, entrepreneurs should always state their IBAN on business letters and invoices. A fixed routine helps your payments arrive without queries:
Copy the IBAN directly from online banking or the account confirmation instead of typing it.
State the IBAN in a fixed place, on paper preferably in blocks of four characters.
In payment orders and forms, enter the IBAN without spaces.
If a partner requires an account in a particular EU country, point to Article 9 of the SEPA Regulation.
Verification of payee: IBAN and name compared
Since 9 October 2025, the payer’s payment service provider in the euro area checks before a transfer whether the IBAN entered belongs to the payee’s name. The legal basis is Article 5c of the SEPA Regulation, inserted by Regulation (EU) 2024/886. The check runs after the payee’s details have been entered and before the payment can be authorised. The service is free of charge for all users.
For a business with an IBAN from another euro country, this is good news: customers see before paying whether the name matches the IBAN. It is therefore important to state the name on invoices exactly as it is registered for the account. If IBAN and name differ, the payer receives a notice before authorising.
In short: An IBAN in Austria has 20 characters and starts with AT. In euro payments, an account with a German IBAN may not be refused because of its country code under Article 9 of the SEPA Regulation.
Good to know: The country code shows where an account is held, not where the business is based. For euro transfers within the EEA the IBAN is enough; no BIC is needed.
IBANs in the Vivid business account
In the Vivid business account, unlimited IBANs are available regardless of the plan. Every account has its own unique IBAN, and every pocket has its own as well. This makes it possible to receive payments separated by purpose and keep them apart. SEPA instant transfers are sent and received within seconds, provided the other bank supports this transfer method. At a glance:
Even in the plans without a monthly basic fee, some services can incur charges. These include additional cards, cash withdrawals above certain free allowances or premium features from higher plans.
Vivid in brief: an online company account for businesses and the self-employed in Austria, with unlimited IBANs in every plan.
A separate IBAN for every purpose
Open the Vivid business account online and create as many IBANs as the business needs.
Frequently asked questions
How many characters does an IBAN in Austria have?
An Austrian IBAN always has 20 characters. It starts with AT, followed by two check digits, the five-digit bank code and the eleven-digit account number.
How can you tell the bank behind an Austrian IBAN?
From positions 5 to 9. They contain the former bank code of the institution holding the account.
May an Austrian business use a German IBAN?
Yes. Under Article 9 of the SEPA Regulation, nobody in euro payments may dictate in which EU member state the other side’s account is held, provided it is reachable.
May a supplier require an Austrian IBAN?
Not for credit transfers in euro. Anyone who accepts a transfer may not, under Article 9(2), specify in which member state the payer’s account is held.
Does this also apply to direct debits?
Yes, anyone collecting by direct debit may also not specify the country of the payer’s account. For direct debits, reachability under Article 3 applies to the schemes available to consumers.
Is the BIC still needed?
No BIC is needed for domestic payments and, since 1 February 2016, for euro payments within the EEA either. The IBAN is enough.
What is the difference between IBAN and BBAN?
The BBAN is the national account number and can only be used for domestic payments. The IBAN identifies the same account internationally; for credit transfers and direct debits in euro, the SEPA Regulation requires the IBAN.
What does the bank check when an IBAN is entered?
Since 9 October 2025, payment service providers in the euro area check before authorisation whether the payee’s IBAN and name match. This verification of payee is free of charge.
Where can I find my own IBAN?
In online banking under the account details or on the account confirmation. Businesses should state it on business letters and invoices.
This article is for general information and is not legal advice. The rules mentioned come from Regulation (EU) No 260/2012 as amended by Regulation (EU) 2024/886 and information from oesterreich.gv.at; for your own case, an adviser is the right contact. Payment services are provided by Vivid Money S.A., 21 rue Glesener, Luxembourg, L-1631, Luxembourg, an Electronic Money Institution authorized and regulated by the Commission de Surveillance du Secteur Financier, Luxembourg, under the register number W00000015.
