The legal situation regarding prostitution in Austria is complicated and varies by region, but it is basically legal.

Prostitutes are to be found in brothels, strip clubs, saunas and massage parlours, and others practice an interesting innovation called Kabinsex.

The ‚cabin‘ is similar to that which would be used for a peepshow, but with two holes in the wall. The first hole is at the appropriate height for a porn film to be watched through it, and the second hole is located just below waist height – so that the prostitute can administer her services through the hole without even meeting the customer.

It's difficult to see how the customer can know whether they're being serviced by a woman, a man, or a well trained monkey. More luxurious cabins have an extra hole at chest height- the lucky customer can put his hands through the hole to see what he can feel.

In July 2005 Freizeit, a magazine widely read in both Germany and Austria, sold out in one day after it offered free sex to readers. The magazine ran an advert for a Salzburg brothel which included a voucher offering half an hour for free with any of its girls.

There were complaints from some of Freizeit's more conservative readers, but the brothel experienced a huge increase in business.

Prostitutes must be at least 19 years old, and are obliged to register with the local authorities, pay tax, and take regular health checks. It is estimated that about 70–80% of prostitutes in Austria are immigrants.

Their situation varies, because in some areas they are allowed to work, in others they work illegally. Critics argue that legalisation has created a two-tier system of prostitutes, where some (those who can work legally) are protected, whilst others are in an even worse situation than before.