Claim: Sigmund Freud was employed in the main city of Austria.

Vienna -LRB- -LSB- viˈɛnə -RSB- Wien , -LSB- viːn -RSB- -RRB- is the capital and largest city of Austria and one of the nine states of Austria . Vienna is Austria 's primary city , with a population of about 1.8 million -LRB- 2.6 million within the metropolitan area , nearly one third of Austria 's population -RRB- , and its cultural , economic , and political centre . It is the 7th-largest city by population within city limits in the European Union . Until the beginning of the 20th century , it was the largest German-speaking city in the world , and before the splitting of the Austro-Hungarian Empire in World War I , the city had 2 million inhabitants . Today , it has the second largest number of German speakers after Berlin . Vienna is host to many major international organizations , including the United Nations and OPEC . The city is located in the eastern part of Austria and is close to the borders of the Czech Republic , Slovakia , and Hungary . These regions work together in a European Centrope border region . Along with nearby Bratislava , Vienna forms a metropolitan region with 3 million inhabitants . In 2001 , the city centre was designated a UNESCO World Heritage Site .   Apart from being regarded as the City of Music because of its musical legacy , Vienna is also said to be `` The City of Dreams '' because it was home to the world 's first psycho-analyst -- Sigmund Freud . The city 's roots lie in early Celtic and Roman settlements that transformed into a Medieval and Baroque city , and then the capital of the Austro-Hungarian Empire . It is well known for having played an essential role as a leading European music centre , from the great age of Viennese Classicism through the early part of the 20th century . The historic centre of Vienna is rich in architectural ensembles , including Baroque castles and gardens , and the late-19th-century Ringstraße lined with grand buildings , monuments and parks .   Vienna is known for its high quality of life . In a 2005 study of 127 world cities , the Economist Intelligence Unit ranked the city first -LRB- in a tie with Vancouver , Canada and San Francisco , USA -RRB- for the world 's most liveable cities . Between 2011 and 2015 , Vienna was ranked second , behind Melbourne , Australia .  For eight consecutive years -LRB- 2009 -- 2016 -RRB- , the human-resource-consulting firm Mercer ranked Vienna first in its annual `` Quality of Living '' survey of hundreds of cities around the world , a title the city still held in 2016 . Monocle 's 2015 `` Quality of Life Survey '' ranked Vienna second on a list of the top 25 cities in the world `` to make a base within . ''   The UN-Habitat has classified Vienna as being the most prosperous city in the world in 2012/2013 .  The city was ranked 1st globally for its culture of innovation in 2007 and 2008 , and sixth globally -LRB- out of 256 cities -RRB- in the 2014 Innovation Cities Index , which analyzed 162 indicators in covering three areas : culture , infrastructure , and markets . Vienna regularly hosts urban planning conferences and is often used as a case study by urban planners .   Between 2005 and 2010 , Vienna was the world 's number-one destination for international congresses and conventions . It attracts over 6.8 million tourists a year .