Austro-Hungarian Army captain. The medal looks like an early version ( pre-WW1) of the Military Merit Medal (Signum Laudis) which was awarded for bravery. Here's a link to some information on the Austro-Hungarian Army ( K.u.K.) and it's unifroms and medals. That's a very nice photo of an Imperial officer.
http://www.austro-hungarian-army.co.uk/index.htm