Born in Zagreb, he was the son of Baron Levin Rauch de Nyék, Ban (viceroy) of Croatia-Slavonia, and Countess Antonia Sermage von Szomszédvár et Medvedgrád (1826–1913).

Pavao Rauch was appointed as vice-roy on 8 January 1908. Ten thousand protesters met Rauch upon his arrival in Zagreb on 15 January, hurling abuse and throwing spoiled eggs and pebbles at him. From the very beginning of Rauch's rule, the Croato-Serbian Coalition announced that it would refuse to co-operate in any manner with the new unionist vice-roy.^[1]

After the Croatian Parliament (Sabor) had been disbanded on 12 March 1908 because of its refusal to co-operate with and the insults it directed at the Vice-Roy, Pavao Rauch ruled through decrees and civil servants.

Despite all opposition predictions, Rauch remained in power for two years. On 5 February 1910, he received the King's letter of dismissal. Nikola Tomašić had been immediately appointed as new vice-roy.

In 1888 he married Rozin von Bächle. Their only son Paul was killed fighting in Samoa in 1918. Paul's widow Elsa remarried to Robert von Blumenthal in 1921.

He died in Martijanec.