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Slovakia

We have a team of professionals to help you with all your business needs, so you can focus on expanding your business in Slovakia.

WHY Slovakia?

Slovakia, officially the Slovak Republic, is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the west, and the Czech Republic to the northwest. Slovakia’s mostly mountainous territory spans about 49,000 km2 (19,000 sq mi), hosting a population exceeding 5.4 million. The capital and largest city is Bratislava, while the second largest city is Košice. Slovakia is a central European country known for its ancient castles, heritage sites, and its impressive manufacturing sector. Slovakia is the largest vehicle manufacturer per capita in the world, having produced more than 1 million cars. Car production represents just over 13% of the Slovakian GDP.

Slovakia, officially the Slovak Republic, is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the west, and the Czech Republic to the northwest. Slovakia’s mostly mountainous territory spans about 49,000 km2 (19,000 sq mi), hosting a population exceeding 5.4 million. The capital and largest city is Bratislava, while the second largest city is Košice. Slovakia is a central European country known for its ancient castles, heritage sites, and its impressive manufacturing sector. Slovakia is the largest vehicle manufacturer per capita in the world, having produced more than 1 million cars. Car production represents just over 13% of the Slovakian GDP.

ADVANTAGES

Strategic Geographical Location:

Situated at the heart of Europe, Slovakia serves as a gateway to both Western and Eastern European markets, making it an ideal logistics and distribution hub. Its central location offers access to a large consumer base within a 1,000 km radius.

EU and Eurozone Membership:

As a member of the European Union and the Eurozone since 2009, Slovakia offers access to the single EU market with free movement of goods, services, and capital. The use of the Euro provides currency stability, reduced transaction costs, and eliminates foreign exchange risks within the Eurozone.

Skilled and Cost-Effective Workforce:

Slovakia boasts a well-educated, highly skilled, and productive labour force. Labor costs are significantly lower compared to Western European countries, and the workforce is known for its high adaptability and multilingual skills, particularly in English and German.

Favourable Tax System and Incentives:

The country offers a competitive corporate income tax rate, generally set at 21% (with a lower rate of 15% for small businesses with a turnover up to a certain threshold). The government also provides various investment incentives, such as grants, corporate tax relief, and contributions for new job creation, especially for large investment projects or those in R&D and innovation.

Stable Economy and Political Environment:

Slovakia has a stable parliamentary republic and a sound, growing market economy. It maintains positive ratings from international rating agencies and offers a safe investment environment with low political risk.

Developed Infrastructure:

The country has a well-developed infrastructure, including efficient road and rail networks and good access to major European transport corridors. There are also established industrial parks equipped with the necessary facilities for various industrial activities.

Ease of Doing Business:

Starting a business in Slovakia is relatively straightforward, with transparent regulations and the possibility of remote company registration. Foreign investors can have 100% ownership of a business without a local partner.

Strong Presence of International Companies:

Many multinational corporations, especially in the automotive (e.g., Volkswagen, Jaguar Land Rover, Kia Motors) and IT sectors (e.g., IBM, Dell, ESET), have established operations in Slovakia, indicating a proven attractive business environment.

Extensive Double Taxation Treaties:

Slovakia has concluded numerous treaties for the avoidance of double taxation with many countries, which helps minimize tax burdens for international businesses.

TAX REGIME

Personal Income Tax

  • Rates: 19% for the tax base up to EUR 48,441.43, and 25% for the portion exceeding this amount.
  • Alternative Rates (2026): For 2026, new higher tax rates of 30% and 35% are being introduced, supplementing the existing structure.
  • Self-employed (Micro-taxpayers): 15% rate on income up to EUR 49,790.
  • Tax Allowances: A basic tax-exempt amount exists, though it is decreasing for higher earners. A child tax bonus is available, but the entitlement decreases/expires based on age (max €100/month for children under 15).
  • Capital Gains: Generally 19%, though exemptions apply for shares held for over a year on recognized exchanges or non-business assets held for over 5 years.

Corporate Income Tax (CIT)

  • Rate: The standard corporate income tax rate is 21%.
  • Minimum Tax: A minimum CIT (“tax license”) applies ranging from EUR 340 to EUR 11,520 based on turnover.
  • Dividends: Generally subject to a 7% withholding tax.

Other Taxes

  • VAT: Standard rate is 20%, with a reduced 10% rate for certain goods.
  • Financial Transaction Tax (FTT): Effective Jan 1, 2025, a 0.4% tax on financial transactions for businesses (legal entities and entrepreneurs).
  • Social Security: Mandatory contributions are paid by both employers and employees on top of income tax.

SLOVAKIA COMPANIES

Limited Liability Company (Spoločnosť s ručením obmedzeným – s.r.o.)

  • Description: The most popular structure, ideal for one or more partners (up to 50).
  • Liability: Shareholders are liable only up to the amount of their unpaid contributions.
  • Capital: Minimum registered capital is EUR 5,000.
  • Usage: Suitable for small to medium-sized businesses.

Joint-Stock Company (Akciová spoločnosť – a.s.)

  • Description: Designed for medium to large companies.
  • Liability: Shareholders are not liable for the company’s obligations.
  • Capital: Minimum registered capital is EUR 25,000.
  • Usage: Often used for larger, more public-facing businesses.

Simple Joint-Stock Company (Jednoduchá spoločnosť na akcie – j.s.a.)

  • Description: A hybrid form introduced to offer more flexibility, often used by startups.
  • Capital: Minimum capital requirement is only EUR 1.
  • Shares: Allows for different types of shares with varying voting rights.

General Partnership (Verejná obchodná spoločnosť – v.o.s.)

  • Description: Formed by two or more partners who share unlimited, joint, and several liability for company debts.

Limited Partnership (Komanditná spoločnosť – k.s.)

  • Description: Combines a general partner (unlimited liability) with a limited partner (liability up to their capital contribution).

Sole Proprietorship (Živnosť)

  • Description: A business run by an individual, common for freelancers and small traders.
  • Liability: The owner is fully liable for all debts with personal assets.

Branch Office (Organizačná zložka)

  • Description: A foreign company can establish a branch to conduct business in Slovakia without creating a separate legal entity, though it must be registered.

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

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