Doing business in Slovakia

How quickly can I set up a business?

Approx. 1 week

Formation of business legal entity requires:

·       Articles of Association /Foundation Deed (AoA) and other legal documents, such as Signature Specimen, Registered Seat Approval, etc.;

·       Trade licenses based on the scope of business activities;

·       Registration in the Commercial Register, including information about Ultimate Beneficial Owner(s) of the legal entity.

What is the minimum investment needed?

Legal entities, which require minimum share capital:

·       Limited Liability Company with minimum share capital of 5 000 EUR, Minimum contribution of each shareholder of 750 EUR;

·       Joint stock company with minimum share capital of 25 000 EUR;

·       Simple Joint Stock Company with a minimum share capital of 1 EUR;

·       Cooperative with a minimum share capital of 1 250 EUR;

·       Limited Partnership with a minimum share capital of limited partner is amounting to 250 EUR;

·       General Partnership is without the requirement of minimum share capital.

How can I raise finance?

·       Incoming investors or established companies may be supported by investment incentives:

·       Regional investment incentives;

·      R&D super deduction 100%;

·       Patent box;

·       Open calls for EU funds.

·       Real estate investments

·      Greenfield investments;

·      Brownfield investments.

What are the legal requirements for setting up my business?

·       Feasibility study – location, sources (human/material), customers, logistic conditions/;

·       Legal analysis on a suitable legal entity and ownership structure;

·       Tax/Financial study of the investment in Slovakia;

What structure should I consider?

· Ownership structure from legal and tax perspective;

· Management structure including resources available in local market;

· Stability of legal system, tax environment, administrative burden;

· Human mentality, availability of sources.

What advice can you give me in regards to payroll and taxation requirements?

Minimum gross salary

The minimum monthly gross salary in Slovakia is currently €915 for an employee working full-time. Different minimum wage entitlements can apply depending on the degree of difficulty of the employee’s role.

As the minimum wage is normally updated annually, current rates should be checked on the website of the Ministry of Labour, Social Affairs and Family of the Slovak Republic.

Social insurance

Employers and employees are required to make Slovak social insurance contributions.

For a standard employee, the employee’s social insurance contributions are generally 9.4% of the assessment base.

Employers also pay social insurance contributions comprising a number of separate insurance components. Most social insurance contributions are subject to a maximum assessment base, which is revised periodically, while accident insurance is not subject to the maximum assessment base.

As contribution limits and certain employer rates can change, current rates and assessment bases should be checked with the Slovak Social Insurance Agency.

Health insurance

From 1 January 2026, the standard health insurance contribution rates are:

· Employer – 11% of the assessment base;

· Employee – 5% of the assessment base.

Reduced rates apply in certain circumstances, including for employees with qualifying disabilities.

Personal income tax rates

Slovakia applies progressive Personal Income Tax rates to employment and certain other income.

For 2026, the rates are:

· 19% on the first band of the relevant tax base;

· 25% on the next band;

· 30% on the next band;

· 35% on the portion exceeding the highest threshold.

The thresholds are linked to statutory amounts and can change from year to year.

A preferential rate of 15% can apply to qualifying income from business and other self-employed activities where the taxpayer’s taxable business revenues do not exceed €100,000 for the relevant tax period.

Corporate income tax rates

The Corporate Income Tax rate depends on the company’s level of taxable revenues.

The current rates are:

· 10% for companies with taxable revenues not exceeding €100,000;

· 21% for companies with taxable revenues exceeding €100,000 and not exceeding €5,000,000;

· 24% for companies with taxable revenues exceeding €5,000,000.

Separate rules and rates may apply to particular types of income or taxpayers.

Value Added Tax rates

Slovakia currently applies three VAT rates:

· 23% – standard rate;

· 19% – reduced rate applying to specified goods and services;

· 5% – reduced rate applying to specified goods and services.

The precise application of the reduced VAT rates depends on the nature and classification of the goods or services concerned.

VAT grouping is permitted in Slovakia, subject to the relevant statutory conditions.

Is there anything else that I should know?

Utilization of tax losses:

· Tax losses may be utilized during 5 consecutive taxable periods, up to 50% of the tax base reported for the respective taxable period.      This restriction does not apply to micro-taxpayers;

· Tax losses reported before 2020 may be utilized equally over 4 consecutive taxable periods.