Slovakia: business in the land of Tatra

Slovakia is a country in Central Europe located between the Czech Republic, Austria, Poland, Hungary and Ukraine. A regular tram service links Vienna to Bratislava.

Advantages of using Slovakia as your jurisdiction of choice:

• Slovakia is an EU member and a Schengen state;
• Political stability;
• Open market economy;
• Conducive business environment;
• Inexpensive and skilled workforce;
• Reliable tax system;
• Participation in more than 60 DTAs;
• Economic citizenship promotion program;
• Investment protection;
• Corporate directors are allowed;
• No residency restrictions for shareholders.

Price structure for company formation in Slovakia

Company Type

A Slovak limited liability company (S.R.O) is the most suitable form of corporate entity for international trade and investments.

A company director must have:

• Slovakian citizenship or
• EU member state citizenship or
• OECD member state citizenship or
• Third country citizenship with a resident permit in Slovakia

Nominee directorship is not allowed.

What do you need to form a company in Slovakia?

Give us a call, or drop us an email, and we will be glad to detail all the requirements for you.

Taxation and statutory requirements at a glance

Taxation

The standard corporate tax rate is 21%. The tax is applied to all resident corporations irrespective of business activity and form of ownership. A company is deemed to be resident if incorporated and managed in Slovakia.

Withholding tax

The withholding tax rates on dividends payable to corporations and individuals are as follows:

• Slovak company to Slovak individual – 7%;
• Slovak company to Slovak company – 0%;
• Slovak company to resident of a country with a DTA – 7% or less as stated in the treaty (but no more than 7%);
• Slovak company to resident of a country without a DTA – 35% (and vice versa).

The withholding tax rates on royalties and interest:

• Slovak company to resident of a country with a DTA – 0–10%;
• Slovak company to EU resident – 0%;
• Slovak company to residents of other countries – 19%.

The standard VAT rate is 20%. Certain goods and healthcare services are taxed at a reduced rate of 10%.

Accounting, audit and filing requirements

Accounting is obligatory. Financial reports have to be filed. Audit reports are needed if annual turnover exceeds €2 000 000 or the company has more than 30 employees.

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