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
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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
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.
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.