Verified Facts
Slovakia has a tax system that includes income tax rates ranging from 19% to 25%, a corporate tax rate of 21%, and a value-added tax (VAT) rate of 20%, with various rules and exemptions applying to different types of income and taxpayers.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Slovakia operates a territorial taxation system, where tax is levied on income earned within the country, regardless of the taxpayer's residence. However, individuals who are considered tax residents in Slovakia are subject to worldwide taxation, meaning they are taxed on their global income, not just income earned in Slovakia. Tax residency is determined by the number of days spent in the country, with individuals spending more than 183 days in a calendar year considered tax residents.
The Slovak tax system is based on the concept of residency, with different rules applying to residents and non-residents. Residents are subject to tax on their worldwide income, while non-residents are only taxed on income earned in Slovakia. The tax authorities in Slovakia consider various factors, including the individual's permanent home, family ties, and economic interests, when determining tax residency.
Personal Income Tax
| Income Bracket (EUR) | Tax Rate |
|---|---|
| 0 - 38,664 | 19% |
| 38,665 - 47,744 | 25% |
| 47,745 - 100,000 | 25% |
| 100,001 and above | 25% |
| Individuals in Slovakia are entitled to various deductions and allowances, including a basic allowance of EUR 3,937.20, as well as deductions for charitable donations, mortgage interest, and education expenses. Taxpayers are required to file a tax return by March 31st of each year, and must pay any tax due by the same date. |
Corporate & Business Tax
- The corporate tax rate in Slovakia is 21%, which applies to the worldwide income of resident companies.
- Small businesses and start-ups may be eligible for incentives, such as reduced tax rates or exemptions, in certain regions or sectors.
- Slovakia has several free zones, which offer tax exemptions and other benefits to companies operating within these areas.
- Companies must register with the tax authorities and obtain a tax identification number in order to conduct business in Slovakia.
- Companies are also required to file annual tax returns and pay any tax due by the deadline.
VAT / Sales Tax
- The standard VAT rate in Slovakia is 20%, which applies to most goods and services.
- A reduced rate of 10% applies to certain items, such as food, pharmaceuticals, and children's clothing.
- Exemptions from VAT apply to certain activities, such as financial services, insurance, and healthcare.
- Tourists may be eligible for a tourist refund scheme, which allows them to claim a refund of VAT paid on certain purchases.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Slovakia if they spend more than 183 days in the country in a calendar year.
- Slovakia has double taxation treaties with 67 countries, which help to prevent double taxation and fiscal evasion.
- Expats and foreign workers may be required to register with the tax authorities and obtain a tax identification number.
- Social security contributions are mandatory for employees and self-employed individuals, and are used to fund pension, healthcare, and unemployment benefits.
- Expats and foreign workers may be eligible for tax relief on certain types of income, such as foreign-earned income.
- Remittance rules apply to individuals who earn income in Slovakia and remit it to another country.
Crypto & Investment Income
- Investment income, such as dividends, interest, and capital gains, is subject to tax in Slovakia.
- Cryptocurrency is considered a commodity and is subject to tax on capital gains.
- Dividends received from a Slovak company are subject to a 7% withholding tax, unless a double taxation treaty applies.
- Capital gains from the sale of securities and other assets are subject to a 19% tax rate.