GSL / International Taxation / Slovakia

Slovakia tax system - taxation of Slovakian companies and individuals: VAT, income tax and capital gains. Tax treaties of Slovakia.

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Taxes of Slovakia

10%, 21%, 24%
Сorporate tax
21%
Capital gains tax
23%
VAT
19%/35% (dividend), 19%/35% (interest), 19%/35% (royalty)
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
19 and 25%
Corporate tax (in detail)
As of January 1, 2025, the following CIT rates apply: 10% for legal entities with income up to EUR 100 000 in a tax period; 21% for legal entities with income from EUR 100 000 to EUR 5 000 000; 24% for legal entities with income over EUR 5 000 000
Capital gains tax. Details
Capital gains are included in corporate tax base
VAT. Details
The standard VAT rate is 23%. Reduced rates of 19% and 5% are applied to certain goods and services
Other taxes
Social contributions, Real estate tax
Government fee
No, but min. tax of 400 EUR or more
Stamp duty
Yes

Personal income tax

Tax residents of Slovakia pay tax on their worldwide income, non-residents – on income from sources in Slovakia.

The tax base of up to 176,8 times the subsistence level (i.e. EUR 48 441,43 for 2025) is subject to a 19% tax rate. The exceeding part of the tax base is taxed at 25%

Gains from the sale of assets are taxed at the rate of 19%.

Gains from the sale of non-business assets are tax exempt if the assets were owned for at least 5 years.

Gains from the sale of shares in companies listed on recognized exchanges are tax exempt if the shares were held for more than one year.

Dividends are generally taxed at the rate of 7%.

Corporate income tax

Slovak companies pay corporate income tax on their worldwide income, foreign companies – on income from sources in Slovakia.

From 1 January 2025 the following CIT rates applies to the taxpayers-legal entities:

  • A 10% CIT rate (instead of the previous 15%) to legal entities whose taxable income does not exceed EUR 100 000 in the tax period.
  • A 21% CIT rate to legal entities whose taxable income will be in the range from 100 ,000 EUR to 5 000 000 EUR.
  • And a 24% CIT rate to legal entities whose taxable income will exceeds 5 000 000 EUR.

Gains from the sale of assets are included in the corporate income tax base.

Gains from the sale of shares may be tax exempt if at least 10% participation was held for at least two years and if certain other conditions are met.

Dividends are tax exempt except in some cases. In particular, dividends from companies located in non-treaty countries may be taxed at the rate of 35%.

CFC rules

A foreign company is considered a controlled foreign company (CFC) if more than 50% of its capital or voting rights or rights to profits is held, directly or indirectly, solely or jointly with related parties, by a Slovak company, and if the foreign company is taxed at a rate of less than 50% of the tax that would otherwise be payable in Slovakia.

The non-distributed profit of a CFC is included in the tax base of the controlling Slovak person to the extent such profit is attributable to the assets and risks related to the foreign company’s significant functions performed in Slovakia.

Withholding tax

No tax is withheld on dividends paid to legal entities out of the profit arising since 2004.

Interest and royalties are taxed at 19%.

Dividends, interest, and royalties paid to non-DTT (Double Tax Treaty) or non-TIEA (Tax Information Exchange Treaty) countries, or to an unidentifiable beneficiary are taxed at 35%.

Tax rates are reduceable under double tax treaties and EU directives.

VAT

From 1 January 2025 a basic VAT rate of 23% (previously 20%) applies to all taxable supplies, with certain exceptions.

From January 1, 2025, two reduced tax rates of 19% (instead of 10%) and 5% apply (this reduced rate does not change).

Social security contributions

Employer’s health insurance and social security contributions total 36,2% of employee remuneration.

From 1 January 2025, the maximum assessment base for all types of social insurance was increased to EUR 15 730 (previously EUR 9 128) monthly. Health insurance assessment base is not capped.

Employers also pay injury insurance contributions of 0,8% of employees' total salary costs per month, which are not capped.

Health insurance contributions may be payable not only on employment remuneration, but also on other income, such as income from the sale of shares.

Immovable property tax

Immovable property tax is levied on land, buildings, and apartments.

The rates are set by local authorities and vary greatly depending on the location and type of the property.

International tax treaties

Slovakia has concluded 73 Double Tax Treaties (DTT) with the following jurisdictions:

73 DTTs: Albania, Armenia, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, China (Republic of (Taiwan)), Croatia, Cyprus, Czech Republic, Denmark, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Korea (Republic of), Kuwait, Latvia, Libya, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Moldova, Montenegro, Netherlands, Nigeria, North Macedonia, Norway, Oman, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Syria, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Vietnam.

Slovakia has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention entered into force for Slovakia on January 1, 2019.

On November 29, 2014, Slovakia signed the Multilateral Competent Authorities Agreement on Automatic Exchange of Financial Account Information under the Common Reporting Standard (CRS MCAA), under which Slovakia receives information from its financial institutions and automatically exchanges this information with other jurisdictions on an annual basis. The automatic exchange began in September 2017.

In addition, on November 13, 2024, Slovakia signed the Multilateral Agreement of Competent Authorities for the Automatic Exchange of Information under the Cryptoasset Reporting Framework (CARF-MCAA), which provides for the reporting of tax information on cryptoasset transactions on a standardized basis for the automatic exchange of such information.

Exchange control

Foreign exchange transactions can generally be made without restrictions.

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