Slovakia corporate tax - guide for international expansion

Are you considering expanding your business operations to Slovakia? Understanding the country's corporate tax landscape is essential for making informed decisions about your European expansion strategy.

Slovakia offers an attractive business environment in the heart of Central Europe, with access to EU markets and a skilled workforce. Whether you're establishing a new subsidiary or planning cross-border operations, getting to grips with corporate tax obligations will help ensure compliance and optimise your tax position. Wise Business can help streamline your international payments and currency management as you navigate Slovakia's business landscape.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Slovakia Corporate tax rate in 2025

Slovakia maintains a tiered corporate income tax (CIT) rate structure. The most widely applicable rate remains 21% for most medium-sized companies (those with annual taxable revenue between €100,000 and €5,000,000). This rate is now slightly below the current European Union average. This tax applies to the worldwide income of Slovak tax residents and the Slovak-source income of non-resident companies.¹

For the largest enterprises with annual taxable revenue exceeding €5,000,000, the corporate income tax rate is increased to 24%. For the smallest businesses with annual taxable revenue not exceeding €100,000, a preferential rate of 10% is available.¹

The country has implemented the global minimum tax framework under Pillar Two for MNEs with consolidated group revenue over €750 million, ensuring a minimum effective tax rate of 15%. Slovakia has adopted a Qualified Domestic Minimum Top-up Tax (QDMTT), but has used the permitted EU deferral option, meaning the cross-border rules, the Income Inclusion Rule (IIR) and the Under-Taxed Profits Rule (UTPR), have been postponed and are not yet in force.²

For all small and medium-sized enterprises, particularly those below the Pillar Two revenue threshold, Slovakia continues to offer tax advantages, but specific thresholds and applicable rates require consultation with local tax advisors to ensure accurate compliance.³

How to pay corporate tax in Slovakia

Corporate tax payments in Slovakia are processed in euros (EUR), the country's official currency since joining the eurozone in 2009. Companies must register with the Slovak tax authorities and obtain a tax identification number before commencing business operations.⁴

The Slovak tax year typically follows the calendar year, with corporate tax returns generally due by 31 March of the following year. However, companies can apply for extensions under certain circumstances. Tax payments are usually required to be made alongside the filing of returns, though advance payments may be required for larger companies.⁵

Late payment penalties and interest charges apply when taxes are not paid by the due date, making timely compliance essential for cost management.⁵

For a company with an annual turnover of €1.5 million and assuming a profit margin of 10%, the taxable profit would be €150,000. At Slovakia's corporate tax rate of 21%, the annual tax liability would be: €150,000 × 21% = €31,500

When expanding your business to Slovakia, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to expand internationally with local EUR account details. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Slovakia

Some key ways to stay compliant with Slovakia’s corporate tax policy and reporting regulations are:⁶

• File taxes on time: The tax period usually follows the calendar year. Each company must file its tax return electronically by 31 March of the following year. Extensions are available for companies earning foreign income up to 30 June or 30 September.
• Separate filings: Consolidated tax returns are not permitted. Each business entity must file its own return.
• Avoid penalties: Under the Slovak Tax Code, penalties can result from late filing, registration delays, or failure to meet notification deadlines. Partnering with a corporate tax law firm can help ensure timely and compliant filings.
• Stay VAT compliant: Businesses must register for VAT once their annual turnover exceeds EUR 50,000. The standard VAT rate is 23%, with reduced rates of 19%, 5%, and 0%. Newly registered taxpayers file monthly, while those with turnover under EUR 100,000 can apply for quarterly reporting.
• Understand dividend taxation: Dividends are taxable by withholding tax only in specific cases, such as when paid to or received from a non-contracting foreign state.
• Capital gains exemptions: There’s no separate capital gains tax. However, the gain may be tax-exempt if a Slovak company sells a 10% or greater share held for over two years (and other criteria are met).
• Use reliable banks: Working with top Slovak banks such as Tatra Banka, Slovenská Sporiteľňa, or VÚB Banka can make tax payments and compliance procedures smoother and more secure.

International Expansion to Slovakia

Slovakia is the perfect entry point for businesses expanding into Central and Eastern Europe. It has a population of around 5.45 million⁷ and seamless access to more than 740 million potential customers within a 2,000 km radius.⁸ Slovakia’s membership in the European Union, Eurozone, OECD, and NATO ensures that regulatory stability and predictable business conditions are key factors for long-term investments.

Further, the country stands out for its politically safe investment environment and supportive government policies. The Slovak Investment and Trade Development Agency (SARIO) acts as a one-stop shop for investors, guiding them through laws, registration procedures, and investment incentives.⁷ These incentives often target high-value-added projects and regions with higher unemployment. It reflects the government’s aim to promote balanced economic growth.

Slovakia’s corporate tax rate remains competitive within the EU, complemented by a skilled and productive workforce. OECD data shows Slovakia boasts some of the highest labour productivity levels in Central and Eastern Europe, enabling investors to achieve higher output at similar costs.⁸ The country’s per capita car production is the highest globally, supported by major automotive manufacturers and an expanding network of suppliers across the machinery, electronics, and pharmaceutical sectors.⁷

The euro’s adoption in 2009 strengthened its monetary stability, reduced transaction costs, and increased pricing transparency for international businesses.⁷ If you’re planning to set up operations, follow these basic steps:⁹

1. Conduct detailed market research to understand local demand.
2. Prepare a comprehensive business plan.
3. Decide on your business entity and register with the Commercial Register.
4. Register for taxes and obtain a DIČ number.
5. Open a bank account and start building your local presence.

Businesses expanding to Slovakia can benefit from corporate tax courses and advisory programs that support compliance and tax optimization. Partnering with leading banks like Tatra Banka, Slovenská Sporiteľňa, and VÚB Banka helps ensure smooth and efficient financial operations.

Incorporation of Business in Slovakia

To incorporate a business in Slovakia, you’ll first need to register it with the Commercial Register, which automatically creates an electronic mailbox for your company on the slovensko.sk portal. The process is easy but requires careful attention to legal, administrative, and tax details. Consulting a corporate tax attorney near me or a corporate tax assistant manager can be especially useful in these areas.

Here’s an overview of the main steps to set up a company in Slovakia:⁹

• Choose a trade name: Start by selecting a unique company name and confirming through the Commercial Register database that it’s not already used. Duplicate trade names are grounds for registration rejection.

• Decide on a registered office: You must provide a registered office address in Slovakia, which can be a house, flat, or non-residential building. You’ll need proof of ownership or a lease agreement with the landlord’s certified consent.

• Define your business activity and appoint directors: Clearly define your line of business and appoint executive directors who will manage the company. You’ll also need to designate an administrator of contributions and specify each member’s capital contribution—at least EUR 750 per member, with a minimum registered capital of EUR 5,000. Contributions may include cash or non-cash assets such as real estate, patents, or know-how, supported by an expert valuation.

• Obtain a trade license: Apply for a trade authorization through your local Trade Licensing Office (District Office) or a Point of Single Contact (PSC). There are three types of trades:

  • Unregulated trades – no professional competence required
  • Regulated trades – require professional qualification
  • Craft trades – require professional competence

• Applications can be submitted electronically or in person, with fees ranging from EUR 5 to EUR 15 per trade type. Licenses are typically issued within three working days of receiving all documents.

• Prepare incorporation documents: You’ll need to submit a deed of incorporation (for a sole founder) or a memorandum of association (for multiple members), along with:

  • Certified copy of the trade license
  • Authenticated signatures of directors and founders
  • Declaration of paid contributions
  • Proof of registered office (title deed or lease)
  • Approval from the tax authority (if applicable)

• Once the application is approved, your company will be listed in the Commercial Register, officially completing the incorporation process.

Business Entities in Slovakia

According to the Commercial Code (Act No. 513/1991 Coll.), several entity types are available for investors:¹⁰

• Limited Liability Company (s.r.o.): The most common form, suitable for SMEs. Shareholders’ liability is limited to their capital contribution.
• Joint Stock Company (a.s.): Works for larger enterprises and companies planning to issue shares.
• Public Company (v.o.s.): Involves two or more partners with unlimited and joint liability; often used for smaller or family businesses.
• Limited Partnership (k.s.): Combines general partners (with unlimited liability) and limited partners (liable only up to their contribution).
• European Company (SE): Enables cross-border business within the EU under one legal entity.
• European Economic Interest Grouping (EEIG): Promotes collaboration between entities across EU member states for joint projects.

Seeking guidance from an experienced corporate tax assistant manager can streamline compliance and ensure easy navigation through Slovakia’s legal and tax framework.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with efficiency. Companies operating internationally should maintain robust record-keeping systems and stay current with evolving tax regulations in each jurisdiction.

Understanding double taxation treaties is particularly important for businesses with cross-border operations. Slovakia has an extensive network of tax treaties that can help reduce withholding taxes and eliminate double taxation on the same income. These agreements are essential tools for optimising your overall tax position.

Regular consultation with qualified tax professionals in each jurisdiction ensures that your business remains compliant while taking advantage of legitimate tax planning opportunities. The complexity of international tax law makes professional guidance invaluable for avoiding costly mistakes and penalties.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Slovakia efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Slovakia

Who is liable for corporate tax in Slovakia?

Companies that are tax residents of Slovakia are liable for corporate tax on their worldwide income. Non-resident companies are subject to Slovak corporate tax only on their Slovak-source income. Tax residency is generally determined by the place of incorporation or effective management.

Are there any tax incentives for businesses in Slovakia?

Slovakia offers various tax incentives, particularly for investment projects that create jobs or involve research and development activities. These may include tax holidays, reduced tax rates, or accelerated depreciation allowances. The specific incentives available depend on factors such as the size of investment, location, and type of business activity.

What is the tax treatment of dividends in Slovakia?

I don't have enough information to provide specific details about dividend taxation in Slovakia. This area requires consultation with local tax advisors to understand current withholding tax rates and any applicable treaty benefits.

What is the process for registering for corporate tax in Slovakia?

Companies must register with the Slovak tax authorities upon establishment. This typically involves obtaining a tax identification number and registering for various tax obligations including corporate income tax, VAT (if applicable), and payroll taxes. The registration process should be completed before commencing business operations.

What are the common pitfalls to avoid regarding corporate tax in Slovakia?

Common issues include failing to register promptly with tax authorities, inadequate record-keeping, missing filing deadlines, and not properly understanding transfer pricing requirements for related-party transactions. Companies should also ensure they understand their obligations under the global minimum tax rules if they fall within scope.

Sources used in this article:

Sources last checked 27/10/2025