Slovakia payroll and tax overview.

Investing in Slovakia 

Located between the East and West, Slovakia shares borders with five countries, making it a favourable geographic location with great export potential. Given its political and economic stability and still being a relatively young country, Slovakia is an ideal investment environment. Part of the common EU market, Slovakia has a simple and competitive taxation system, a highly skilled and educated workforce and is one of the fastest growing Eurozone members with the lowest external debt.

Registrations and Establishing an Entity in Slovakia 

A company is typically required to have a legal entity established in order to carry out business in Slovakia. All businesses must be registered with the Slovak Commercial Register, the legal forms available are:

• Enterprise or Branch Office of a Foreign Company
• Joint Stock Company
• Limited Liability Company
• Limited Partnership
• General Partnership
• Cooperative

The above business entities must be registered to the Slovak Commercial Register and must have the following documents in order to register:

• Trade license issued by the local trade authority, including the name of the person who meets the qualification criteria for engaging in that trade (if applicable)
• Foundation deed and the company’s Article of Association (if applicable)
• Compliance with any minimum capital requirements (if applicable)

Foreigners are required to hold a temporary residence permit before they can be entered as a statutory representative in the Commercial Register.

Business Banking in Slovakia

It is not mandatory to make payments to both employees and the authorities from an in-country bank account.

Banks are generally open to the public from Monday to Friday, 8am – 5pm. Most banks are closed on a Saturday.  

What Are the Working Days and Working Hours in Slovakia? 

The working week in Slovakia is Monday to Friday, working 8 hours per day. Employees are entitled to a 30-minute break after working 4 hours, this break is not paid for.  

Basic Facts about Slovakia 

General Information

Full Name: Slovak Republic

Population: 5.45 million (Eurostat, 2019)

Capital: Bratislava

Major Languages: Slovak (Official), English

Monetary Unit: Euro (1 euro = 100 cents)

Main Exports: Automotive, electrical machinery, iron, steel, mineral fuels including oil and plastics

GNI Per Capita: US $ 33,060 (World Bank, 2018)

Internet Domain: .sk

International Dialling Code: +421

The Slovak tax year runs from 1st January to 31st December.

Income Tax in Slovakia

The tax rates applicable for income derived in 2022 are:

• Annual taxable income up to EUR 38,553.01 is taxed at 19%
• Annual taxable income above EUR 38,553.01 is taxed at 25%

The non-taxable part of the tax base will be EUR 4,579.26 in 2022.

Social Security in Slovakia

Social Security is mandatory for all employees working in Slovakia, unless they have an exemption under the EU rules or under a social security treaty between Slovakia and the country in which they pay contributions. Employers in Slovakia are responsible for deducting income tax and social security contributions from the employee’s wage.

New Employees in Slovakia

You may work in Slovakia with no restrictions provided you are a citizen of the countries within the European Economic Area and Switzerland (EEA citizens). If the worker stays in Slovakia for longer than three months, they must register with the Slovak Foreigner police office. Anyone else wishing to work in Slovakia must apply for a work permit and temporary residence before arriving in Slovakia.

Employers are responsible for registering a new employee. The employer must inform the healthcare authorities within eight working days of the commencement of employment. The employee must be registered with the social authority before their first day of official employment.

Leavers in Slovakia

An employee’s position can be terminated due to a number of reasons, these include immediate termination (if the employee is proven guilty of any deliberate criminal offences or found to be in serious breach of work discipline), by mutual agreement or during probation.

If an employee chooses to leave a company, a minimum of one months’ notice must be given if the employee has worked for the company for less than one year, a period of two months must be given for employees employed for longer than one year.

The social and health authorities must be notified of any leavers.

It is legally acceptable in Slovakia to provide employees with online payslips.

Payroll reports must be kept for 5 – 50 years.