Employment income. Employment income includes salaries, wages, bonuses, other regular, irregular or one-off compensation of a similar nature and most benefits-in-kind. Employment income also includes fees paid to directors and partners of limited liability companies and to limited partners of limited partnerships. Income received by a professional sportsperson on the basis of a player contract is also considered to be employment income. Nonmonetary income up to EUR500 per employee per year may be exempt from tax and social security if it is treated as tax nondeductible cost for the employer.
Self-employment and business income. Taxable self-employment and business income consists of income from business activities and professional services. This income may be decreased by deductible expenses. A notional expenses deduction of 60% of taxable income and up to a maximum of EUR20,000 per tax period is available for non-VAT payers. Nonresidents are subject to tax on their Slovak-source business income only.
Rental income, including income from the rental of real estate and movable assets representing appurtenances of the real estate is taxed as self-employment and business income. As a result, expenses can be deducted from such income. A notional expenses deduction and loss carryforward are not possible for rental income.
Investment income. Investment income from Slovak sources, including interest and other income derived from securities, and payments made from supplementary pension insurance schemes is generally subject to a 19% withholding tax. This withholding tax is considered a final tax, and the income is not included in the tax base.
Investment income is not included in the tax base subject to the progressive tax rates (see Rates). It constitutes a separate tax base (few exemptions applicable), which is subject to a flat tax rate of 19% (that is, without application of tax progression).
Dividends. Dividends distributed from profits for accounting periods starting before 31 December 2003 or starting after 31 December 2016 are subject to tax (dividends distributed from profits in other periods might be subject to Slovak health insurance contributions). Slovak tax residents who participate in the registered capital of a company until 31 December 2023 (regardless of where the legal seat is registered) are generally taxed at 7% on their dividend income. Dividends distributed from profits for accounting periods starting after 1 January 2024 are subject to a tax rate of 10% on their dividend income. However, a tax rate of 35% applies on dividend income from jurisdictions that have not entered into a double tax treaty or tax administrative treaty with the Slovak Republic (that is, jurisdictions that are not included in the white list published by the Slovak Ministry of Finance). Dividend income should be taxed via withholding tax if its source is in the Slovak Republic, or via a tax return if its source is abroad.
Taxation of employer-provided stock options. For employerprovided stock options granted after 31 December 2009, the taxable amount equals the higher market price of the stock at the
exercise date (that is, on the day on which the option is actually exercised) minus the sum of the following:
• The guaranteed exercise price of the employee’s stock
• The price paid by the employee for the option (if any)
The above amount is taxable on the exercise date. Employerprovided stock options are treated as employment income and taxed through payroll withholdings at the regular income tax rate in the month of exercise.
The income from stock options granted by employers before 31 December 2009 is taxed on the vesting date (that is the date on which the option can be exercised) under the rules applicable until 31 December 2009.
Capital gains derived from the sale of shares acquired under an option plan are calculated as the difference between the sales price and the market price on the exercise date (vesting date for options granted before 31 December 2009). These gains are subject to tax at the regular rate (see Capital gains).
Capital gains. Capital gains derived from the sale or exchange of property are taxed as ordinary income at the regular income tax rate (see Rates). In general, capital gains derived from the sale of real estate or personal property are exempt from income tax if relevant conditions stipulated in the law are met (for example, the minimum required holding period). Business assets generally do not qualify for exemption.
Income derived from the sale of securities that are traded on a regulated market or similar foreign market for at least one year is exempt from tax if the period between acquisition and sale of the securities exceeds one year and if such securities had not been included in the business assets. The exemption also applies to income derived from the sale of options and income from derivative transactions from “long-term investment savings,” which is income that is paid 15 years from the beginning of a long-term investment, if such items had not been included in the business assets of the taxpayer.
In addition, a general tax exemption of up to EUR500 per year applies to capital gains from the sale of securities that would not be otherwise subject to the tax exemption above (shares included in the business assets of the taxpayer, shares that are not traded on regulated market or shares that were sold prior to the end of the one-year time period) if the respective tax-free allowance available to the taxpayer is claimed with respect to this type of income.
Income from the sale or exchange of virtual currencies is subject to the personal income tax at a rate of 19% to 25%. Taxable income is realized by sale of virtual currency, exchange of virtual currency for goods or services, or by exchange of virtual currency for another virtual currency. The income may be reduced by expenses provably incurred to generate the income (for example, acquisition costs of a virtual currency). It is not possible to offset a tax loss against the sale or exchange of a virtual currency with other income; however, losses from the sale or exchange of one virtual currency may be offset against profits from the sale or exchange of another virtual currency in one tax
jurisdictions that have not entered into a double tax treaty or tax administrative treaty with the Slovak Republic.
A tax rate of 15% applies to taxpayers who earned, with respect to a tax period, taxable income not exceeding EUR60,000 from a business or other self-employed activity.
Relief for losses. An individual may carry forward losses incurred in the tax years immediately preceding the year in which he or she first declares a positive tax base. Effective from 2014, historical tax losses incurred in the 2010 through 2013 tax years may be carried forward for a maximum period of four years, proportionally each year. The same rules apply to losses generated in 2014 and future years. In general, losses may not be offset against employment income. Losses incurred after 31 December 2011 can be offset only against self-employment and business income of the taxpayer. Losses incurred from renting a property cannot be used to offset other profits or carried forward.
B. Inheritance and gift taxes
The inheritance and gift taxes were eliminated in 2004.
C. Social and health insurance
Contributions. If an employee is subject to the Slovak social security system, both the employer and the employee must pay social security contributions. Slovak social security contributions consist of sickness, old-age, disability, unemployment, guarantee and accident insurance, and contributions to the reserve fund. In general, every person performing an income-generating activity for which he or she is entitled to a regular monthly compensation (and also irregular for the purposes of pension insurance) subject to income tax is deemed to be an employee for Slovak social security purposes. Rental, capital or other income is not subject to social insurance.
Slovak health insurance contributions are for health care. Individuals having income subject to income tax (including dividends paid to employees not participating in the registered capital of a company that are generated from profits for accounting periods beginning after 1 January 2011, and capital or other income on which the Slovak withholding tax does not apply) is subject to health insurance. Persons acting as members of statutory or supervisory bodies for employers, with a registered seat in the Slovak Republic, are not subject to Slovak health insurance if they do not have permanent residency in the Slovak Republic and are subject to a health insurance system in a non-European Union (EU) state.
The combined rate for the employee’s social and health insurance contribution is 13.4% of his or her assessment base, which is, in general, his or her monthly taxable employment income. The employer’s contribution rate is 36.2% of the employee’s assessment base. The maximum monthly assessment base for all types of insurance (excluding accident insurance and health insurance) equals seven times the average wage in the Slovak economy, that is, EUR9,128 in 2024. The assessment base for accident insurance and health insurance is not limited. This means that the actual health insurance contribution (employers’ as well as employees’ part) and accident insurance (employers’ part only) is
calculated based on the total amount of income that is subject to the respective insurance under the Slovak legislation.
The following social security and health insurance rates apply for 2024.
(a) The health insurance contribution cap was eliminated from January 2017, and the amount of health insurance contribution is now computed from the actual amount of income regardless of the total amount of paid income subject to health insurance in the Slovak Republic.
(b) The Slovak old-age contribution consists of two pillars. The contributions are paid to two different social security institutions, which are the state Social Security Agency and one of the commercial pension fund management agencies. The rates shown are the total rates of contributions.
(c) Employers remit accident insurance contributions of 0.8% of the employee’s assessment base (no limit applicable).
(d) If the employer is enrolled in the kurzarbeit scheme, the unemployment insurance is equally split between unemployment branch (0.5%) and kurzarbeit branch (0.5%).
(e) Self-employed individuals are not required to make contributions for unemployment insurance. If they elect to be insured, they make contributions at a rate of 2% of a self-determined assessment base (within statutory bounds).
Dividends from profits generated in accounting periods beginning after 1 January 2011 are subject to health insurance. For dividends from profits generated in accounting periods beginning between 1 January 2011 and 31 December 2012, a 10% rate and the common maximum assessment basis applies. For dividends from profits generated in accounting periods beginning on or after 1 January 2013, the rate is 14%.
As of 1 January 2017, the obligation to pay health insurance from distributed dividends is abolished. However, the dividend income distributed from profits achieved for tax periods before 1 January 2017 is still subject to the health insurance, with a maximum contribution base amounting to 60 times the average monthly wage from two years ago (that is, EUR78,240 for 2024).
Dividends paid by joint stock companies (or similar entities established abroad) whose shares are traded on a regulated market (including foreign markets) are exempt from health insurance contributions.
The EU regulations on social and health insurance are binding in the Slovak Republic. Consequently, the respective regulations for European Economic Area (EEA) and Swiss citizens, and the applicable totalization agreements for other foreigners (see Totalization agreements) must be considered when determining the social and health insurance obligations of foreign individuals working in the Slovak Republic.
Totalization agreements. To provide relief from double social security taxes and to assure benefit coverage, the Slovak Republic has entered into totalization agreements with the following nonEU jurisdictions.
Australia Korea (South) Serbia
Canada Montenegro Türkiye
Iran (a)
North Macedonia Ukraine
Israel Quebec United States
Japan (b)
Russian Federation Yugoslavia (c)
(a) This agreement was signed 19 January 2016 and is subject to the ratification process.
(b) This agreement entered into effect on 1 July 2019.
(c) This agreement was entered into between the former Czechoslovakia and the former Yugoslavia in 1957. The Yugoslavia agreement applies to Bosnia and Herzegovina.
Totalization agreements with EU Member States continue to be valid. However, effective from 1 May 2004, the EU regulations superseded these agreements.
Under a strict interpretation of the Slovak law, employers from non-EU and non-EEA countries (without a registered seat or a branch in the Slovak Republic) that have employees in the Slovak Republic are required to register for social security purposes in the Slovak Republic, to remit employer and employee contributions to the Slovak social system and to handle the related administration (unless their employees’ income is exempt from tax in the Slovak Republic or unless the Slovak Republic has entered into a bilateral agreement with the respective country).
The Slovak Republic is one of the first signatory countries to implement the EU Multilateral Framework Agreement for Telework in the social security sector. Effective from 1 July 2023, this Framework Agreement provides guidance on the applicable social security legislation for cross-border teleworking employees within the EU.
One key feature is the option for employees who habitually work remotely in their country of residence for less than 50% of their total working time to maintain their social security coverage under the employer’s country’s social security system. This Framework Agreement strictly relates to telework in the employee’s country of residence and the employer’s country. A detailed definition of cross-border telework is also provided under this Framework Agreement.
D. Tax filing and payment procedures
In general, individuals who receive income exceeding 50% of the personal allowance (that is, EUR2,823.24 for 2024; see Section A) are required to file a tax return. An exception applies if individuals receive only employment income and/or other income and if all of such income is subject to withholding tax.
Tax returns must be filed by individuals who receive any of the following types of income:
• Income from an employer that is neither a Slovak taxpayer nor a foreign taxpayer under the Slovak tax law
• Foreign-source income (with certain statutory exemptions)
they must register with the Foreigner Police within three days (unless they stay in a hotel; in such case, the hotel automatically processes the registration).
This possibility of staying in the Slovak Republic without a visa does not apply to non-EU nationals who work or perform other economic activities in the Slovak Republic. These individuals need a proper type of work or entrepreneur visa unless they meet certain conditions to avoid this obligation.
For all non-EU nationals, a stay longer than 90 days in a 180-day period is possible only with a long-term visa or relevant residence permit.
Foreign nationals residing in jurisdictions for which a visa is required must have a valid visa to enter the Slovak Republic. These non-EU nationals must submit an application for a visa three months before arrival in the Slovak Republic at the earliest.
Schengen visa. A Schengen visa is a short-term visa issued by the appropriate authorities to an individual for visiting or traveling within the Schengen area. Depending on the type of visa issued by the embassy or consulate of a Schengen country, different restrictions may apply to the particular visa based on the nature of the travel and other relevant circumstances. The most common type of visa issued to travelers can have a duration of a maximum of 90 days in every 180-day period beginning from the date of entry. The Schengen visa can be issued for single, double or multiple entries. It cannot be used for employment activity.
Long-term visa. A long-term visa or national visa is granted for the purpose of granting temporary residence in the Slovak Republic. This visa allows the individual to travel to Schengen countries under the condition that the presence of the individual does not exceed 90 days within a six-month period.
G. Working in the Slovak Republic
Work permits. The Act on Employment Services regulates the employment of foreigners in the Slovak Republic. Non-EU nationals must request permission to work in the Slovak Republic at the locally competent Office of Labour, Social Affairs and Family of the Slovak Republic. The office may require from the employer a written request for permission to employ a foreigner. An employer must report a job vacancy to the Central Labour Office at least 20 working days before applying for the job permission. Subsequently, employers are required to submit foreigners’ applications to fill vacant positions to the local Labour Office, which will issue the confirmation within 15 days. Foreign candidates can apply for residence with the foreign police only after the Labour Office has issued the confirmation of agreement to their filling a vacant position. Once the foreign national has filed a complete application with the foreign police, he or she is authorized to commence work. The process of reporting job vacancies can be omitted; however, this applies only for selected professions in regions with low unemployment rates as indicated by labor inspectorates.
EU Blue Card. The Blue Card is a type of temporary residence, which is issued to non-EU nationals for the purpose of highly qualified employment in the Slovak Republic. The basic