Slovakia, situated in the heart of Europe, offers remarkable economic stability, making it an ideal destination for relocating your business. Its strategic location provides easy access to EU markets, including Germany, Austria, the Czech Republic, and Hungary. The country’s infrastructure and moderate tax rates create a favorable environment for foreign investors.
Slovakia offers a straightforward company registration system, flexible legislation for small and medium-sized businesses, and the opportunity to obtain a residence permit through business ownership. This opens access to the European market while making life easier for entrepreneurs and their families.
Advantages of Opening a Company in Slovakia
Slovakia has become a prime destination for business development thanks to its comprehensive business ecosystem. As an EU member state, Slovakia maintains clearly regulated legislation that provides straightforward and transparent conditions for entrepreneurs. The company registration process is notably efficient and cost-effective, typically taking just a few days to complete with relatively low administrative expenses.
The tax structure in Slovakia is particularly attractive, with a corporate tax rate of 21%, and an even more favorable rate of 15% for small businesses with annual revenue under €49,790. This progressive tax approach demonstrates the country’s commitment to supporting emerging businesses while maintaining a stable revenue stream from larger corporations.
Slovakia’s central European location serves as a significant advantage for businesses, creating an ideal hub for transporting goods and services to neighboring countries. This strategic position is complemented by the country’s high-quality education system, which ensures a steady flow of competent professionals into the workforce. Furthermore, the government actively encourages business growth through various grants and tax benefits, particularly focusing on investments in the high-tech sector.
The country’s business-friendly environment has attracted numerous international corporations. The Volkswagen Group operates a major factory in Bratislava, serving as one of the company’s key production centers for European and global markets. Korean automotive giant Kia Motors chose Slovakia for its European plant, capitalizing on the country’s convenient location. Additionally, Samsung Electronics maintains one of its largest European manufacturing hubs in Slovakia, further testament to the country’s industrial capabilities.
How Does Slovakia’s Tax System Work in 2025?
In 2025, Slovakia introduced significant changes to its tax system, aimed at strengthening public finances while continuing to support small businesses. The reformed tax structure introduces several important modifications to VAT rates and corporate taxation, along with a new financial transaction tax.
The VAT system has seen notable adjustments, with the main rate increasing from 20% to 23%, and the reduced rate rising from 10% to 19%. However, the government maintains a special 5% rate for essential goods and services, including food, medicine, books, newspapers, catering services, accommodation, and sports event entry, demonstrating a commitment to keeping necessary items accessible.
Corporate taxation has been restructured to better balance the needs of businesses of different sizes. Large companies with taxable income over €5 million now face a rate of 24%, up from 21%. In contrast, small businesses with taxable income up to €100,000 benefit from a reduced rate of 10%, down from 15%. This tiered approach aims to foster small business growth while ensuring larger corporations contribute proportionally to the economy.
To encourage investment and shareholder activity, the dividend tax rate for individuals has been reduced from 10% to 7%. Additionally, January 2025 saw the introduction of a new financial transaction tax for legal entities and individual entrepreneurs. This includes a 0.40% fee on debit transactions (capped at €40 per transaction), 0.8% on cash withdrawals, an annual payment card fee of €2, and a 0.40% fee on account deposits.
