Home » Slovakia: Corporate Income-Tax Environment – 2025 Business Guide

Slovakia: Corporate Income-Tax Environment – 2025 Business Guide

Why Slovakia? Main Features for Businesses

Slovakia blends EU-level stability with one of the region’s most progressive tax regimes and an export-driven industrial base.

  • Progressive CIT bands (2025). 10% on profits ≤ €100,000; 21% on €100,000–€5 million; 24% above €5 million.
  • Strategic location. Four TEN-T corridors, the deep-sea port of Constanţa (via Danube) and motorway links to Germany, Austria, Poland and Hungary.
  • Robust industrial clusters. Europe’s highest per-capita car output plus strong electronics, chemicals, shared-service-centre (SSC) and battery supply chains.
  • Skilled, cost-competitive workforce. Gross labour costs ≈ 60% of EU-27 average, with STEM-oriented education.
  • Generous incentives. Regional Investment Aid offers CIT holidays or cash grants up to 50% CAPEX in eastern regions. It is recommended to go through this official document from Slovakia government for complete details.
  • Ideal for. Automotive suppliers, e-mobility, SSC/BPO, R&D satellites, export manufacturers, EU holding and trading hubs.
FormMinimum CapitalFoundersKey Points
s.r.o. (Limited Liability Company – Ltd)€5 0001 +85% of incorporations; limited liability; online setup.
a.s. (Joint Stock Company – JSC)€25 0001 +Two-tier board; suitable for listings or large ventures.
j.s.a. (Simple Stock Company – Simple JSC)€11 +VC-friendly; flexible share classes.
Branch of foreign companyParentNo separate legal entity; Fast Market Entry.

Key reminders – 100% foreign ownership; no director residency rule; deeds notarised (can be by PoA); Trade Register fee ≈ €150–€200.

Corporate Tax System & Optimisation

ItemRule 2025Planning Levers / Examples
CIT bands10% ≤ €100k; 21% €100k–€5 m; 24% > €5 mMicro-profits taxed lightly; large groups plan to keep each entity below €5 m where possible.
Minimum CIT€340–€3 840 based on turnoverActs as floor; excess carried forward three years.
R&D super-deductionExtra 100% of eligible costs (total 200%) [1]€100 k R&D spend → €21 k tax saving at 21% rate.
Participation exemption0% on gains & dividends from ≥10% share held > 2 yrsAttractive for EU holding structures.
Tax lossesCarry-forward five years, 50% offset cap/yearGroup profit-shifting via mergers.
Regional Investment AidCIT relief / cash grant up to 50% CAPEX in east€20 m green-bike plant in Košice: 10-yr 50% tax holiday.

Other Key Taxes

Tax2025 Rate / ThresholdNotebook
WATT20% standard; 10% reduced; Registration €49 790 turnoverProposal to raise threshold to €75 000 still pending.
Social SecurityEmployer ≈ 35%, Employee ≈ 13% of gross pay (caps apply)Health insurance 11% employer / 4% employee uncapped. [2]
WHT19% interest/royalties; 7% dividends (from 2025) 35% to non-co-operative jurisdictions.
Real-estate taxMunicipal; 0.25%–1% of cadastral valueBudget for industrial sites.

Ease of Doing Business & Policy Landscape

  • World Bank Business Ready 2024 score 78.23% – top decile for regulatory quality.
  • Digital administration. e-ID, on-line Trade Register, SAF-T from 2025 for all VAT payers.
  • Sector incentives. Priority: EV batteries, semiconductors, hydrogen, data-centres.
  • Screened sectors. Banking, energy grids, defence – foreign-investment review applies.

Company Formation – Process & Cost Snapshot

Step by stepAbraham LincolnCOST
Reserve name & draft deedSame day€40
Bank deposit capital1 day
Notary & Trade Register filing3–5 days€150 fee + €30 Gazette
VAT / CIT / UBO registrationAutomatic

Turn-key package (virtual office, secretarial) €1,000–€2,500. Remote setup via e-signature accepted.

Grants & Funding Channels

ProgrammeBenefitSource
Regional Investment AidCIT holiday / cash up to 50% CAPEXMinistry of Economy
Extraordinary Net-Zero Aid35% (east) / 15% (Bratislava) for green tech until 2025MoE + EU JTF
R&D Super-DeductionAdditional 100% cost write-offIncome-tax Act §30c
SARIO “Advice & Finance”Export grants, soft loansState Agency SARIO
EU Cohesion / RRF€6 bn envelope for digital & greenEU

Governance & Compliance

ObligationThresholdDeadline
Financial statements (Slovak GAAP / IFRS)All companiesFile to Register by 6 mths after YE
Statutory auditAssets > €2 m, revenue > €4 m, staff > 30 (2 yrs)Annual
CIT returnAll entitiesBy 3 mths after YE (extendable +3 mths)
SAF-T & e-InvoiceLarge taxpayers live; all VAT payers 2025Monthly
CSRD ESG reportLarge PIEs 2025; others 2026–27With FS

Penalties up to €100 000 for late SAF-T or UBO filings.

Conclusion

Slovakia in 2025 pairs Europe’s newest progressive CIT (10%-24%) with rich R&D and regional incentives and a swift, low-capital s.r.o. incorporation. Export-oriented manufacturers, shared-service hubs and tech scale-ups can realise single-digit effective rates by blending the 10% band, 200% R&D super-deduction and 10-year regional tax holidays, all within a digital, EU-compliant framework.

Balanced against higher payroll levies and incoming ESG/SAF-T reporting, Slovakia remains a prime low-cost, high-incentive EU base for businesses seeking scalable operations in the heart of Europe.

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