BASIC INFORMATION ABOUT SLOVAKIA ( Employment and business)

Slovakia is an attractive country for foreign investors mainly because of its low wages, low tax rates and well educated labor force.

– Employment in Slovakia is regulated by Slovak labor Code.

Minimum monthly gross wage / employees is 435 euros. This shall increase from January 2018 up to 480 euros.

Weekly hours: 40 (full time),

Probation period of employee: up to 3 months

Duration of employment: indefinite period, or definite period of time up to 2 years

Employment contract must be in written, signed by both of the contractual parties. The employee shall be registered at Social insurance company before start of the employment.

– Business in Slovakia and all the rules of making business in Slovakia are regulated by Slovak Commercial Code.

The most favorite type of business is a sole proprietary ship or a private limited liability company ( sro).

Basic capital in LLC ( SRO): 5.000 Euros

Minimum share of 1 shareholder in LLC : 750 euros

Types of taxes:

Value added tax ( VAT) 20%

Corporate income tax 21%

Inheritance and gift tax 0%

Income tax of a physical person: 

19% if your income is up to 35.022 euros

25 % if your income is above 35.022 euros

 

Deadlines:

– income tax declaration by March 31, for the previous calendar year

– real estate tax declaration by January 31 for the previous calendar year

– motor vehicle declaration by January 31 for the previous calendar year

The OECD in 2017 reported about Slovakia:

The Slovak Republic continues exhibiting robust economic performance, with strong growth backed by a sound financial sector, low public debt and high international competitiveness drawing on large inward investment.