Investment in Slovakia

Slovakia, market profile

Economic outlook

Slovakia is amongst the Central European countries that have experienced the highest growth rate in 2005 – 2008, but was hit by the global market crisis in 2009.

Slovakia has implemented several years ago a flat tax rate of 19% (corporate income tax, personal income tax and VAT) which has at the time helped boost the country’s economy. The tax rates have now been modified: see here below for more details.

Starting business in Slovakia

Setting up a legal entity

Foreigners (persons but also legal entities) can set up a business in Slovakia. The setting up process allows you to set up your Slovak company in approximately 4 weeks.

As in Czech Republic, the most common form of legal entity is the “s.r.o.”, the Slovak equivalent to an LLC (limited liability company), which requires a minimum capital of 5,000 EUR, and a minimum contribution by shareholder of 750 EUR.

Corporate income tax

The corporate income tax level in Slovakia is of 23%. (2013 data)

Value added tax (VAT)

The basic Slovak VAT rate is of 19%. (2013 data).
The VAT rate was temporarily increased to 20% as of January 1, 2011.