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
The VAT rate was temporarily increased to 20% as of January 1, 2011.