Taxes in Slovakia

Taxes. Everybody has a respect toward this word. However, once you are acknowledged for WHAT you need to pay taxes for and WHEN to pay them, life can get easier. First, let´s speak about WHO needs to pay them. In the case of a permanent or long-term stay of foreign taxpayers, he/she must legally recognize income from sources in Slovakia as well as the revenues that come from abroad. Residents of the Slovak Republic, which own a permanent establishment or its employees that employ more than 180 days have obligation to file a tax return. It is possible to enable the tax authorities adjust the tax base, but only in case if Slovakia has concluded an agreement for the avoidance of double taxation with the country of non-resident of the Slovak Republic.

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Now, let´s turn our attention to TYPES of taxes in Slovakia. There are 6 types of taxes – 1. Income tax FO (fyzických osôb – individuals) and PO (právnických osôb – legal entities), 2. Tax on income from the sale of real estate, 3. Tax on income from rental property, 4. Value Added Tax (VAT), 5. Motor vehicle tax, 6. Local taxes
The PERIOD for filing the tax return for the year 2016 shall be submitted within three months following the end of the tax period (until 31.3.2017). In this period the obligation is to pay the tax. It is possible to request an extension of the deadline for filing the tax return, for a maximum of three full calendar months. Income tax is governed by the law of Income Tax and concerns every citizen for the calendar year who had taxable income above a certain ceiling – , where the 2016 rule is that for the year 2015 amounted to taxable income exceeding € 1,901.67. The income tax rate is for individuals and for different legal entities.


  1. Income tax FO (fyzických osôb – individuals) and PO (právnických osôb – legal entities).

Income tax FO refers to any citizen who has a business or not. To a greater extent, it is a tax of entrepreneurs (self-employed traders). Corporate income tax relates to companies such as Ltd., Inc., or associations of individuals or legal persons, budgetary and subsidized organizations, or even non-profit organizations
The income tax rate of FO: a) the basic rate of income tax is 19%, which applies to income not exceeding 176.8 times the subsistence level, b) increase in the rate of income tax is 25% of that rate with revenues that exceed 176.8 times the subsistence level.
The tax rate on income of PO: a) The tax rate in 2017 for the year 2016 for all entities united amounting to 22% b) In the case PO is necessary to count on the license, in case the company does not profit higher than the said license. This should be done in the short term change. • In case the PO is not subject to VAT, then the amount of € 480 tax license • If, after VAT payer’s turnover up to € 500,000, the amount of tax license is € 960 • But if you achieved a turnover of more than € 500,000, then the amount of the tax to € 2,880 licenses, regardless of whether or not subject to VAT.

  1. Tax on income from the sale of real estate

The amount of tax from the sale of real estate (house, apartment or building land) is at 19%, is a tax on the difference between the amount of income from the sale of property and enforcement expenditure. Exemption from income tax on the sale of real estate in case of: a) from the sale of the property if it has been more than five years from the date of acquisition, b) on disposal of property acquired by inheritance in the direct line or one of the spouses, if noticed later than five years from the date of acquisition, c) from the sale of real estate assets in the trading, after the expiry of five years from the disposal of business assets, d) other cases provided by law.

3.      Tax on income from rental propertyIncome tax will also apply in the case of rental properties. In case the sum of taxable income for the calendar year does not exceed the sum of € 500 then the taxpayer is not required to file a declaration for income, otherwise the obligation remains. In the case of income from rental real estate is obliged to register with the local authority.

4.      Value added taxAdditional taxes on Slovak include the value-added tax, VAT at a glance alleged by the Law on Value Added Tax, applied to goods and services. At present we know two VAT rates, depending on what goods in question. VAT directly affects businesses and indirectly all other persons because it is already included in almost every price of all goods and services.

5.       Motor vehicle tax The law of taxes from motor vehicles talks about taxes on motor vehicles. This law applies in particular to businesses. This law governing tax on motor vehicles includes: cars, motorcycles, motorbikes, buses, trucks and other motor vehicles. The tax base is determined depending on engine capacity in cm3, where in electric vehicles according to engine power in kW and in commercial vehicles according to their maximum weight and total weight in tons and number of axles by car documents. The tax rate is determined each year by the Annex to the Act.

    6.    Local taxesLocal taxes are determined by the Law on local taxes. Taxpayers are residents of a particular town or city, eventually citizens who visit the place. The amount of tax is determined by each municipality individually, and in the case of Kosice and Bratislava respective city district, which is determined each year by the first day of the calendar year following the last day of the calendar year. In addition to local taxes self-government has the right to and impose and collect local taxes, such as fees or possibly for other general municipal services.Local taxes include the following taxes:• property tax,• dog tax,• tax on accommodation,• tax on use of public space,• tax on gaming machine,• tax on vending machines,• tax for entry and parking of motor vehicles in historical part of the city,• tax on nuclear facility.

If you want to schedule a personal meeting/call with English speaking tax experts in Bratislava contact:

Source: Marek Malik: Dane na Slovensku, alebo aké sú povinnosti voči štátu