Business in Slovakia

Slovakia is one of the popular places for starting a business in Eastern Europe. The Slovak legal and financial system is very friendly for entrepreneurs. Taxes in Slovakia are lower than in Poland. Unfortunately, compared to Poland or the Czech Republic, the Slovak market is not as absorbent. Of course, each case is individual and requires careful analysis. Checking whether a given type of activity, company structure, and size of its turnover will allow obtaining benefits when they are transferred to this country.

Benefits and advantages of Slovakia for entrepreneurs:

– Slovakia has one of the lowest VAT taxes in Europe, it is 20%, for comparison lower VAT only occurs in Luxembourg (15%), Malta (18%) and Cyprus and Germany,
– two percentages of personal income tax in the amount of 19% and 25%
– no excise duty on the purchase of means of transport,
– there is no tax on means of transport and VAT for a purchase of a vehicle can be fully included in costs,
– no obligation to keep records of vehicle mileage,
– good connection with other markets in Central and Eastern Europe,

Disadvantages of holding a company in Slovakia:

– the minimum annual tax due from the enterprise, irrespective of whether it earns income,
– an annual tax of 480 euros for non-taxable persons of VAt and 960 euros for entities being VAT payers,
– minimum tax of EUR 2880 for companies with a turnover of over EUR 500,000,
– the need to hire an external accounting office and a law firm to organize financial reporting,
– the need to register as a VAT taxpayer if the annual turnover of EUR 46 thousand is exceeded,

Company registration in Slovakia can be done remotely. Partners provide relevant documents with signatures, and the rest of the process takes place remotely using a power of attorney.