Legal service and protection of business in Slovakia - COREDO

Legal service and protection of business in Slovakia

Slovakia, officially known as the Slovak Republic, is a fairly profitable and safe jurisdiction for doing business. The country maintains a stable economic environment, while the tax system and legislation here are loyal and competitive. In 2004, Slovakia joined the European Union, and in 2009 it adopted the euro as its official currency. In 2021, the International Monetary Fund ranked Slovakia 45th among the world’s wealthiest nations (out of 226 countries and territories considered). Furthermore, in 2022, the Global Innovation Index also included Slovakia in the prestigious Top 50 list.

The local economy is mainly based on such industries as metallurgy, the food industry, the electric power sector, and the service sector; while tourism and innovative technologies have also experienced significant growth in recent years. Over the past few years, foreign investment has been mainly directed to the automotive industry and electrical equipment production. Experts highlight that non-resident businessmen often encounter challenges when starting businesses in Slovakia, particularly regarding registering enterprises in government agencies — this is primarily due to bureaucratic hurdles, which can lead to delays in the overall process.


The Slovak government actively encourages foreign investment, as it is one of the essential driving forces of the country’s economy. This jurisdiction is attractive to foreign investors due to several factors, including relatively low wages, low tax rates, a highly educated workforce, a favourable geographic location in Central Europe, and membership in the European Union. Yet, it is to be noted that the economic situation may vary across different regions of Slovakia. For instance, in the eastern part of the country, the volume of economic investments is lower, leading to a comparatively lower standard of living.

In Slovakia, the Act “On the Residence of Foreigners” is in force, governing the legal status of foreign citizens and the procedures for obtaining a residence permit. Foreign citizens wishing to start their own business in the country are required to obtain a business licence. This permit grants the right to engage in business activities and is valid across the entire territory of the Slovak Republic.


In Slovakia, companies are required to pay corporate tax (tax on corporate income). Its standard rate is 21%. However, if the company’s annual turnover does not exceed 100,000 euros, a reduced rate of 15% can be applied. The tax rate on dividends is set at 7%, payable upon the distribution of the company’s profits. The amount of Value Added Tax (VAT) depends on the specific type of economic activity and ranges from 10% to 20%.

Foreign businessmen investing in the Slovak economy can count on certain tax incentives. The eligibility criteria for these incentives are contingent on various factors. For instance, the location where the business is registered matters: the extent of benefits may vary based on the developmental level of a particular region, the unemployment rate, and other indicators. Depending on the nature of a specific business, businessmen can count on tax incentives, monetary subsidies, compensation for job creation, etc. It is worth noting that these privileges do not extend to companies registered in Bratislava.


Certain regulated activities, which must adhere to strict demands, require a special permit. Such activities include the production and sale of weapons, jewellery production, ritual services, the production and sale of alcohol and tobacco products, and currency exchange services, among others. To obtain such a licence, it is necessary to provide the licensing office with evidence of the responsible person’s compliance with the specific criteria, such as documents regarding their education, of the absence of criminal record, etc. The process of obtaining concession licences usually takes 30 days, on condition that all the required documents are submitted on time.


The standard reporting period in Slovakia aligns with the calendar year from 01.01. to 31.12. Tax reports must be submitted to the relevant authorities within 3 months following the end of the reporting period (no later than March 31). If necessary, this period can be extended up to 6 months (until 30.06). The VAT report can be filed on a monthly or quarterly basis, with a submission deadline of 25 days after closure of the reporting period. In the event of errors or inaccuracies in the tax documentation, penalties may be imposed on the organization, or it may be deprived of a business licence.


COREDO employees have been dealing with the legal support of businesses in Slovakia for years. We offer our clients a wide range of services, including:

  • preparation and execution of all necessary documents for establishing a company;
  • representation of the company’s interests in all state instances;
  • legal analysis of agreements and contracts;
  • verification of the reputation and reliability of potential partners;
  • legal consultations of lawyers and advocates of various specializations;
  • guidance on tax and fee payment, and much more.

Comprehensive business support in Slovakia from COREDO will help facilitate the activity of a businessman and save time, giving you the opportunity to focus on doing business.


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