Slovakia – Self-Employment

How does self-employment work for expats in Slovakia?

Under Slovak law, a self-employed individual is formally designated as a Samostatne zárobkovo činná osoba (SZČO) — a natural person who independently carries out an economic activity. This category covers a broad range of occupations, including tradespeople, craftspeople, photographers, hairdressers, and those in non-trade professions such as tax advisers or notaries, as well as self-employed agricultural workers.

In practice, foreign nationals conducting business in Slovakia do so under the same legal conditions and on the same footing as Slovak citizens. The relevant framework is governed primarily by Act No. 513/1991 Coll. (the Commercial Code), together with applicable trade licensing legislation.

EU member state citizens, foreigners who hold permanent residence in an EU member state, and individuals with a valid Slovak residence permit — whether issued for business, study, family reunification, or research and development — are all entitled to begin operating as a sole trader immediately following registration. Those who fall outside these categories must first secure a residence permit before commencing any business activity.

From July 2025, the Slovak government introduced significant procedural changes to the Business Residence Permit for entrepreneurs and freelancers. Initial applications must now be lodged through Slovak consular offices abroad rather than via the immigration authority domestically, which extends processing timelines considerably. Anyone planning to apply for business residency should factor in this change and confirm the most up-to-date procedures with the Bureau of Border and Alien Police.

A Trade Licence constitutes official authorisation to carry out activities defined as falling within the scope of trade business, and it is valid across the entire territory of the Slovak Republic. A single sole trader may engage in multiple business activities but must hold a separate Trade Licence for each one.

What are the different self-employment and business structures available in Slovakia?

Slovak legislation provides for several types of business structure that can be registered in the country: sole proprietorships, which represent the simplest option for individuals; general or limited partnerships, each requiring a minimum of two participants; limited liability companies (s.r.o.), which may be private or public; and branch offices or subsidiaries available to foreign companies seeking to establish a presence in the Slovak market.

For most individual expats, the two structures of greatest relevance are the živnosť (sole trader) and the s.r.o. (spoločnosť s ručením obmedzeným, equivalent to a limited liability company). The following table sets out the key distinctions:

For the vast majority of incoming freelancers and sole traders, registering a živnosť is the most straightforward route to starting a business in Slovakia. The application process is swift, fees are minimal, and the structure allows full independence in how you work — making it the most widely used option among expat professionals, much like sole trader registration in other EU countries.

On the question of liability, the sole trader and general partnership structures carry greater personal risk: in the event of business failure, your personal assets are exposed to claims from creditors. The s.r.o., by contrast, limits your financial exposure to the value of capital invested in the company, making it the preferred choice for ventures involving greater commercial risk — comparable to a UK limited company or German GmbH.

From a taxation standpoint, sole traders and partnerships are taxed at the level of the individual. Legal entities such as the s.r.o. are subject to corporate income tax, charged at a reduced rate of 10% where annual taxable revenues do not exceed €100,000, rising to 21% above that threshold, as of 2024–2025.

Slovak law recognises three categories of sole trader activity: free (unregulated) trades, which demand no formal qualification; craft trades, which call for professional competence and evidence of relevant experience; and fixed (regulated) trades, which require specific educational credentials, recognised qualifications, and a valid licence.

How do you register as self-employed in Slovakia?

The registration requirements are identical for both Slovak nationals and foreigners. The trade licensing process has been substantially streamlined, and all stages are handled through the trade licensing office. EU/EEA and OECD nationals in particular will find the procedure refreshingly simple. Always confirm the latest requirements and fees via the slovensko.sk government portal or directly with your regional Trade Licensing Office (Živnostenský úrad).

1. Establish your eligibility and identify your trade category. EU/EEA citizens and those holding a valid Slovak residence permit issued for business, study, family reunification, or research are free to register without delay. Everyone else must obtain a residence permit for business purposes before registration can proceed. Determine whether your planned activity constitutes a free, craft, or regulated trade, as the latter two categories require documentary evidence of relevant qualifications.
2. Secure a clean criminal record certificate. For those already resident in Slovakia, the trade licensing office can retrieve a criminal record extract on your behalf. Permanent residents obtain this document from the General Prosecutor’s Office, while foreigners with temporary permits must source it from their home country. Certificates must be no older than three months and must be accompanied by a certified Slovak translation.
3. Submit your trade licence application. A Trade Licence is obtained by notifying the Trade Licensing Office that has jurisdiction over your permanent address in Slovakia. If you have no permanent address in the country, the application is lodged with the Trade Licensing Office covering your place of business. Submissions may be made in person or online at www.slovensko.sk. Online applicants upload the same information in scanned form and sign digitally using their ID cards.
4. Pay the required fee. When applying in person, the fee is €5 for a free trade certificate and €15 for a craft or regulated trade certificate. Online applications are free for free trades and cost €7.50 for craft or regulated licences — as of the time of publication. Confirm the current fee schedule before submitting your application.
5. Receive your trade licence. Once the authority has reviewed your submission and confirmed that all conditions are satisfied, the trade licence is ordinarily issued within three days of receiving your completed application and supporting documents. You will be allocated a unique business identification number (IČO).
6. Register for tax and receive a TIN. The Trade Licensing Office (JKM) automatically registers self-employed persons for income tax and issues a Tax Identification Number (TIN/DIČ). Registration for other taxes, including VAT, must be handled directly with your local tax authority.
7. Register for health and social insurance. Self-employed persons in Slovakia are legally required to contribute to both health and social insurance. Registration for these obligations is also coordinated through the trade licensing office.
8. Non-EU nationals: register in the Commercial Register. Non-EU and non-Swiss nationals must additionally register in the Commercial Register. At least a temporary residence permit is required for this step. Your trade licence application can be submitted as soon as your entry in the Commercial Register is confirmed.

Operating a business without a valid trade licence is treated as a serious legal offence. Fines for doing so range from €1,659 for unregulated trades up to €3,319 for craft or regulated trades.

How do you set up a company in Slovakia as an expat?

Citizens of any EU country, as well as foreigners holding temporary or permanent residence status, are legally entitled to establish a company in Slovakia. Migrants may apply for a residence permit on the basis of business activity, or may operate under an existing residence permit granted on another ground. Among expat founders, the most widely chosen legal form is the s.r.o. (limited liability company).

1. Select your legal form. The steps involved depend on the structure you choose — individual (sole trader) or legal entity. In all cases, you will generally need to obtain a trade licence where applicable and complete registration in the Commercial Register (Obchodný register).
2. Choose and reserve your company name. A legal entity’s name may be a word, a phrase, or an abbreviation that reflects the nature of its activities. The name must be distinctive, must not already be in use, and must not mislead. Search the Commercial Register to verify availability and avoid names that could be confused with existing businesses.
3. Prepare the necessary incorporation documents. You notify the Trade Licensing Office, obtain the relevant business licence, and file the required documentation with the Commercial Register. Depending on the chosen legal form, you will need to prepare articles of association or company statutes, partner or shareholder agreements, statutory declarations, and other governance documents appropriate to the number of participants and the company’s structure.
4. Meet the minimum capital requirements. For an s.r.o., the required minimum share capital is €5,000 — as of 2025. This amount must be deposited into the company’s bank account prior to completing the registration process.
5. Establish a registered office address. Every company incorporated in Slovakia must have a registered address within the country to be treated as a Slovak-resident entity. If you have not yet secured business premises, registered address services are readily available from local providers.
6. Notarisation and power of attorney. A Slovak company can be incorporated by an authorised third party acting under a duly executed Power of Attorney, which is a particularly useful option for overseas investors. The Power of Attorney must be fully notarised and bear an apostille.
7. Register with the tax authority. Within 30 days of commencing operations, you must register with the tax administrator and obtain a taxpayer identification number (TIN). If you take on employees, each must be registered with the health and social insurance funds within 8 days of the company’s founding.
8. Open a business bank account. Legal entities are expected to operate a dedicated business bank account. Non-EU nationals may encounter additional requirements in this process — see the practical challenges section below for further detail.

Provided all documentation is complete and submitted promptly, incorporating a company in Slovakia need not take more than a week. For the most current requirements, refer to the Commercial Register of the Slovak Republic and the Trade Licensing Register.

A self-employed person applying for a business residence permit will generally need to demonstrate that approximately €5,500 (equivalent to 20 subsistence minimums) is held in a corporate bank account, as of 2024. For company directors and representatives, this requirement rises to approximately €27,500. Always verify the current thresholds with the Bureau of Border and Alien Police.

Can you work as a digital nomad in Slovakia?

Slovakia has not yet introduced a dedicated digital nomad visa. Location-independent workers who wish to remain in the country for an extended period must navigate the existing legal frameworks, with the appropriate pathway depending on nationality, intended duration of stay, and whether you plan to register a local business entity.

EU/EEA and OECD citizens enjoy the most straightforward route. While the general framework for non-EU residents technically applies, EU, EEA, and OECD nationals benefit from substantial exemptions: no Slovak residence permit is required, and health insurance coverage from the home country is accepted in lieu of Slovak insurance. In practice, an EU/EEA passport holder can begin living and working as a freelancer in Slovakia from day one by registering a živnosť, while remaining covered under their home country’s social security arrangements through EU coordination provisions.

Non-EU nationals who wish to stay beyond the 90-day visa-free allowance under the Schengen rules must apply for a temporary residence permit for the purpose of business. Following the acquisition of a trade licence, a non-EU national must then apply for a stay permit. Crucially, you are not permitted to begin trading in Slovakia before your stay permit has been granted — the right to conduct business is inseparable from the granting of the residence permission, meaning the trade licence only takes effect from the date the permit is issued.

Slovakia is in the process of implementing further stages of immigration law reform. Following amendments to Act No. 404/2011 on the Residence of Foreigners, which entered into force on 1 July 2025, authorities are expected to introduce additional tightening of conditions — particularly in relation to business and self-employment permits. Prospective applicants should regularly monitor the Ministry of Interior website and verify all applicable requirements thoroughly before finalising any travel or relocation plans.

In practice, a number of remote workers visiting Slovakia for shorter periods choose to operate under the Schengen 90-day rule without registering a local business, continuing to pay tax in their country of fiscal residence. While this approach may be workable in the short term, it carries real risk if the stay is extended, income is derived from Slovak sources, or the individual’s home country takes a close interest in their tax affairs. Anyone contemplating a longer-term stay in Slovakia should seek guidance from a tax professional with expertise in both Slovak regulations and the laws of their home country.

What taxes and social contributions apply to self-employed expats and business owners in Slovakia?

Slovakia’s tax environment is broadly competitive by EU standards, and expats who have previously worked only in salaried employment will encounter a fundamental shift: as a self-employed person, you bear full personal responsibility for calculating, declaring, and paying your own taxes and insurance contributions — no employer handles this on your behalf.

Personal income tax (self-employed individuals)

From 2025, a reduced rate of 15% applies to entrepreneurs and self-employed individuals whose taxable revenues do not exceed €100,000. Where income surpasses this level, the progressive rate structure applies: a tax base of up to €48,441.43 (for the 2025 tax year) is subject to 19%, while anything above that figure is taxed at 25%. It is important to note that from 1 January 2026, the government’s consolidation measures will introduce additional higher bands of 30% and 35% for very high earners, representing a meaningful change to the rate structure — always verify the current position with the Financial Administration of Slovakia.

Rather than recording and evidencing their actual business costs, sole proprietors have the option of claiming a flat-rate expenditure deduction of 60% of income, subject to a maximum deduction of €20,000 per year for those not registered for VAT. In addition, individuals benefit from a personal non-taxable allowance of approximately €5,753.79 per year, provided their tax base remains below the prescribed threshold — as of 2025.

Corporate income tax (s.r.o.)

With effect from 1 January 2025, a 10% corporate income tax (CIT) rate applies to legal entities with taxable income not exceeding €100,000 in the relevant tax period. The rate rises to 21% for taxable revenues between €100,000 and €5,000,000. A minimum tax licence is payable regardless of whether the company is profitable — consult the Financial Administration of Slovakia for the current applicable brackets.

Health insurance contributions

Contributions to health insurance become obligatory from the very first day you begin trading. The minimum monthly payment in 2025 stands at €107.25, calculated as 15% of the €715 minimum assessment base. This differs significantly from employment, where an employer shoulders a portion of the contribution; as a sole trader, you are responsible for the full self-employed rate yourself.

Social insurance contributions

Social insurance contributions only become payable from your second year of business activity, and only where your income during the first year exceeded €8,580. The minimum monthly contribution from 2025 is €237.02, based on the official minimum assessment base of €715. The precise contribution obligation is determined after you have filed your first income tax return, and is directly linked to your declared income.

VAT

VAT registration becomes mandatory once your turnover crosses the 2025 thresholds of €50,000 in the prior calendar year or €62,500 in the current year — in the latter case, you have only five days in which to register. The standard VAT rate in Slovakia is 23%, following an increase as part of the government’s 2026 fiscal consolidation package from the previous 20% rate — always confirm the current figure with the Financial Administration of Slovakia.

Tax residency and double taxation

Individuals who are tax residents of Slovakia are liable for Slovak tax on their worldwide income. Tax residency is established by having a permanent home in Slovakia, spending more than 183 days in the country during a calendar year, or by having a habitual abode that indicates an intention to remain permanently. Slovakia has concluded double taxation treaties with more than 60 countries, providing considerable flexibility for entrepreneurs with international income streams. A Slovak tax resident may generally claim a credit for foreign tax paid on overseas income that is also taxable in Slovakia, to the extent permitted by the relevant treaty and limited to the amount of Slovak tax due on that income.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Slovakia?

Slovakia offers a range of genuine advantages for business: direct access to the EU single market, a stable and competitive tax framework, political continuity, and a track record of steady economic expansion. While the country does not operate a dedicated start-up visa scheme comparable to those in France, Germany, or the Netherlands, several mechanisms are of real relevance to incoming entrepreneurs.

EU single market access

As both an EU member state and a eurozone country, Slovakia gives any business incorporated there seamless access to the EU internal market, with no customs barriers on goods traded across member state borders. This is a significant advantage for businesses in logistics, manufacturing, and e-commerce, and is reinforced by Slovakia’s strategically central location within Europe.

Investment support via SARIO

The Slovak Investment and Trade Development Agency (SARIO) is the official government body charged with attracting and facilitating foreign direct investment. SARIO provides incoming investors with guidance on available grants, designated industrial zones, and incentive schemes, with a particular focus on manufacturing, technology, and shared service operations. Prospective investors should contact SARIO directly to explore what is currently available, as incentive programmes are governed by EU state aid rules and are subject to revision.

Reduced tax rates for smaller enterprises

Since 1 January 2025, both legal entities with taxable income up to €100,000 and self-employed individuals with revenues up to the same threshold benefit from preferential tax rates of 10% and 15% respectively. These rates represent a tangible benefit compared to higher flat-rate regimes in other EU jurisdictions, and are especially valuable for businesses in their early stages.

Self-employment support for registered jobseekers

Those registered as unemployed jobseekers may be eligible for a self-employment financial allowance administered by the Office of Labour, Social Affairs and Family. While primarily oriented towards local residents, this scheme reflects Slovakia’s broader policy commitment to enterprise creation. Contact your local Office of Labour, Social Affairs and Family for current eligibility rules.

Extensive double taxation treaty network

With more than 60 double taxation agreements in force, Slovakia offers expat entrepreneurs significant scope to structure their affairs in a tax-efficient manner and avoid being taxed twice on the same income — an important consideration for those with clients or income sources across multiple countries.

As with all tax and incentive frameworks, thresholds and eligibility criteria are subject to change. Always verify the current position with SARIO, the Financial Administration of Slovakia, or a qualified local adviser before basing business decisions on specific programmes.

What are the practical challenges of being self-employed or running a business in Slovakia?

Slovakia has achieved considerable progress in simplifying the business registration process, but expats should enter the market with a clear-eyed understanding of the practical realities involved in operating as a self-employed person or company founder.

Language barriers

Slovak is the official language for all government interactions, legal documentation, contractual matters, and tax submissions. While English and German are spoken by many professionals in cities such as Bratislava, official correspondence from the tax authority, trade licensing office, social insurance agency, and judicial bodies is issued in Slovak only. Every official document must be rendered in Slovak. Engaging a bilingual local accountant or tax adviser is not simply a convenience — for most expats, it is a practical necessity.

The role of local professional advisers

Unlike jurisdictions with intuitive, self-guided online tax filing systems, Slovakia’s administrative environment strongly favours those who retain a qualified local accountant (účtovník), and for company founders, a notary (notár). Sole proprietors are required to maintain proper bookkeeping records, including all invoices, receipts, and contracts. These must be retained for a period of 10 years in the event of a tax audit. A competent local accountant will also ensure that your annual tax return is filed correctly and will alert you to any legislative changes that affect your position.

Banking access

While banks will generally encourage you to open a dedicated business account, sole traders in Slovakia are also permitted to use a personal current account for business transactions. Non-EU nationals, however, may face greater difficulty in opening a business bank account, as Slovak banks frequently require proof of local residence and, in some instances, apostilled identity documentation. Building extra time into your plans for the banking process is wise, and some expats use international fintech providers such as Revolut Business or Wise Business as a temporary measure while establishing a local banking relationship.

Invoicing and VAT compliance

Invoices issued from a Slovak trade licence must include your IČO (business identification number), DIČ (tax identification number), your registered business address, and a clear description of the goods or services provided with the corresponding amount in euros. For VAT-registered businesses supplying to VAT-registered clients in other EU member states, the reverse-charge mechanism applies: the invoice shows zero VAT and the client accounts for it in their own country. Where your turnover exceeds the 2025 thresholds, you are obliged to issue fully compliant VAT invoices, maintain complete accounting records, and file regular VAT returns.

Forthcoming changes to contribution obligations

From 1 January 2026, significant amendments arising from the government’s fiscal consolidation programme will alter how self-employment status is determined. The defining criterion will no longer be income level, but rather the act of carrying out the relevant activity itself. Any individual aged 18 or over who holds a business licence or conducts an independent activity under a sworn declaration will be classified as self-employed. This change has material implications for insurance contribution obligations — seek advice from a local professional to understand how your specific circumstances will be affected.

Common pitfalls

• Commencing trading before a residence permit has been granted — for non-EU nationals this is unlawful and may jeopardise a subsequent permit application.
• Failing to register for VAT on time: if turnover exceeds €62,500 in the current year, the registration window is just five days.
• Overlooking health insurance obligations in the first year of trading — contributions are due from day one, irrespective of whether any income has yet been received.
• Not deregistering correctly when ceasing to trade: you must formally deregister with the trade licensing office and notify both the tax authority and the relevant insurance bodies.

Frequently asked questions

Can I be employed and self-employed at the same time in Slovakia?

Yes, it is generally permissible to hold both a salaried employment position and a trade licence (živnosť) concurrently in Slovakia. However, your health and social insurance contributions will be assessed across both income streams, and there may be implications for which scheme is treated as the primary one. Where you are employed by a Slovak employer, that employer manages contributions on the employment side; you remain personally responsible for meeting your contribution obligations on your self-employment income. Seek advice from a local accountant to fully understand your combined liability.

How do I invoice foreign clients from my Slovak živnosť?

You are entitled to invoice overseas clients directly from your Slovak trade licence. Invoices must show your IČO, your DIČ (Slovak tax identification number), your registered business address, and a description of the services or goods supplied with the corresponding amount in euros. Where the client is a VAT-registered business in another EU country, the reverse-charge mechanism may be applied, meaning no VAT is charged on the invoice and the client accounts for it locally. If you are not yet VAT-registered in Slovakia, invoices are issued without VAT. For clients based outside the EU, standard rules governing the export of services apply. Always confirm the correct VAT treatment with your accountant before issuing invoices.

What happens to my business status if my visa or residence permit changes?

Moving from a temporary residence permit to permanent residence may require you to close your existing živnosť and re-register it in your new capacity as a permanent resident, since your legal classification under Slovak law changes. Any alteration in your residency status should be raised with both the trade licensing office and your accountant without delay, in order to avoid any gap in your legal trading authorisation or insurance coverage.

Do I need a local Slovak director or shareholder to set up an s.r.o.?

No, Slovak company law imposes no requirement for a local Slovak national to serve as director or shareholder of an s.r.o. A foreign national may act as both the sole shareholder and sole director. That said, non-EU nationals residing outside Slovakia will need to designate a local representative to receive official correspondence, and must maintain a registered office address within Slovakia. All statutory documents must be prepared in Slovak, so engaging local legal support is strongly recommended.

How long does it take to register a živnosť, and is it really as fast as claimed?

In most cases, registration of a živnosť takes anywhere from the same day to a few working days. For EU/EEA citizens who have all the necessary documents to hand, registration within a day or two is entirely realistic. For non-EU nationals who must also register in the Commercial Register, or who need to have documents apostilled and translated into Slovak, the overall process takes longer — potentially several weeks once document preparation is factored in. Processing times for residency permits have also lengthened following the rule changes introduced in July 2025.

Is a flat-rate expense deduction always the best option for sole traders?

Sole proprietors may elect to claim a flat-rate expenditure deduction of 60% of income, up to a ceiling of €20,000 per year for those not registered for VAT. This option is particularly attractive for service-based professionals — such as consultants, software developers, and designers — whose actual operating costs are modest. However, if your genuine business expenses exceed 60% of your income — for example, because you lease commercial premises, employ staff, or incur significant material costs — then documenting and claiming actual expenses may yield a better outcome. Discuss both options with your accountant to determine which approach best suits your particular business model.

What are the consequences of trading without a valid trade licence?

Conducting business without a valid Trade Licence in place exposes you to fines ranging from €1,659 for unregulated activities up to €3,319 for craft or regulated trades. Beyond the financial penalty, operating without proper authorisation may also undermine any future application for a residence permit. You should always ensure your trade licence is active before beginning any business activity.

Does Slovakia offer any support for start-ups or innovation-focused companies?

SARIO, Slovakia’s government investment promotion agency, offers guidance and practical support to inward investors, including technology start-ups. The country hosts a growing entrepreneurial ecosystem, particularly in Bratislava, with an increasing number of accelerators and co-working facilities. The combination of EU single market access, favourable tax rates, political stability, and consistent economic growth makes Slovakia a credible base from which to scale a technology or professional services business. Visit SARIO’s website for information on current incentive programmes and investment facilitation services.