Slovakia (SK)
Slovakia is a landlocked Central European republic that joined the European Union in 2004 and the Eurozone in 2009.
Capital: Bratislava
Region: Europe
Language: Slovak
Currency: EUR (€)
Cost of living: Affordable (index 44)
Emergency: 112
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Business Setup
Start a business or go freelance in Slovakia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain your rodné číslo (personal ID number) — required before registering a živnosť
- 2 Choose the appropriate živnostenský predmet (trade category): voľná živnosť (free trade — no qualification required, e.g., IT consulting), remeselná živnosť (craft trade — requires qualifications), or viazaná živnosť (regulated trade — requires specific certification)
- 3 Register at the Jednotné kontaktné miesto (JKM) at the Okresný úrad (District Office) or online via podnikam.sk — present your ID/passport and pay the €5 administrative fee for voľná živnosť
- 4 Receive your živnostenský list (trade licence) — typically within 1–3 business days for voľná živnosť
- 5 Register with the Daňový úrad (Tax Office) — you will receive your DIČ (tax ID number) within 30 days. Registration is mandatory before issuing first invoice.
- 6 Register with Sociálna poisťovňa (social insurance) — SZČO must register within 8 days of starting business activity if income is expected to exceed the minimum threshold
- 7 Register with a health insurance fund (VšZP, Dôvera, or Union) — mandatory within 8 days of starting business activity
- 8 Optional but recommended: register for VAT (DPH) if annual turnover is expected to exceed €49,790
- 9 Open a separate business bank account (not mandatory for sole traders but strongly recommended)
- 10 Consider a paušálne výdavky (flat-rate expenses) election — 60% of income (max €20,000/year) can be deducted as expenses without receipts instead of actual documented costs
Tax registration
Register at the local Daňový úrad (Tax Office — financnasprava.sk). You must register before issuing your first invoice. You receive a DIČ (daňové identifikačné číslo). For VAT (DPH): register voluntarily if useful (e.g., for B2B billing) or mandatory once turnover exceeds €49,790 in the past 12 months. VAT returns filed monthly (if turnover >€100,000) or quarterly (if under €100,000). Annual tax return (daňové priznanie typ B) filed by 31 March.
VAT threshold
€49,790 annual turnover (mandatory VAT registration). Voluntary registration below this threshold is possible and often beneficial for B2B services. EU/non-EU cross-border digital services have separate rules under the OSS (One-Stop Shop) scheme.
Invoicing
Slovak invoices (faktúra) must include: your name and address, DIČ (and IČ DPH for VAT-registered), client name and address, invoice number, invoice date, supply date, description of services, unit price and quantity, total amount, VAT amount (if applicable), bank account details (IBAN), and payment due date. Electronic invoicing (e-fakturácia) is encouraged. Invoices must be retained for 10 years.
Social security
SZČO (self-employed) pay both employee and employer portions of social and health insurance. Health insurance: 14% total (no split between employee/employer for SZČO). Social insurance: voluntary in the first year of business; mandatory from the second year if previous year income exceeded the threshold. Total social insurance rate for SZČO: approximately 33.15% on the vymeriavací základ (assessment base), calculated as 50% of net income. Minimum contributions apply. Second-pillar pension: SZČO can participate voluntarily.
💡 The paušálne výdavky (flat-rate expenses) option — deducting 60% of income (up to €20,000) without receipts — is very popular among Slovak freelancers and simplifies accounting significantly. This means effective tax only applies to 40% of income if using this method. Very beneficial for service-based freelancers with low actual costs. Consult a Slovak účtovník (accountant) for the first year — Slovak tax rules for SZČO have nuances. Many Bratislava freelancers, especially in IT, choose s.r.o. over živnosť for higher earnings due to the 15% corporate tax rate on profits under €100,000.
🏢 Business Structures
Živnosť / SZČO · Živnostenské oprávnenie / Samostatne zárobkovo činná osoba
Sole trader / Freelancer
None
Min. capital
1–3 business days (can often be done at the Jednotné kontaktné miesto — JKM at the Okresný úrad)
Setup time
Liability: Unlimited personal liability — all personal assets exposed
Setup cost: €5 (administrative fee for trade licence, free for some regulated professions)
Best for: Freelancers, consultants, craftspeople, IT contractors, small service businesses. The most common business form for self-employed individuals in Slovakia. Very simple to establish.
Slobodné povolanie · Slobodné povolanie (Liberal profession)
Liberal profession (self-employed)
None
Min. capital
1–4 weeks (depending on professional chamber)
Setup time
Liability: Unlimited personal liability
Setup cost: Free registration with the relevant professional chamber
Best for: Regulated liberal professions: doctors, lawyers, notaries, architects, accountants, tax advisors. Requires membership in the relevant komora (professional chamber). Different from živnosť — the professional chamber regulates the profession.
sro · Spoločnosť s ručením obmedzeným (s.r.o.)
Private limited liability company (equivalent to UK Ltd or German GmbH)
€5,000 minimum share capital (€750 must be paid up before registration)
Min. capital
5–15 business days via Obchodný register SR
Setup time
Liability: Limited to company assets — personal assets generally protected
Setup cost: €150 (court registration fee) + notarial fees (€200–500) + share capital requirement
Best for: Small to medium businesses seeking limited liability. Standard vehicle for startups, consulting firms, and growing businesses. Can have 1 or more shareholders (spoločníci). Most flexible and popular corporate form in Slovakia.
as · Akciová spoločnosť (a.s.)
Joint stock company (equivalent to public limited company)
€25,000 minimum share capital
Min. capital
15–30 business days
Setup time
Liability: Limited to company assets
Setup cost: €750–2,000 setup costs + €25,000 minimum share capital
Best for: Larger businesses, publicly traded companies, or companies seeking institutional investment. Complex management structure (board of directors, supervisory board). Less common for small businesses or startups.
Jednoosobová s.r.o. · Jednoosobová spoločnosť s ručením obmedzeným
Single-member private limited company
€5,000 (same as s.r.o.)
Min. capital
5–15 business days
Setup time
Liability: Limited to company assets
Setup cost: Same as s.r.o. — approximately €350–700 total
Best for: Solo entrepreneurs who want limited liability without a partner. The single shareholder is also typically the managing director (konateľ). More tax-efficient than živnosť for higher earners as company profits are taxed at 15% corporate tax rate (for companies under €100,000 turnover), and the owner-director pays themselves a salary separately.
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