Business, finance and taxes

I want to start a business

You may run a business if your residence allows it. Residence for employment is usually not enough even to run your own company as a managing director. Sort out your residence first, then the company.

We compare the two most common forms in the table:

Sole trader (živnosť)

• Types: free (no qualification needed, e.g. retail), craft (apprenticeship or experience needed, e.g. cook, hairdresser), regulated (professional competence needed, e.g. accounting).
• Where: the district office, trade licensing department – the single point of contact (JKM).
• Online: via slovensko.sk with an electronic signature.
• After registration: the JKM also registers you with the tax office. You must notify your health insurance company of the start of your business within 8 days.

s.r.o. (limited company)

• Partner (spoločník) – the owner. Managing director (konateľ) – the person who runs the company and signs on its behalf.
• Share capital – at least €5,000.
• Setting up – a deed of incorporation or articles of association, registration in the Business Register. A lawyer or notary usually helps.
• Accounting – double-entry, almost always with an external accountant.
• Taxes – the company pays corporate income tax. Profit paid out to you is taxed separately.

Taxes and contributions

• Income tax – the tax return is filed by 31 March for the previous year, electronically via financnasprava.sk.
• Sole trader contributions – you pay health insurance from the start. Social contributions usually only from the second year, based on your income in the first year.
• VAT – registration is compulsory once you exceed the statutory turnover. Check the threshold at financnasprava.sk. Since 1 January 2025 the standard VAT rate is 23% (previously 20%); reduced rates apply to selected goods and services.
• Tax bonus – a tax reduction for children if you meet the conditions.
• Tax resident – usually someone who has residence here or stays here more than 183 days a year. Slovakia and Vietnam have a double taxation treaty.

Invoices

• An invoice must contain: your name or company name, company ID (IČO), address, invoice number, date, customer, description, amount and due date. VAT payers also add their tax/VAT ID and the rate.
• E-invoicing – Slovakia is introducing mandatory electronic invoicing. Follow the dates at financnasprava.sk.
• Invoices abroad – for services to companies in the EU the reverse charge often applies. Ask your accountant.

Bank

• Opening an account – you need your passport and residence document. Some banks also want your employment contract.
• Business account – recommended for a sole trader, essential for an s.r.o.
• Payments Vietnam ↔ Slovakia – an international transfer (SWIFT) has fees on both sides and an exchange rate. Compare banks and licensed services.
• Fees – many banks offer a free account if you meet certain conditions.
• Online banking – a mobile app is standard. Never give anyone your login details or SMS codes.

Financing and loans

Consumer loans, mortgages, business loans. Banks mainly look at the type and length of your residence, income stability and account history. With a short temporary residence a loan is hard to get. Beware of non-bank loans with high interest.

Business insurance

• Liability insurance – if you cause damage to a customer. Highly recommended in hospitality and services.
• Property insurance – premises, equipment, goods.
• Business packages – a combination for small businesses.

Employing other people

• You must register an employee with the Social Insurance Agency before they start work.
• An employee needs a written contract, at least the minimum wage and occupational health and safety training.
• Special ÚPSVaR rules and reporting obligations apply when employing foreigners from non-EU countries.
• Payroll and contributions are usually handled by a payroll accountant.

Frequently asked questions