Slovakia
10% Corporate Tax, No Inheritance Tax, Eurozone

The Slovak Republic is a landlocked country in Central Europe, bordered by the Czech Republic to the northwest, Poland to the north, Ukraine to the east, Hungary to the south, and Austria to the southwest. With a population of approximately 5.5 million people and a land area of 49,035 square kilometres, Slovakia is a mid-sized Central European country with a well-developed economy, strong industrial base, and a growing services sector.

Slovakia is a member of the European Union, the Eurozone, the Schengen Area, NATO, and the OECD. It joined the EU in 2004 and adopted the Euro in 2009 — the first of the Visegrad Group countries (Czech Republic, Hungary, Poland, Slovakia) to do so. The country has a stable, functioning democracy with strong rule of law and a well-developed legal system based on continental European civil law traditions.

Slovakia's economy is one of the most open in Central Europe, with a strong manufacturing sector (particularly automotive — Slovakia is the world's largest per-capita producer of cars), a growing technology sector, and a significant financial services industry centred in Bratislava. The country's GDP per capita is approximately EUR 22,000 (2024), below the EU average but growing steadily. Bratislava, the capital, has a significantly higher GDP per capita than the national average and is comparable to many Western European cities.

For entrepreneurs and investors, Slovakia's most significant tax advantages are: a 10% corporate income tax rate for income up to EUR 100,000 (one of the lowest in the EU); no inheritance tax, estate tax, or gift tax; and capital gains exemptions for long-term holdings of property and listed shares. Combined with Eurozone membership and a strategic location at the heart of Europe, these advantages make Slovakia a compelling destination for the right type of entrepreneur.

Bratislava is Slovakia's capital and largest city, with a population of approximately 475,000 (metropolitan area: 650,000). It is one of the smallest capital cities in the EU by population, but punches well above its weight in terms of economic activity, cultural life, and international business. The city sits on the Danube, just 60 kilometres from Vienna — making it the closest pair of national capitals in the world. This proximity to Vienna gives Bratislava residents easy access to one of Europe's great cities for culture, private banking, and international travel.

The High Tatras are Slovakia's most spectacular natural feature — a dramatic range of alpine peaks rising to 2,655 metres (Gerlachovský štít, the highest point in the Carpathians). The area offers world-class skiing in winter and hiking in summer, and is approximately 3 hours from Bratislava by car. The Tatras are a UNESCO Biosphere Reserve and one of the most beautiful mountain ranges in Central Europe.

Košice is Slovakia's second-largest city, with a population of approximately 240,000. It is the cultural and economic centre of eastern Slovakia, with a beautiful medieval old town, a strong university presence, and a growing technology sector. Košice is approximately 4 hours from Bratislava by car or train and has its own international airport with connections to major European hubs.

Banská Štiavnica is a UNESCO World Heritage Site — a beautifully preserved medieval mining town in central Slovakia, with baroque architecture, a castle complex, and a unique landscape shaped by centuries of silver and gold mining. It is one of the most atmospheric towns in Central Europe and a popular destination for those who appreciate history and architecture.

Slovakia's transport infrastructure is good and improving. The motorway network connects Bratislava to all major cities and to the borders with Austria, Czech Republic, Hungary, and Poland. Bratislava Airport has direct connections to major European hubs, and Vienna Airport (60 km away) provides extensive global connections. High-speed rail connections to Vienna, Prague, and Budapest are under development.

"Slovakia is one of the most underrated destinations in Europe for entrepreneurs. The 10% corporate tax rate for income up to EUR 100,000 is genuinely competitive, and Bratislava is a beautiful, liveable city with excellent infrastructure and a growing international business community. The no-inheritance-tax position is also a significant long-term advantage."

"I moved from Germany to Bratislava five years ago. The quality of life is excellent — a beautiful city, safe streets, great food, and easy access to Vienna, Budapest, and Prague. The tax system is not as simple as some jurisdictions, but with proper planning the corporate tax rate and the capital gains exemptions are real advantages."

"Slovakia is often overlooked in favour of Bulgaria or Estonia, but it deserves more attention. The 10% corporate tax for smaller companies, no inheritance tax, and Eurozone membership make it a compelling package for the right type of entrepreneur. The key is structuring correctly from day one."

Slovakia's primary tax advantages are concentrated in three areas: a low corporate tax rate for smaller companies, the complete absence of inheritance and gift taxes, and capital gains exemptions for long-term holdings. These advantages are most relevant for entrepreneurs running small to medium-sized businesses, investors with long-term portfolios, and families planning intergenerational wealth transfers.

• ›10% corporate income tax (up to EUR 100,000) — one of the lowest corporate tax rates in the EU for smaller companies. Applies to the first EUR 100,000 of taxable income — ideal for small and medium-sized service businesses, holding companies, and professional practices.
• ›0% inheritance tax — Slovakia abolished inheritance tax, estate tax, and gift tax in 2004. Transfers of wealth between generations — whether by inheritance or gift — are completely tax-free. This is one of the most significant long-term advantages for wealth preservation.
• ›0% capital gains on listed shares (>1 year) — gains on shares listed on a recognised stock exchange held for more than 1 year are exempt from capital gains tax. This is a significant advantage for investors with publicly traded portfolios.
• ›0% capital gains on property (>5 years) — gains on non-business property held for more than 5 years are exempt from capital gains tax. This applies to residential and investment property not used in a business.
• ›7% crypto tax (held >1 year) — from 2025, a new 7% rate applies to gains on crypto assets held for at least one year — one of the lowest crypto tax rates in the EU.
• ›Eurozone membership — no currency exchange costs for Euro-denominated transactions; no currency risk for Euro assets.
• ›EU membership — full access to the EU single market, freedom of movement in the Schengen Area, EU legal protections.

For entrepreneurs, the combination of the 10% corporate tax rate and the no-inheritance-tax position is particularly powerful. A business owner who builds a company in Slovakia, pays 10% corporate tax on profits, and then passes the company to their children on death pays zero inheritance tax on the transfer. This is a genuinely compelling long-term wealth-building structure that is difficult to replicate in Western Europe.

The capital gains exemptions are equally significant. An investor who holds a diversified portfolio of listed shares for more than one year pays zero Slovak capital gains tax on the gains — a dramatic improvement over most Western European jurisdictions where capital gains tax rates of 20%–35% are typical. The 7% crypto rate for long-term holdings is one of the most favourable in the EU and makes Slovakia an interesting jurisdiction for established crypto investors.

Under Slovak tax law, an individual is considered a Slovak tax resident if they have a permanent residence in Slovakia (a home available to them on a permanent basis), are physically present in Slovakia for 183 days or more in a calendar year, or have a habitual abode in Slovakia (a place where they regularly reside with the intention of staying permanently).

The Slovak tax authority (Finančná správa) takes a holistic approach to determining tax residency. Factors that point towards Slovak tax residency include: owning or renting a home in Slovakia, having family (spouse, children) in Slovakia, having the majority of your economic interests (business, investments, bank accounts) in Slovakia, and being registered with the Slovak tax authority. The 183-day rule is the most straightforward trigger — spending more than half the year in Slovakia will generally establish tax residency.

Slovak tax residents are subject to tax on their worldwide income. Non-residents are taxed only on Slovak-source income. The distinction is important for those who have income from multiple countries — Slovak tax residents must declare and pay Slovak tax on all income, regardless of where it arises, subject to the credit or exemption method under applicable double tax treaties.

EU citizens have the right to reside in Slovakia for up to 3 months without registration. For stays longer than 3 months, EU citizens must register their residence with the local foreign police (cudzinecká polícia). Non-EU citizens require a residence permit for stays longer than 90 days. Registration of residence is not the same as establishing tax residency — tax residency is determined by the substantive criteria above, not merely by registration.

For those coming from Germany, Austria, or the Czech Republic — Slovakia's neighbours — the key question is whether you have genuinely left. The German and Austrian tax authorities in particular are vigilant about relocations to lower-tax EU countries, and Slovakia's proximity to these countries means that the tax authority will scrutinise whether the relocation is genuine. The centre of vital interests test — where is your family, your business, your social life? — is the key battleground.

Slovakia has signed double tax treaties with over 65 countries. Key treaty partners include the United States, United Kingdom, Germany, France, Netherlands, Belgium, Austria, Switzerland, Sweden, Norway, Denmark, Finland, Italy, Spain, Australia, Canada, Japan, China, and all EU member states. This broad network means that Slovak tax residents can benefit from reduced withholding taxes on income received from most major economies.

Slovakia's DTAs generally use either the credit method or the exemption method for avoiding double taxation. Under the credit method, Slovak tax is reduced by the tax paid abroad. Under the exemption method, foreign income is exempt from Slovak tax (but may be taken into account for determining the applicable rate on other income). The applicable method depends on the specific treaty and the type of income involved.

Slovakia's DTA with Germany is particularly important for German residents considering relocation. The treaty provides tie-breaker rules for dual residency situations and reduces withholding taxes on dividends (5%/15%), interest (0%), and royalties (5%). German state pension income is taxable in Germany under the treaty, not in Slovakia — an important consideration for German retirees planning to relocate to Bratislava.

The DTA with the United States provides for reduced withholding taxes on dividends (5%/15%), interest (0%), and royalties (0%/10%). US citizens living in Slovakia must still comply with US worldwide taxation rules, but the DTA provides a framework for managing the interaction between US and Slovak tax obligations and preventing double taxation on the same income.

Slovakia's DTA with Austria is particularly relevant given the proximity of Bratislava to Vienna. The treaty provides tie-breaker rules for dual residency and reduced withholding taxes on dividends (10%), interest (0%), and royalties (5%). Austrian residents who relocate to Bratislava must ensure that the tie-breaker provisions favour Slovakia — which generally requires that the centre of vital interests is in Slovakia, not Austria.

Moving to Slovakia does not automatically end your tax residency in your home country. For German, Austrian, and Czech residents in particular — given Slovakia's proximity to these countries — the key question is whether you have genuinely left. The German tax authority (Finanzamt) is particularly aggressive in challenging relocations to lower-tax EU countries, and Slovakia's proximity to Germany and Austria means that the tax authority will scrutinise whether the relocation is genuine.

The good news is that Slovakia's DTA network provides treaty tie-breaker rules for dual residency situations. If you are considered a tax resident of both Slovakia and your home country, the treaty tie-breaker provisions will determine which country has the primary right to tax your income. In most cases, the tie-breaker will favour Slovakia if you have a permanent home available to you in Slovakia and your centre of vital interests is in Slovakia — meaning your family, your business, your social life, and your economic interests are all centred in Bratislava.

The key practical steps to demonstrate genuine relocation to Slovakia include: renting or purchasing a property in Slovakia, registering your residence with the local foreign police, opening a Slovak bank account, registering as a taxpayer with the Slovak tax authority (Finančná správa), and deregistering from your home country's tax authority. For German residents, the Abmeldung at the local Einwohnermeldeamt is a critical step. For Austrian residents, deregistration from the Melderegister is equally important.

Before you relocate to Slovakia, you need to understand what tax consequences arise in your current country of residence at the point of departure. These rules vary significantly by country and must be assessed individually before any relocation decision is made.

• ›Germany — Exit tax under §6 AStG on shareholdings of 1%+. For EU relocations (including Slovakia), the exit tax can be paid in instalments over 7 years. The EU freedom of establishment principle limits Germany's ability to impose punitive exit taxes on intra-EU relocations. However, the German tax authority will scrutinise the genuineness of the relocation given Slovakia's proximity.
• ›Austria — Exit tax on unrealised gains on business assets and shareholdings. For EU relocations (including Slovakia), deferral is available. Given Slovakia's proximity to Austria, the Austrian tax authority will scrutinise the genuineness of the relocation — particularly for those who continue to spend significant time in Vienna.
• ›Czech Republic — Exit tax on unrealised gains on business assets and shareholdings when changing tax residency. For EU relocations (including Slovakia), deferral is available. The Czech-Slovak relationship is close and the tax authority is aware of cross-border relocations.
• ›United Kingdom — No formal exit tax, but temporary non-residence rules can apply gains and income to the year of return if you return within 5 years. UK residents who relocate to Slovakia must ensure they meet the statutory non-residence test.
• ›France — Exit tax on unrealised gains on securities and company rights above EUR 800,000. For EU relocations (including Slovakia), deferral is available. French residents must file a specific exit tax return (formulaire 2074-ETD) in the year of departure.

The interaction between exit taxes and Slovakia's capital gains exemptions requires careful timing. In some cases, it may be advantageous to realise gains before departure (to benefit from lower home-country rates or to reset the cost base) rather than after arrival in Slovakia. This analysis must be done on a case-by-case basis.

The most common company vehicle in Slovakia is the Spoločnosť s ručením obmedzeným (s.r.o.) — the Slovak limited liability company, equivalent to a German GmbH or UK Ltd. Minimum share capital is EUR 5,000. An s.r.o. can be incorporated through a notary or through the Slovak Business Register online portal. There is no requirement for a local director or shareholder — 100% foreign ownership is permitted.

The tiered corporate income tax structure from 2025 is one of Slovakia's most significant advantages for entrepreneurs:

• ›10% on income up to EUR 100,000 — one of the lowest corporate tax rates in the EU for smaller companies. Ideal for small and medium-sized service businesses, holding companies, professional practices, and digital businesses.
• ›21% on income between EUR 100,000 and EUR 5 million — still competitive compared to many Western European countries (Germany: 30%+, France: 25%, Netherlands: 25.8%).
• ›24% on income above EUR 5 million — higher than the lower tiers but still below the EU average for large companies.

A minimum corporate income tax applies from 2024 — EUR 340 per year for companies with revenue below EUR 50,000, rising to EUR 3,840 for companies with revenue above EUR 500,000. This is a relatively modest minimum tax and does not significantly affect the attractiveness of the regime for active businesses with genuine turnover.

Dividends paid from a Slovak s.r.o. to individual shareholders are subject to a 7% withholding tax (reduced from 15% in 2024). This is one of the lowest dividend withholding tax rates in the EU and makes the Slovak s.r.o. structure attractive for entrepreneurs who want to extract profits efficiently. The combined effective rate on business profits distributed as dividends is therefore 10% corporate tax + 7% dividend tax = approximately 16.3% total — highly competitive by EU standards.

Slovakia also has an R&D tax relief scheme that allows companies to deduct 100% of qualifying R&D expenditure in addition to the standard deduction. This is relevant for technology companies and startups with significant R&D spend. Investment incentives and tax relief may also be available for approved large investments in certain regions of Slovakia.

EU/EEA citizens have the right to reside in Slovakia indefinitely under EU freedom of movement rules. They must register their residence with the local foreign police (cudzinecká polícia) if staying for more than 3 months, but no visa or residence permit is required. The registration process is straightforward and takes approximately 1–2 weeks.

• ›Temporary Residence Permit (non-EU): Available for non-EU citizens who have a job offer, run a business, study, or have family ties in Slovakia. Valid for up to 3 years, renewable. The application is made at the foreign police and takes approximately 3–6 months. A business purpose permit requires evidence of a registered Slovak company or self-employment.
• ›Permanent Residence Permit (non-EU): Available to non-EU citizens who have lived in Slovakia legally for 5 continuous years. Provides permanent right of residence in Slovakia and access to the same rights as EU citizens for most purposes.
• ›National Visa (D Visa): For non-EU citizens who want to stay in Slovakia for more than 90 days for purposes such as business, study, or family reunification. Valid for up to 1 year. Can be extended or converted to a temporary residence permit.
• ›EU Long-Term Resident Permit: Available to non-EU citizens who have lived in Slovakia legally for 5 continuous years. Provides the right to reside in any EU member state — a significant advantage for those who want EU-wide mobility.

Slovakia does not currently have a dedicated digital nomad visa or a passive income visa. Non-EU citizens who want to reside in Slovakia without a local job offer typically need to establish a business or demonstrate sufficient passive income to qualify for a temporary residence permit on business grounds. We recommend using a specialist immigration lawyer to navigate the application process.

Slovak citizenship can be obtained through naturalisation after 8 years of continuous legal residence in Slovakia (reduced to 5 years for those married to a Slovak citizen). The naturalisation process requires demonstrating knowledge of the Slovak language (B1 level), knowledge of Slovak history and culture, and — critically — renouncing your previous citizenship.

Slovakia's approach to dual citizenship is strict. The general rule is that acquiring Slovak citizenship requires renouncing your previous citizenship, and that acquiring another citizenship after becoming a Slovak citizen leads to automatic loss of Slovak citizenship. There are limited exceptions — acquisition by marriage, birth, or in cases where the other country does not allow renunciation. This is a significant disadvantage compared to countries like Armenia, Bulgaria, or Chile that permit dual citizenship without restriction.

A Slovak passport provides visa-free or visa-on-arrival access to approximately 186 countries, including the United States, Canada, Australia, Japan, and all EU member states. For those who want an EU passport that provides access to the Schengen Area and the EU single market, Slovak citizenship is an excellent objective — though the 8-year residency requirement and the dual citizenship restriction mean it requires careful long-term planning.

Slovakia does not offer a citizenship by investment programme. Citizenship can only be obtained through genuine long-term residence and naturalisation. This is consistent with Slovakia's position as a mainstream EU member state with a conventional immigration framework.

Slovakia has a well-developed banking sector regulated by the National Bank of Slovakia (Národná banka Slovenska), which is part of the European System of Central Banks. Major banks include Slovenská sporiteľňa (part of Erste Group), VÚB Banka (part of Intesa Sanpaolo), Tatra banka (part of Raiffeisen), ČSOB (part of KBC Group), and UniCredit Bank Slovakia. International neobanks including Revolut and Wise are also widely used by the international community.

Opening a bank account in Slovakia is straightforward for EU citizens — typically requiring only a passport and a tax identification number (daňové identifikačné číslo). Non-EU citizens may need to provide additional documentation including a residence permit and proof of address. Slovakia uses the Euro, which means no currency exchange costs for transactions within the Eurozone and no currency risk for Euro-denominated assets.

Slovakia's banking infrastructure is modern and well-developed. Online banking and mobile banking are widely available and of high quality. International wire transfers are straightforward. There are no exchange controls — funds can be moved in and out freely in any amount, subject to standard anti-money laundering documentation requirements for large transactions.

Slovakia participates in the OECD's Common Reporting Standard (CRS) and is FATCA-compliant. Slovak financial institutions report account information to the Slovak tax authority (Finančná správa), which then shares this information with the tax authorities of the account holder's country of tax residence. This is important for those who are in the process of changing tax residency — the CRS reporting will confirm to your home country's tax authority that you have a Slovak bank account.

Slovakia's most distinctive practical advantage is its proximity to Vienna. Bratislava is just 60 kilometres from Vienna — the closest pair of national capitals in the world. This means that Slovak residents can access Vienna's world-class airport (with direct connections to over 200 destinations), cultural life, private banking, and business infrastructure while living in a significantly more affordable city. Many Bratislava residents commute to Vienna regularly, and the two cities are effectively part of the same metropolitan region.

The country's natural beauty is significant and often underappreciated. The High Tatras are among the most dramatic mountain ranges in Central Europe. The Slovak countryside is largely unspoiled — dense Carpathian forests, medieval castles perched on rocky outcrops, and traditional villages that have changed little in centuries. For those who value outdoor activities and natural environments, Slovakia offers exceptional quality of life at a fraction of the cost of Alpine countries like Austria or Switzerland.

Safety and stability are significant advantages. Slovakia is consistently ranked among the safest countries in Central Europe, with low crime rates, a stable political environment, and strong rule of law. The country has been a member of the EU, NATO, and the Eurozone for over 15 years, providing a high degree of political and economic stability.

The cost of living is significantly lower than Western Europe. Bratislava is approximately 40%–50% cheaper than Vienna, Munich, or Frankfurt. For those who are used to Western European prices, Slovakia offers excellent value — particularly for accommodation, food, and services. The quality of life in Bratislava is high by any standard — a beautiful historic old town, excellent restaurants, a vibrant cultural scene, and a young, international professional community.

Slovakia's business environment has improved significantly in recent years. The country has a well-educated, multilingual workforce (English and German are widely spoken in Bratislava), good infrastructure, and a growing technology sector. Bratislava in particular has become a significant hub for IT, financial services, and shared service centres for major international companies.

Slovakia is significantly more affordable than Western Europe. A comfortable lifestyle in Bratislava — good accommodation in a central area, dining out regularly, cultural activities, and occasional travel — costs roughly EUR 2,000–3,500 per month for a couple. By Western European standards, this represents excellent value for a capital city with a high quality of life.

• ›Accommodation: A 2-bedroom apartment in central Bratislava rents for EUR 900–1,600/month. Buying: a 2-bedroom apartment in central Bratislava costs EUR 250,000–450,000. Property prices have risen significantly in recent years due to strong demand from both locals and international buyers, but remain well below Vienna levels.
• ›Food: Locally produced food is good quality and affordable. Monthly grocery bill for a couple: EUR 300–500. Dining at a good restaurant: EUR 20–40 per person. A coffee: EUR 1.50–2.50. Slovak cuisine is hearty and good value.
• ›Transport: Bratislava has a good public transport system (trams, buses, trolleybuses). Monthly pass: EUR 30. Taxis and Bolt are available and affordable. Petrol: approximately EUR 1.65/litre. Vienna is 45 minutes by car or 1 hour by bus.
• ›Healthcare: Slovakia has a public healthcare system (Všeobecná zdravotná poisťovňa) that residents can access after registering and paying contributions. Private healthcare is available and affordable by Western European standards. International health insurance is recommended for comprehensive coverage and access to English-speaking doctors.
• ›Education: International schools are available in Bratislava (British, American, IB curricula). Annual fees range from EUR 8,000–18,000 per child. Slovak state schools are free and of good quality. The Slovak education system is strong in mathematics and sciences.

EU citizens can purchase real estate in Slovakia without restriction. Non-EU citizens can purchase apartments and commercial properties freely, but the purchase of agricultural and forest land by non-EU citizens is restricted. In practice, this restriction affects very few buyers — the vast majority of international buyers are interested in residential or commercial property in Bratislava or tourist areas.

Transaction costs in Slovakia are moderate. The main costs are: real estate transfer tax — Slovakia abolished real estate transfer tax in 2005, which is a significant advantage; notary fees of approximately 0.5%–1% of the purchase price; and land registry fees of approximately EUR 66–265. Total transaction costs typically amount to 1%–3% of the purchase price — among the lowest in the EU.

Property prices in Bratislava have risen significantly over the past decade, driven by strong demand, limited supply, and proximity to Vienna. Bratislava's prime residential market is now comparable in price to some secondary Western European cities. The High Tatras area and other popular tourist regions also command premium prices. Rental yields in Bratislava are typically 3%–5% gross — modest but comparable to other major European cities.

The capital gains exemption for property held for more than 5 years means that long-term property investors can sell their Slovak property tax-free after 5 years. This is a significant advantage compared to many other EU countries and makes Slovakia an attractive destination for property investment with a long-term horizon. The exemption applies to non-business property — i.e., residential property and investment property not used in a business.

Slovakia is an attractive retirement destination for those who value EU access, safety, affordability, and proximity to Western Europe. The country is safe, clean, and well-connected, with excellent healthcare and infrastructure. The proximity to Vienna means that retirees can access world-class cultural, medical, and financial services easily — Vienna is one of the world's most liveable cities and is effectively on Bratislava's doorstep.

• ›Tax on pensions: Foreign pension income is subject to Slovak personal income tax at progressive rates. However, Slovakia's DTA network may provide reduced rates or exemptions for pension income from treaty partner countries. German state pensions, for example, are taxed in Germany under the Slovakia-Germany DTA, not in Slovakia — an important consideration for German retirees.
• ›Healthcare: Slovakia has a public healthcare system that residents can access after registering and paying contributions. Private healthcare is available and affordable. The quality of healthcare is generally good, particularly in Bratislava. Vienna's world-class medical facilities are also accessible for complex procedures.
• ›Climate: Slovakia has a temperate continental climate with cold winters (average January temperature in Bratislava: 0°C) and warm summers (average July temperature: 27°C). The High Tatras offer excellent skiing in winter. Those who prefer warm winters may find Slovakia less suitable.
• ›No inheritance tax: for retirees planning to pass wealth to their children, Slovakia's 0% inheritance and gift tax is a significant long-term advantage. Assets accumulated over a lifetime can be transferred to the next generation without any Slovak tax charge.
• ›Capital gains exemptions: for retirees with investment portfolios, the 0% capital gains on listed shares held for more than 1 year and the 7% crypto rate for long-term holdings are significant advantages compared to most Western European jurisdictions.

US citizens and Green Card holders are subject to US federal income tax on their worldwide income, regardless of where they live. Moving to Slovakia does not change this fundamental obligation. Slovakia and the United States have a double tax treaty, which provides a framework for managing the interaction between US and Slovak tax obligations and reduces withholding taxes on dividends, interest, and royalties.

The Foreign Earned Income Exclusion (FEIE) allows US citizens living in Slovakia to exclude up to USD 126,500 (2024) of foreign earned income from US federal income tax, provided they meet the bona fide residence or physical presence test. The FEIE applies only to earned income — not to passive income such as dividends, interest, or capital gains.

The interaction between the US and Slovak capital gains tax systems requires careful planning. The Slovak 0% exemption for listed shares held for more than 1 year means that no Slovak tax is paid on long-term gains — but the US may tax the same gains at up to 23.8% (20% long-term capital gains rate + 3.8% net investment income tax), with only a limited foreign tax credit available (since the Slovak tax paid is zero). US persons considering Slovakia for capital gains planning should seek specialist US international tax advice before making any investment decisions.

US citizens with Slovak bank accounts must comply with FBAR and FATCA reporting requirements. Slovakia is FATCA-compliant, meaning Slovak banks report US account holders to the IRS. US persons must file FinCEN Form 114 (FBAR) annually if their aggregate foreign financial accounts exceed USD 10,000 at any point during the year.

Slovakia participates in the OECD's Common Reporting Standard (CRS). Slovak financial institutions report account information to the Slovak tax authority (Finančná správa), which then shares this information with the tax authorities of the account holder's country of tax residence. Slovakia is also FATCA-compliant for US persons.

As an EU member state, Slovakia also participates in the EU's DAC6 mandatory disclosure regime, which requires intermediaries to report certain cross-border tax arrangements. This is relevant for complex international structures involving Slovak entities or residents. The DAC6 rules are broad and can capture arrangements that have a tax advantage as their main benefit.

The tax efficiency of Slovak residency must be achieved through legitimate means — genuine residency, proper structuring, and full compliance with reporting obligations in both Slovakia and your home country. The 10% corporate tax rate, the capital gains exemptions, and the no-inheritance-tax position are all legitimate, legislated tax advantages that are fully compliant with EU state aid rules and OECD BEPS standards. They are not tax avoidance — they are the tax system working as intended.

We emphasise this point because some clients come to us having heard about aggressive tax planning schemes that purport to use Slovak structures to avoid tax in other countries. These schemes are typically illegal and carry significant legal and reputational risks. Our advice is always based on legitimate, compliant tax planning within the framework of applicable law.

Upon establishing residence in Slovakia, you will need to register with the local foreign police (cudzinecká polícia) and obtain a daňové identifikačné číslo (tax identification number). This is the primary identification number for residents of Slovakia and is required for most financial and legal transactions, including opening bank accounts, registering a company, and filing tax returns.

Driving licences from EU member states are valid in Slovakia indefinitely. Driving licences from non-EU countries can be exchanged for a Slovak driving licence without a test, provided the licence was issued by a country with a reciprocal agreement with Slovakia (which includes most major countries). The exchange must be done within 1 year of establishing Slovak residence.

Social security in Slovakia is administered by the Sociálna poisťovňa (social insurance) and the Všeobecná zdravotná poisťovňa (health insurance). Self-employed individuals must register with the relevant authorities and pay social security contributions. The contributions are significant — typically 15%–30% of income — and should be factored into any financial planning. Employees have contributions deducted at source by their employer.

Importing personal effects to Slovakia from outside the EU is subject to customs duties. Personal effects imported within 12 months of establishing residence may qualify for duty relief under the household goods exemption. EU residents moving to Slovakia can bring their personal effects duty-free. Vehicles imported from outside the EU are subject to import VAT and customs duty.

Pets can be brought to Slovakia from EU countries without restriction, provided they have a valid EU pet passport and are microchipped and vaccinated against rabies. Pets from non-EU countries require additional documentation and may be subject to quarantine requirements depending on the country of origin.

We offer comprehensive tax and legal support for your relocation to Slovakia. We follow a proven process — and where the country requires it, we involve our local partner firm on the ground, while remaining responsible for overall coordination.

The results speak for themselves: we have helped over 100 entrepreneurs and investors significantly reduce their long-term tax burden through carefully planned relocations. Legally sound structuring within the framework of international tax law is our highest priority.

As a first step, we recommend booking a consultation to discuss your plans — by phone, Zoom, or Signal. Together we find the best approach and establish contact with our local partner. As project coordinator, we keep all the threads in hand that are necessary for the successful implementation of your plans.