A dedicated business bank account for freelancers and companies in Slovakia

SZČO freelancer taxation

Do I really pay no social insurance in my first year as an SZČO?

Not quite zero. A first-time SZČO, or someone restarting after more than 60 months, has a six-month waiting period before compulsory social insurance starts and then initially pays the 131.34 EUR/month mikroodvod.

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What's the maximum SZČO social insurance in 2026?

Roughly 66,687 EUR/year. Contributions are charged on an assessment base equal to about 67.3% of profit after expenses; with the capped recognized-expense deduction, the social cap is not reached until gross income is around 319,000 EUR. Health insurance has no cap at all.

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s.r.o. company taxation

What's the s.r.o. corporate tax rate in Slovakia for 2026?

10%, 21%, or 24% depending on annual turnover — a hard cliff rather than a phased bracket — plus a flat 7% dividend tax when profit is paid out, and a mandatory owner health insurance of about 1,463 EUR/year regardless of profit (unless the person has another qualifying insured status).

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Does a Slovak s.r.o. owe tax even with zero profit?

Yes, for an established company with a full 12-month tax period — a minimum tax (daňová licencia) of 340 to 11,520 EUR/year applies regardless of profit, based on turnover. It's waived in the company's first tax period and a few other statutory cases, and reduced or prorated in others.

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When does s.r.o. beat SZČO?

In the simplified January-start scenario, the SZČO wins up to about 71,600 EUR and briefly again above the company's 100,000 EUR tax cliff. For an established SZČO the result depends on the contribution tier; the s.r.o. generally leads above about 41,000 EUR in the zero-expense comparison.

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If you have a specific question about freelancing or running a company in the Slovak Republic, feel free to reach out to us. We offer a free initial consultation.

What is the s.r.o. corporate tax rate in Slovakia for 2026?

It depends on your company's annual turnover (revenue), not profit:

However, unlike usually in other countries, this is a cliff, not a bracket. If your turnover crosses 100,000 EUR by even 1 EUR, the 21% rate applies to the company's entire taxable profit for the year — not just the profit attributable to turnover above the threshold. The same applies at the 5,000,000 EUR boundary.

On top of corporate tax, profit paid out to the owner as dividends is taxed separately at a flat 7%, with no social or health insurance due on the dividend income itself. Dividends alone do not create insured status, so an owner with no employment, SZČO, state-covered, or other qualifying coverage must instead pay as a samoplatiteľ: 121.92 EUR/month (1,463.04 EUR/year).

Why does the rate jump instead of phasing in?

Slovak corporate tax bands are turnover-based cliffs by design, unlike Slovakia's own progressive personal income tax brackets (which phase in normally). With zero expenses, crossing from 99,999 EUR to 100,001 EUR turnover costs over 10,000 EUR in additional corporate tax because the higher rate applies to the whole taxable profit, not just the excess. Expenses reduce the size of that jump but do not change which rate applies.

Is there a minimum corporate tax regardless of profit?

Yes, for an established company with a full 12-month tax period — the daňová licencia (minimum tax) applies if your calculated corporate tax would otherwise fall below it:

With zero expenses, the first 340 EUR minimum only beats the calculated 10% tax below roughly 3,400 EUR turnover. More generally, the minimum can apply at any turnover when deductible expenses or losses leave the calculated profit-based tax below the minimum for that turnover band.

These bands aren't universal, though: the minimum tax does not apply in the company's first tax period (except for a legal successor) or in several other statutory cases such as liquidation or bankruptcy, it's reduced by 50% where at least 20% of employees are people with disabilities, and it's prorated for a tax period shorter than 12 months. See the minimum tax FAQ for the full detail.

What's the all-in effective rate below the 100,000 EUR threshold?

Around 16.3%, before any owner self-payer health insurance — higher at lower turnover. A 10% corporate tax plus 7% dividend tax on after-tax profit gives 16.3%. Add another 1,463.04 EUR/year where the owner has no other qualifying coverage, producing about 20% at 40,000 EUR turnover and 17.8% at 100,000 EUR. An owner insured through another qualifying status should not add that cost again.

For the full walkthrough of how the tax base, minimum tax, and dividend distribution interact — including the exact numbers at the 100,000 EUR cliff and when an s.r.o. beats operating as an SZČO freelancer — see the full s.r.o. company taxation guide.

Calculator

Enter your expected annual revenue to see your exact corporate tax, dividend tax, and net income as a Slovak s.r.o.

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If you want to discuss whether an s.r.o. is the right structure for your business, feel free to reach out. We offer a free initial consultation.

Does a Slovak s.r.o. owe tax even with zero profit?

Yes — Slovakia has a minimum corporate tax (daňová licencia) that applies regardless of whether your s.r.o. made a profit, broke even, or ran a loss:

When does it actually apply?

Only when your calculated corporate tax (10%, 21%, or 24% of the tax base) would fall below the minimum for your turnover band — the minimum tax then takes over instead of the calculated figure. With zero expenses, the first 340 EUR minimum exceeds 10% of profit only below roughly 3,400 EUR turnover. But a low-margin or loss-making company can trigger the minimum at much higher turnover because the band is selected from turnover while the calculated tax is based on profit.

For a profitable, low-expense s.r.o., the calculated 10–24% corporate tax will usually exceed the minimum. The rule matters most for companies with low or negative taxable profit, including companies that have substantial revenue but nearly matching deductible expenses.

When does the minimum tax not apply, or apply at a reduced amount?

The turnover bands above are the standard full-year amounts, but they are not universal. In particular:

• The minimum tax does not apply in the company's first tax period (except where the company is a legal successor), or in several other statutory cases such as a company in liquidation or bankruptcy.
• The amount is reduced by 50% where at least 20% of the company's employees are people with disabilities.
• For a tax period shorter than 12 consecutive calendar months, the minimum is prorated according to the number of months in the tax period.

The calculator below shows the standard amount for an established company with a full 12-month tax period. If an exemption, the disability-employment reduction, or a short tax period applies to you, the displayed minimum must be adjusted.

For the full corporate tax structure, see the s.r.o. company taxation guide or the corporate tax rate FAQ.

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Questions about running a Slovak s.r.o.? Feel free to reach out — we offer a free initial consultation.