Expatriate tax ebook - Slovak Republic

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
The employers of non-EU nationals are usually required to apply for a Work Permit (WP) prior to the employee taking up employment in Slovakia. It is therefore important that the expatriate's employment contract and benefit package is structured in a tax efficient manner before the contract is submitted to the Department of Work, Social Affairs & Family in Slovakia.

Residence permit is also required in some cases for non-EU nationals. The application for residence permit is a complex procedure performed through the Slovak Embassy in the home country of the expatriate.

Employment visas
Under the Work Permit procedure the employer will be required to advertise the position in Slovakia before the Department will consider issuing a WP to a non EU national where a suitable candidate cannot be found.

Alternatively, the employer will need to justify that the position cannot be filled in by a Slovak national, which is often a simple formal procedure.

Where the expatriate’s spouse and family relocates to Slovakia, relevant visas and a separate WP (where the spouse will also work) may be required.

Where the expatriate is an EU national the above procedure is usually not required.

Tax year
The Slovak tax year runs from 1 January to 31 December.

Tax returns and compliance
Most Slovak national employees working in Slovakia pay their tax through tax advance payments. For each tax period they have to declare their incomes via Personal Income Tax Return or via Yearly Reconciliation

Expatriates are obliged to register for Income Tax, to calculate their tax advance payment monthly based on income received and to pay it to the Tax Authority.

Tax and non-tax residents pay tax advance payments by the end of the calendar month following the month in which the income was attributed. After the tax year-end they are obliged to file a tax return.

The personal tax return should be filed by 31 March following the end of the tax year concerned.

Under the so-called economic employment arrangement, expatriates could also be considered, for tax purposes, as local employees and their payroll agenda can be taken over by the local employer.

 Income tax rates - 2010
Slovakia has a single flat income tax rate – 19 %. This rate applies to all employees including expatriates.

Sample income tax calculation

* Calculated as 1% of the purchase price of the car for each month of private use
** Personal allowance only available for individuals earning less than approx. EUR 1,500/month


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