Business in Slovakia for foreigners

Yes. Persons with temporary protection status (dočasná ochrana) can register a sole trader licence (živnosť) or an s.r.o. (limited liability company) — the right to do business is valid from July 15, 2024, and a separate work permit is not required.

To register a sole trader licence (živnosť), you typically need: an identity document (passport or cestovný doklad), proof of temporary protection, the chosen type of activity, a criminal record certificate (an apostilled extract from Ukraine), and the property owner's consent for the business address. A separate residence permit "for the purpose of entrepreneurship" is not required at the time of opening.

Temporary protection is renewed annually (currently — until March 4, 2027; extension to 2028 has been agreed upon, formal EU approval is expected). Important: switching to a temporary residence for the purpose of entrepreneurship (prechodný pobyt na účel podnikania) from July 1, 2025, can ONLY be applied for through an embassy abroad (not at the police in Slovakia), there is an annual quota of about 700 applications for all representations, and a business plan and a fee of €232–240 are required. This is not a simple formality — plan ahead and consult mic.iom.sk or a lawyer.

A sole trader licence (živnosť) is simpler and cheaper to start: opening in 1 day and for €0 online, simple accounting, all income is immediately "yours." The downside is liability with all personal assets and contributions that grow with income (from €0 to ~€425/month in 2026).

s.r.o. protects personal assets (liability only up to the amount of the contribution): 10% profit tax + 7% on dividends (≈ 16% total — but only for turnover up to €100,000 and full profit payout as dividends; higher turnover — 21%). Downsides are a more expensive and longer opening process (2–3 weeks, ~€220–350; from August 17, 2026, a notary will be required), mandatory double-entry bookkeeping, a minimum tax of €340/year, and a transaction tax (transakčná daň) on payments. A director without a salary still has to pay health insurance themselves.

After the 2026 contribution reform, there are several profitability zones: with typical expenses, a sole trader licence (živnosť) wins up to ~€9,000 (contributions €0 or mikroodvod €131/month) and again from ~€26,000 to ~€36,000 (lump-sum 60%); an s.r.o. more often wins in the range of ~€9,500–26,000 (where a sole trader licence (živnosť) already pays the full minimum of ~€425/month) and at incomes from ~€36,500. This is an estimate, not a legal norm: a calculator "Sole trader licence (živnosť) vs s.r.o." will show all break-even points for your figures.

From 2025, turnover is counted anew for each calendar year (from January 1), not for 12 consecutive months. Registration becomes mandatory in two cases.

If the turnover for the year exceeds €50,000, the application must be submitted within 5 working days, and you will become a taxpayer from January 1 of the following year. If the turnover exceeds €62,500, you become a taxpayer on the same day the threshold is crossed.

Registration is also possible voluntarily — before reaching the thresholds, if it is beneficial (e.g., you work with VAT payers and want to reclaim input tax). For late registration, there is a fine from €100 to €30,000 (from January 1, 2026). Separately: if you work with clients or suppliers from the EU, registration under § 7a is mandatory even before the first such transaction — regardless of the thresholds; check the current registration rules at financnasprava.sk.

The state fee depends on the type of activity and submission method. A free (voľná) sole trader licence (živnosť) via slovensko.sk is €0, on paper it is €7. A craft (remeselná) or tied (viazaná) licence is €11 electronically / €22 on paper for each.

Online submission via slovensko.sk is significantly cheaper but requires an eID with an activated qualified electronic signature (KEP). The Osvedčenie o živnostenskom oprávnení (Certificate of Sole Trader Licence) is issued within 3 working days.

The main costs appear later — these are contributions to social and health insurance. Health insurance contributions are paid by the sole trader from the start (minimum ~€122/month), social contributions approximately from the 6th month of activity.

A sole trader (živnostník) pays a 15% income tax (for income up to €100,000 per year — this is the vast majority). Expenses can be accounted for lump-sum: 60% of income, maximum €20,000 per year, without collecting receipts.

Contributions depend on income, not fixed: for very low income — €0 or only health insurance ~€122/month; in the range of €2,877–9,144/year, the new "mikroodvod" applies — a fixed €131/month social contribution (from July 1, 2026); for higher income — the full minimum ~€425/month (social ~€303 + health ~€122). Health insurance is paid from the start, social contributions — after 6 months of activity.

s.r.o. pays a 10% profit tax (turnover up to €100,000, higher — 21%), a minimum tax (daňová licencia) from €340/year even with a loss, and 7% on dividend payouts. From 2026, the company also pays a transaction tax (transakčná daň) on bank account payments (this does not apply to sole traders). Rates are reviewed annually — before submitting, check taxes at financnasprava.sk, and self-employed contributions (SZČO) at socpoist.sk, or consult an accountant.

A živnosť (self-employment permit) is opened very quickly: the certificate is issued within 3 working days of submission, and online via slovensko.sk – often the next day. An IČO (company ID number) is assigned immediately, a DIČ (tax ID number) comes later (usually within a few weeks).

A s.r.o. (limited liability company) is registered longer. The entry in the Commercial Register (Obchodný register) legally takes 2 working days, but in reality – 4–5 days after paying the court fee, plus the trade license. In total, with document preparation – approximately 2–3 weeks.