This section is under construction — the data may be inaccurate
Sole trader or s.r.o.?
Enter income and expenses — see how much will remain "in hand" for each form and when it's time to switch to a limited liability company.
s.r.o. profit used in the calculation: 34,699 €
An indicative calculation using 2026 rates. This is not tax advice — check it against financnasprava.sk or with your accountant.
Check the official registers
External government services — they open in a new tab
Questions and answers
When is an s.r.o. more profitable than a živnosť?
After the 2026 contribution reform, there is no single break-even point – there are several zones. With typical expenses (~40% of income) and profit withdrawal as dividends: up to ~€9,000, a živnosť (no contributions or mikroodvod) is more profitable; in the range of ~€9,500–€26,000, an s.r.o. often wins because a živnosť above the €9,144 threshold immediately pays the full minimum contributions (~€425/month); from ~€26,000 to ~€36,000, a živnosť regains the advantage thanks to the 60% flat rate; above ~€36,500 (the €20,000 flat rate ceiling, NČZD phase-out), an s.r.o. definitively wins.
The boundaries strongly depend on your expenses and how you withdraw profit. Move the income slider – the calculator will show you all your break-even points.
What does the calculator consider on the s.r.o. side?
Profit tax (10% up to €100,000 turnover, 21% above), dividend tax 7%, minimum tax daňová licencia (tax license), as well as expenses that are often forgotten: health insurance for the self-paying director (~€122/month, if not insured otherwise), accounting, and transakčná daň (transaction tax). It is precisely without these items that other calculators mistakenly show that a company is always more profitable.
A živnosť is calculated based on the more favorable of the 60% flat rate and actual expenses. Not included: the konateľ's (director's) salary and one-time opening costs.
What is transakčná daň and why is it only for s.r.o.?
This is a tax on financial transactions, in effect from 2026: ~0.4% on debit transfers from the account (with a transaction limit), plus fees for cash withdrawals and cards. Sole traders (živnostníci) and other self-employed individuals are fully exempt, while s.r.o.s and other legal entities pay it.
This makes a direct "take-home" comparison fairer: without considering this tax, an s.r.o. appears more profitable than it actually is. Details – podnikajte.sk – transakčná daň.
Why does a živnosť have the item "pension and sick pay"?
A sole trader's (živnostník) social contributions build up insurance history – the right to a pension, sick pay (nemocenské), and maternity pay (materské) after 270 days of insurance. The owner of an s.r.o. who does not pay themselves a salary has no such rights: dividends do not provide insurance history.
This means "cheaper" does not necessarily mean "better": it is a trade-off between lower contributions now and less social protection later (according to socpoist.sk).
What does the calculator NOT consider?
The konateľ's (director's) salary and contributions from it, one-time costs for opening an s.r.o. (from 8/17/2026, a notary is added), as well as your individual tax reliefs. Transakčná daň is shown as an estimated assessment. This is a tool for quick decisions, not a substitute for consultation.
For an accurate calculation specifically for a živnosť, use the sole trader calculator.
Sole trader (živnosť) or s.r.o. in Slovakia 2026: which is more profitable
The choice of business form affects taxes, liability, and daily administration. There is no universal answer – it all depends on your income, expenses, and plans. Below is the main information to consider, and the calculator at the top will calculate the exact figures for you.
When is each form more profitable
With typical expenses, the break-even point is approximately €33,000–€37,000 annual income: below this, a živnosť is usually more profitable, above it – an s.r.o. But the point strongly depends on expenses: a živnosť is calculated based on the more favorable of the 60% flat rate (up to €20,000) and actual expenses, so for a freelancer without large expenses, a živnosť is profitable for longer.
Hidden s.r.o. expenses that are often forgotten
- **Transakčná daň** – from 2026, the company pays ~0.4% on account transfers; a živnosť is exempt from it.
- **Health insurance for the konateľ** – a director without a salary still pays ~€122/month as a self-payer.
- **Accounting** – for an s.r.o., double-entry bookkeeping is mandatory (market ~€600–€1,800/year); a živnosť uses simple record-keeping.
- **Daňová licencia** – a minimum tax from €340/year even with a loss.
What a živnosť offers besides simplicity
A sole trader's (živnostník) social contributions build up insurance history – pension, sick pay, and maternity pay. The owner of an s.r.o. without a salary has no such rights. So, "cheaper" does not necessarily mean "better": it is a trade-off between lower expenses now and less social protection later. Source: socpoist.sk.
Useful links
- Sole trader calculator – net income of a sole trader separately.
- Glossary of terms – konateľ, dividends, daňová licencia in simple words.
- "Business" section – guides for opening a živnosť and an s.r.o.