A tax resident of the Slovak Republic is subject to tax on worldwide income, irrespective of whether the income is remitted to the Slovak Republic.
A Slovak tax non-resident is liable to tax on Slovak-source income only. Slovak-source income includes income from work performed in the Slovak Republic, including director's fees, income from an independent business done through a permanent establishment (PE), and income from services carried out in the Slovak Republic. Slovak-source income also includes interest income, licence fees, and income from the sale or rental of property located in the Slovak Republic.
Personal income tax rates
The tax rates applicable in Slovakia are as follows:
- The tax base of up to 176.8 times the subsistence level (i.e. 41,445.46 euros [EUR] for 2023) is subject to a 19% tax rate. The exceeding part of the tax base is taxed at 25%.
- Dividend income arising from profits before 2004 and after 1 January 2017 is included in a specific tax base taxable at a 7% rate (if paid from abroad) and 7% withholding tax (WHT) if paid by a Slovak company.
- Income of constitutional authorities from dependent activity is, in addition to the tax calculated as listed above, subject to a special tax rate of 5%.
- Income from capital gains is included in a specific tax base taxable at a 19% rate.
Local taxes on income
There are no local taxes on personal income in Slovakia.