Employ Candidates Compliantly in Slovakia

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  1. Overview: Slovakia
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Slovak Republic

Getting your business up-and-running in Slovakia can be challenging, especially if you do not speak the native language. Establishing your own business entity in Slovakia is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Slovakia, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Slovakia, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Slovakia

Navigating the Slovak legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Slovak speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Slovakia without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Slovakia. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Slovakia

Employment related taxes

Resident/Non resident. 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, license fees, and income from the sale or rental of property located in the Slovak Republic.

Payroll Cycle in Slovak Republic

A wage shall be due in arrears for a monthly period, this by the end of the consequent calendar month at the latest unless agreed otherwise in the collective agreement or in the employment contract.

Non-payroll taxes in Slovak Republic

Value-added tax (VAT). A basic VAT rate applies to all taxable supplies, with certain exceptions. Certain medical products, printed materials and media, various foodstuffs and ’basic goods’ (e.g., milk, butter, meat) classified under selected codes of the Common Customs Tariff and some accommodation services have a lover VAT rate.

The threshold for obligatory VAT registration for taxable persons with their seat or permanent address, place of business, or VAT establishment in Slovakia is a turnover of 49,790 euros (EUR) for the previous consecutive 12 calendar months. Voluntary registration is also possible.

More taxable persons established in Slovakia (i.e., with a seat, place of business, or VAT establishment in Slovakia) can create a VAT group if certain conditions are met.

A VAT registration obligation in Slovakia arises for foreign persons (taxable persons without a seat or VAT establishment in Slovakia) before commencing activities subject to Slovak VAT where they could be liable to pay Slovak VAT, except an import of goods. There is a list of supplies that foreign taxable persons can perform in Slovakia without a need to register for Slovak VAT, including mainly:

  • Supplies subject to VAT reverse-charge
  • Supplies subject to triangulation simplification performed by the first customer in a chain
  • Intra-Community supplies of imported goods if represented by a tax representative
  • VAT-exempt transport and supplementary services related to export and import
  • VAT exempt supplies without credit entitlement.

This list, among others, includes local supplies of goods and specific services to taxable persons established in Slovakia as such supplies are subject to local VAT reverse-charge mechanism (i.e., person liable to pay VAT on such supplies is the customer).

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Slovakia

Compensating your local and expat workforce in Slovakia and closely adhering to Slovak taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Slovak labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Slovakia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Slovak laws. To get the latest updates on taxation in Slovakia and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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