Expatriate tax ebook - Slovak Republic

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
Expatriate's exposure to capital gains tax (CGT) will be determined by their Slovak tax residence and domicile status. In general, tax will be assessed on net gains realised in Slovakia (e.g. from disposal of real property or a car), after deducting the cost of acquisition of the asset from sale proceeds. All chargeable capital gains are liable to Slovak CGT at 19%.

Inheritance, estate & gift taxes
There are no inheritance, gift, or real estate transfer taxes in Slovakia.

Investment income
The expatriate's Slovak tax residency and domicile status will determine whether investment income such as interest will become liable to Slovak income tax. Dividends (paid or received) are not subject to tax in Slovakia

Local taxes
There are no other local taxes on income or property with the exception of real estate tax (see below).

Real estate tax
There are local taxes charged to individuals who own real estate located in Slovakia. The tax is assessed on the area of real estate and the rates differ significantly depending on the type of real estate and its physical location within municipalities.

Social security taxes
Expatriates of EU member states should have the E101 (from 1.May 2010 it is the form A1) form to ensure they continue to pay social security contributions in their home countries. In some cases, expatriates of non-EU states who are treated as employees of the Slovak employer must register with the Slovak Social Insurance System and Health Insurance System. The expatriate treated as an employee must contribute 9,4% of gross salary to the Social Insurance System and 4% to the Health Insurance System.

The employer will also be required to contribute approximately 36% of the gross salary to Social and Health Insurance System.

There are however ceilings for calculation of monthly contributions to the Health and Social Security systems, updated semi-annually. Currently, the maximum contribution of both, employee and employer is approximately EUR 310 for healthcare and for some kinds of Social Security Insurance EUR 1,000.

Stock options
Benefit of granted stock option (i.e. the difference between the market value of stock and the exercise price of the option) is considered as taxable at the moment realisation of the option.

Wealth tax
There is no wealth tax in Slovakia.

Other specific taxes
No other specific taxes would apply to expatriates in addition to those described above.

Information about Slovak Republic:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities