Sole trading of Foreign Nationals in Slovakia. Part 1.

Establishing a sole trading business as a foreign national in Slovakia is an attractive option for many entrepreneurs looking to enter the Slovak market. In this more detailed explanation, we will go deeper into the steps, legal requirements, taxation, and other considerations for foreigners who wish to set up a sole proprietorship (self-employment) in Slovakia.

1. Legal Framework for Sole Proprietorship in Slovakia

A sole proprietorship, referred to as “živnostník” in Slovak, is the simplest form of business entity in Slovakia. A sole trader can operate on their own without forming a legal company, though they are personally responsible for all liabilities and debts related to the business.

The rules governing business activity for sole traders are outlined in the Commercial Code (Obchodný zákonník), and more specifically in the Trade Licensing Act (Zákon o živnostenskom podnikaní), which regulates the licensing and operation of businesses in Slovakia.

2. Eligibility for Foreign Nationals

  • EU/EEA Nationals: Citizens of the European Union (EU), European Economic Area (EEA), and Switzerland are allowed to establish a sole proprietorship in Slovakia with minimal administrative hurdles. They are treated the same as Slovak citizens when it comes to registering a business.
  • Non-EU Nationals: Foreigners from countries outside the EU/EEA need to meet additional requirements to establish a sole proprietorship. They are typically required to have valid legal residency in Slovakia, which could be in the form of a long-term visa, residence permit, or work permit.

3. Visa and Residency Requirements

  • EU/EEA Citizens: If you are an EU or EEA citizen, you do not need a visa to establish a business in Slovakia. You only need to register your residence if staying longer than 90 days.
  • Non-EU Citizens: Non-EU nationals need a valid long-term visa or residence permit for business activities. They may also need to prove their ability to support themselves or their business during their stay in Slovakia.To set up a business, the following visa types might be relevant:
    • Temporary residence for business purposes: If you are planning to stay in Slovakia to run your business, you must apply for a temporary residence permit.
    • Entrepreneur visa: For those intending to establish a business or invest in Slovakia, an entrepreneur visa may be required.
    • Residence permit based on work: If you already have a job offer in Slovakia or intend to hire employees, you can also apply for a residence permit under employment.