Sole trading of Foreign Nationals in Slovakia. Part 3.

7. Accounting and Reporting

  • Sole traders are required to maintain proper accounting records and file an annual tax return. The Tax Office requires the submission of the annual tax return (Daňové priznanie) along with the payment of taxes.
  • Although the sole trader can manage their accounting, many opt to use a certified accountant to ensure they comply with Slovak tax laws and regulations.

8. Hiring Employees

  • If you intend to hire employees, you must comply with Slovak labor laws. This includes drafting contracts, paying salaries according to the minimum wage, and ensuring the payment of social security contributions.
  • The minimum wage in Slovakia for 2025 is €700 per month (gross).

9. Other Considerations

  • Language: Official documents in Slovakia are often in Slovak, so it may be necessary to seek professional assistance from a translator or a local consultant if you are not fluent in Slovak.
  • Business Insurance: Consider obtaining business insurance (e.g., liability insurance, property insurance) to mitigate risks and protect your business operations.
  • Business Premises: If you need an office or commercial space, ensure you have a valid lease agreement, as this is often required for trade license applications.

Conclusion

Foreign nationals can establish a sole proprietorship in Slovakia relatively easily, particularly if they are from the EU/EEA. Non-EU nationals, however, will need to go through additional immigration processes to obtain the necessary residence permits. Once the proper registration is completed, business operations follow the same tax, liability, and reporting obligations as they would for a Slovak national. Legal and accounting assistance is often recommended to ensure full compliance with Slovak laws.