Tax and social insurance
Your liability for tax in Slovakia can be affected by whether you are resident in the country and whether Slovakia is your permanent home. There is a specific definition of residence for tax purposes depending on how many days you spend in the country. If you are not resident in a particular year, you can still be ordinarily resident in Slovakia since this term refers to the country where you are usually resident over a number of years. The country that is your permanent home is known as your domicile. Generally you will be charged Slovak tax on your world-wide income earned or arising in a tax year during which you are resident, ordinarily resident and domiciled in Slovakia for tax purposes. For any tax year during which you are non-resident and not ordinarily resident in Slovakia you will be charged tax on your income from Slovak sources only. The extent of your liability to Slovak tax may also be influenced by your domicile status and possibly by a double taxation agreement. In addition to income tax and the social insurance, pay-related social insurance is also deducted through the tax system by employers. Self-employed people pay them directly. It does not matter if you come and go several times during that tax year or if you are here continuously. A count is made of the total number of days you spend in Slovakia for any purpose in each tax year. An individual is present for a day for residence purposes if he or she is present in the state at any time during the day.
The ownership of property in Slovakia will not make you resident for Slovak tax purposes. However, this factor could be relevant in determining a single country of residence under a double taxation agreement where the other treaty country is also claiming that you are resident there. Even if you have not spent the required total number of days in Slovakia, you can, if you wish, elect to be resident for that tax year. A condition of making an election is that you must establish to the satisfaction of your local tax office that you will be resident here in the following tax year for the required number of days, under either of the tests. Once you have made such an election you cannot cancel it subsequently. As a resident you will be liable to tax on your world-wide income earned or arising during the entire tax year of your arrival in Slovakia. Employment income however will be taxable only from the date of your arrival.
An election may be made in writing to your local tax office. Your domicile is the country where you live with the intention of remaining there permanently. It may be different to your residence or nationality. When you are born, you have a domicile of origin. This domicile can be changed to a domicile of choice, if you move to a different country with the intention of living there permanently. Slovakia has a number of double taxation agreements with other countries in order to avoid double taxation. There is a list of the double taxation agreements that are in effect. If your income is taxable in Slovakia and in a country with which Slovakia has a double taxation agreement, you do not pay tax in both countries on the same income by either exempting the income from tax in one of the countries, or allowing credit in one country for the tax paid in the other country on the same income. The precise treatment of your income will depend on the details of the particular agreement, the nature and source of your income and, in some cases, on your nationality or citizenship.
If the income arises in a country with which Slovakia does not have an agreement, the amount of tax paid in Slovakia will be based on the net amount received by you after the deduction of the foreign tax paid. There is no credit available for foreign tax paid against your Slovak tax liability on the same income. If you are moving to Slovakia for the first time or you are a Slovak citizen returning to live in Slovakia and you were not resident or ordinarily resident when the income was earned, the position will be as follows. Funds accumulated from income earned prior to the beginning of the tax year in the year that you become resident in Slovakia will not be liable to income tax. However, income other than employment income arising between the beginning of the tax year and the date of your arrival will be taxable if brought into Slovakia, unless a double taxation agreement provides for a different treatment. Unless your income is not liable to Slovak tax under the provisions of a double taxation agreement, it will be taxable here from the date of your arrival regardless of your Slovak residence status for tax purposes.
If you are a Slovak citizen who is not ordinarily resident or you are not Slovak domiciled, your foreign employment income will only be taxable to the extent that it is remitted into Slovakia. If you are resident for Slovak tax purposes in the year that the income is earned, you will be entitled to full personal tax credits and reliefs. Your employer will also deduct social insurance contributions from your pay. They will help you to qualify for contributory social welfare payments such as jobseeker's benefit, illness benefit and state pension. The amount of your contribution will depend on your earnings.
Learn more about social insurance in Slovakia concerning your employment and benefits
Information on taxation of income of a Slovak non-resident from sources in Slovakia