Slovakia offers a welcoming environment for expatriates and digital nomads, with a range of tax incentives designed to attract skilled professionals and remote workers. These tax breaks aim to foster economic growth and contribute to the country's development as a hub for international talent and innovation.
Eligibility Criteria
To qualify for tax breaks as an expatriate or digital nomad in Slovakia, individuals must meet specific residency and income requirements.
Expatriates
- Must be a non-resident of Slovakia for tax purposes.
- Must have a permanent residence outside of Slovakia.
- Must have a work permit or other legal basis for staying in Slovakia.
Digital Nomads
- Must be self-employed or working remotely for a non-Slovak company.
- Must have a stable income from sources outside of Slovakia.
- Must have a valid visa or residence permit for Slovakia.
Types of Tax Breaks
Expatriates and digital nomads in Slovakia may benefit from the following tax breaks:
- Flat Tax Scheme: Expatriates who meet the eligibility criteria can opt for a flat tax rate of 19% on their worldwide income. This scheme simplifies tax calculations and reduces the overall tax burden.
- Tax Exemption on Foreign Income: Digital nomads who earn income from sources outside of Slovakia may be exempt from paying income tax on that income. This exemption applies to both employment and business income.
- Reduced Tax Rates on Employment Income: Highly skilled expatriates working in certain industries, such as IT, finance, and research, may qualify for reduced tax rates on their employment income.
Application Process
To claim these tax breaks, expatriates and digital nomads must apply to the Slovak Tax Authority. The application process involves submitting documentation to prove eligibility, such as proof of residency, employment contracts, and financial statements. Deadlines for application submission and processing times may vary depending on the specific tax scheme.
Legal Framework
The tax breaks for expatriates and digital nomads in Slovakia are established through various legal instruments and government policies, including:
- Income Tax Act: Specifies the tax treatment of residents and non-residents, including rules for the flat tax scheme and tax exemption on foreign income.
- Tax Code: Provides detailed regulations on the application and administration of tax laws, including the reduced tax rates for highly skilled expatriates.
- Government Resolution on the Flat Tax Scheme: Outlines the eligibility criteria and application process for the flat tax scheme.
These tax policies aim to attract skilled professionals, entrepreneurs, and remote workers to Slovakia, fostering economic growth, and contributing to the country's development as a hub for international talent and innovation. By offering tax incentives, Slovakia seeks to create a favorable environment for expatriates and digital nomads, encouraging them to relocate to the country and contribute to its economic and social development.
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