Income and Tax Calculator for Sole Proprietors

To extend a residence permit based on business activity in Slovakia, your net profit after taxation must exceed 20 times the subsistence minimum, which amounts to 5,479.80 €. The subsistence minimum is reviewed and updated annually on July 1 and is available on the official website of the Slovak Ministry of Labor. For the period from July 1, 2024, to July 1, 2025, the subsistence minimum is set at 273.99 € and will be increased from July 1, 2025.
If your net profit is lower than 5,479.80 €, it is recommended to avoid using fixed (lump-sum) expenses and not to declare the full amount of your expenses. For example, you may choose not to include health or social insurance contributions in your tax declaration.

A sole proprietor is required to submit a tax return for the 2024 tax period if their income in 2024 exceeded 2,461.41 €. The deadline for filing the 2024 tax return is March 31, 2025.

A sole proprietor pays tax on the difference between income and expenses. In addition, entrepreneurs have the right to use a tax-free income allowance of (5,646.48 €). Sole proprietors in Slovakia can choose between actual expense accounting or fixed (so-called lump-sum) expenses. Lump-sum expenses represent a percentage of income and do not require tracking actual costs. The entrepreneur can apply them when filing the tax return, deducting 60% of income. The maximum amount of fixed expenses cannot exceed 20,000 €.

• 15% if annual income does not exceed 49,790 €.

The obligation to pay social security contributions arises for entrepreneurs starting from the second year of activity, specifically from July 1, if in the previous year their income exceeded 8,580 €. In 2024, the minimum social security payment is set at 216.13 €/month.

The obligation to pay health insurance contributions applies to entrepreneurs from the first day of business activity. In 2024, the minimum health insurance payment is 97.80 €/month.

For more detailed information on taxes and contributions for sole proprietors, you can find our article here: Taxes and Contributions for Sole Proprietors Related to Business Activities [sk]