Slovakia

{"ftc_utility":"high","fbar_trigger_notes":"US expats residing in Slovakia are required to maintain local bank accounts for payroll and daily transactions. Slovak bank accounts (e.g. at Tatra banka, Slovenska sporitelna, VUB) commonly exceed the $10,000 threshold triggering FBAR (FinCEN 114) filing. FATCA compliance is active between the US and Slovakia under an IGA signed in 2014, meaning Slovak financial institutions report US account holders to the Slovak tax authority, which shares data with the IRS.","ftc_utility_reason":"Slovakia taxes resident worldwide income at 19%/25%, which typically exceeds or approximates US effective rates for mid-to-high earners. Foreign Tax Credits are highly useful for offsetting US tax liability on income already taxed by Slovakia, particularly for expats who earn above the FEIE limit (~$126,500 for 2024) or who have investment/passive income not covered by FEIE.","presence_day_count_notes":"Slovakia is in the Schengen Area. US expats living legally in Slovakia can count days outside Slovakia within Schengen without border stamp complications. Standard Slovak residence permits are available for US citizens for longer stays. The 330-day physical presence test counts days outside the US globally, so Schengen travel does not disrupt the count as long as the expat remains outside the US.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":16800,"local_tax_rate_on_earned_income":0.19,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Slovak tax residents is generally taxable in Slovakia at the progressive rates of 19%/25% unless a tax treaty allocates exclusive taxing rights to the source country. Slovak domestic pension income from the Slovak pillar system has specific rules. Foreign pension recipients should verify treaty treatment.","tax_rate":0.19,"locally_taxed":true},"social_security":{"notes":"Under the US-Slovakia tax treaty, US Social Security benefits are generally taxable only in the US for Slovak residents. Slovak domestic law does not separately exempt US Social Security, but treaty Article 17 or 18 provisions typically prevent Slovak taxation. Totalization agreement between the US and Slovakia (in force since 2014) governs which country's social security system applies to workers.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Slovakia does not recognize the Roth IRA as a tax-free vehicle. Distributions may be taxable in Slovakia as pension or investment income. The treaty does not specifically address Roth accounts. Slovak tax authorities may treat distributions as taxable income subject to 19%/25% rates. US expats should seek specific guidance on treaty application.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Slovakia tax treaty (in force since 1993) covers pension and retirement income. Article 17 of the treaty generally gives the residence country (Slovakia) taxing rights over pension distributions. US 401(k) and IRA distributions received by a Slovak tax resident are typically taxable in Slovakia at the standard progressive rates (19%/25%). Treaty provisions may limit or allocate taxing rights; US expats should review Article 17 carefully and consider the foreign tax credit to avoid double taxation.","tax_rate":0.19,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.19,"notes":"Capital gains in Slovakia are generally taxed as ordinary income at the applicable progressive rate (19% or 25%). Gains from the sale of securities held over one year by individuals may qualify for exemption under certain conditions.","details":{"tax_type":"Capital Gains Tax","country_name":"Slovakia","country_iso_code":"SVK","source_references":["Slovak Income Tax Act (Act No. 595/2003 Coll.)","Slovak Ministry of Finance","PwC Slovakia tax guidance"],"last_verified_date":"2026-06-03","general_description":"Slovakia does not have a separate capital gains tax. Gains are included in the taxable base and taxed at the standard progressive personal income tax rates of 19% and 25%. Gains from securities held longer than one year by individuals may be exempt if certain conditions are met. Corporate capital gains are taxed at the standard corporate rate.","corporate_capital_gains":{"rate":0.21,"tax_treatment":"Taxed as ordinary corporate income at the standard corporate income tax rate of 21% (rate applicable from 2024 for larger companies; 15% for micro-taxpayers with revenue up to EUR 60,000)."},"individual_capital_gains":{"rate":0.19,"tax_treatment":"Gains included in general tax base and taxed at 19% on income up to 176.8 times the subsistence minimum (~EUR 47,538 for 2024) and 25% on the excess. Gains from sale of securities held over one year may be exempt. Gains from sale of primary residence held more than five years are exempt."}}}

{"notes":"Dividends paid from profits earned in 2017 and later are subject to a 7% withholding tax for Slovak resident individuals. Dividends from profits earned before 2017 are exempt. Non-resident individuals are generally subject to 7% withholding (subject to applicable tax treaties). Dividends are not subject to health insurance contributions for distributions from post-2016 profits under current rules.","rates":[{"rate":0.07,"type":"withholding","notes":"Standard rate for Slovak resident and non-resident individual shareholders on dividends from profits earned 2017 onwards."},{"rate":0,"type":"exempt","notes":"Dividends from profits earned prior to 2017 are exempt from personal income tax."},{"rate":0,"type":"exempt","notes":"Dividends received by Slovak corporate entities from Slovak companies are generally exempt under participation exemption rules."}]}