# Sole trader or limited company in Slovakia in 2026

> Higher contributions and new tax bands have shifted the point where a company pays off.

Zdroj: https://mojatv.eu/en/blog/sole-trader-or-company-slovakia-2026

Publikované: 23.07.2026

## V skratke

- A sole trader pays 15 % on taxable income up to €100,000, and 19 to 35 % above that.
- A shareholder pays no contributions on profit distributions, worth thousands of euros a year at higher profits.
- A sole trader is liable with all their assets; a shareholder only up to any unpaid capital.
- There is no universal threshold — it depends on profit, risk and headcount combined.

This is the question we are asked most often. The answer shifted in 2026 —
    higher contributions and new tax bands change the point at which a company
    starts to pay off.


Taxation


    A sole trader pays 15 % on taxable income up to €100,000.
    Above that threshold the 19 / 25 / 30 / 35 % scale applies.



    A limited company pays corporate income tax, and profit
    distributed to a shareholder is additionally subject to withholding tax on
    dividends. The overall burden must be calculated across both levels.


Social and health contributions


    In 2026 this matters more than the tax itself. A sole trader pays
    contributions from an assessment base derived from income, and the minimum
    base has risen.



    A shareholder who takes no salary and draws profit as a distribution pays no
    contributions on it. At higher profits that is a difference of thousands of
    euros a year — but it has a downside: a lower pension and no sickness benefits.


Liability


    A sole trader is liable with all their assets, including personal ones.
    A shareholder is liable only up to any unpaid capital contribution. In
    manufacturing, transport or construction this is often a stronger argument
    than the tax saving.


Costs and administration


    Sole traderLimited company
    
        Formationlow costhigher, with registration
        Bookkeepingsingle-entrydouble-entry, mandatory
        Annual accountssimplerwith notes, filed publicly
        Closing downnotificationliquidation, takes months
    


When to make the move

There is no universal threshold. It is worth considering when:


    profit consistently exceeds several tens of thousands of euros a year
    the work carries a risk of loss you could not personally absorb
    you are taking on employees
    business partners require a legal entity
    you plan to sell the business or bring in a partner


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