Located in central Europe, Slovakia shouldn’t be overlooked just because of its small size. From its charming Bratislava’s Old Town to the peaks of the High Tatras, it boasts beautiful landscapes and culture.
But it’s not just a stunning place to visit. Beyond the castles steeped in history lies an exciting opportunity for entrepreneurs to build and grow business.
The country has made major strides in becoming more startup-friendly, especially for small-to-medium size enterprises (SMEs). So what makes this European gem a strong contender for expanding business into Europe? Let’s get into it.
Why Is Slovakia A Good Place To Start A Business?
When you think of potential locations in Europe to start a business in, Slovakia may not necessarily be one of the first to come to mind. However, there are some pretty compelling reasons that could convince you otherwise.
EU membership: Slovakia is part of the European Union and Schengen Zone. That gives you access to the entire European market with no trade limitations and the same regulations.
Good location: The country is strategically located between Western and Eastern Europe with entry to neighbouring countries like Austria, Hungary, Poland and Czech Republic.
Robust infrastructure: Slovakia has invested heavily in building roads and railways in addition to areas focused on technology and logistics.
Startup support: There are a lot of incubators and funding programmes in place to attract foreign entrepreneurs and investors.
Industries That Have High-Growth Potential
Slovakia may be small but it certainly is big on potential. So which industries have seen surges in growth and are worth considering innovating in?
Automotive: Slovakia actually produces the most cars per capita in the world. It’s no surprise then that brands such as Volkswagen, Jaguar, Kia and Land Rover all have factories there.
Tourism: The country boasts plenty of tourist attractions including Slovak Paradise National Park and Banská Štiavnica. As a result, the tourist sector is booming.
Information Technology: Cities like Bratislava and Košice are seeing more tech startups specifically in SaaS, FinTech and AI.
Logistics: Thanks to its location and sturdy infrastructure, Slovakia is a good place to set up logistics especially for e-commerce businesses.
Understanding Slovakia’s Tax Regulations
As of 2025, Slovakia’s corporate tax rate is 21% which is mostly in line with its neighbouring countries. The standard rate of Value Added Tax (VAT) is 20% although some products and services are reduced to 10%.
For businesses who need to hire employees, you can expect to pay approximately 35% of your employees’ gross pay towards social security and health insurance.
It’s important to note that Slovakia has strict regulations regarding legal compliance so it is beneficial to work with a local accountant to keep on top of tax filings.
Visa And Residency Requirements For Foreign Entrepreneurs
If you are an EU/EEA or Switzerland resident, you are able to live and work freely in Slovakia without needing a visa. However, if you reside outside of these areas, you are going to need a temporary residence permit to run a business.
In order to apply, you will need to submit a business plan, proof of health insurance in Slovakia and financial proof. For business funds, you will need around €20,000 and €2,600 for personal funds.
You will also need to apply for business registration before you can apply for the permit. If its approved, it will be valid for up to three years with the option to renew and could lead to permanent residency.
How To Start A Business In Slovakia
The process of starting a business in Slovakia is a fairly straightforward one. Here is a step-by-step guide on how you can get up and running as quickly as possible.
Choose A Business Structure
Most foreign entrepreneurs will choose a spoločnosť s ručením obmedzeným which is similiar to a limited liability company (LLC). It is also possible to register as a sole trader if you are a freelancer or have a very small business.
Gather Founding Documents
For this step, you will need proof of capital which will be a minimum of €5,000 if you are registering as an LLC. You will also need to give consent to have your business address registered and if your business has more than one founder, you need to provide a Memorandum of Association.
Register The Business
All documentation can be submitted to the Slovak Commercial Register and you can apply for your tax ID and VAT number at the Tax Office. Registration usually takes between 5 to 10 working days.
Open A Business Bank Account
A corporate bank account will be required to deposit the minimum capital into and to manage your company’s finances. If you are a foreigner, some banks may want you to appear physically in person for security reasons.
Should You Start A Business In Slovakia?
Slovakia is definitely worth considering if you are looking for a stable economy with good infrastructure that is affordable. The country is welcoming of new startups and innovation, which is appealing for first-time founders and seasoned entrepreneurs alike.
If you are up for the challenge and ready to embrace Slovak culture, this European gem may just be the strategic move that your business needs.
Veľa šťastia!
