Overview of changes from end of 2025 and in 2026

Dear clients,

From autumn 2025 and especially from 1 January 2026, a large number of legislative changes will come into effect that will affect taxes, contributions, labour law, accounting, and administrative obligations of companies in Slovakia. Below is an overview of these changes.

1. Income tax — legal entities and natural persons

1.1 Minimum tax for legal entities ("tax license")

The minimum tax for legal entities was reintroduced for the 2024 tax period and will be extended by a new highest bracket from 2026.

When does the minimum tax apply?

The minimum tax is payable by a legal entity that:

• is a taxpayer with unlimited tax liability (typically Slovak limited liability companies — s. r. o. — and joint stock companies — a. s.),
• after calculating the "normal" income tax, the resulting liability is lower than the minimum tax amount for the given income bracket.

Basic minimum tax table from 2026:

The €11,520 bracket for turnover above €5 million has already been approved as part of the consolidation package — it is no longer just a proposal.

Practical impact: If your "normal" tax is lower than the applicable minimum tax, you will pay the difference up to the minimum tax. The minimum tax does not apply to selected non-profit organizations, companies in liquidation, bankruptcy, etc.

1.2 Personal income tax — progressive rates and non-taxable allowance

New progressive rates from 1 January 2026:

The limits of the brackets are determined as a multiple of the minimum subsistence level. Exact thresholds may vary slightly depending on the final rounding.

For high-income managers this means in practice that a higher portion of income will be taxed at 30 %, and an even higher portion at 35 %.

Non-taxable portion of the tax base per taxpayer (NČZD) in 2026:

• annual NČZD: €5,966.73 (21 × minimum subsistence level €284.13)
• monthly NČZD: €497.23

Taxpayers can claim the full NČZD if their annual tax base does not exceed €26,083.13. Above this, NČZD is reduced according to the formula:

NČZD = €14,661.11 − (tax base / 3)

At an annual tax base of €43,983.32 or more, the entitlement to NČZD disappears entirely.

2. VAT — passenger cars, rates, selected goods

2.1 Flat-rate 50 % VAT deduction for passenger cars

From 1 January 2026, a flat-rate 50 % VAT deduction will be introduced for passenger cars also used for private purposes. This applies to acquisition (purchase, leasing, EU acquisition, import) of category M1 vehicles and certain L1e and L3e motorcycles — and to related goods and services:

• fuel,
• repairs, servicing, spare parts,
• parking, highway toll stickers, etc.

Period of validity: 1 January 2026 to 30 June 2028 (EU-permitted exception).

Practical consequences:

• no obligation to calculate private mileage in detail for VAT purposes for a standard company car,
• you can claim 50 % of VAT as standard, the other half is not deductible,
• the non-deductible half of VAT is also non-deductible as an expense for income tax purposes.

2.2 When 100 % VAT deduction is still possible

Full deduction remains only in limited cases — vehicle used exclusively for business and at the same time used for: short-term rental (max. 30 days), taxi or other passenger transport, driving school, or as a demonstration / test / replacement vehicle. With a 100 % deduction comes the obligation to keep detailed records (GPS, logbooks).

2.3 Changes in VAT rates

• Foods with high salt or sugar content move from the reduced rate to the standard rate of 23 %. The specific list is in the annexes to the VAT Act.
• Newspapers and magazines — conditions for the 5 % VAT rate are relaxed; a wider range of periodicals may now qualify.

3. Other taxes and contributions

3.1 Insurance tax and special PZP levy

Both rates increase from 8 % to 10 % of the tax base.

3.3 Financial transaction tax (FTT)

• Natural persons — entrepreneurs (sole traders and other self-employed) will no longer be FTT taxpayers from 1 January 2026.
• The list of legal entities exempt from FTT is being expanded (certain public research institutions of the Slovak Academy of Sciences, the Audit Oversight Authority, the Institute of National Memory, offices of commissioners for persons with disabilities and for children).

3.6 Labour inspectorate and illegal employment

The lower limit of the fine for illegal employment is increased. If the company pays the fine within the specified period, it may be reduced by 1/3.

Tightening of the definition of dependent work: The phrase "during working hours determined by the employer" is being removed from the legal definition. This makes it easier for labour inspectors to prove that work performed by a self-employed person actually meets the criteria of an employment relationship. Combined with the doubling of minimum fines for illegal employment (from €2,000 to €4,000), the financial and legal risk for companies using external contractors in an employment-like arrangement increases significantly.

Recommendation: A thorough audit of all contracts with suppliers is now essential.

3.7 Travel allowances and meal allowances

The Travel Expenses Act extends the authority of the Ministry of Finance to set special higher meal allowance rates for certain groups of employees and countries. Particularly important for companies with frequent domestic and foreign business trips — we recommend regularly monitoring new MFSR decrees.

4. Employers — sick leave, health insurance, public holidays

4.1 Extension of employer-paid sick leave to 14 days

From 1 January 2026, the period during which the employer pays income compensation during sick leave is extended:

• previously: days 1–10 of sick leave
• new: days 1–14 of sick leave

From day 15, sickness benefits continue to be paid by the Social Insurance Agency.

4.2 Health insurance for employees and self-employed

• Employee-paid rate increases from 4 % to 5 %.
• Self-employed rate increases to 16 % (for persons with disabilities, the increase is 0.5 pp).

Although the employer's rate (11 %) remains formally unchanged, higher employee contributions reduce net wages — and in practice may push for higher gross wages during salary negotiations.

4.3 Changes to public holidays

• From 1 November 2025, the general ban on retail sales during most public holidays is lifted.
• The ban remains only on selected days: 1 January, Good Friday, Easter Sunday, 24 December after 12:00, and 26 December.
• 17 November is no longer considered a public holiday (permanently).
• 8 May and 15 September are temporarily "working" days for 2026.

4.4 Minimum wage from 1 January 2026

• Minimum monthly wage in the first level of job difficulty: €915 (an increase of €99 vs. 2025, +12.1 %).
• Minimum hourly wage for a 40-hour working week: €5.259.
• The amount is determined by an automatic mechanism — 60 % of the average monthly wage in the Slovak economy for 2024 (€1,524).

Impact on bonuses: Bonuses for night, weekend and holiday work are linked to the minimum wage. Expect a broad increase in wage costs — not only for employees at the bottom of the scale.

5. Self-employed persons — major social insurance changes from 1 January 2026

5.1 New definition of self-employed person

From 1 January 2026, a self-employed person for social insurance purposes is a natural person who has reached the age of 18 and is authorized to perform an activity generating income from business, or who declares such activity even without authorization (authors, artists, etc.).

Key change: Contributions are no longer tied to a minimum income threshold (e.g., €9,144 in 2025). Mandatory social insurance applies even at lower incomes.

5.2 Shorter "contribution holiday"

For new self-employed persons, mandatory insurance arises from the first day of the 6th calendar month following the month in which the right to conduct business arose.

Example: A self-employed person starts business in January 2026 → mandatory social insurance starts on 1 July 2026. The "contribution holiday" lasts approximately 5–6 months in reality, not a year and a half as under the old regime.

5.3 Minimum social contributions for self-employed from 1 January 2026

The amendment increases the minimum assessment base from 50 % to 60 % of the average wage from two years ago.

• Minimum assessment base for 2026: €914.40 (60 % of €1,524).
• Social insurance rate: 33.15 %.
• Minimum social contributions from 1 January 2026: €303.11 per month.

Comparison:

Annually this represents an increase of approximately €969 for a self-employed person paying minimum contributions.

6. Social Insurance Agency — employee IBAN

From 1 November 2025, the transitional provision § 293gka applies: the employer is obliged to notify the Social Insurance Agency of each employee's account number (IBAN), or that the wage is paid in cash. Deadline: 31 March 2026.

From 1 April 2026, the Social Insurance Agency will be able to pay sickness benefits directly into employee accounts more efficiently.

7. Obligation to accept cashless payments (cards / QR)

From 1 March 2026, businesses must allow customers to make cashless payments for transactions of €1 or more.

Cashless payment can be:

• a classic card payment via a terminal,
• payment via QR code (the so-called Instant Payment Notifier — NOP).

The business must have a business account designated as a "notification" account so the system can identify payments.

8. Tax amnesty (general tax pardon)

The tax amnesty is regulated by Slovak Government Regulation No. 243/2025 Coll.

Basic principle: If a taxpayer:

• pays the principal of the tax arrears in the period from 1 January 2026 to 30 June 2026,
• or submits missing / additional tax returns for periods with a filing deadline expired by 30 September 2025, and pays the tax accordingly,

— penalties and interest on arrears will be waived, no later than 30 September 2026.

Applies to: income tax, VAT, excise duties, motor vehicle tax, insurance tax, and other taxes administered by the financial administration.

Does not apply to: tax advances, special levies on regulated sectors, local taxes and fees administered by municipalities.

Example: As of 30 September 2025, a company has a VAT underpayment of €10,000 and interest of €1,500. If it pays €10,000 between 1 January and 30 June 2026, the €1,500 interest will be waived.

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We are here for you

Capila is ready to help you implement these changes — expert consulting, tax planning, and accounting system updates.

Book a 30-min call or email us at info@capila.io.

Sincerely, The Capila team