Understanding Tax Residency Determination and Double Taxation Issues in Slovakia

LovinSK

10 Oct 2025 — 6 min read

A Foreigner’s Experience Living in Slovakia

When I first moved to Slovakia, I expected to spend my time adjusting to a new culture, language, and lifestyle. What I didn’t anticipate was how complex tax residency determination and double taxation issues could become once I started earning income abroad while living here.

If you’re a foreigner living in Slovakia—whether as a self-employed professional, employee, or digital nomad—you’ll likely face similar questions:

Where do I pay taxes?
Am I considered a Slovak tax resident?
How can I avoid being taxed twice on the same income?

In this post, I’ll share my personal journey through Slovakia’s tax residency maze, explain key rules in plain English, and offer practical steps to make your own experience smoother.

🏡 Moving to Slovakia: When Tax Questions Begin

When I arrived in Bratislava with my family, my focus was on settling in—finding an apartment, enrolling our child in school, and navigating local bureaucracy.

After a few months, I registered as a self-employed person (živnostník) and obtained my temporary residence card. That’s when I realized:

Residence permits and tax residency are not the same thing.

You can live legally in Slovakia without being considered a Slovak tax resident. Conversely, you can become a tax resident even if you spend less time here than you might think. Understanding the distinction is essential.

📌 What Tax Residency in Slovakia Means

The Basics of Tax Residency Determination

Slovakia determines your tax residency based on two main criteria:

Permanent residence or habitual abode If you have a permanent home in Slovakia, or if you stay here for more than 183 days in a calendar year, you’re typically considered a Slovak tax resident.
Center of vital interests If your personal and economic life (family, work, property, business) is more closely connected to Slovakia than any other country, that can also make you a tax resident.

When I hit the 183-day threshold and began operating my business locally, I had to register for taxes in Slovakia—even though I still had income from abroad.

⚠️ How Double Taxation Happens

Here’s where things get tricky. If you’re a foreigner earning income from multiple countries, each country may claim the right to tax your income.

For instance, if you’re a Slovak tax resident but still receive income from your home country, both countries may see you as taxable there. That’s what’s called double taxation—and it’s as frustrating as it sounds.

🌍 Double Taxation Treaties to the Rescue

Fortunately, Slovakia has double taxation agreements (DTAs) with many countries, including EU members, the United States, Canada, and China.

These treaties outline which country has the primary right to tax specific income types (like employment, business profits, or property income) and how the other country should provide relief—either by:

Exemption method – Slovakia exempts foreign income that’s already taxed abroad
Credit method – You can credit the tax paid abroad against Slovak tax liability

For me, this meant providing official proof of taxes paid in my home country to avoid paying twice. It required paperwork—but it worked.

🧾 My Real Experience: Registering and Declaring Income in Slovakia

Once I became a resident entrepreneur, I had to navigate several steps:

Tax registration – Within 30 days of starting my self-employed activity, I registered with the local tax office (Daňový úrad)
Health and social insurance – These are separate from income tax and depend on your earnings
Annual tax return – Every year, I must declare both Slovak and foreign income, even if some is exempt under a DTA

It was intimidating at first, especially with all documents in Slovak. But hiring a bilingual accountant made all the difference. I highly recommend finding one early—ideally someone familiar with international tax cases.

🚧 Common Pitfalls for Foreigners

Here are a few things I learned the hard way that could save you stress later:

Thinking Residency Equals Tax Residency Even if you have a residence permit, you’re not automatically a tax resident. The 183-day rule or “center of vital interests” test decides that.
Ignoring Worldwide Income Once you’re a Slovak tax resident, you must declare all global income. Many expats overlook this, especially those working remotely for foreign employers.
Missing the Treaty Paperwork Even with a double taxation treaty, you need documentation—such as a certificate of tax residence from your home country—to claim exemption or credit.
Forgetting Social Insurance Obligations Income taxes and social insurance are handled separately in Slovakia. Freelancers (živnostníci) must file with the Socialná poisťovňa once they cross a certain income threshold.

🧑‍💻 Tax Residency and Double Taxation in Practice

To illustrate, here’s how a few real-life situations typically play out:

Case 1: Remote Worker Employed by a Foreign Company

You live in Slovakia but work online for a U.S. company. If you stay over 183 days, Slovakia treats you as a resident. Your salary is taxable in Slovakia, but under the U.S.–Slovakia treaty, you might get credit for U.S. taxes paid.

Case 2: Dual Residence Situation

If both your home country and Slovakia claim you as a tax resident, the treaty’s tie-breaker rules decide:

Where your permanent home is
Where your personal and economic ties are strongest
Where you habitually stay
Your nationality (if needed)

In my case, the fact that my family, home, and business were now all in Bratislava made Slovakia my “center of vital interests.”

Case 3: Self-Employed Income from Abroad

Freelancers earning from foreign clients often face the question: “Where do I pay tax?” In most treaties, business income is taxed only in the country where you have a permanent establishment (like an office or regular base). If your freelance work is performed in Slovakia, you usually owe tax here—even if your client is abroad.

✅ Practical Tips for Managing Your Taxes in Slovakia

Based on my own learning curve, here are some concrete steps to stay compliant and sane:

Track Your Days Keep a record of how many days you spend in Slovakia and in other countries each year. It’s crucial for determining tax residency accurately.
Obtain a Tax Residency Certificate Once established here, request a certificate of Slovak tax residence (potvrdenie o daňovej rezidencii) from the tax office. You’ll need it when dealing with foreign tax authorities.
Keep All Income Records Maintain clear invoices, contracts, and bank statements—especially if you earn from multiple countries.
Work With a Bilingual Accountant Language barriers can make or break your compliance. Find someone who understands both Slovak and international tax law.
File on Time The Slovak tax year is the same as the calendar year. The personal income tax return is typically due by March 31, though extensions are possible if you earn income from abroad.
Clarify Social Insurance Obligations If you’re self-employed, watch your earnings. Once your income exceeds a certain level, you must start paying into the Slovak social insurance system.

💬 The Human Side of Tax Residency

Dealing with taxes abroad isn’t just about paperwork—it’s about belonging. For me, becoming a Slovak tax resident marked more than a bureaucratic milestone; it symbolized my family’s commitment to building a life here.

Yes, the system can feel daunting, but Slovakia is becoming more accommodating to international residents, and English-language support is gradually improving.

Whenever I help other newcomers navigate tax matters, I emphasize that understanding your residency status early prevents many future headaches.

📌 Key Takeaways

Know the difference between residence permit and tax residency
Track your days and ties—the “center of vital interests” test is decisive
Use double taxation treaties to prevent paying twice on the same income
Seek professional help early, especially if you have cross-border income
Stay organized—good records and timely filings keep things simple

🏡 Final Thoughts

Living in Slovakia has been a rewarding experience—picturesque landscapes, a relaxed pace of life, and an affordable European base. But with that comes the responsibility of managing taxes wisely.

Understanding tax residency determination and double taxation issues isn’t just a bureaucratic formality; it’s an essential part of building a secure, lawful, and stress-free life abroad.

If you’re planning to stay in Slovakia long-term, take the time to understand your obligations, make use of treaties, and get expert advice. Once your tax situation is stable, you can focus on what really matters—enjoying your new home in the heart of Europe.