Vienna and Bratislava are only about 60 kilometres apart. For Austrian companies, Slovakia is therefore not a distant foreign location, but a business market right on the other side of the border.
Anyone considering a Slovak subsidiary or an additional operational base should therefore also bear in mind another question:
How much is left for the owner after the company has been taxed and the profits have been fully distributed?
For a direct comparison between Austria and Slovakia, we use a pre-tax profit of €1,000,000 in both models. In addition, the Slovak model shows a separate variant with a pre-tax profit of €95,000. The total profit after tax is distributed to a private shareholder in each case. We also assume that the company and its owner are both tax residents of the same country. For the purposes of this simplified model calculation, it is assumed that the pre-tax profit corresponds to the tax base.
Peter PAUER | CEO
The Austrian model
An Austrian company pays 23 % corporate income tax. If the remaining profit is distributed in full to an individual shareholder, a further 27,5 % withholding tax on investment income generally applies.
Profit before tax
remaining after corporate income tax
remaining with the owner
The Slovak model
In Slovakia, the corporate income tax rate depends, among other factors, on the company’s taxable revenues.
The infographic below presents two separate scenarios: Scenario A, with a 10 % corporate income tax rate for taxable revenues of up to 100.000 €, and Scenario B, with a 21 % rate for taxable revenues above 100.000 € and up to 5 million €.
For profits generated in a financial year beginning on or after 1 January 2025, this simplified Slovak domestic model applies a 7 % tax rate to profit distributions.
For taxable revenues of up to 100.000 €
Profit before tax
remaining after corporate income tax
remaining with the owner
For taxable revenues above 100.000 € and up to 5 million €
Profit before tax
remaining after corporate income tax
remaining with the owner
Difference compared with the Austrian model
Using the same starting point of 1.000.000 €, the Slovak model with a 21 % corporate income tax rate leaves the owner 176.450 € more than the Austrian model.
Option A assumes taxable income of no more than €100,000 and a pre-tax profit of €95,000. Option B assumes taxable income of more than €100,000 but no more than €5 million, and a pre-tax profit of €1,000,000.
What does this comparison mean for Austrian business owners?
This is a comparison of the respective national tax systems.
If a person resident for tax purposes in Austria owns a Slovak company, the dividends distributed are also assessed in accordance with Austrian regulations. Foreign dividends are generally subject to a tax rate of 27.5% in Austria. Tax levied abroad may be credited subject to the conditions set out in the applicable double taxation agreement.
An individual tax assessment is therefore required in order to make a specific business decision. In particular, the following factors are taken into account:
- the ownership and shareholding structure,
- the owner’s tax residence,
- the amount of taxable income,
- the proposed allocation of the profit,
- a structure comprising an Austrian parent company and a Slovak subsidiary.
Slovakia Location Assessment with EMINEO PARTNERS
As part of a location assessment for Slovakia, EMINEO PARTNERS can prepare a bespoke evaluation and subsequently assist with the necessary steps for setting up and running the Slovak company.
These include, amongst others:
- the incorporation of the company,
- Accounting and reporting,
- Contract manufacturing,
- Tax consultancy,
- legal services.
How much would remain in your Austrian-Slovak model?
EMINEO PARTNERS reviews the ownership structure, the indicative tax liability and the required structure of your Slovak company.
EMINEO PARTNERS is a member of ETL GLOBAL
EMINEO PARTNERS is a member of the international network ETL GLOBAL, which has a presence in more than 60 countries.
This provides clients with a local point of contact who has in-depth knowledge of the Slovak business environment, whilst also giving them access to an international network for cross-border matters relating to tax, accounting, law and auditing.
For Austrian companies, this means: local expertise right on the other side of the border and the opportunity to coordinate cross-border issues within a broader international context.
Frequently Asked Questions: Austria versus Slovakia
How much is left for the owner of a €1 million profit in Austria?
In the simplified Austrian model, the company first pays 23% corporate income tax. If the remaining profit is distributed in full to a private shareholder, an additional 27.5% capital gains tax is generally due.
The owner is thus left with €558,250.
How much does the owner retain under the Slovak model?
The chart shows two separate model scenarios. In Scenario A, after paying 10% corporate income tax and 7% tax on the full profit distribution, the owner is left with €79,515 from a pre-tax profit of €95,000. In Scenario B, after 21% corporate income tax and a 7% tax on the full profit distribution, the owner is left with €734,700 from a pre-tax profit of €1,000,000. For a direct comparison with Austria, only Scenario B is used, as both calculations are based on a pre-tax profit of €1,000,000.
Can an Austrian owner automatically apply the Slovak model amounts to their own situation?
No. The amounts shown are derived from simplified national models. An individual review by a tax advisor is required for an accurate calculation of the tax burden. In particular, this review takes into account tax residency, the ownership structure, the applicable double taxation treaty, and the specific form of profit distribution.
Why might Slovakia be of interest to an Austrian company?
Slovakia may be of interest to Austrian companies that:
wish to establish a subsidiary,
want to build a local team,
are planning a production or service location,
are looking to expand into the markets of Central and Eastern Europe,
are seeking an additional operational base in close proximity to Austria.
Bratislava is also located only about 60 kilometers from Vienna.
How can EMINEO PARTNERS support an Austrian company?
EMINEO PARTNERS can handle the incorporation of a Slovak company, tax and accounting set-up, payroll processing, legal support, and reporting on behalf of the foreign owner.
As a member of ETL GLOBAL, EMINEO PARTNERS combines local expertise in Slovakia with the international reach of a globally active consulting network.
Summary
Assuming a comparable starting point of €1,000,000, a private owner is left with €558,250 under the simplified Austrian model. Under the Slovak model, with a 21 per cent corporation tax rate, the figure is €734,700.
The difference between Austria and Slovakia in this model is therefore €176,450.
The Slovakian scenario, with a 10 per cent corporation tax rate and a pre-tax profit of €95,000, is a separate illustrative example and is not included in the direct comparison with Austria.
The comparison highlights the differences between the national tax systems. However, Slovakia may be of interest to Austrian companies for reasons other than just tax considerations. It also offers a business base that is geographically close to Vienna.
EMINEO PARTNERS can assist with the necessary tax, accounting, legal and payroll-related set-up of a Slovak company.
Sources: Austria versus Slovakia
Austrian Federal Ministry of Finance – Corporation Tax
https://www.bmf.gv.at/themen/steuern/fuer-unternehmen/koerperschaftsteuer.html
Austrian Federal Ministry of Finance – Investment income and foreign dividends
https://www.bmf.gv.at/themen/steuern/sparen-veranlagen/kapitalertraege-im-engeren-sinn.html
Financial Administration of the Slovak Republic – Corporation tax rates
https://podpora.financnasprava.sk/929575-sadzba-dane
Financial Administration of the Slovak Republic – Obligations regarding the distribution of dividends in 2026
https://www.financnasprava.sk/_img/pfsedit/Dokumenty_PFS/Zverejnovanie_dok/Aktualne/DP/
DPPO/2026/2026.01.15_006_PO_2026_IM_podiel_zisk.pdf
This comparison of models is intended solely for general guidance and is no substitute for individual tax or legal advice. The actual tax liability depends on tax residency, the ownership structure and the circumstances of each individual case.
