[ESTABLISHING A BUSINESS ENTITY IN SLOVAKIA] 427
Act on Residence of Foreigners (e.g., employment, study, family reunion, etc.), for a certain period of time, after which a third country national must apply for renewal of the temporary residence. A permanent residence permit entails foreign nationals to long-term residence in Slovakia as well as journeys abroad and back. It is a more stable type of residence, which is granted to foreign nationals for a longer period than temporary residence. Foreign nationals with a permanent residence permit enjoy the same rights and duties as all citizens of Slovakia in most areas of life (e.g., employment, health care, social affairs, and public life on the regional level). Tolerated residence is a special type of residence, which can be granted to a foreign national exceptionally for a short time period in order to overcome a specific situation. A third country national may be employed in Slovakia only under specific conditions, such as if he/she: i) was granted Blue card, ii) was granted temporary residence for the purpose of employment on the basis of a confirmation on the possibility to fill in a vacancy, iii) was granted a work permit and temporary residence for the purpose of employment, iv) was granted a work permit and temporary residence for the purpose of family reunion within the first 9 months from being granted the residence, v) was granted a work permit and temporary residence of a third country national with acknowledged long- term residence in another EU Member State within the first 12 months from being granted the residence, vi) was granted a confirmation on the possibility to fill in a vacancy and his/her application for temporary residence for the purpose of employment was accepted, from the date of confirmation until the temporary residence for the purpose of employment is granted, and vii) other.
Restrictions on remitting funds outside of the jurisdictions (withholdings, etc.) Dividends from profits generated as from 2017 and paid to an entity or an individual resident in a country that has not concluded a tax treaty with Slovakia are subject to a 35% withholding tax. Dividends distributed by a Slovak resident entity (as from 2017 profits) to an entity residing in a country that has concluded a tax treaty with Slovakia is exempt from a withholding tax. Dividends distributed by a Slovak resident entity (from 2017 profits) to individuals residing in Slovakia or a country that has concluded a tax treaty with Slovakia are subject to a 7% withholding tax (the rate may be modified by the tax treaty). Interest paid to a non-resident entity is subject to a 19% withholding tax (the rate can be reduced by a tax treaty or exempt under EU legislation). A 35% withholding tax applies if the payment is carried out to a resident of a country without a tax treaty. The same applies for royalties.
This memorandum is for information purposes only.
Under no account can it be considered as either a legal opinion or advice on how to proceed in particular cases or on how to assess them. If you need any further information on the issues covered by this memorandum, please contact Mr. Lubomir Lesko (lesko@peterkapartners.sk) or Mr. Jan Makara (makara@peterkapartners.sk). PETERKA & PARTNERS is a full-service law firm operating in Central and Eastern Europe providing one-stop access to an integrated regional service. The firm provides legal services to the multinational companies active in the region as well as leading local groups, providing them with complex legal solutions with an exceptional commercial value. For more information, contact Mr. Lubomir Lesko (lesko@peterkapartners.sk) at ILN member, PETERKA & PARTNERS.
ILN Corporate Group – Establishing a Business Entity Series
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