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Withholding tax on interest in Slovakia comes into play when a Slovak company pays interest to a non-resident. The local rules define applicable rates, outline conditions for exemptions (especially for companies based in the EU) and may also impose specific reporting duties.
If your business receives interest from Slovak sources, it’s essential to understand how these rules apply to avoid extra costs, compliance issues or missed opportunities for tax relief.
In this article, we highlight the key aspects of withholding tax on interest in Slovakia, with a focus on what non-resident companies need to know.
Withholding tax on interest in Slovakia is especially relevant for non-resident companies that receive interest payments from Slovak entities. Whether you’re involved in group financing or international investments, being familiar with the Slovak rules is key to avoiding tax inefficiencies or compliance issues.
This topic is particularly relevant for:
Foreign parent companies and holding structures financing Slovak subsidiaries
Financial and lending institutions earning interest from Slovak borrowers
Private equity and investment firms involved in shareholder or deal-related loans
Real estate and infrastructure investors receiving interest from Slovak project companies
If your company is active in any of these areas, it’s worth ensuring that your withholding tax processes in Slovakia are accurate, compliant and well-documented.
On the taxation of interests paid to tax non-residents
On the taxation of interests paid to tax non-residents
The maximum withholding tax rate is applicable on interest paid to foreign entity residing in jurisdiction considered non-cooperative for tax purposes.
In addition to the conditions imposed by the EU Interest & Royalty Directive, the company receiving the interest must be proved as an ultimate beneficiary of this income.
Notification on income paid abroad and tax withheld and remitted must be filed with the tax authority within set deadlines.
“Withholding tax on interest in Slovakia depends on several factors, such as the structure of the payment, the recipient’s country, and whether treaty benefits or exemptions apply. The applicable double tax treaty between Slovakia and the recipient’s country is crucial, as it determines whether interest income may be taxed only in the recipient’s state of residence, or whether Slovakia retains the right to levy withholding tax (often subject to a reduced rate or exemption). Even minor oversights can lead to overpaid tax or compliance issues, especially where beneficial ownership, permanent establishments, or treaty limitations are involved.
For non-resident companies, understanding how Slovak rules work is essential to avoid penalties, reduce tax exposure and manage cross-border financing with more confidence”. Michaela Salayová | Senior Tax Manager, Accace Slovakia.
At Accace Slovakia, we help businesses manage withholding tax and related cross-border tax matters with confidence. Whether you’re structuring financing or handling interest payments to non-resident entities, our team provides the support you need to stay compliant and efficient.
Our services include:
With extensive experience and a proactive approach, we help your company stay ahead of local and international tax obligations.
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
