Slovakia Investment Income Tax Guide 2026 — Dividends 7% WHT, Interest 19%, Bonds
Investment income in Slovakia is taxed at different rates depending on the type. Dividends face a flat 7% withholding tax (final tax). Interest income is generally taxed at 19% (final withholding for bank interest). Bond interest and investment fund distributions follow IIT rates. Foreign investment income is taxed at standard IIT rates with foreign tax credit relief.
Slovakia differentiates between types of investment income for tax purposes. Dividend income from Slovak companies is subject to a final withholding tax of 7%, meaning no further tax is due. Interest from bank accounts is subject to a final 19% withholding tax. Other investment income, including bond interest and foreign dividends, is included in the taxpayer's annual IIT return and taxed at 19%/25%.
Dividend Taxation
- Dividends from Slovak companies: 7% final withholding tax — no further tax liability for individuals
- Dividends from foreign companies: Included in annual IIT return and taxed at 19%/25%. Foreign tax credit available under DTTs
- Dividends from EU companies: Generally taxed at source in the EU country (reduced under EU directives). Slovak resident reports and claims foreign tax credit
- Corporate shareholders: Dividends received by Slovak companies are generally exempt from CIT (participation exemption)
Interest Taxation
- Bank interest (Slovak accounts): 19% final withholding tax — no further reporting required
- Bond interest: Taxed at IIT rates (19%/25%) — included in annual return
- Foreign interest: Taxed at IIT rates (19%/25%) with foreign tax credit for withholding taxes paid abroad
- Government bonds: Interest from Slovak government bonds is generally taxed at 19%
Investment Funds and ETFs
Distributions from investment funds and ETFs are taxed according to the underlying income type. Distributions treated as dividends are taxed at 7% (Slovak funds) or at IIT rates (foreign funds). Capital gains from selling fund units are taxed at IIT rates of 19%/25% as other income. Accumulation funds (reinvesting dividends) are generally not subject to annual tax on accrued income — only realised gains on disposal are taxable.
FAQs
Do I need to report dividend income from Slovak companies?
No. Dividends from Slovak companies are subject to a final 7% withholding tax at source. No further reporting or taxation is required for individual shareholders.
How are foreign dividends taxed?
Foreign dividends are included in your annual IIT return and taxed at 19%/25%. You can claim a foreign tax credit for any withholding tax paid abroad under the applicable DTT, limited to the Slovak tax attributable to that income.
Disclaimer
This guide is for informational purposes only and does not constitute investment or tax advice. Consult a qualified professional for advice specific to your situation.