{"id":4499,"date":"2026-02-10T14:29:16","date_gmt":"2026-02-10T14:29:16","guid":{"rendered":"https:\/\/www.setupmart.com\/ake-dane-a-odvody-plati-konatel-s-r-o-porovnali-sme-dostupne-moznosti\/"},"modified":"2026-02-19T12:28:58","modified_gmt":"2026-02-19T12:28:58","slug":"ake-dane-a-odvody-plati-konatel-s-r-o-porovnali-sme-dostupne-moznosti","status":"publish","type":"post","link":"https:\/\/www.setupmart.com\/en\/ake-dane-a-odvody-plati-konatel-s-r-o-porovnali-sme-dostupne-moznosti\/","title":{"rendered":"What Taxes and Levies Does a Slovak LLC Managing Director Pay? A Comparison of Options in 2026"},"content":{"rendered":"<h2><strong>What taxes and levies does a Slovak managing director of an LLC pay? We compared the available options!<\/strong><\/h2>\n<p>When establishing an LLC in Slovakia or considering whether it is more advantageous to operate as a sole trader or to set up a Slovak LLC, the amount of tax and levy burden is among the most important factors. Although the question \u201chow to pay as little as possible?\u201d is understandable in itself, the answer is not simple at all. It depends on various factors and, among other things, on how you set up the relationship with your own company from the position of managing director.<\/p>\n<p>What options do you have? We focused on 4 specific scenarios that will certainly make your decision easier.<\/p>\n<p>Business is often a step into the unknown, and before you give it a certain legal framework, it is important to consider all available options. These will determine not only the amount of administration or the way of bookkeeping, but also, for example, how much you will pay in levies. Doing business within your own limited liability company has undeniable advantages, but as a managing director you will be in a different position than if you were operating as a sole trader.<\/p>\n<p>In practice, you most often encounter:<\/p>\n<ul>\n<li>a mandate contract,<\/li>\n<li>a contract on the performance of the function of managing director,<\/li>\n<li>an employment contract,<\/li>\n<li>or you can decide to operate without a contract and without remuneration.<\/li>\n<\/ul>\n<p>Each of these options has its rules, advantages, and risks, so let\u2019s take a closer look at them.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Slovak managing director without remuneration \u2013 zero levies, but not always<\/strong><\/h3>\n<p>Let\u2019s start with the simplest and at the same time cheapest option. A managing director can perform his function completely without entitlement to remuneration. This model is especially popular with start-ups, where there is not yet enough to pay remuneration to the managing director, or with single-member LLCs, where the managing director is also the sole shareholder.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Beware of the minimum advance and operating without a contract<\/strong><\/h3>\n<p>If a Slovak managing director does not perform the function for remuneration, he does not pay any levies to the Social Insurance Agency. At the same time, it must be added that a managing director without remuneration must pay the minimum advance for health insurance, which for 2026 is \u20ac121.92 per month.<\/p>\n<p>This does not apply if:<\/p>\n<ul>\n<li>you are a student,<\/li>\n<li>a pensioner,<\/li>\n<li>employed elsewhere,<\/li>\n<li>or you have a trade license and health insurance is paid for you by someone else, either the state or an employer. In such a case, you do not have to pay the minimum advance.<\/li>\n<\/ul>\n<p>With this model, you need to pay attention to one detail. If, as a managing director, you do not have any written contract with the company, the provisions of the Commercial Code on the mandate contract apply accordingly. However, the mandate contract is by law remunerated, which means that if you want to perform the function without remuneration, you must conclude a written contract on the performance of the function of managing director, which must be approved by the general meeting and in which it is stated that the performance of the function is without remuneration.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Can you manage without security?<\/strong><\/p>\n<p>The risks of this arrangement are obvious in addition to the above. Although you will pay the least among the options, without levies to the Social Insurance Agency you are not entitled to sickness benefits, nursing benefits, or unemployment benefits. Not paying levies to the Social Insurance Agency also means that in the future you will receive a lower pension. It is worth emphasizing that this model is suitable mainly for start-ups that do not yet generate profit, or for managing directors who are already secured through another employment or pension.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Contract on the performance of the function of managing director in Slovakia \u2013 flexibility with lower costs<\/strong><\/h2>\n<p>The contract on the performance of the function of managing director is a general term for a contract between the managing director and the company. It is an unnamed, i.e. innominate contract, which most closely resembles a mandate contract. The contract on the performance of the function of managing director must be in written form and must be approved by the general meeting of the company (shareholders). The managing director may receive remuneration for the performance of his activity either:<\/p>\n<ul>\n<li>regular or<\/li>\n<li>irregular, for example for achieving results.<\/li>\n<\/ul>\n<p>This distinction is important because it affects levies to the Social Insurance Agency.<\/p>\n<h3><\/h3>\n<h3><strong>Managing director with regular remuneration pays more in levies<\/strong><\/h3>\n<p>If you set a regular monthly remuneration, for example according to the contract on the performance of the function of managing director, you are practically in the same position regarding levies as with ordinary employment. From the gross remuneration you pay health insurance of 15%, with the managing director paying 4% and the company 11%, as with an employment contract and irregular remuneration.<\/p>\n<p>Social insurance is divided into several components. The managing director pays a total of 9.4% from his remuneration, which includes old-age insurance 4%, disability insurance 3%, sickness insurance 1.4%, and unemployment insurance 1%.<\/p>\n<p>The company pays in this case 25.7% from the remuneration, which includes old-age insurance 14%, disability insurance 3%, sickness insurance 1.4%, unemployment insurance 1%, short-time work insurance 0.5%, accident insurance 0.8%, guarantee insurance 0.25%, and solidarity reserve fund 4.75%. The total social levies thus represent 35.1% of the assessment base.<\/p>\n<p>Also beware of health insurance minimums. The health insurance company always calculates levies up to the minimum monthly advance of the employee, which for 2025 is \u20ac42.61. Even if you had levies from only \u20ac50, you must pay at least \u20ac42.61 for health insurance.<\/p>\n<h3><\/h3>\n<h3><strong>With irregular remuneration of the managing director you save<\/strong><\/h3>\n<p>With irregular remuneration of the managing director, the situation is simpler and the levy burden is lower. You do not pay:<\/p>\n<ul>\n<li>sickness insurance,<\/li>\n<li>unemployment insurance,<\/li>\n<li>or levy to the solidarity reserve fund.<\/li>\n<\/ul>\n<p>In the case of irregular remuneration, it is also not necessary to submit monthly reports to the Social Insurance Agency, which significantly reduces administrative burden.<\/p>\n<p>Let\u2019s look at specific numbers. The company as employer pays 21.75%, which includes old-age insurance 14%, disability insurance 3%, and solidarity reserve fund 4.75%. The total social levies with irregular remuneration thus represent 28.75% of the assessment base, which is noticeably less than with regular remuneration. In the case of irregular remuneration, it is not necessary to submit monthly reports to the Social Insurance Agency, which significantly reduces administrative burden. Of course, do not forget health insurance levies of 15% (managing director 4% and company 11%).<\/p>\n<p>The advantage of the contract on the performance of the function is that there is no minimum remuneration set, so you can adjust it as needed. With regular remuneration you have full social security including sickness, maternity, unemployment benefits, and entitlement to pension. With irregular remuneration you save significantly on levies, but on the other hand you are entitled to benefits from old-age and disability insurance.<\/p>\n<p>A suitable compromise can be a contract on the performance of the function of managing director with remuneration around \u20ac400 per month, thereby achieving optimal levies to social and health insurance and at the same time counting working time and years needed to receive at least a minimum pension.<\/p>\n<p>With the contract on the performance of the function, and as with any other income, do not forget income tax. Remuneration for the performance of the function of managing director is considered income from dependent activity under the Income Tax Act. Income tax with the contract on the performance of the function is paid in the form of advance tax, which the company deducts as the payer of tax.<\/p>\n<p>From 2026 in Slovakia you need to count with the following income tax rates:<\/p>\n<ul>\n<li>19% from the part of the tax base up to \u20ac43,983.32 per year (154.8 times the subsistence minimum),<\/li>\n<li>25% from the part of the tax base above \u20ac43,983.32 up to \u20ac60,349.21 per year (212.4 times the subsistence minimum),<\/li>\n<li>30% from the part of the tax base above \u20ac60,349.21 up to \u20ac75,010.32 per year (264 times the subsistence minimum),<\/li>\n<li>35% from the part of the tax base exceeding \u20ac75,010.32 per year.<\/li>\n<\/ul>\n<p>How does it look in practice? The company calculates the gross remuneration each month, deducts levies, applies the non-taxable part of the tax base of \u20ac497.23 per month (which is \u20ac5,966.73 per year) and the tax bonus for children if the managing director is entitled to it. The non-taxable part in full can only be applied by those whose annual tax base is up to \u20ac26,367.26. For a higher tax base, the non-taxable part is reduced according to a formula, and for a tax base above \u20ac50,234.18 per year the non-taxable part no longer applies. At the end of the year you file a tax return, in which you perform the final settlement of tax.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Mandate contract of the managing director in a Slovak LLC \u2013 obligatorily remunerated with its own specifics<\/strong><\/h2>\n<p>The mandate contract is regulated in the Commercial Code, specifically in sections 566 to 576, and is therefore a special type of contract. Perhaps the most important thing about the mandate contract is that it is obligatorily remunerated. If remuneration is not expressly stated in it, the managing director is remunerated with the so-called usual remuneration, which depends on normal market conditions.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Mandate contract must always be for remuneration<\/strong><\/h3>\n<p>If you use a mandate contract to regulate relations between the managing director and the company, such a mandate contract is considered under \u00a7 66 para. 6 of the Commercial Code as a contract on the performance of the function. From the point of view of levies, the same rules apply as with the contract on the performance of the function, i.e. it depends on whether it is regular or irregular remuneration.<\/p>\n<p>The problem with the mandate contract is that it is by law remunerated. You therefore cannot simply refuse remuneration without it being expressly agreed, which is by law quite complicated with a mandate contract. That is why in practice it is more advantageous to conclude a contract on the performance of the function of managing director, the so-called innominate contract, which gives you greater flexibility.<\/p>\n<p>Let us just add that with a mandate contract the same taxation rules apply as with the contract on the performance of the function. Remuneration from a mandate contract is income from dependent activity and is subject to progressive income tax rates.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Managing director in a Slovak LLC as an employee: expensive solution, but with certainties<\/strong><\/h2>\n<p>A managing director can also be employed in his own company under a standard employment contract. Note, however, not as a managing director, because such a relationship is assessed not as employment law but as commercial law. However, it is a possible solution if, as a managing director, you also perform other work within the company, such as bookkeeping, programming, or various administrative activities.<\/p>\n<p>If the limited liability company concludes an employment contract with the managing director, the managing director gains the status of an employee of the company. The employer then has the same obligations as with other employees, i.e. must register the managing director in the register of insured persons of the Social Insurance Agency, register him with the relevant health insurance company, and ensure all matters related to the employment relationship, such as occupational health and safety agenda or attendance records. It is precisely various additional obligations related to the employment relationship and employer\u2019s duties that make this option quite an expensive solution.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Even with minimum wage the costs are quite high<\/strong><\/h3>\n<p>Levies with an employment contract are identical to ordinary employment and thus a relatively expensive and administratively demanding choice. With an employment contract you must also comply with the minimum wage, which for 2026 was set at \u20ac915. This means that if you, as a managing director, want to pay yourself a wage through an employment contract, you cannot go below this threshold. For completeness, let us add that the cost of labor for the employer at minimum wage amounts to \u20ac1,246.23.<\/p>\n<p>Although this is the most expensive option described, its advantage is full social security, which includes sickness, maternity, unemployment benefits, and of course entitlement to pension. This model is suitable if you actually work full-time in the company, need maximum social security, or have several employees in the company and the administration with employment contracts is already set up and functioning.<\/p>\n<p>And how is it in this case with income tax? With an employment contract of the managing director as an employee, the same taxation rules apply as with ordinary employment, i.e. taxation of wages. Income tax from dependent activity is paid according to the rates mentioned above, but in this case the company as employer takes care of everything. The advantage is that the managing director as an employee automatically has the right to annual tax settlement, which can be carried out directly by the employer.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>How to choose the best solution if you are in the position of managing director in a Slovak LLC?<\/strong><\/h3>\n<p>In addition to the above options and variations, it can be quite difficult to choose. We have therefore prepared for you a kind of compass to help you.<\/p>\n<p>If you are just establishing a new LLC and do not generate any profit, focus rather on performing the function without remuneration, but with a written contract on the performance of the function, in which the gratuitousness is expressly stated. This option is also suitable if you have another employment, are studying, or health insurance is paid for you, thus avoiding the need to pay advances.<\/p>\n<p>If, however, you want to have regular income for performing the function, feel free to go the way of a mandate contract and agree on regular remuneration. But prepare for the full levy rate. A compromise solution can then be paying irregular remuneration in various amounts, based on a contract on the performance of the function, when you save significantly on social levies. Let us add, however, that in this case you need to plan well, keep control over cash flow, and time the payment of remuneration appropriately.<\/p>\n<p>And thirdly, if you care above all about the certainties arising from employment relationships, then go the way of employing yourself in the LLC. This option is, however, from the point of view of optimizing the amount of levies the least advantageous. On the other hand, if some unexpected event occurs in your life, you have something to rely on, so to speak.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Comparison of Options for Slovak Managing Director (LLC)<\/strong><\/h2>\n<table>\n<thead>\n<tr>\n<th>Option<\/th>\n<th>Levies &amp; Taxes<\/th>\n<th>Advantages<\/th>\n<th>Disadvantages<\/th>\n<th>Best For<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Without remuneration<\/strong><\/td>\n<td>&#8211; No social insurance levies<\/p>\n<p>&#8211; Must pay minimum health insurance advance (\u20ac121.92\/month in 2026, unless covered elsewhere)<\/td>\n<td>&#8211; Cheapest option<\/p>\n<p>&#8211; Simple setup<\/p>\n<p>&#8211; Suitable if covered by other employment, pension, or student status<\/td>\n<td>&#8211; No entitlement to sickness, unemployment, or maternity benefits<\/p>\n<p>&#8211; Lower pension in future<\/p>\n<p>&#8211; Requires written contract stating gratuitousness<\/td>\n<td>Start-ups, single-member LLCs, or directors already secured elsewhere<\/td>\n<\/tr>\n<tr>\n<td><strong>Contract on performance of function (regular remuneration)<\/strong><\/td>\n<td>&#8211; Health insurance: 15% (4% director, 11% company)<\/p>\n<p>&#8211; Social insurance: 9.4% director + 25.7% company = 35.1% total<\/p>\n<p>&#8211; Income tax: progressive (19\u201335%)<\/td>\n<td>&#8211; Full social security coverage<\/p>\n<p>&#8211; Flexible remuneration amount<\/p>\n<p>&#8211; Recognized as dependent income<\/td>\n<td>&#8211; High levy burden<\/p>\n<p>&#8211; Minimum health insurance advance applies<\/p>\n<p>&#8211; More administration<\/td>\n<td>Directors wanting stable monthly income and full social protection<\/td>\n<\/tr>\n<tr>\n<td><strong>Contract on performance of function (irregular remuneration)<\/strong><\/td>\n<td>&#8211; Health insurance: 15% (4% director, 11% company)<\/p>\n<p>&#8211; Social insurance: 28.75% total (no sickness, unemployment, solidarity fund)<\/p>\n<p>&#8211; Income tax: progressive (19\u201335%)<\/td>\n<td>&#8211; Lower levies than regular remuneration<\/p>\n<p>&#8211; No monthly reporting to Social Insurance Agency<\/p>\n<p>&#8211; Flexible timing of payments<\/td>\n<td>&#8211; Limited social security (no sickness, unemployment benefits)<\/p>\n<p>&#8211; Requires careful cash-flow planning<\/td>\n<td>Directors optimizing costs but still wanting pension and disability coverage<\/td>\n<\/tr>\n<tr>\n<td><strong>Mandate contract<\/strong><\/td>\n<td>&#8211; Same levy\/tax rules as contract on performance<\/p>\n<p>&#8211; Must always be remunerated (cannot waive payment)<\/td>\n<td>&#8211; Legally recognized contract type<\/p>\n<p>&#8211; Provides entitlement to social security<\/td>\n<td>&#8211; Less flexible (remuneration obligatory)<\/p>\n<p>&#8211; More complex legal setup<\/td>\n<td>Directors preferring formal mandate structure<\/td>\n<\/tr>\n<tr>\n<td><strong>Employment contract<\/strong><\/td>\n<td>&#8211; Levies identical to standard employment<\/p>\n<p>&#8211; Must comply with minimum wage (\u20ac915\/month in 2026)<\/p>\n<p>&#8211; Cost of labor for employer: \u20ac1,246.23\/month<\/td>\n<td>&#8211; Full social security (sickness, maternity, unemployment, pension)<\/p>\n<p>&#8211; Employer handles tax settlement<\/p>\n<p>&#8211; Entitlement to employee benefits (leave, meal vouchers, BOZP compliance)<\/td>\n<td>&#8211; Most expensive option<\/p>\n<p>&#8211; High administrative burden<\/p>\n<p>&#8211; Must respect labor law obligations<\/td>\n<td>Directors who also perform other work in the company and want maximum social protection<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What taxes and levies does a Slovak managing director of an LLC pay? We compared the available options! When establishing an LLC in Slovakia or considering whether it is more advantageous to operate as a sole trader or to set up a Slovak LLC, the amount of tax and levy burden is among the most&#8230;<\/p>\n","protected":false},"author":4,"featured_media":4473,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[55,102],"tags":[],"_links":{"self":[{"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/posts\/4499"}],"collection":[{"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/comments?post=4499"}],"version-history":[{"count":4,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/posts\/4499\/revisions"}],"predecessor-version":[{"id":4633,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/posts\/4499\/revisions\/4633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/media\/4473"}],"wp:attachment":[{"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/media?parent=4499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/categories?post=4499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.setupmart.com\/en\/wp-json\/wp\/v2\/tags?post=4499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}