Slovakia is digitally ahead but caught in a tax trap: CEE Tax Guide 2026 reveals the reality

Slovakia has made progress on digitalisation within the region, yet it still carries one of the highest tax burdens among the countries compared. These are some of the findings of this year’s CEE Tax Guide, the 14th edition of the regional tax guide published annually by the international advisory firm Forvis Mazars. This comprehensive tax guide provides an overview and comparative charts of the tax systems of 25 countries in 2026, together with average private sector wages, which helps investors in their decision making. As Kvetoslava Čavajdová, Partner for Tax at Forvis Mazars, points out, in Slovakia for example the average gross private sector wage rose to €1,569, yet it remains lower not only within the V4 but also compared with the regional average. Where does Slovakia trail the region and where does it get ahead?

Tax systems under the microscope

The main aim of the CEE Tax Guide 2026 is to map the key tax and wage parameters across Central and Eastern Europe, including selected countries of South Eastern Europe, the Baltics and Central Asia. That is Hungary, the Czech Republic, Slovakia, Poland, then Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Montenegro, Albania, Kosovo, North Macedonia, Bulgaria, Romania, Moldova, Greece, Estonia, Lithuania and Latvia, Ukraine, Kazakhstan, Kyrgyzstan and Uzbekistan, as well as Germany and Austria. The CEE Tax Guide 2026 includes tax and contribution rates, examples for various wage levels, VAT specifics and corporate tax systems, as well as research and development tax reliefs or rules on the carrying forward of losses and more. The data are as at January 2026. The CEE Tax Guide also offers an interactive online platform for year on year comparison of the parameters.

The most significant changes

As the guide shows, personal income tax and VAT rates have risen in several countries, reversing the stability of previous years. Mandatory electronic invoicing has at the same time become a common requirement.

For Slovakia, 2026 is also a year of significant change. “In personal income tax, progressivity has been broadened and two new rates of 30% and 35% have been added to the existing 19% and 25%,” says Kvetoslava Čavajdová, adding that comparable rates operate in neighbouring advanced economies.

The corporate income tax rate in Slovakia has three levels depending on the amount of revenue: 10% for companies with revenues up to €100,000, which according to Kvetoslava Čavajdová allows them to stay competitive. Then 21% for small and medium sized companies with revenues up to €5 million and finally 24% for companies above this threshold.

“The basic VAT rate of 23% places Slovakia among the countries with a higher tax burden in the Central European region. Further changes are the increase in insurance tax from 8% to 10% and a new mandatory payment for extracted primary raw materials,” she notes.

A positive signal for some may be the double digit rise in the minimum wage from €816 to €915. According to the expert, Slovak consolidation is therefore comprehensive in nature and mirrors the expected regional trend of rising taxes.

More digital, but less in the wallet

Looking at the main changes in more detail, Slovakia has made progress above all in digitalisation. The eKasa system is already in operation and mandatory e-invoicing for domestic B2B transactions will arrive from 2027. “While last year we lagged behind Hungary, Romania and Poland, this year Slovakia already has a clear deadline,” explains Kvetoslava Čavajdová. She adds, however, that we are catching up with the leaders rather than setting the pace. One only has to look at our neighbours, for example the Hungarian e-VAT with pre-filled returns, the Polish KSeF and the Romanian e-Invoice.

The 10% rate for small companies also remains competitive here, comparable with 9% in Poland. A deterioration is, however, visible in the taxation of labour. “The tax burden on labour here remains among the highest,” the expert warns.

Average wages are rising, but only slightly

As the guide shows, the gross minimum wage in the region is rising, with the most pronounced move made by Montenegro (a rise of one third to €670). Slovakia (from €816 to €915), the Czech Republic (from CZK 20,800 to CZK 22,400) and Albania (from ALL 40,000 to ALL 50,000) also recorded a double digit increase in local currency. Germany and Austria remain at the top of the regional ranking, however, with a minimum wage of around €2,400. The average gross wage in the Slovak private sector rose to €1,569, yet according to Kvetoslava Čavajdová it still trails not only the V4 but also the regional average (€1,700).

The CEE Tax Guide 2026 therefore also compares net wages adjusted for purchasing power parity (PPP), which gives a more realistic picture of living standards. Austria and Germany keep their lead in PPP as well. For many countries, however, a nominally high net wage is of little help because of high prices. “Countries with a lower price level, for example Poland, Croatia, Romania or Montenegro, are improving their real purchasing power, while some countries with a higher wage level in nominal terms, such as Estonia or Greece, are losing it,” the expert explains. This year’s edition does not quantify Slovakia’s specific year on year shift in PPP, but as last year it is comparable with Hungary and slightly below the Czech Republic.

VAT: uncertainty instead of efficiency

VAT rules are largely harmonised thanks to the EU and non-member states adapt to them too, while in many countries rates have risen or new ones have been added.

As the CEE Tax Guide 2026 shows, Romania for example merged the 5% and 9% VAT rates into a single 11% VAT. Lithuania in turn abolished the reduced 9% rate on district heating and hot water heating and introduced a new 12% rate for accommodation and cultural services.

The Slovak VAT system includes several rates, including a 23% rate on unhealthy foods. According to Kvetoslava Čavajdová, this brings companies classification uncertainty and higher costs of ensuring compliance with legislation. “There is room to improve the efficiency of the Slovak VAT system by reducing the number of rates and making the classification rules clearer,” she notes.

Lower taxes? States prefer incentives instead

Corporate income tax rates remain stable in the region, in the range of 9% to 24%, with states boosting competitiveness through targeted research and development incentives rather than by cutting headline rates. “Based on the findings of the CEE Tax Guide 2026, we see no tendency in the region towards lowering corporate income tax rates. The exception is Germany, with a planned gradual reduction of corporate income tax to 10% by 2032. Lithuania, by contrast, raised its rate,” says Kvetoslava Čavajdová. The incentives take various forms. For example, the Czech Republic increased the additional deduction of research and development costs to 150%, Romania introduced a 10% refundable tax credit for research alongside a 50% deduction, Hungary has a new deduction for environmental investment at a 9% rate and Latvia taxes only distributed profit.

In Slovakia, the rising tax burden on companies falls deliberately above all on large players. “The highest rate of 24% applies solely to entities with revenues above €5 million. The 21% rate for businesses below this threshold matches the regional average and is comparable with the Czech Republic. The smallest companies with revenues up to €100,000 keep a favourable rate of 10%, which helps them stay competitive,” notes Kvetoslava Čavajdová.

When it comes to incentives, in May 2026 the Slovak government approved a package of pro-growth measures to support research and development. It includes grant support for innovative projects and a financial instrument (FLPG) with a leverage effect of 1:4. The government also plans to make the tax super-deduction more attractive by raising the rate to 150% and simplifying the conditions. According to Kvetoslava Čavajdová, this could increase Slovakia’s appeal for innovation-oriented investors.

Companies’ scope to shift profits is narrowing

The CEE Tax Guide also looks at transfer pricing. Rules and a documentation obligation apply in almost all the countries analysed, and several states are even tightening the rules in 2026. Latvia introduced a new obligation to report transactions above €250,000, Moldova aligned its documentation with OECD standards and Poland introduced public reporting for large multinational groups. Hungary, by contrast, brings simplification in the form of automatic acceptance of a 5% mark-up on intra-group services.

In international taxation, the global minimum tax (Pillar Two) is moving into practice. Fourteen of the countries tracked have implemented the relevant EU directive. The first cycle of top-up tax returns for 2024 has a deadline of 30 June 2026, although the Czech Republic secured a postponement until October. Slovakia also transposed the rules for the exchange of information (the DAC9 directive) in January 2026. The scope for multinational companies to shift profits is therefore narrowing significantly, according to the CEE Tax Guide.