When sole trader can fit
A simple operation, direct access to income, lower administration, and no need to retain profit in a separate company often point towards SZČO.
Sole trader vs. s.r.o. calculator
Sole trader or s.r.o.?Compare what you keep.
Compare taxes, contributions and net income based on your revenue, expenses and how you pay yourself.
Your inputs
Start with your numbers
Your Business
Annual business revenue before expenses.
€
€5,000€40,000€200,000
Your actual business costs, excluding contributions and flat-rate deductions
€
€0€5,000€38,232
Sole trader
Choose whether to model the first year or standard contributions.
Your real expenses are below the flat-rate deduction. Paušálne výdavky (60 %, max 20 000 €) automatically applied: €20,000.
s.r.o.
Choose how much you want to pay yourself and how much profit to distribute.
Net director salary paid every month.
€
€0€800€1,504
The share of post-tax profit paid as dividends. The rest stays in the company.
%
0 %100 %100 %
Beyond the calculation
The financial difference is only one part of the choice.
In this scenario, SZČO (Sole Trader) produces the higher personal net income. The right legal form also depends on how you work and what you need the business to do.
When s.r.o. may make sense
A company can be useful when you want to retain profit, separate business risk, build a team, or meet client and partner requirements.
What the calculator cannot decide
Liability, client requirements, employees, business risk, contracts, and the practical burden of administration still need a separate review.
When the inputs change
When does the result turn?
With your current assumptions, the result next turns at roughly €136,500 of annual revenue in favor of s.r.o. (Limited Co).
Annual revenueNow €40,000
€136,500
€0€100,000€200,000
SZČO (Sole Trader)s.r.o. (Limited Co)Now: SZČO (Sole Trader)
If revenue increases by €10,000
€7,143
Higher personal income comes from SZČO (Sole Trader) · difference €7,143.
If expenses increase by €5,000
€6,275
Higher personal income comes from SZČO (Sole Trader) · difference €6,275.
If salary increases by €500 per month
€10,955
Higher personal income comes from SZČO (Sole Trader) · difference €10,955.
Where the money goes
Personal money and company money are not the same.
For s.r.o., we show personal income separately from profit left in the company. Total economic value is therefore not automatically the same as the amount you pay yourself.
Personal net income
SZČO (Sole Trader)€30,870
s.r.o. (Limited Co)€23,780
Profit retained in the company
SZČO (Sole Trader)nothing retained
s.r.o. (Limited Co)€0
Total economic value
Total valueSZČO (Sole Trader)€30,870
s.r.o. (Limited Co)€23,780
When you want the detail
Detailed calculation
Open only the model you want to inspect. The main result stays easy to scan above.
How we calculate · 2026 rulesThe calculation has a version and explicit assumptions.
The model includes flat-rate or real expenses, SZČO contributions, accounting, salary, company tax, dividends, and profit retained in the company. It is not individual tax or legal advice.
- Calculation version: SK-2026.1
- Updated: 2026-08-02
- Flat-rate expenses: 60% capped at €20,000. VAT threshold: €50,000. Dividends: 7%.
Decision guide
SZČO vs s.r.o. in Slovakia: how to read the result
The calculator compares net income after Slovak income tax, health insurance, social insurance, accounting costs, corporate tax, salary costs, and dividend tax. It is built for freelancers, IT contractors, consultants, and small online businesses deciding between živnosť and s.r.o.
Short answer
In most simple freelance cases, SZČO is usually more tax-efficient at lower revenue because of the 60% flat-rate expenses. s.r.o. may become better when income grows, real expenses are higher, liability matters, or profit can stay inside the company instead of being fully paid out.
When SZČO is usually better
SZČO often wins when the business is simple, expenses are low, and most income is paid to the owner. The Slovak flat-rate expense regime can reduce the taxable base without collecting every receipt.
- You invoice mostly services and have limited real expenses.
- Your annual revenue is below or close to the VAT threshold.
- You want a lighter administration model and predictable annual tax filing.
When s.r.o. can be better
s.r.o. can become attractive when the business has higher revenue, bigger real expenses, employees, risk exposure, or plans to keep profit in the company.
- You need limited liability or a more corporate client setup.
- You want to combine salary and dividends instead of taking all profit as personal income.
- You already need double-entry accounting, VAT, payroll, or more formal reporting.
What changes after €50,000 revenue
The calculator flags the VAT threshold because it usually changes the practical accounting workload. Once VAT obligations apply, flat-rate simplification may no longer be the right planning lens and professional accounting review becomes more important.
- VAT registration can affect invoices, pricing, reporting, and cash flow.
- Cross-border services, Stripe, Upwork, and EU clients can create extra reporting duties.
- Before registering for VAT, review whether your setup should stay SZČO or move toward s.r.o.
Example income ranges
€30k
Simple freelancer
SZČO is often the first model to test if expenses are low and the work is mostly service invoicing.
€60k
VAT threshold planning
The decision becomes more sensitive because VAT, accounting work, and real expenses can change the result.
€100k+
Structure matters
s.r.o. may be worth reviewing when profit retention, liability, salary, dividends, or clients require a company setup.
2026 assumptions used
- SZČO flat-rate expenses: 60% of income, capped at €20,000.
- VAT threshold: €50,000 revenue.
- Minimum SZČO contributions used in the estimate: €425.03 per month.
- Corporate tax bands used: 10%, 21%, and 24%. Dividends taxed at 7%.
- The calculation is an estimate, not tax advice or a binding tax assessment.
Common questions
Is SZČO or s.r.o. better in Slovakia?+
It depends on revenue, expenses, VAT status, risk, and whether you need to pay all profit to yourself. SZČO is often simpler and tax-efficient for lower-expense freelancers, while s.r.o. may suit higher revenue, retained profit, liability protection, or company-style operations.
Does the calculator include Slovak social and health insurance?+
Yes. The calculator includes estimated social insurance, health insurance, income tax, accounting costs, and for s.r.o. salary, corporate tax, and dividend tax assumptions based on 2026 rules.
What happens when revenue exceeds €50,000?+
The calculator flags the VAT threshold. Crossing €50,000 can create VAT registration and reporting duties, so the business structure and accounting setup should be reviewed before making changes.
Can I send my result to Accquix for review?+
Yes. Use the result action on the calculator page to copy the result, email the calculation to yourself, or open the contact form with calculator context.