Starting in January, Slovak entrepreneurs will see a significant increase in their mandatory contributions, leading many to explore ways to save on their tax burdens. With the tax and contribution system in the Czech Republic being considerably more advantageous for small business owners, opening a business there has become an attractive option. Slovak entrepreneurs can establish their businesses online and can also obtain a virtual business address with ease, making it simpler to operate across borders.

One of the main advantages of the Czech system is the higher limit for deductible expenses. In the Czech Republic, entrepreneurs can deduct expenses up to 2,000,000 CZK (approximately 82,440 EUR), compared to a capped limit of only 20,000 EUR in Slovakia. This substantial difference can lead to significant tax savings for small business owners operating in the Czech market. Additionally, the introduction of a flat-rate tax in the Czech Republic allows entrepreneurs to pay a single monthly fee that covers a nominal tax along with health and social insurance, all of which are lower than the corresponding costs in Slovakia.

These changes are likely to result in a further shift of Slovak entrepreneurs seeking opportunities in the Czech market, which could aggravate the already challenging business environment in Slovakia. This migration may reinforce calls for reform within Slovakia to create a more competitive environment for domestic small businesses to thrive and protect local economic interests.