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Sole trader or s. r. o.?

Enter your yearly revenue and expenses. We compare what is left after tax and contributions as a sole trader (živnostník) and as the owner of an s. r. o.

For the whole year, without VAT.

Real costs without contributions: materials, rent, equipment, services.

For example an accountant or a registered office, if a company would cost you more than a trade.

What the calculation assumes

  • The same revenue and expenses every year. A sole trader’s contributions follow the previous year’s income, so with a steady income the base stays the same. Amounts are for a whole year under the rules in force from 1 July 2026.
  • No other income, no spouse or children: only your own taxpayer allowance is deducted, no child tax bonus.
  • The sole trader is not a VAT payer. Above €50,000 turnover in a year they become one from the next year and can no longer claim flat-rate expenses.
  • The s. r. o. has one owner who draws no salary. The whole profit after tax is paid out as a dividend, with 7 % tax withheld and no health insurance on it. If you are not employed elsewhere, you pay the minimum health insurance as a self-payer (samoplatiteľ).
  • An s. r. o. pays no minimum tax for the first year in which it was founded. The calculation shows a typical year in which it does.

What the calculation leaves out

  • Liability: a sole trader is liable with everything they own; an s. r. o. owner is liable for the company’s debts up to their unpaid contribution.
  • Pension: without a salary, the owner of an s. r. o. pays no social insurance, so saves nothing towards a pension and has no sickness benefit.
  • Bookkeeping: an s. r. o. keeps double-entry accounts and files financial statements, which usually costs more than a sole trader’s records. Enter the difference as extra company costs.

Staying a sole trader? See how much to set aside each month: How much to set aside for taxes

Frequently asked questions

Can I also pay myself a salary from the s. r. o.?

Yes, many owners combine a salary and dividends. A salary is a company cost, but employee and employer contributions and income tax are due on it. This calculation does not model that mix; work it out with an accountant.

Does an s. r. o. pay the minimum tax in its first year?

No. No minimum tax is due for the first tax period in which the company was founded (§46b(7) of the Income Tax Act). The calculation shows a typical year.

Is health insurance due on dividends?

No. Dividends paid out of profits for 2017 and later carry no health insurance (§29b of Act No. 580/2004 Coll.). On profits for 2025 and later, 7 % tax is withheld from them.

Why do flat-rate expenses drop out at a higher revenue?

Above €50,000 turnover in a calendar year you become a VAT payer from the next year (§4 of the VAT Act), and a VAT payer for the whole year cannot claim flat-rate expenses (§6(10) of the Income Tax Act).

Sources

We checked the rates and thresholds on 2 November 2026 in the laws as in force for 2026 and on the websites of Sociálna poisťovňa and Finančná správa.

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