In Slovakia, the Living Minimum Changes: How It Will Affect Business Residence Permits and Tax Payments in 2027

From 1 July 2026, the living minimum (životné minimum) in Slovakia will increase. The Ministry of Labour has confirmed that its amount will rise by almost 4%.

The new living minimum will be in effect until 30 June 2027. For one adult, it will be 295.22 euros instead of the current 284.14 euros. Thus, the figure will increase by 11.08 euros. For a second adult living together, the amount will be 205.96 euros, and for a child — 134.80 euros.

The basis for the increase was the rise in the consumer price index for low-income households. According to the Statistical Office of Slovakia, from April 2025 to April 2026, it increased by 3.9%. This indicator directly affects the calculation of the living minimum.

Although the new amounts still need to be officially approved by the Ministry of Labour’s decree, the published statistical data already allow for the calculation of social benefits, the non-taxable part of income, tax allowances, and child bonuses — they depend precisely on the size of the living minimum.

Non-taxable Part of Income

With the new living minimum, the non-taxable part of income (nezdaniteľná časť základu dane) will be 516.64 euros per month (calculated as 21 times the living minimum, divided by 12). Annually, this will amount to 6199.62 euros. This sum will constitute the non-taxable part of income, but only if the income itself does not exceed 27,396.42 euros per year.

If the income exceeds this level, the tax allowance will gradually decrease and will completely disappear at an annual income of 45,700 euros. Additionally, there is a non-taxable part for a spouse, which also decreases with rising income and can be completely nullified at high incomes.

Income Tax

The change in the living minimum in Slovakia automatically affects income tax rates, as tax thresholds are tied to its multiples. In 2027, the following progressive scale will apply in the country:

• a rate of 19% will apply to incomes up to 45,700.06 euros;
• 25% — to incomes from 45,700.06 to 62,704.73 euros;
• 30% — to incomes from 62,704.73 to 77,938.08 euros;
• 35% — to incomes above 77,938.08 euros.

When the living minimum changes, these threshold amounts are revised, which may shift the boundaries of applying individual rates and, accordingly, change the tax burden for taxpayers.

Financial Assurance for Residence Permits

For holders of temporary residence permits (prechodný pobyt), the increase in the living minimum means an automatic rise in the amounts that need to be confirmed when submitting documents or renewing residence permits.

From 1 July, the minimum financial assurance amount for one adult foreigner will increase from 3,409 euros to 3,543 euros. For a child, half of this amount will need to be confirmed.

For entrepreneurs, the requirements will also increase. Foreign sole traders (živnostníci) with business residence permits will need to confirm the availability of funds amounting to 5,904 euros instead of the current 5,682 euros. For companies and other legal entities, the financial assurance amount will rise from 17,047 to 17,713 euros.

However, these rules may not be in effect for long. The Slovak authorities are preparing major changes to migration legislation, which should come into force on 15 July 2026. These rules are expected to significantly ease income requirements for holders of business residence permits, so the new financial assurance calculations are likely to be temporary.