How Your Investments Through Crowdberry Are Taxed

Tax Residency

A Slovak tax resident is an individual who has permanent residence or domicile in Slovakia, or who is physically present in Slovakia for at least 183 days during a calendar year. In the case of legal entities, tax residency is determined by the registered office or the place of effective management.

A Czech tax resident is an individual with domicile in the Czech Republic or a person who spends at least 183 days per year in the country. For legal entities, residency is determined by the registered office or place of management.

If you qualify as a tax resident in both jurisdictions, the applicable double taxation treaty determines your residency status. The decisive criteria include permanent home, centre of vital interests, habitual abode, and citizenship.

EQUITY INVESTMENTS: Shares in a Simple Joint-Stock Company (JSA)

Income derived from shares may take two forms: dividends or capital gains from the sale of shares.

Slovak Tax Resident – Individual

Dividends are currently subject to a 7% withholding tax. Once withheld, no additional health insurance or social security contributions apply.

Capital gains from the sale of shares are exempt from taxation up to EUR 500 per year. This threshold applies collectively to all comparable income. Income exceeding this limit is taxed at a progressive rate of 19% or 25%, depending on the investor’s total taxable income.

Such income must be reported in the tax return for the year in which it was actually received. Capital gains are also subject to health insurance contributions of 15% (7.5% for persons with disabilities). These contributions may subsequently be deducted as a tax expense.

The above exemptions apply only if the shares were not included in the investor’s business assets.

Slovak Tax Resident – Legal Entity

Dividends are not subject to corporate income tax.

Capital gains from the sale of shares are taxed at rates of 10%, 21%, or 24%, depending on the company’s total taxable income.