Open a Foundation in Slovakia

Foundations in Slovakia are governed by the Foundations Law, i.e. Act No. 34/2002 Coll. on Foundations, in force since 2002. However, this is not the only act providing for the creation of this type of organization.

Those who want to create foundations in Slovakia can choose between several forms of this type of organization, which is why we invite you to find out what each of them entails. If you need support in setting one up, you can rely on our Slovak company formation officers.

Steps in creating a Slovak foundation

In order to open a foundation in Slovakia, it is necessary to submit an application for the foundation’s registration in the Register of Foundations maintained by the Ministry of the Interior of the Slovak Republic. The settlers must create the foundation by signing the foundation charter.

If a foundation is created by one person, only that person must sign the foundation charter. If there are other founders, they must all sign the foundation charter. The founders’ signatures must be certified by a public notary.

The creation of a Slovak foundation is easier compared to that of a company; however, in this case, there are other aspects to consider, and our local agents can offer advice in this sense.

Documents required to open a foundation in Slovakia

The main document required for the settlement of a foundation or non-governmental organization (NGO) is the charter. It must contain the following information:

The foundation charter must include:

• the foundation’s name and address;
• the purpose it is established for;
• the name, surname (trading name), personal identification number (business identification number), and address of each founder’s primary residence (legal seat);
• the value of the foundation’s assets;
•  the type of property each founder contributed to the endowment during the establishment of the foundation;
• the conditions for the distribution of the foundation’s assets based on the beneficiaries it has;
• the criteria for the distribution of the foundation’s finances to third parties, and any other details the founder deems appropriate to include.

The foundation’s membership, trustees, beneficiaries, and voting procedures must also be provided.

Apart from these, the dossier forwarded to the Foundations Register in Slovakia must contain, apart from the charter of the NGO, other information.  A written declaration by the founder of the transfer of property to the foundation’s endowment or a written statement by the trustee of the founder’s contribution made by the founder is required. Also:

If the trustee is a foreign natural person, a document of long-term residence in Slovakia will be required. For companies acting as trustees:

• if the founder is a foreign legal entity, a certificate of the trustee not older than 3 months from the Commercial Register;
• any other proving documents issued by another official body, not older than 30 days, can also serve as evidence with the Ministry of Interior.

You can also rely on us if you are interested in starting a business in Slovakia.

Types of Slovak foundations

Here are the 5 types of NGOs that can be created in Slovakia:

• foundations;
• associations;
• non-investment funds (NI Funds);
• organizations with an international element (OIEs)
• non-profit organizations (NPOs).

Our consultants can offer specific information on each type of foundation.

Public and private foundations in Slovakia

Two of the most employed types of foundations in Slovakia are the public and private ones. The first type is often created by companies, as it can be used for tax minimization purposes. The second one is established by private individuals for asset protection and inheritance purposes.

There are various similarities as well as differences between the two types of Slovak foundations. In the case of private ones, the main aspect to consider is that they can be created by natural persons, Slovak citizens or residents, and foreigners who are not in the evidence of the tax authorities with various debts or social insurance late payments. Also, the minimum contribution of the founder is EUR 1, and it can be used at the discretion of the settlor. Furthermore, private foundations are created for specific purposes which must be mentioned in the notarial deed of establishment alongside:

• information about who the founder is;
• details about the lifetime of the foundation;
• the person appointed to receive payments and the forms under which such payments will be received;
• the statutory bodies of the foundation and how their members were appointed.

Please note that Slovakia has an Ultimate Beneficiary Owner Register where the names of the persons authorized to receive payments must be registered. Our Slovak company formation specialists can offer more information on the UBO.

Public foundations in Slovakia

Public foundations can also be created by both natural persons and companies in Slovakia, however, compared to private ones, the requirements in their case are more stringent when it comes to:

• having a minimum endowment of EUR 6,638;
• the founder contributing with a minimum of EUR 663 to the endowment;
• the minimum endowment can take the form of money or real estate;
• the surplus can come from other sources, such as securities and movable assets (art work).

Properties that are part of the endowment of public foundations cannot be:

• donated;
• used as a capital contribution in a Slovak business;
• used to cover the liabilities of the foundation;
• used as a guarantee for the activities of the foundation.

If you want to set up a public foundation, you can rely on our company registration agents in Slovakia, who can offer more information on these aspects.

The NGO from a taxation point of view in Slovakia

Setting up an NGO in Slovakia may attract various taxes, among them:

•  the value added tax which is levied at a standard rate of 23%;
• a 5% VAT rate can also be paid upon the sale of books or other promotional materials;
• foundations can also receive donations from natural persons or companies (both taxpayers can donate 2% of their income tax to NGOs).

When created as NGOs, income from inheritance and donations for Slovak foundations benefits from exemptions on the income tax. Other types of income falling under the same rules are:

• revenue from statutory operations;
• membership fees;
• grants received through international treaties that are recognized in Slovakia.

Please contact our local specialists for support in opening a foundation in Slovakia.