Permanent residence

What it means

Permanent residence has two different meanings. For a Slovak citizen it is the registered address in the population register, which determines, for example, which municipality they belong to, the payment of certain local taxes and fees, the service of official documents and the electoral district.

For a foreign national, permanent residence is a permit to stay in Slovakia long-term without being tied to a specific purpose such as work, study or business. Foreigners usually obtain it after several years of temporary residence or on family grounds, for example as the spouse or child of a Slovak citizen.

The concept is also linked to tax residence. Permanent residence in Slovakia is one of the criteria that make an individual a Slovak tax resident, although where another country also has a claim, a double tax treaty may decide based on actual ties.

How it works in practice

A sole trader can register their place of business at their permanent residence address and save on renting premises or a virtual address. They should bear in mind, however, that the address becomes publicly visible in the trade register, which some prefer to avoid. A company has a registered office instead.

When employing foreign nationals with permanent residence, things are simpler than with temporary residence, because some types of permanent residence allow work without a separate work permit. The employer should check the type of residence and its validity.

A foreigner with permanent residence can usually also run a business on terms similar to citizens. For business activity of foreign nationals with temporary residence the conditions are stricter, and the residence is often tied to a purpose, such as the business itself, which the foreigner must demonstrate.

What to watch out for

Permanent residence alone does not necessarily mean a person is a tax resident of Slovakia only. If they live and work abroad for a long time, they may be resident there too, and the treaty criteria must then be assessed to avoid double taxation or missed obligations.

When a business owner changes their permanent residence, they must update register entries and inform authorities, banks and their health insurer. Some changes pass through the population register automatically, others do not, and an outdated address can mean missing important documents.