Illustrative stock photo (source: Sme)
Hundreds of Slovak companies have moved their headquarters to tax havens since the beginning of the year.
Currently, 5,268 Slovak companies reside in countries with tax advantages, as stems from an analysis of the Bisnode consulting company. The number of companies in tax havens rose again in the second quarter of 2020, up by 19 firms compared with the first quarter of the year.
Most companies moved their headquarters to the United States. While 57 companies found their headquarters there during the first three months of the year, 56 companies did so in the second quarter. Currently, there are 1,341 companies with Slovak owners in total residing in the US.
“The US is not a typical tax haven, but they offer several business advantages to entrepreneurs, including better tax conditions than in Slovakia,” explained Petra Štěpánová, analyst of Bisnode.
Cyprus fell but still among favourites
No other country marked such an increase. The second most favourite destination was Panama, with nine companies moving there in the second quarter, increasing the total number to 141.
On the other hand, Cyprus fell the most. While it lost 20 companies with Slovak owners in the first quarter of 2020, another 24 Slovak companies relocated from the country in the second quarter. Currently, there are 1,015 Slovak companies residing in Cyprus.
However, Cyprus is still the third most favourite tax haven for Slovak entrepreneurs, after the Netherlands with 1,168 companies.
The basic capital of Slovak companies in tax havens amounts to more than €10.45 billion, down from €10.6 billion reported in the first three months of the year.
