Slovakia: Charges, Mortgages, Indemnities

In Slovakia, M&A transactions are primarily governed by the Commercial Code and the Securities Act. Certain sectors, e.g. banking or insurance, are further regulated by specific laws such as the Banking Act or the Insurance Companies Act.

Structures involving Dutch or Luxembourg companies are commonly used for inbound investments in the Slovak Republic. An important reason for this is the extensive double tax treaty network of both countries eliminating or reducing withholding taxes on interest paid from Slovakia as well as the domestic participation exemption on dividends and capital gains enabling a tax free exit from investments in Slovak companies.