SZČO vs s.r.o. advisor 2026
Current year + two-year forecast · net in hand · when to move to a limited company
What we recommend
Year —
actualYear —
forecastYear —
forecast · preliminaryWhat this calculator compares
The calculator compares how much stays "in hand" from the same income when doing business as a sole trader (SZČO) versus through a single-member s.r.o. in which the owner draws no salary and takes the profit as a dividend. The calculation runs over a two-year horizon (2026–2027, optionally from 2025) and shows tax, contributions and net income of both forms side by side for each year.
How the SZČO side is calculated
The SZČO side uses the same parameters as our SZČO calculator for 2026: 15 % tax up to 100,000 € of income (otherwise the 19/25/30/35 % bands), a tax allowance of 21 times the subsistence minimum, 60 % flat-rate expenses (max 20,000 €) or actual expenses, 33.15 % social insurance with the income test from 1 July 2026 and 16 % health insurance with the annual settlement.
How the s.r.o. side is calculated
- Corporate income tax in 2026: 10 % on taxable income up to 100,000 €, 21 % up to 5,000,000 €, 24 % above.
- Minimum tax (tax licence): 340 € with income up to 50,000 €, 960 € up to 250,000 €, 1,920 € up to 500,000 €, 3,840 € up to 5,000,000 € and 11,520 € above — payable even with low or zero profit.
- The owner takes the after-tax profit as a dividend with a 7 % withholding tax (on profits for 2025 and later; the rate for 2024 profit is 10 %).
- An owner without a salary is health-insured as a self-payer — a minimum advance of 121.92 € per month in 2026.
How to read the results
For each year of the horizon the calculator shows a card with the tax, contributions and net income of both forms and a "Net in hand" summary line. The form recommendation is informative — it is based solely on the numbers entered and does not reflect liability, administration, accounting costs or other non-monetary differences between a trade licence and an s.r.o. The year 2027 is a forecast: the subsistence minimum for 2027 has not been published yet, so some parameters are preliminary.
Frequently asked questions
Why does an s.r.o. pay tax even with zero profit?
Legal entities pay a minimum tax (tax licence) based on their income — in 2026 from 340 € to 11,520 €. The calculator takes it into account: if the computed tax is below the minimum, the minimum is due.
How much of the dividend reaches the owner's account?
When the after-tax profit is paid out, a 7 % dividend withholding tax applies (for profits of 2025 and later). The calculator shows the net amount after both taxes.
Does the comparison include a director's salary?
No. The model assumes the owner draws no salary and takes income exclusively as a dividend, paying health insurance as a self-payer. Combinations with a director's salary need to be assessed individually.