Tax-exempt investing

Finax invests your funds in a way that aims to minimize your tax obligations. We utilize various tax benefits provided by the current legislation. However, to ensure a complete tax exemption when withdrawing funds or ending your investment, it is important to follow the proper procedures, which we will inform you about.

Please note that these tax benefits apply to Slovak tax residents. If you pay taxes in another country, we recommend checking the tax implications specific to your country of residence.

Profits from regular mutual funds offered by Slovak asset management companies and banks are subject to a withholding tax upon sale. By investing in ETFs traded on the stock exchange, you can save 19% of your earnings compared to non-exchange-traded funds.

Example: Let's say you invest 10,000 euros in mutual funds and another 10,000 euros in ETFs traded on the stock exchange. Assuming both investments generate an annual return of 8% over the next 10 years, the value of each investment at the end of the period would be 21,600 euros. The profit would then amount to 11,600 euros. In the case of ETFs, the entire 11,600 euros would be yours to keep. However, if you invested in mutual funds, you would be required to pay 19%, or 2,204 euros, in taxes. Therefore, your net profit would be 9,396 euros.

Please note that these calculations are based on Slovak tax residency. If you pay taxes in another country, we recommend checking the tax implications specific to your country of residence.