It is quite easy to set up a company in Slovakia, even for non-residents. To set up a company, a residence permit is not necessary.
In the article below, we give you the essential information about the process of setting up a company and about main rights and duties of its bodies. When using term “company” we mean “limited liability company” (in Slovak „s.r.o.“ or „spol. s r.o.“) which is the most popular form of undertaking in Slovakia. That is because its partners (shareholders) are not liable for company´s debts. The process of setting up other kinds of companies, such as Limited Partnerships or Partnerships is very similar and differs only in minor details.
Below we give you the list of documents required for company to be set up:
- Memorandum of association contains aim of the partners to set up a company – a legal unit different from partners. Partners and executive directors must be identified in Memorandum. Partners (also „shareholders“ in Slovak „spoločníci“) – natural or legal persons who own a share in company. The profit of the company is divided between partners. Residence permit is not necessary to be a partner. The position of a partner does not grant a residence permit. Executive directors (in Slovak „konatelia“) are natural persons. Executive directors are given the right to act in the name of the company. Residence permit is necessary to be an executive director. The permit will be given to a person if he/she proves she holds a position of an executive director. It is possible for a natural person to be both: partner and executive director. Other information which must be listed in a memorandum are: company´s name, place of registered seat, scope of business and the value of company´s stock capital. A trade license is required to carry out business. Some licenses are available for everyone, but for some licenses higher education or qualification is necessary. A company is allowed to carry out such business through competent representative (a natural person having required education or qualification). The value of the stock capital must be at least 5 000 eur and at least 750 eur per one partner. Shareholders are obligated to pay their contributions to a custodian of contributions on a separate bank account. Custodian issues a confirmation of paid contribution and he is responsible for the contributions are in fact paid. Only bank or one of the partners are allowed to be a custodian of contributions.
- Declaration on oath according to restrictions stipulated in section 105a of the Commercial Code. These restrictions are related to the right to be a partner of the company. A natural person can be the sole partner in only three companies. A legal person can be the sole partner in only one company.
- All partners need tax office approval. This approval will be given to them if they do not owe money to tax office or to custom office.
- Executive directors must provide specimen of their signature.
At this point, when all necessary documents are finished and the stock capital is paid, all partners together submit an application for the incorporation of the company into business register. The application must be submitted to the competent court. The court will issue so-called Declaration of incorporation of company into Business register within 5 working days since the submission of application.
To operate properly company needs to be registered for corporate income tax. The company must apply for registration.
After the Declaration of registration for corporate income tax is delivered, the company is ready to run. If you are not familiar with the process of setting up a company in Slovakia or just need and advice, please do not hesitate to contact us via the form below.
Our service by setting up a company in Slovakia includes following range of activities:
- We will have an initial consultation where you will tell us about your business vision. This consultation can be in person, by telephone or by e-mail.
- We will draw up documents for your signature.
- We will verify the signed documents electronically and send them to the competent Trade Licensing Office, Commercial Register and the Tax Office.
- We will advise you on how to deposit the registered capital into a separate bank account. Or, we will open the bank account for you and pay up the registered capital.
- We will pay the fee to register your company in the Commercial Register.
- Once the company has been duly incorporated, we will send you an original extract from the Commercial Register, including all documents of incorporation.
Our complete company formation package guarantees you full assistance and payment of all fees associated with establishing a company in Slovakia.
What is the cost of complete company formation?
- our fee is EUR 233.25
- there is a discounted court fee of EUR 165.75
- there is no fee for unregulated trades
- Total: EUR 399
* the final price does not include 20% VAT
How long does it take to set up a company in Slovakia?
The complete company formation typically takes up to 25 business days.
Optional company formation services in Slovakia:
- Virtual registered office in Slovakia starting from EUR39 per month
- Accounting in Slovakia starting from EUR70 per month
Small Business Act for Europe (2008) https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0394:FIN:EN:PDF
Small Business Act Fact Sheet for Slovakia, (2013) http://www.sbagency.sk/sites/default/files/sba_fact-sheet_slovakia-2013_en.pdf
Entrepreneurship 2020 Action Plan https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0795:FIN:en:PDF
2019 Tax Guideline for Slovakia https://accace.com/tax-guideline-for-slovakia/
Corporate income tax – rates
Income and capital gains
Corporate income tax is levied at a rate of 21%. This is the final tax burden on 2019 corporate profits in some cases because dividends paid out of 2019 profits are not taxed in the hands of shareholder if the shareholders are corporate and based in other than non-contracting state.
Starting January 1st, 2018, a minimum corporate tax (so-called tax licenses), which was introduced in 2014, is abolished.
Withholding tax on domestic payments
Withholding tax of 19% is levied on income from participation certificates, certain debentures, vouchers and investment coupons; and interest from bank deposits and current accounts in general. Withholding tax of 7% shall apply to dividends paid out from profits derived from January 1st, 2017 by domestic companies to individual shareholders.
With effect from January 1st, 2011 the tax withheld is considered to be a final tax rather than an advance payment of tax. The only exemption from this rule applies to income from participation certificates.
Corporate income tax – general information
A company is treated as resident if it has its legal seat or place of effective management in the Slovak Republic.
Calendar year or the business/financial year
Resident companies are taxable on their worldwide income, including capital gains, unless exempted from tax. The taxable income is computed on the basis of the accounting profits and is adjusted for several items as described in the tax law.
Tax returns and assessment
The taxpayer has to calculate the tax due in the corporate income tax return (self-assessment). The deadline for filing the return is by the end of third month following the end of the tax period. The filing deadline may be extended by maximum 3 or 6 months (if part of a taxpayer’s tax base consists of foreign-source income).
Quarterly, if tax paid for previous year was between EUR 2,500 – EUR 16,600. Monthly, if tax paid for previous year was higher than EUR 16,600. A new business entity established during the tax year (except if it is established by conversion, merger or division) is not required to make advance tax payments.
As a general rule, expenses incurred in obtaining, ensuring and maintaining taxable income are fully deductible, unless they are listed as non-deductible items or items which are deductible only up to a limit set by the law.
Carry-forward of losses
Tax losses derived after January 1st, 2014 may be carried forward uniformly for 4 tax years. Tax losses derived before 2014 cannot be carried-forward anymore.
Dividends paid out of profits derived from January 1st, 2004 are not subject to any tax in the hands of the shareholders. Other dividends are taxed at the standard tax rate of 21% if distributed after December 31st, 2013.
Special taxes on corporate income
Regulated industries (energy, insurance and reinsurance, public health insurance, electronic communications, pharmaceutics, postal services, rail traffic, public water and sewer systems, air transport and health care services under special legislation)
With effect starting September 1st, 2012 a temporary special contribution applies. The special duty has to be paid, even after 2016, despite the fact that it should be effective only until the end of that year.
The definition of the taxable base for special duty was amended with effect from January 1st, 2017 so that the duty applies only if the accounting result of at least EUR 3 million is reached and only on income from regulated activities.
The monthly rate was temporarily increased to 0.726% for the period from 2017 to 2018. Then the rate will be gradually decreasing so that in the period from 2019 to 2020 the monthly rate will be 0.545% and in the period from 2021 the rate will be again 0.363%.
With effect from January 1st, 2012, Slovak banks and branches of foreign banks operating in the Slovak Republic, established according to special legislation on banks, are subject to a bank levy. The rate of 0.2% annually shall not change during the period from 2017 to 2020. Starting 2021, the rate will be zero.
Special levy on all forms of non-life insurance for insurance companies operating in Slovakia was introduced from 2017. The levy of 8% from the received insurance premiums became effective as of January 1st, 2017.
According to the law effective until 31 December 2018, levy concerns only the agreements concluded after 1 January 2017. Starting from 1 January 2019, there is a new legislation according to which the special levy will apply on all insurance agreements, regardless the date of the concluding of the agreement, if the insurance period starts to lapse after 31 December 2018.
Generally, the person liable to pay the Insurance Premium Tax shall be the insurance company, however, this obligation may concern also to policyholder (any person who concluded the agreement with the insurer), if this person pays the premium to a third-country insurance undertaking, which does not have a branch in the territory of the Slovak republic or to a legal person to which the costs of such insurance are recharged.
For further details, please see our eBook on Tax on non-life insurance premium from 1 January 2019: “New tax on non-life insurance premium introduced in Slovakia”.
Starting from 1 January 2019, certain retail chains shall be obliged to pay an extra tax of 2.5% of their net turnover. This tax shall be paid quarterly.
It concerns retail chains, which have at least 25% of their net turnover from selling food to the final consumer and if they have their operations in at least 15% of the districts of the Slovak republic.
At the same time this extra tax does not apply to mass catering facilities, small and medium-sized enterprises, factory stores with net turnover coming from the sale of one class food and factory stores that are food producers and sell food to the final consumer.
Corporate income tax relief can be provided under the Law on Investment Incentives. Certain corporate income tax relief can be provided also under the Law on Research and Development Incentives. The relief is subject to approval of the Ministry of Economy or Ministry of Finance, as the case may be. If a taxpayer does not claim corporate income tax relief under the Law on Research and Development Incentives, a special regime for research and development expenses, introduced with effect from January 1st, 2015, can be claimed if certain conditions are fulfilled.
In addition to the above mentioned, a special scheme was introduced with effect from January 1st 2018 for companies having income from commercial use of intangible assets (e.g. registered patents, software) developed by themselves or of so called embedded intangible assets (e.g. income from sale of products in which registered patent developed by the taxpayer is used). Such income shall be exempted up to 50% during the period of amortization of such intangible asset provided certain conditions are met.
For employers involved in vocational training of students, specific tax incentives were introduced with effect as of September 1st, 2015.
Foreign income and capital gains – Resident companies are subject to tax on their worldwide income and capital gains. Taxable amount is generally calculated in the same way as in the case of domestic income.
Foreign losses – Losses of foreign permanent establishment (calculated based on Slovak tax rules) may be offset against domestic profits unless, on the basis of an applicable double tax treaty, the exemption method applies for double tax relief.
Dividend income paid by non-resident company – Dividends paid out of profits generated starting January 1st, 2004 until December 31st, 2016 are not subject to any Slovak tax. Dividends paid out of profits generated before January 1st, 2004 are included in the taxable base of the recipient and taxed at a standard tax rate of 21% unless rules implementing EU Parent-Subsidiary Directive applies. Dividends paid out of profits generated from January 1st, 2017 shall be included to a separate tax base and taxable at 35% tax rate; this applies only if the distributing company is based in a non-contracting state, otherwise exemption applies.
Double taxation relief – No unilateral double taxation relief is provided. Double taxation is relieved only on the basis of tax treaties.
Taxable income – Non-resident companies are taxed only on income derived from Slovak sources. They are generally taxed according to the rules applicable to residents. Income attributable to a Slovak permanent establishment is generally taxed at 21% rate through a tax return (self-assessment).
Withholding tax – Generally, 19% withholding tax or tax security is levied (unless limited under a tax treaty); an increased tax rate of 35% applies if the recipient is a resident of a non-contracting state (i.e. a state not on the “white list” published by the Slovak Ministry of Finance). For interest and royalty payments EU Interest and Royalties Directive was implemented.
Dividend paid by resident companies to non-resident – There is no withholding tax on dividends paid to non-resident companies out of profits derived by the distributing company as from January 1st, 2004 until December 31st, 2016. Dividends paid out of profits generated before 1 January 2004 are (unless rules implementing EU Parent-Subsidiary Directive apply) subject to a 19% final withholding tax, unless a reduced rate applies under a tax treaty. Dividends paid out of profits generated from January 1st, 2017 shall be subject to a 35% withholding tax however only if the recipients are foreign companies based in non-contracting state.
Applicable on interest expenses arising in the tax period starting January 1st, 2015. All resident legal entities and non-resident legal entities having a permanent establishment in Slovak Republic are covered, with the exception of financial institutions and leasing companies. The deduction of interest expenses (including of other related expenses) on loans from related parties exceeding 25% of a company’s earnings before interest, taxes, depreciation, and amortization is prohibited.
With effect starting January 1st, 2015, the transfer pricing rules apply also between resident related parties. Until December 31st, 2014, transfer pricing rules applied only to transactions concluded by residents with foreign related parties.
Mandatory transfer pricing documentation requirements exist, which generally follow the recommendations contained in the OECD Guidelines on Transfer Pricing and the EU Code of Conduct on Transfer Pricing Documentation.
For more detailed information read also our “2019 Transfer Pricing Overview for Slovakia”.
As a result of the implementation of the Council Directive (EU) 2016/1164 laying down rules against tax avoidance practices that directly affect the functioning of the internal market (this Directive is further referred to as “ATAD”), the rules on hybrid mismatches were introduced in the national income tax law with effect from January 1st, 2018. The aim of these rules is to prevent a situation between related parties that leads to double deduction or deduction without inclusion.
Introduction of rules on exit tax with effect from January 1st, 2018 was part of the implementation of the ATAD, too. Exit tax at rate of 21% shall apply to legal persons in the case of taxpayer’s property transfer, taxpayer’s leaving or transfer of their business abroad.
In the case of taxation, the fiction of a property sale, or sale of the enterprise or its part should apply. The aim of taxation is to ensure that in the case of taxpayer’s property transfer or changing tax residence abroad, the taxpayer will tax an economic value of all capital gains earned in Slovakia, even though this gain is not realized in the moment of leaving.
Controlled foreign company
In 2017, when implementing the ATAD, the CFC legislation was approved, as well, and this with effect from January 1st, 2019.
The CFC rules consist of assigning the income of a low-taxed controlled subsidiary company to its parent company. Part of the parent company’s tax base will be the income of controlled foreign company to the extent to which the assets and risks are attributable to that income that are connected to main functions of the parent company.
As a controlled foreign company shall be treated the company or subject:
- in which the tax residence company by itself or together with associated enterprises has the holding of more than 50% or
- the proportion of the voting rights of more than 50% or
- profit-shares of more than 50%.
Concurrently, the corporate income tax paid by the controlled foreign company abroad is lower than 50% of the corporate income tax that the controlled foreign company would pay in the Slovak Republic after the tax base has been calculated in accordance with the Slovak law.
As the controlled foreign company is considered also the permanent establishment, while the first condition is not examined in this case.
Foreign source income – Resident individuals are subject to tax on their worldwide income. Taxable amount is generally calculated in the same way as in the case of domestic income.
Dividend income – Foreign dividends are generally exempt if paid from profits derived by the distributing company starting January 1st, 2004 until December 31st, 2016. Dividends paid out of pre-2004 profits and profits derived starting January 1st, 2017 are taxable at 7% or 35% if dividends are from foreign sources of non-contracting state.
Double taxation relief – Income earned from employment performed abroad is exempt in Slovakia if the taxpayer can prove that such income has been taxed abroad. There is no other unilateral double taxation relief, but relief may be obtained under a tax treaty.
Taxable income – Non-resident individuals are taxed only on their income derived from Slovak sources. Employment income derived by non-residents from employment performed in Slovakia for a period not exceeding 183 days in 12 consecutive months is exempt. The exemption does not apply to activities performed by artists or sportsmen, or through a permanent establishment. The income of non-residents is generally taxed according to the rules applicable to residents, unless a law or a tax treaty provides otherwise.
Personal allowances – Non-residents are entitled to the basic personal allowance (see above). In case their income from Slovak sources in the tax year is at least 90% of their total income, they are entitled also to the dependent-spouse allowance and tax credits.
Withholding tax – Generally, 19% withholding tax or tax security is levied (unless limited under a tax treaty); an increased tax rate of 35% applies if the recipient is a resident of a non-contracting state.
Dividend income – There is no withholding tax on dividends paid to non-resident individuals out of 2004-2016 profits. With respect to profits derived from January 1st, 2017 the withholding tax of 7% shall apply unless otherwise stated in the treaty; if the recipient is from non-contracting state the rate of 35% applies.
According to the aggregated indicator, Slovakia passed from being in line with the EU average last year to becoming one of the three best performers. It was above the EU average in almost all indicators. Compared with banks in other EU countries, Slovak banks are now the second most willing to provide business loans. The percentage of rejected SME loan applications has dropped from 15.52 % in 2015 to 8.15 % in 2016. Bad loss debt has fallen, as a percentage of total turnover, from 5.2 % in 2015 to 1.5 % in 2016. One negative change, however, has been the increase in the number of days it takes to get paid by the customer (average of B2C, B2B, and public authorities), up from 19 days in 2015 to 26 days in 2016 — which is still better than the EU average. It is likely that this change has been mostly influenced by the sharp rise in payment delays from public administrations.
Access to finance dropped from being the most important concern for 18 % of SMEs in Slovakia in 2013 to 7 % in 2016 (against 9 % at EU level)26. According to the OECD27, the Slovak Republic — together with Portugal — is the country with the highest level of SME loans as a percentage of total outstanding business loans (more than 80 % of loans go to SMEs) and it has been showing a shift towards long-term lending (the share of short-term SME loans as a proportion of all SME loans decreased from 50 % in 2007 to 35 % in 2015), often used for investment purposes.
Since 2008, overall policy progress in access to finance has been moderate. Policies adopted in line with the SBA recommendations have helped to create additional funding sources to support export initiatives and innovation projects. An example is ‘the innovation and technology fund’ — a public venture capital fund which provides investment to innovative SMEs in all investment phases, but mostly to the seed and start-up phases. Another important measure is the micro-loans programme, which was set up by the Slovak Business Agency to support micro SMEs. However, funding sources and programmes are needed to support early stage start-ups. Slovakia also lacks an adequate national grant programme to support start-ups. Since 2015, it has had a state-funded programme of support with early allocation of more than EUR 1 million, providing mentoring, advice and other types of non-financial support for start-ups.
SMEs will be supported by measures financed from the ESIF in the new programming period from OP Research and Innovation (with an allocation of some EUR 400 million). The implementation of ESIF instruments (e.g. loans, guarantee schemes) builds on experience with the JEREMIE initiative targeting SMEs. Access to SME funding from EU sources is being delayed due to slow implementation of EU programmes. The Slovak government only recently started to push through several measures easing the financial burdens for early-stage businesses28. During the reference period, no significant measures have been adopted under access to finance.
Industrial parks in Slovakia https://www.priemyselneparkyslovenska.sk/en/#
- When did the first industrial parks in Slovakia appear and who came up with the initiative – was it the Ministry, foreign investors or others?Despite the fact that until June 2001 there was no legal regulation specifying the conditions for setting up industrial parks, construction of several of them had started already, even back then. In most cases they were built within the premises of existing companies who decided to make use of available capacities and vacant land. Among the first, there was the Zahorie Industrial Park, providing exclusively for the sub-suppliers of Volkswagen Slovakia, a.s, and then the Vrable Industrial Park initiated by a foreign developer, as was also the case with the Sladkovicovo Industrial Park.
- Industrial parks development in Slovakia has come to a standstill. Why?The current law – from 2001 – on support for constructing industrial parks, which has proved to be working despite the amendment approved this year, has halted the progress. The amendment allows municipalities to release support for infrastructure construction on private land sites in return for real burden to their benefit. However, the proven commitments of two investors as well as a minimum 30% share in the total set-up costs plus the obligatory tax on the exemption of land from the Agricultural Land Fund are still in place. The current stagnation is also caused by insufficient financial support for construction of industrial parks from the state budget.
- How can SARIO, and particularly the Department of Regions that you head, help in the further development of industrial parks in Slovakia?The Department of Regions has participated in the writing of the amendment to the law on support for setting up of industrial parks and has submitted comments and suggested changes to the law. It has also been involved in working on the industrial parks set-up strategy.
- What is SARIO’s position in decision-making regarding the set-up of new industrial parks in Slovakia? What means can you use to attract foreign investors, could you for instance recommend a particular location?SARIO has the position of providing consultations to municipalities interested in getting support for building an industrial park, of writing expert evaluations of support proposals and, last but not least, SARIO has been promoting industrial parks to foreign investors. With this end, SARIO’s presentations, marketing materials and specialized expert studies for strategic investors all have devoted space to this promotion.
- What is your cooperation with particular municipalities like in this regard? Do they approach you with their plans to build an industrial park or is it you, or the Ministry, who takes the initiative?The law on support for setting up of industrial parks gives the initiative to the hands of individual municipalities. That is why most support proposals came directly from municipalities. However, in the case of strategically important locations or regions particularly attractive to foreign investors, the initiative is on the part of SARIO. SARIO then works with a given village or town on drawing up an industrial park study. Nevertheless, support proposals for setting up a park can only be submitted by a municipality who is also the sole support receiver.
- If we are not jumping too much ahead in introducing the strategy of industrial parks development in Slovakia, could you briefly summarize it?In addition to the amendment to the law on support for setting up of industrial parks mentioned before, SARIO has been involved in the process of industrial parks’ accreditation and has participated in a study designed to help in selecting strategic industrial parks that should achieve an international level of competitiveness. The accreditation should provide investors with an objective overview of existing industrial zones and parks. Slovakia does not have an umbrella institution for planning, building and presentation of industrial parks. It is SARIO’s ambition to become one.
- How many industrial parks are currently in Slovakia?There are only 8 properly functioning industrial parks in Slovakia ready for a foreign investor to step in. In most cases, we are talking about private landowners with available locations. The number of industrial parks with the state’s backing which should serve as a stimulus for foreign as well as domestic investors is very low.
- Do you think AmCham, an association of companies and corporations with mostly foreign capital, could offer some practical help in the development and setting up of industrial parks in Slovakia? Perhaps in cooperation with SARIO?It certainly could. Specifically, it could help with promotion of the existing industrial parks as well as with attracting investors to come to the identified locations. At this stage, the cooperation with SARIO could be much closer, as the agency, in addition to providing suitable locations (for an industrial park, lounges, or land), serves also as a consultancy provider for foreign investors.
State aid & public procurement
According to the aggregated indicator, Slovakia performs at the EU average in this area. Compared to last year, a marked drop has been recorded in public authority payment performance, highlighted by an increase in the average delay from 5 to 13 days. Payment delays from public authorities in the health sector are among the longest in the EU, at an average of 400 days22, and this particularly affects SMEs that provide medical devices. The Commission has opened a formal investigation23.
Since 2008, there has been limited overall improvement in performance in this SBA principle. Slovakia does not yet have a state aid policy in place to support SME needs and has implemented relatively few measures in this SBA area. A key issue with state aid is that the government does not apply the same practice to all entrepreneurs, for example, with regard to subsidies and tax holidays. Firms do receive subsidies as incentives to create jobs with some distinctions being made between SMEs and large firms as regards the level of benefits24. Under the Act on Investment Aid, SMEs can apply for state aid with the amount of acquisition of tangible and intangible fixed assets set at up to half of the amount large companies are eligible for. Under public procurement, the most important development was the 2013 reform of the ‘Public Procurement Act,’ transposing the new EU Directive on public procurement, effective as of November 2015. The new legislation attempted to better ensure fair and objective procurement and introduced most economically advantageous tender (MEAT) criteria. Still, concerns remain over the extent of non-competitive tendering. According to the Single Market Scoreboard, Slovakia’s performance in public procurement in 2015 was still unsatisfactory (5 out of 6 indicators). A key concern for businesses is the lack of transparency in the public procurement process, which reflects a wider perception of corruption caused by rather weak and biased implementation of existing rules25.
During the reference period, no significant new measures have been adopted in the area of state aid. A new act against letterbox companies was introduced as an important transparency measure in fighting corruption. But companies voiced their concerns about the cost of submitting their full ownership structure verified data to the new publicly accessible register of partners of the public sector introduced by the act. Registration is mandatory for all companies doing business with the state in excess of EUR 250 000 a year.
Slovakia is an ideal investment destination because of its political economic stability strengthened by the common European currency Euro, competitive taxation system tax, and availability of highly skilled and educated workforce offering the highest labour productivity in the CEE region with favourable labour costs.
Steadily growing infrastructure, large selection of industrial land and offices available for purchase or lease, harmonised investment incentives and high innovation potential for R&D projects are further assets of the country. Last but not least, the country has a favourable location in the heart of the Europe, between East and West, and between Poland, Hungary, Austria and the Czech Republic.
Slovakia offers great advantages to foreign investors: strategic location between East and West with great export potential, the common European currency Euro and eight lowest debt of GDP in the EU27. In 2010 Slovak economy recorded a 4% GDP growth, one of the highest in EU.
The country enjoys positive ratings from international rating companies and gained the best position among the CEE countries in World Bank’s Doing Business Report 2008 – 2013.
Currently the best investment opportunities are observed in sectors of R&D, Design & Innovation, Technology centres, ICT & SW development, BPO – Regional headquarters, High-tech sectors and Tourism centres. Additional opportunities can be found in the traditionally strong sectors with the growth potential in Slovakia: Machinery & Precision engineering, Automotive, Metallurgy & Metal processing, Electronics and Chemistry & Pharmacy.
The attraction of Slovak investment environment is proved by constantly raising number of foreign investors and volume of foreign direct investment in the country.
TOP Reasons Why to Invest in Slovakia
- safe investment environment: political and economic stability
- Central European hub & favourable geographic location with great export potential
- fastest growing Eurozone member within the last 10 years (CAGR)
- Slovakia 10 Year CEE Leadership in Doing Business 2004 – 2013 (World Bank)
- CEE Leader in Physical Property Rights Security (PRA)
- CEE leader in labor productivity and in TOP 10 hard working countries (OECD)
- high adaptability of labor force to different culture management styles
- nr. 9 worldwide in adapting to new technologies & high innovation potential
- official currency EURO as one of a few countries in CEE
- large selection of industrial land & offices
- steadily growing infrastructure network
- attractive investment incentives
All these unique selling points are highly attractive to investors. When looking at any investment the ease of implementation and the security of the investment are key factors to consider. The World Bank Ease of Doing Business Rankings and the Property Rights Index show Slovakia scores highest on both fronts when compared to other CEE countries.
Slovak labor force is standardly perceived by foreign investors as educated, motivated, adaptable to culturally different management styles with great multilingual competencies and very positive attitude to work habits. According to OECD Slovakia is one of TOP 10 hardworking countries along with the countries like United States or Japan.
On the plus side, Slovakia is the CEE leader in labor productivity and investment freedom. The investment climate and unique advantages of Slovakia have been shaping the country from a potent precision component manufacturing, metallurgical and automotive assembly hub to a knowledge based economy. Slovakia with its well-diversified and developed base is solidly positioned to retain and expand its foreign investor base.
Selected successful projects by country of origin:
GERMANY (Brose, BSH Drives and Pumps, Bodet & Horst, Continental, ContiTech Vibration Control, Cemm Thome, Giesecke&Devrient, Eissmann, KUKA, PSL, Porsche Werkzeugbau, Osram, Siemens, Hella, Leoni, Semikron, SAS Automotive Systems, INA, Schaeffler, Secop, Vaillant/Protherm, VACUUMSCHMELZE, T-Systems, Volkswagen, ZF, MAHLE, Deutche Telecom (Slovak Telecom), Air Berlin, GeWiS, Rochling, Felss Rotaform, Gerhart Braun, STRAHLE+HESS)
AUSTRIA (KROMBERG & Schubert, MIBA, Michatek, Neuman Aluminium, ZKW,UNIQUA Group Service Center)
USA (Accenture, Amazon, AT&T, Emerson, DELL, Delphi, IBM, Hewlett Packard, Johnson Controls, Getrag Ford, Honeywell, Microsoft, Mondelez International, Johns Manville, Lear Corporation, ON Semiconductor, Oracle, Tower Automotive, Trim Leader, US Steel, Whirlpool, Diebold Nixdorf, LEAR)
SWITZERLAND (ABB, Holcim, Enics, Nestlé, Nexis, Novartis, Swiss RE, Schindler, Vetropack)
BRASIL (Embraco, CRW Slovakia, Rudolph Usinados SK, Micro Juntas SK)
UNITED KINGDOM (Jaguar Land Rover, GlaxoSmithKline, de Miclén, KMF, Boxperfect, Tesco, ELE Advanced Technologies, DS Smith, Innopharma, Amec Foster Wheeler Nuclear, Hi-Technology Mouldings, G-Tem)
FRANCE (PSA PEUGEOT CITROËN, Orange, Faurecia Slovakia, Plastic Omnium, Eurostyle Systems Slovakia, Atos IT Solutions and Services, Bourbon Automotive Plastics, TREVES, GeLiMa, Savencia Fromage, Air Liquide, NPL S (Defta), CCN Group, Pellenc, Syraren Bel, Axson)
SPAIN (Cortizo, Cikautxo, Estamp, ELASTORSA, MAR SK, Fagor Ederlan, ArcelorMittal Gonvarri SSC, GRUPO ANTOLIN, FARGUELL, TECHNOMETAL, JOBELSA, Edscha (Gestamp), O2 (Telefónica))
ITALY (Magneti Marelli, BROVEDANI, SISME, Z Industries SK, Bonfiglioli, MTA, Mevis, LOMBARDINI, C.I.M.A., B.C.B., GGP, Prysmian Group, Rialto, Immergas Europe, FGV)
SOTH KOREA (KIA Motors, Samsung Electronics, Mobis, YURA, Sungwoo Hitech, Hyundai Dymos, Hanon Systems, Donghee, Iljin, Dongil Rubber Belt, Shin Heung Precision, Seoyon E-HWA)
CHINA (Yanfeng, Boge Elastmetall, Lenovo, Huawei, ZTE, Mesnac)
Taiwan: AU Optronics, Foxconn, Delta Electronics, ESON
DENMARK (Ecco, Danfoss Power Solutions, Velux, Unomedical, Nissens, DKI Plast, Glunz & Jensen, Kragelund)
SWEDEN (SCA Hygiene, IKEA, Dometic, Camfil, Cloetta, Metal Design, Ericsson, Nefab)
BELGIUM (Bekaert, Plastiflex, Team Industries, Carmeuse, Fremach, Aspel, Deltrian, C&A, Punch)
JAPAN (SE Bordnetze, Panasonic, Yazaki, Akebono, U-Shin, Sanyo, Siix, Minebea, Brother Industries, Hitachi, Kasai Kogyo, AAF Daikin)
Source : SARIO, 2018