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Members of SAEI European Union, Euro Zone, Schengen Area, the United Your Interest, Please, Do Not Hesitate to Get in Touch with BDO Nations, OECD and WTO WE ARE HELPING COMPANIES GROW INTERNATIONALLY! 1 KEY FACTS & FIGURES KEY FACTS & FIGURES WELCOME SAEI 2 3 CONTENTS EDITORIAL Key facts & figures Country profile 1 Geography Macroeconomic overview Industries Human capital Dear Reader, incorporation, taxes, accounting, legal issues, hiring We are delighted that you chose this guide as a source employees, translation services, insurance, applying for of information for your potential business ventures incentives, banking, logistics and forwarding, finding an How can SAEI help you? in Slovakia. The guide has been carefully written with industrial or commercial property for your business, the assistance of BDO Slovak Republic to reflect the business partners search, M&A, JV, etc. Basic information core aspects of the Slovak business environment. Remember, what matters to you, matters to us. Vision We hope that it will convince you about the immense While the publication covers the relevant areas and care 2 opportunities our country has to offer. has been taken to ensure the accuracy, completeness Activities The Slovak Republic is a young country, strategically and reliability of the content, it is not intended to situated in the heart of Europe. It has a population of provide the comprehensive information necessary to 5.5 million inhabitants. Slovakia is a member state of the make investment decisions. If any of these issues spark Members of SAEI European Union, Euro Zone, Schengen Area, The United your interest, please, do not hesitate to get in touch with BDO Nations, OECD and WTO. our professionals at the Slovak Association of Exporters It takes extraordinary vision and courage to explore and Importers. We will be happy to tell you more about 3 bnt attorneys in CEE opportunities outside your comfort zone. We believe in the opportunities in our home country. Balanced HR the power of great ideas – the building blocks of success investin.sk stories of today. However, in order to develop ideas IMG into real business, one needs the talent, skill and expert Coface knowledge of specialized professionals. The Slovak Association of Exporters and Importers is a non-profit ARRS Forwarding organization. Our members and associates are here to Tetras provide you with support in any way you need for doing Ernest Rakonczay business in Slovakia. This includes market research, President setting up your presence in Slovakia, including company The Slovak Association of Exporters and Importers 4 5 KEY FACTS & FIGURES 4.0% GDP growth in 984 EUR Only V4 country* 2018 with estimated average gross to have adopted 4.1% in 2019 monthly salary EURO currency EU, OECD and NATO Trusted business member state environment 20% VAT standard Strategic Proven track rate 10%, special location within record of S&P rating: rate for certain CEE region high-value A+ stable goods and services investments Developed 21% Highest infrastructure corporate labour FDI incentive tax productivity scheme among V4 World countries leader in car Double production 12 days taxation per capita to start a avoidance 48.8% public business treaties debt to GDP ratio in 2018 35 universities *V4 stands for the Visegrad Group, a group of countries comprising Slovakia, Czech Republic, Poland and Hungary. 6 7 KEY FACTS & FIGURES Key facts & figures Country profile Geography Macroeconomic overview Industries Human capital 1 8 9 KEY FACTS FACTS& FIGURES & FIGURES KEY FACTS & FIGURES General People Official name: Slovak Population: 5.443 million Republic Active workforce: Area: 49,036 km2 2.754 million Time zone: GMT + 1 Birth rate: 1.07 per 1,000 Currency: EUR people per year Official language: Slovak Average gross monthly salary: 984 EUR Retirement age: 62,5 years Country profile Slovak Republic is undoubtedly one of the most attractive International Political investment destinations in Europe. Once nicknamed the Tatra Tiger, Slovakia reaps the benefits of strong underlying Organizations Situation fundamentals, such as its highly skilled and educated workforce, well developed infrastructure and political stability. Membership Type of government: Parliamentary democracy European Union Electoral system: Euro Area Proportional representation DID YOU KNOW? Schengen Area, V4 The staff of Slovak and Slovenian embassies meet OECD, WTO, NATO, once a month to exchange the wrongly-addressed mail. and others Source: Statistical office of the Slovak Republic 10 11 KEY FACTS & FIGURES KEY FACTS & FIGURES POLAND Warsaw 450 km Krakow 100 km CZECH REPUBLIC Žilina Poprad Prague 260 km Prešov UKRAINE Trenčín Košice Kiev 815 km Banská Bystrica Zvolen Trnava Nitra Geography DID YOU KNOW? Bratislava Slovakia is home to one of Slovak Republic is situated in Central Europe, bordered Europe’s most beautiful towns. by five countries – Hungary, Ukraine, Poland, Austria and the Czech Republic. Slovak cities are in close proximity to Vlkolínec is one of the 30 most HUNGARY other internationally recognised hubs, such as Vienna, beautiful towns in Europe. Vienna 70 km Budapest, Prague or Krakow, which only further underlines the favourability of the central location, offering access to AUSTRIA 350 million customers within a 1,000 km radius. It is easily Budapest 50 km accessible by air, having two main international airports in Bratislava and Košice and another three global hubs Existing highway in Vienna and Budapest accessible within two hours and Highway in construction Prague within four hours from the capital city. Planned highway Mobile services Mobile Network Coverage Data Connection Expressway Provider Population Popul. 4G Download Upload Planned expressway Orange 99.8% 92.4% 225 Mbps 50 Mbps Main railway Slovak Telekom 99.0% 93.6% 375 Mbps 50 Mbps O2 98.0% 95.2% 73 Mbps 25 Mbps Airport 4ka 99.0% 70.0% 50 Mbps 10 Mbps Source: Orange, Slovak Telekom, O2, 4ka 12 13 KEY FACTS & FIGURES KEY FACTS & FIGURES Ease of doing business Based on the World Bank report on the ease of business, in 2019, Slovakia ranked number 42 in the DID YOU KNOW? world. In terms of comparable countries in the region, Slovakia and the CEE region this year it was only surpassed by Poland and Czech offer foreign companies Republic. Slovakia was the regional leader in the ranking a number of advantages. in years 2008 to 2013. The factors considered by the Development of business World Bank as measures of the index include: relationships within the • the political and institutional environment, European Union are easy • macroeconomic stability, market potential, due the close geographical • private entrepreneurship support, proximity, with good access • taxation system, through a number of budget • access to financing, contract enforcement, airlines, meaning business here • the starting and closing of a business, is especially ideal for SMEs on • labour market characteristics, and tight budgets. The European • infrastructure quality. Union funded infrastructure, energy, and innovation Historical and forecasted GDP growth and unemployment (%) projects have also created Macroeconomic 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f opportunities, and it currently S&P Moody’s Fitch 16 14,5 13,7 14,0 14,2 has a far lower market 14 13,2 overview A+ stable A2 positive A+ 12,1 12,1 12 penetration in comparison 9,7 • Comprehensive structural reforms of the tax, 10 8,1 6,9 6,3 6,0 with West European markets. labour, pensions and healthcare systems and an 8 overall decentralization of powers in past years. 6 4,8 The Slovak workforce is highly 3,8 3,4 3,3 4,0 4,1 3,5 Macroeconomic indicators 4 2,7 2,4 • Membership in the Eurozone since 2009. 1,6 1,4 skilled. The main foreign for Slovakia 2016 2017 2018 2019f 2020f 2 • One of the strongest rebounds in terms of GDP GDP growth (%, yoy) 3,3% 3,2% 4,0% 4,1% 3,5% 0 languages spoken are English growth in the regions after the 2008 crisis. Inflation (%, yoy) -0,5% 1,4% 2,6% 2,6% 2,4% -2 and German. Hourly labour • Higher levels of unemployment as compared to Unemployment (%) 9,7% 8,1% 6,9% 6,3% 6,0% -4 -5,3 costs in Slovakia are more than the situation in the Eurozone which indicates Deficit (% of GDP) -2,2% -0,8% -0,6% -0,3% -0,1% -6 Gross public debt (% of GDP) 51,8% 50,9% 48,8% 46,4% 44,2% Unemployment Slovakia Unemployment Eurozone 3 times lower than in Germany. a potential for growth without the upward Current account (% of GDP) 0,4% -0,2% 0,0% 1,2% 2,1% GDP Slovakia GDP Eurozone pressure on wages. f = forecasted, source: Eurostat Source: Eurostat 14 15 KEY FACTS & FIGURES KEY FACTS & FIGURES Industries • Tradition of electrical and chemical engineering, wood- processing and food industry. Factors adding up to the • Industry is currently undergoing a phase of rapid attractiveness of Slovakia growth, which is attributable to the favourable business environment and a supply of foreign investors. • Slovakia is one of the world leaders in the automotive industry with four well-known car manufacturers PSA Peugeot Citroën (in Trnava), KIA Motors & Hyundai Mobis (in Žilina), Volkswagen (in Bratislava) and Jaguar Land Rover (in Nitra) produce their cars in our country. - In 2015, the Slovak automotive industry reached production levels of more than a million cars per year. - Slovakia maintains the position of a world leader in the indicator of car production per capita. Broad knowledge Lower wage costs • Electrical engineering is now the second largest industry as of languages in comparison with well as the second largest employer. Western Europe or - LCD panels are the key article and they are North America produced by companies such as Samsung, Foxconn, AU Optronics or UMC. Geographic and cultural proximity Recent attractive sectors to Western Europe IT • Strong interest of international companies in relocating and centralising their business services to the region of Central and Eastern Europe (CEE) with shared services Well-developed DID YOU KNOW? sector becoming one of the key sectors in Slovakia, infrastructure Slovakia is by far the global employing more than 30,000 people.
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