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Why to Invest into Slovak Industry

Location of production in Slovakia

We would like to present you a country where you will be able to do business, ie manufacture, sell and make profits without too many questions and not having any problems, predictably, and according to the laws are respected. Interested??

The country, in which everything is possible, is called Slovakia.

General Characteristics

End of communist Czechoslovakia in 1989 during the peaceful Velvet Revolution, also signified the beginning of the end for Czechoslovakia as a whole and the creation of two separate states - Slovakia and the Czech Republic, which are now going their own ways after January 1, 1993. Independent Slovakia is now an EU member since 2004, and a member of other international organizations such as WTO, EU, OECD, NATO, since 2007, joined the Schengen zone, on January 1, 2009 entered into the euro zone. GDP growth in 2008 was 8%, 7% unemployment, inflation - 2%, wage growth was 3%. Of course, in 2009, they corrected the macro-economic indicators in relation to the global crisis, however, the crisis in this small country has moved very well.

Fields of activity

The services sector in Slovakia in recent years has been developing very fast,  in this area work approximately 57% of the population. Tourism develop successfully, the annual growth of ~ 15%, especially in the Slovak Tatra Mountains, where there is a wonderful nature and the possibility of vacation, both in winter and in summer time. However, the sector is still relatively underdeveloped in comparison with neighboring countries. According to the Federal Tourism Agency of Russia, and Slovakia in 2009, attended by only 3,187 citizens of Russia and the neighboring Czech Republic 226 988 people! Although the comparison of Slovakia 48 845 m2 with 5 million inhabitants and the Czech Republic 78 866 km ² with 10 million people. It should be noted that in the Czech Republic do not have mountains! Beautiful ski slopes in the Tatra Mountains in Slovakia attracted many Polish, English, German, Hungarian and Ukrainian skiers. Modern airports are located in Poprad, Vienna and Bratislava, advanced and high-speed rail highways built over the past 2-3 years, make it easy to get to the ski bases Donovaly Smokovec, Jasna, etc.

Scope of industry in Slovakia is developing very rapidly. Good development in Slovakia got mechanical engineering, metalworking, electronics, chemical industry and information technology. The automotive sector is the fastest growing and presented by three giants Volkswagen, PSA Peugeot Citroën and Kia Motors. Would like to mention that in Slovakia produced products of such firms as Sony, Samsung, Whirlpool, etc.. In Slovakia, there are major suppliers of electronic components, the terms of delivery time are 1-2 days, the delivery charge is from 0 to 10 € per parcel up to 30 kg. Term of payment components is 2 weeks after receipt. Customs in the EU is missing,and  supply from neighboring countries is without VAT. When shipped from Southeast Asia or the U.S. one must pay VAT at customs, but it returns after 3 months automatically according to the financial statements. No need to go to customs, usually companies like TNT, DHL, DPD make out all by themselves. Nevertheless, if you decide to register  goods yourself, making the customs declaration costs about 11 euros. There is no corruption in Slovakia. When you export the goods, shipping goods to neighboring countries of EU is without VAT, with the code and the code of the VAT TIN (VAT) in the invoice. This is sufficient for accounting. When shipped to other countries, it is necessary to go through all customs procedures, if the price of shipped goods is over 1,500 EUR.

The scope of the agrarian sector in Slovakia has historically developed. More than 40% of Slovakia is allocated for agricultural crops. The southern part of Slovakia (on the border with Hungary) is known for its rich agricultural land. The following crops are grown: wheat, rye, corn, potatoes, sugar beets, fruits and sunflowers. Vineyards are concentrated in the Small Carpathians, a region of Tokai and southern regions of the country. Livestock is grown as well.

Industry for investment

In Slovakiathere is  still a great potential in the industry: there are industrial parks, an educated population, and state support, state  is interested in hosting the production and expansion of services in Slovakia.

Industrial park - a project of regional or supra-regional character with an area of more than 10 hectares, where you can place a few investors. These parks are  supported by the local government or public authorities. Park serves a network of personal, economic, housing and other needed services. We discard  industrial facilities of bankrupt companies or companies with no established links with suppliers of services necessary for the development of production, although it is possible to organize production there as well.

In Slovakia, there are also research centers, and many foreign companies know this for sure, for example, Johnson Controls, IBM, Dell, Lenovo, Accenture, ON Semiconductor, Leoni, BSH, Wabash Technologies, ThermoSolar, Sauer Danfoss, Ness, Hanil E-Hwa Automotive, Siemens, Alcatel Lucent and others.

In Slovakia, one will find  several higher education institutions, which prepare specialists in various areas, such as, physical and mathematical sciences, chemical and biological sciences, engineering, information technology, construction, electrical engineering. In Slovakia, they prapare managers in different spheres, managers of biginning and middle level. Nevertheless, competition with the developed EU countries often means that the lack of  engineering staff  and the  high price of labor, practically  the same as in Moscow.


In 2003, Slovakia carried out tax reform, which was aimed to simplify the tax system and create a more hospitable environment for foreign investment. This law acts up to present day with additions and changes that only improve their well-laid base. 

Slovakia canceled  the following taxes: a tax on inheritance, gifts tax, real estate sales, and most importantly the tax on dividends in the case of joint stock companies or redistribution of tax revenue in the case of LLC. The export 100% of profits for enterprises with foreign capital is allowed. Was set a single size of income tax for individuals and legal entities regardless of their income: 19%. The VAT rate is also 19%, except for exceptions, such as pharmaceuticals, eyeglasses, contact lenses, books, wheelchairs, most of the radioactive elements. In this case, a reduced rate exist. VAT payer can be optional or obligatory, when annual sales exceeded during the previous 12 months the amount of 49,790 euros. With turnover in excess of 331 939.19 euros, the company becomes a monthly VAT, with turnover within 49 790 - 331 939.19 quarterly. VAT is refundable, and indeed returns.

Tangible property can be written off by the straight-line method or accelerated write-offs. Other costs that were necessary for conducting business, you can also write off and thus reduce the tax base.

Slovakia signed a treaty on avoidance of double taxation with many countries, for example: Belarus, Bosnia and Herzegovina, Israel, India, China, Cyprus, Latvia, Lithuania, Macedonia, Malta, Russia, Turkey, Turkmenistan, Uzbekistan, Ukraine, Montenegro and Switzerland.


For its project, whether research or actual project implementation, you can get a loan or irrevocable aid from the UCITS. The firm must be registered prior to 2007, if you do not have such a company it can be purchased along with its know how and brains, which most likely, with the right guidance will only bring you benefits.

Life in Slovakia

Of course, to develop business in Slovakia, it is necessary to establish a company in Slovakia or joint stock company and stay in Slovakia, but in reality not permanently.

Legislation of the Slovak Republic allows foreign persons (natural or legal) to do business under the same conditions as Slovaks. An foreigner  may establish his own company or become a part owner of an existing company in the country.

Residence permit (permit) can get the director (head) of the Slovak company, which can be both a founder (owner) of the firm. Your other half may also be the director novootkryvaemoy or existing companies in the country, or to obtain residence permits under family reunification. Children can get a residence permit based on family reunification.

If you're a big investor, then your entire family can get permanent residence, or even citizenship, that means a residency in a European country and a large number of benefits for you. Children with a residence permit or permanent residence in Slovakia are free to go to kindergarten or school, a residence permit in Slovakia will allow you to move freely within the EU. The average price of places in kindergarten in Slovakia is 30 euros per month. But it’s necessary  to reserve a seat  six months or a year in advance due to a very high relative birthrate in Slovakia! It’s very difficult to find a kindergarten near the house, one has to travel about 1-2 km far from home. There are many schools in Slovakia that means no problems with giving children to school. There are private schools such as English, American, Galileo, and so on. The average price of private schools and kindergartens varies from 300 to 1200 euros per month.

Purchase of real estate by foreigners

In connection with the entry in May 2004 to the EU, all restrictions on the purchase of real estate by foreigners were lifted. A resident of a State may acquire ownership of property or land directly - without having to register a legal entity. According to the legislation of the country  foreigners are not allowed to buy only the agricultural land and forests. A legal entity registered in Slovakia (even if the founders are not residents of Slovakia), the same rules are appled as for  Slovaks, ie, the firm can buy land and farmland. In Slovakia, you can buy property using a mortgage.

Mortgage yield a maximum of 30 years. Maximum of 70% of the price of real estate. Term of consideration of the application - 2-4 weeks. It is possible to assess the conditions of credit in the form of a certificate before signing a preliminary agreement with the holder of real estate. Recently, in response to the crisis conditions for obtaining loans by foreigners are limited. Usually it’s given only to persons with permanent residence.

Other pluses of Slovakia

Convenient location: 2 Airport, Vienna 70 km, Budapest 200 km, Krakow 300 km, Praha 400 km, 350 million potential customers within a radius of 1,000 km, almost the entire European Union within a radius of 2,000 km, exit to the Balkans and other 440 million inhabitants. Labor force: a highly skilled and relatively low cost compared with high productivity. Transport: excellent service in rail, passenger and freight, trans-European transport of water transportation across the river Danube; fast, reliable and inexpensive postal services in the EU, steadily developing  network of highways, direct flights between Bratislava / Vienna, and many European cities, including Athens, Barcelona, Dublin, Frankfurt, Milan, Moscow, Munich, Paris, Prague, Rome, Stockholm and Zurich.


If you are a manufacturer, do not miss your chance to explore the possibility of moving your production to Slovakia, to receive a residence permit for all members of your family in a quiet European country, with low crime and corruption, low cost of living and ability to produce in a predictable country where local government and the state is interested in you and in every way you will be maintained, whether you are a small manufacturer or a giant producer.


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Real estate in Slovakia, Temporary and permanent residence permit in Slovakia, Establishment of the company, Immigration to Slovakia, Forum on Slovakia, Business in Slovakia, Visas to Slovakia
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