Slovakia is a country in the middle of Europe that has a lot to offer foreign investors who want to set up businesses there. This EU member has a fast-growing economy and can offer a stable legal system and access to EU funds. Slovakia is also known as the “Tatra Tiger”. It got this name because its economy grew quickly in 2001, which led to a large number of economic reforms. In 2017, it received $2.2 billion in foreign direct investments, which was 58.4% of the country’s total Gross Domestic Product.
Why this great country is a good place to invest
There are many reasons why a foreign investor should choose to invest in Slovakia:
Slovakia is in a good place geographically
Foreign businesspeople who want to invest here should know that the country is in a strategic location, which means that it has a lot of potential to export. Because of its convenient location, this country has become an economic link between the eastern and western parts of Europe. Its place in the export market is secure because it is in the middle of Europe. It trades manufactured goods, machinery, fuel, food, and tobacco all the time. Because it is in a good place geographically, it has been able to develop industries other than trading. Innovation and technology have also grown a lot since a lot of foreign investors became interested in the talented workforce. The BPO (business process outsourcing) industry is also an important part of Slovakia’s economy. Information technology, or IT, has also risen to the top of the country’s most developed economic sectors.
The member of the Eurozone with the fastest growth
Another reason to start a business in Slovakia is that it is the fastest-growing country in the Eurozone and has the least amount of debt from outside the country.
A stable economy and government
Slovakia is a great place to start a business because the economy and government are both stable there. Compared to other countries, Slovakia’s government has been pretty stable for the last 20 or so years. This country has low labor costs and high labor productivity at the same time. On top of these two benefits, the people who work there are highly skilled and flexible. Slovakia’s growth in the European Union has also been helped by its tax system and the fact that it has more educated workers than other EU countries its size. At the moment, it is one of the few European countries with high labor productivity.
Slovakia has a cheap labor force, and it also has some of the lowest living costs in the European Union. Because of this, a lot of people from other countries have moved to Slovakia to do business and look for work.
The Euro is the currency of Slovakia
The country uses the Euro as its official currency, which could be another reason for a foreign business owner to start a company there. After 16 years of using the Slovak Koruna, the European Union agreed in 2008 that Slovakia should join the Eurozone. The good thing about this is that trading is easy (the hurdles of exchanging money are absent).
A business that is fully developed
The Slovak Republic has a very well-developed economy, especially in engineering and electro-energy. There are also many places to invest, such as in machinery, electronics, and pharmaceuticals.
The government of Slovakia helps foreign investors
Aside from these reasons, which make it a great place for foreign entrepreneurs to invest, the government has also set up incentives that have helped bring in more foreign direct investment. Foreign companies doing business here pay a flat tax rate of 19% on their income. The Slovak government doesn’t make any distinctions between local and foreign investors. Foreign investors have access to all programs designed to help the economy, such as financial aid and tax exemptions. Foreign investors can set up industrial facilities in Slovakia and even own the majority of shares in local companies. Slovakia is a great place to invest, and if you’re an entrepreneur from another country who wants to open a business there, you can get help from local advisors with the Trade Register.
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