FDI in figures

Foreign direct investment (FDI) has increased considerably over the last few years. In 2006, it represented 30 327 million dollars, i.e. 55% of GDP.
According to the UNCTAD 2007 report on worldwide investment, Slovakia is in 52nd place out of 141 countries studied in terms of potential attractiveness of FDI and 29th at the performance level.

Why you should choose to invest in Slovakia

Strong points

Slovakia offers various advantages:
- its strategic geographical position: the country is situated in the center of Europe;
- its workforce: it is inexpensive and well qualified;
- its advantageous tax system: single rate of 19%;
- frequent aid for foreign investment which can range from 20 to 50% of investment costs according to the investment project;
- large growth potential.

Weak points

Slovakia has:
- widespread technical and administrative barriers: import licenses especially for raw materials, energy and some agricultural products;
- high energy costs: Slovakia imports 90% of its energy needs which increases the energy bill considerably;
- defective infrastructures: although governmental reforms have been set up, the infrastructures are not yet well developed and the country has no access to the sea.

Moreover, Slovakia is a small country whose population is not large in comparison with neighboring countries such as Poland for example.

Government measures to motivate or restrict FDI

The Slovak government encourages foreign investment, the main driving force of the economy. This investment is motivated by tax credits, subsidies, etc. Aid is granted according to the type of project, where it will be set up (geographical area) and the sector.
For further information, consult the website of the Slovak Investment and Trade Development Agency (SARIO).

Procedures relative to foreign investment

Freedom of establishment

Foreign investors have freedom of establishment.

Acquisition of holdings

A majority holding interest in stock of a local company is legal in Slovakia.

Obligation to declare

Several authorizations are necessary to set up a factory (planning license, building permit, occupation license). An authorization is also needed to carry out commercial activity. It has to be obtained from the competent local authorities.

Requests for specific authorizations

There are special authorizations in the sectors of electricity, telecommunications, banking services and insurance.

Finding assistance for further information

Investment aid agency

Slovak Investment and Trade Development Agency (in English)

Other useful resources

"Why invest in Slovakia?" a SARIO document (in English)
The Slovak Ministry of the Economy on investment (in English)
"Why invest in Slovakia?" a Cabinet Deloitte document (in English)
National agency for the development of SMEs, NADSME (in English)