BUSINESS FRIENDLY SLOVAKIA - GET TO KNOW SLOVAKIA AS YOUR INVESTMENT DESTINATION - Consolati Slovacchi
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GET TO KNOW SLOVAKIA AS YOUR INVESTMENT DESTINATION BUSINESS FRIENDLY SLOVAKIA
GROWING HEART OF EUROPE
Establishment: 1 January 1993
Official name: Slovak Republic
Area (m2): 49,035
Population: 5,400,000
Capital: Bratislava
Official currency: Euro
Official language: Slovak
Political system: parliamentary democracy
Election term: 4 years
Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine
Time zone: GMT+1 hour
300 MILLION 600 MILLION
CLIENTS IN RADIUS OF CLIENTS IN RADIUS
1,000 KM OF 2,000 KM
2
INTEGRATED IN EU & INTERNATIONAL ORGANIZATIONS
*1918 1993 2004 2007 2009 2016
CZECHOSLOVAKIA INDEPENDENCE EUROPEAN SCHENGEN EUROZONE EU COUNCIL
OF SLOVAKIA PRESIDENCY
UNION AREA
EUROPEAN NATO UNITED WORLD INTERNATIONAL OSCE WORLD OECD
UNION NATIONS BANK MONETARY TRADE
FUND ORGANIZATION
Source: Ministry of Foreign Affairs of the Slovak Republic (2015)
3
EURO ZONE MEMBER
EURO €
since 1 January 2009
• One of a few in CEE
• Euro implementation impact:
• Limitation of Foreign Exchange
Risk
• Lowering Transaction Costs
• Growth in Foreign Trade
• Increased Economic & Financial
Stability
• Favorable conditions for long-term
business decisions
4
DOING BUSINESS — AMONG THE BEST IN CEE
Starting & Closing Business The World Bank Project
analyzes the 10 areas
Construction permits
of business regulations
in 190 countries
Registering property
Paying taxes
RANKING OF THE SLOVAK REPUBLIC
Electricity acquirement
39.
Enforcing contracts
46.
Protecting investors 2018
Insolvency resolution
2013 AMONG
Trading across borders
THE BEST
RANKINGS
Getting credit
IN CEE
Source: World Bank, Doing Business Report 2018
5
KEY MACROECONOMIC INDICATORS
MACROECONOMIC OVERVIEW
GDP GROWTH PREDICTION
BY EUROPEAN COMMISSION
Slovakia
11%
European Union (EU28) 2017f 2018f
9%
7% Germany 2.2 % 2.1 %
5%
3% Slovakia 3.3 % 3.8 %
1%
Poland 4.2 % 3.8 %
-1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-3%
Czech Rep. 4.3 % 3.0 %
2011 2012 2013 2014 2015 2016
Hungary 3.7 % 3.6 %
Real GDP Growth 2.8% 1.5% 1.5% 2.8% 3.9% 3.3%
HICP Inflation 4.1% 3.7% 1.5% -0.1% -0.3% -0.5%
Romania 5.7 % 4.4 %
Unemployment 13.7% 14% 14.2% 13.2% 11.5% 9.7% Bulgaria 3.9 % 3.8 %
Source: European Commission, European Economic Forecast Autumn 2017
7
FASTEST GROWTH AMONG CEE EURO-ZONE COUNTRIES
2005-2016
Average Annual
Slovakia 3.30
Growth Rate
Lithuania 2.30
Latvia 2.00
Estonia 1.60
Slovenia 2.50
Euro area 1.80
Source: Eurostat, Real GDP growth rate – volume (2016)
8
Data as of February 2017
ONE OF BEST COUNTRY CREDIT RATINGS IN CEE
CREDIT RATING CZECH
SLOVAKIA HUNGARY POLAND BULGARIA ROMANIA
AGENCY REPUBLIC
A+ AA- BB+ BBB+ BB+ BBB-
stable stable stable stable stable stable
A2 A1 Ba1 A2 Baa2 Baa3
stable stable stable negative stable stable
A+ A+ BB+ A- BB+ BBB-
stable positive stable positive stable stable
A+ A BBB A BBB BBB-
stable stable negative stable stable stable
A A+/AA- BBB- A-/A
stable stable stable stable
OECD
0 0 4 0 4 3
Country risk
Source: S&P, Moody’s, Fitch, JCR, R&I, OECD (2017)
9
SLOVAKIA-
LOWEST CEE
TAX BURDEN
SIMPLE & FAIR TAX SYSTEM
43,1
INDIRECT TAXES 39,2
% OF GDP 35
32,5
28,3 28,3
DIRECT TAXES
% OF GDP 18,5
13,4 14,8 12,3 13,1 13,4
10,2
7,2 7,2 6,1 7,5
TAX REVENUE 5,6
% OF GDP
SK AT CZ PL RO HU
VAT 20% 20% 21% 23% 24% 27%
Source: European Parliament, 2015, Overview: European Parliaments work on Taxation
10THIRD LOWEST INDEBTEDNESS IN EUROZONE
Cyprus
Ireland
France
Malta
Spain
Slovenia
Lithuania
Netherlands
Belgium
Finland
Austria
Estonia
Latvia
Italy
Germany
Slovakia
Luxembourg
Greece
Portugal
Governmental debt (% of GDP) Private Sector Debt (% of GDP) Debt-to-income ratio of households
Source: Eurostat, 2015 data as the latest available in May 2017: General government gross debt - annual data; Private sector debt,
consolidated - % of GDP; Gross debt-to-income ratio of households
11HUMAN CAPITAL
THE HIGHEST LABOUR PRODUCTIVITY IN CEE
80,0
SK
75,0
CZ
70,0
SLOVAKIA
HU
65,0 REACHES THE
60,0 PL HIGHEST LABOUR
PRODUCTIVITY
55,0
RO
50,0
45,0 BG
40,0
GDP (in PPS) per hour
35,0 worked as compared to
2007 2008 2009 2010 2011 2012 2013 2014 2015 EU28 (100)
GROSS
MONTHLY
SALARIES 1 020 € 928 € 844 € 642 € 482 €
2016 27 227 CZK 4,047 PLN 912 € 263,171 HUF 2,886 RON 944 BGN
Czech Republic Poland Slovakia Hungary Romania Bulgaria
Source: National Statistical Offices of respective countries (2017); Eurostat (2016)
13SLOVAKIA — 3RD LOWEST PRODUCTION
LABOUR COST IN EURO ZONE
Lithuania 7,3 2x 3x 4x
Latvia 7,5
Slovakia 10,9
Estonia 10,9
Portugal 11,3
Malta 13,0
Cyprus 14,4
Greece 15,1
Slovenia 16,4
Spain 23,3
European Union 26,6
Italy 27,8
Luxembourg 31,8
Ireland 32,5
Euro area 32,6
Austria 36,0
Netherlands 36,1
Finland 37,1
France 38,3
Germany 38,8
Sweden 42,3
Belgium 44,2
0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0
€/hour
Note: NACE Rev. 2, Industry except construction
Source: Eurostat, Labour Cost Annual Data – NACE Rev. 2 (2016) 14KEY SECTORS
STRUCTURE OF SLOVAK ECONOMY
AGRICULTURE 3.7% INDUSTRY 34.8% SERVICES 61.5%
value added as a percentage of GDP
Ireland 42%
Czech Republic 38%
Slovakia 35%
SLOVAKIA Romania 35%
Among the Poland
Slovenia
34%
43%
33%
most industrial Hungary 32% growth of
countries in Germany
Lithuania
31% added value in
industrial
30%
the EU Austria 28%
production
since 2008
Bulgaria 28%
EU28 25%
Note: Agriculture, Industry and Services, value added as a percentage of GDP
Source: World Bank national accounts data, and OECD National Accounts data files (2015); OECD Data, Industrial Production
162nd
GROWTH OF ADDED VALUE IN INDUSTRY Highest growth of manufacturing
Annual Growth Rate (%)
in OECD in last 6 years
0 1 2 3 4 5 6 7 8
Slovak Republic 7,8
Czech Republic 7,0
Latvia 5,6
Poland 5,0
Denmark 4,9
Slovenia
Greece 3,6
4,9
3rd
Spain 3,1
Netherlands 3,0
Ireland 2,7
Most industrialized
Switzerland country in the EU
1
2,4
Korea
Germany
2,3
2,1
st
Finland 1,8
European union 1,8
Austria 1,6
Belgium
France
1,5
1,5
Added value growth in 43%
manufacturing in OECD
Italy 1,1
Portugal 0,8
Added value growth in
Hungary 0,7
manufacturing since 2008
Sweden 0,7
Canada 0,5
United Kingdom 0,0
Source: OECD Data, Value added by activity, Manufacturing, Annual growth rate (%), 2016 17Electronics
Industry
KEY SECTORS
Information &
Automotive Communication
Technologies
R&D
Country’s pro-business attitude Shared Service & Business
enables companies Process Outsourcing Centers
to grow across business sectors in-line
with focus on R&D and innovation.
Source: SARIO (2017)
18GREAT BRANDS IN SLOVAKIA — MEDIUM HIGH-TECH
MEDIUM-HIGH TECHNOLOGY: MANUFACTURING
Auto. Other transport Medical
Defence Electrical equipment Machinery industry, supplier equipment and dental
Chemistry industry equipment sector instruments
Source: SARIO (2017)
19250,000
People employed directly &
AUTOMOTIVE indirectly by the automotive
industry
SLOVAKIA
Leader in World Car Production Per Capita (2016) 44%
192 Vehicles | 1,000 Inhabitants
World Average = 10 Vehicles | 1,000 Inhabitants Share of the automotive industry of
the country’s total industrial
production
26 bn €
Volume of industrial export
Number of Cars Produced generated by the automotive
2020f 1 350 000 industry
2016 1 043 237
2015 1 038 503
2014 971 160
2013 987 718 2.5 bn €
2012 926 555
2011 639 763
2010 561 933
Added value in the automotive
2005 218 349 industry
Source: Automotive Industry Association of the Slovak Republic ZAP SR; VW; KIA; PSA-Peugeot; International Organization of Motor Vehicle Manufacturers (2016)
20KEY SECTOR NR. 1 — AUTOMOTIVE
VOLKSWAGEN PSA PEUGEOT CITROËN KIA MOTORS JAGUAR LAND ROVER
Germany | 1992 | Bratislava France | 2003 | Trnava South Korea | 2004 | Žilina United Kingdom | 2018 | Nitra
The most The most sophisticated
The only plant The only production site of the group
profitable plant of PSA in
in the world producing 5 KIA Motors and 1st JLR plant outside the
the world with the most
brands under plant located in UK
silent press
one roof Europe
room
VOLKSWAGEN Touareg CITROËN C3 Picasso KIA cee’d Land Rover Discover
VOLKSWAGEN Touareg Hybrid PEUGEOT 208 KIA cee’d Sportswagon + other medium-sized
VOLKSWAGEN up! & e-up! new CITROËN C3 KIA pro_cee’d luxury SUVs to be
ŠKODA Citigo KIA Sportage
KIA Venga
specified
SEAT Mii
AUDI Q7& Q8 + ENGINE shop for KIA
PORSCHE Cayenne and HYUNDAI
Source: SARIO; Respective OEMs (2017)
21NETWORK OF VOLKSWAGEN
Martin
316 AUTOMOTIVE KIA SLOVAKIA
Žilina
(gearboxes component
production)
SUPPLIERS
Stará
Ľubovňa
Čadca Bardejov
Kežmarok
Snina
Dolný
Humenné
ŽILINA Kubín
PREŠOV
Bytča
Spišská Nová Ves
Ružomberok
Liptovský Poprad
Považská Mikuláš
Púchov Bystrica
Martin
PSA PEUGEOT KOŠICE
Michalovce
CITROËN Dubnica
n. Váhom
Trnava
Brezno
Trebišov
BANSKÁ
Prievidza BYSTRICA
Nové Mesto n. TRENČÍN Rožňava
Skalica Revúca
Váhom
Bánovce n. Bebravou
VOLKSWAGEN
Partizánske
Stupava (tool shop) Zvolen
Senica
Žiar n. Hronom
Piešťany Topoľčany
Rimavská
Sobota VOLKSWAGEN
Zlaté Moravce
Lučenec
Košice
(vehicles customization for Russian
TRNAVA
Malacky
Hlohovec
market)
Sereď NITRA
Stupava
Levice Veľký Krtíš
Pezinok
Galanta
Senec
BRATISLAVA
Šaľa TIER 1 SUPLLIER
Nové Zámky
TIER 2 SUPLLIER
Dunajská
Streda
Komárno
JAGUAR
LAND ROVER
Nitra
VOLKSWAGEN
Bratislava
Source: SARIO; Online Matchmaking Fair for Automotive Slovakia; GLOBAL Slovakia (2016)
22ELECTRONICS
11%
1,294 BN € Share of 12.14% 9,279 BN €
Added value in Electronics on
Share on the total Sales revenue in
the Electronics total industrial
export volume 2015
Industry production
of Slovakia
1,000 € 43,039
Average salary in People employed
Electronics by the Electronics
Industry Industry
Source: Trend Top in Industry (2015 data as the latest available in May 2017); Statistical Office of the Slovak Republic
23ELECTRONICS INDUSTRY — MAJOR HUBS
Stropkov
Žilina
Liptovský
Hrádok
Prešov
Poprad
Trenčín
Michalovce
Senica Piešťany
Rimavská
Sobota
Trnava
Nitra
BRATISLAVA
Galanta ≥ 8000
Nové Electronics
Zámky ≤ 6000
Industry hub
size defined by
≤ 3000
number of
≤
≤ 2000 employees
3000
Source: SARIO (2017)
24SHARED SERVICES CENTERS
• over the last 10 years, Slovakia has developed a 60+
leading reputation for quality & high value services SSCs & BPOs
already established
• more than 60 Shared Services Centers (SSCs) and Business Process Outsourcing in Slovakia
Centers (BPOs) are established in Slovakia providing multifunctional scope of
operations
• Typical areas covered includes Accounting, IT, Sales & Marketing, Customer
Service, HR or Procurement
30,000+
People working
for SSCs & BPOs
Source: Grafton Recruitment Slovakia (2016)
25INFORMATION & TELECOMMUNICATION TECHNOLOGIES
4% 108 79%
ths
ICT CONTRIBUTION TO SLOVAK NUMBER OF PEOPLE EMPLOED IN ICT DIGITAL LITERACY AMONG
GDP POPULATION
31,4%
ICT 24,9%
Slovakia has one of
the most advanced 19,2%
ICT infrastructures in
14%
the region and is
preferred location for
number of high- 10,1%
performing global
ICT leaders operating 0,4%
mainly in following
fields.
Outsourcing Tailor-made Software Application Support New Implementations Hardware Maitenance IT Security
Solutions
Source: Statistical Office of the Slovak Republic (2016), IT Association of Slovakia (2015), Eurostat (2015), TNS Slovakia (2014), SARIO calculations
26INFORMATION & TELECOMMUNICATION TECHNOLOGIES
4% 108 79%
ths
ICT CONTRIBUTION TO NUMBER OF PEOPLE EMPLOYED DIGITAL LITERACY
SLOVAK GDP IN ICT AMONG POPULATION
ICT
Slovakia has one of
the most advanced ICT infrastructures in
the region and is preferred location for
number of high-performing global
ICT leaders operating mainly in following
fields.
Source: Statistical Office of the Slovak Republic (2016), IT Association of Slovakia (2015), Eurostat (2015), TNS Slovakia (2014), SARIO calculations 27SUCCESS STORIES
SLOVAK SUCCESS STORIES — WELL KNOWN IN THE WORLD
Great ideas from
Slovakia went global
earning success in
IT, automotive and
machinery sectors
with unique
innovation potential
29INVESTMENT INCENTIVES
MAXIMUM INTENSITY
ŽILINA
REGION
PREŠOV
REGION
35% 35%
TRENČÍN
KOŠICE
REGION
REGION
BANSKÁ BYSTRICA
REGION
25%
n/a
TRNAVA
NITRA
REGION
+10 to 20%
REGION for SMEs
• INCOME TAX RELIEF
AVAILABLE
FORMS OF • CASH GRANT
AID • CONTRIBUTIONS ON NEW JOBS
31WHY SLOVAKIA
WHY SLOVAKIA
• Safe investment environment: POLITICAL & ECONOMIC STABILITY
• The highest LABOUR PRODUCTIVITY in the CEE region
• High LOYALTY & LOW ATTRITION of employees
• Strategic TIME ZONATION & LOCATION in heart of Europe with great export potential
• 36 UNIVERSITIES PROVIDING POOL OF QUALIFIED graduates with
multidisciplinary skill-set & multilingual competencies
• COST EFFECTIVE & SKILLED labour force
• HIGH QUALITY OF LIFE in regional capitals & their ability to attract skilled people
from other regions and even from abroad
• Dynamically growing REAL ESTATE MARKET & INFRASTRUCTURE NETWORK
• 10 Year CEE Leader in DOING BUSINESS 2004 – 2013 (WB); CEE LEADER IN LABOUR
PRODUCTIVITY
• FLAT INCOME TAX RATE (21%) & no taxes on dividends paid to legal entities
• GOVERNMENTAL SUPPORT & attractive investment incentives
• SUCCESS STORIES track record & positive experiences of established investors
33SARIO SERVICES
YOUR ONE ALL OUR SERVICES
STOP SHOP
ARE FREE OF
FOR INVESTMENT AND
CHARGE
OUR SERVICES TRADE IN SLOVAKIA
The Slovak Investment and Trade Development
Agency (SARIO) is a governmental investment and
trade promotion agency operating under the supervision
of Ministry of Economy of the Slovak Republic.
FOREIGN TRADE DEPARTMENT INVESTMENT PROJECTS DEPARTMENT
• Supports Slovak manufacturers
• FDI attraction
in their export activities
• Assistance, consultancy for investment
• Assists foreign companies to identify
project implementation
potential new products
• Database of available real estate
for export from Slovakia
• Consultancy on investment aid
• Identifies potential suppliers
• Preparation of starting business related
and subcontractors
materials and analyses
• Monitors free production capacities
• Promoting Slovakia abroad via seminars
• Manages online databases
• Manages M&A database, open projects for
• Trade Fairs
investments
• Organizing B2B meetings
35Your ONE STOP SHOP
for investment and trade in Slovakia
Slovak Investment and Trade Development Agency
Trnavská cesta 100
821 01 Bratislava, Slovakia
ALL OUR SERVICES
ARE FREE OF
CHARGE
tel: +421 2 58260 100
email: invest@sario.sk
36TYPES OF ELIGIBLE PROJECTS
1. INDUSTRIAL PRODUCTION
2. STRATEGIC / SHARED SERVICES CENTRES
3. TECHNOLOGY / R&D CENTRES
4. TOURISM CENTRES
37SMALL AND MEDIUM-SIZED ENTERPRISES
Number of Total Balance
AND Turnover OR
Employees Sheet
MEDIUM up to 250 up to 50 mil. € up to 43 mil. €
SMALL up to 50 up to 10 mil. € up to 10 mil. €
MICRO
up to 10 up to 2 mil. € up to 2 mil. €
Partner 25 - 50% ownership share. Linked 50 - 100% ownership share
enterprises Proportional data must be added enterprises All data must be added
38
Source: EU Commission recommendation 2003/361/ECINDUSTRIAL PROJECTS | MINIMUM REQUIREMENTS
CA NO
SK
SL
KM TS BJ
BY
DK SP
ML
ZA KK
PU SB
PB PP SV
MT RK LM LE HE
PO
IL
VT
TN
TN
SN
NM PD TR GL
SI BR
BB SO
MY MI
Nová KS
RV KE
SE ky RA
PN PE TV
Trnava TO
TO ZH DT
PSA ZV
Nit ZC PT
TT ra ZM
n/a JL
R
NR
BS
KA
LC
RS
GA LV VK
SA
DS NZ
KN
Unemployment Minimum Investment Minimum Share of New Minimum Number
Rate into Eligible Costs Technology on Eligible Costs of New Jobs
Lower than Slovak 10 mil. €
60% 40
average (SMEs 5 mil.)
Higher than Slovak 5 mil. €
50% 40
average (SMEs 2,5 mil.)
More than 35% higher 3 mil. €
40% 40
than Slovak average (SMEs 1,5 mil.)
0.2 mil. € 39
Least developed regions 30% 10
(SMEs 0,1 mil.)INDUSTRIAL PROJECTS | ESSENTIALS
NEW GREENFIELD OR BROWNFIELD INVESTMENT
or
ELIGIBLE
EXPANSION OF EXISTING FACILITY (obligation to increase the production volume or production turnover
PROJECTS by at least 15% compared to an average for the past three fiscal years)
Examples of non-eligible projects: Steel, Synthetic fibers, Mining, Transport, Agriculture, Energy
LAND
BUILDINGS
ELIGIBLE NEW MACHINERY & TECHNOLOGY EQUIPMENT
COSTS LICENCES & PATENT RIGHTS
or alternatively
WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
Examples of non-eligible costs: Rental costs, Vehicles, Costs accrued before the submission of aid application
TIME Investment period: Maximum 3 YEARS (5 years for projects with eligible costs over 50 mil. €)
FRAME Recruitment period: Maximum 6 YEARS (8 years for projects with eligible costs over 50 mil. €)
40MAXIMUM INTENSITY
ŽILINA
REGION
PREŠOV
REGION
35% 35%
TRENČÍN
KOŠICE
REGION
REGION
BANSKÁ BYSTRICA
25%
REGION
n/a
TRNAVA
NITRA
REGION
+10 to 20%
REGION for SMEs
• INCOME TAX RELIEF
AVAILABLE
FORMS OF • CASH GRANT
AID • CONTRIBUTIONS ON NEW JOBS
41TECHNOLOGY CENTRES | ESSENTIALS
NEW INVESTMENT or EXPANSION OF EXISTING FACILITY
Centres for development or innovation of high-tech products, technologies or production
ELIGIBLE
processes, provided that the development or innovation does not include ordinary or regular
PROJECTS modifications, even if such changes may represent improvements. Manufacturing is not considered as an
eligible activity of the technology center.
LAND
BUILDINGS
ELIGIBLE NEW MACHINERY & TECHNOLOGY EQUIPMENT
COSTS LICENCES & PATENT RIGHTS
or alternatively
WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
Examples of non-eligible costs: Rental costs, Vehicles, Costs accrued before the submission of aid application
TIME Investment period: Maximum 3 YEARS (5 years for projects with eligible costs over 50 mil. €)
FRAME Recruitment period: Maximum 6 YEARS (8 years for projects with eligible costs over 50 mil. €)
42TECHNOLOGY CENTRES | MINIMUM REQUIREMENTS
n/a
Minimum Investment Minimum Number Minimum Share of New Employees
into Eligible Costs of New Jobs with University Education
500 000 € 30 70%
43You can also read
