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SLOVAKIA Ideal Investment & Business Destination . Slovakia – Growing Heart of Europe. Establishment: 1st January 1993 Official name: Slovak Republic Area (km2): 49,035 Population: 5,437,126 Capital: Bratislava Member of: OECD, WTO, NATO, EU, Schengen area

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slovakia growing heart of europe
Slovakia – GrowingHeart of Europe
  • Establishment: 1st January 1993
  • Official name: Slovak Republic
  • Area (km2): 49,035
  • Population: 5,437,126
  • Capital: Bratislava
  • Member of: OECD, WTO, NATO, EU, Schengen area
  • Official currency: EURO
  • Official Language: Slovak
  • Government: Parliamentary democracy
  • Election term: 4 years
  • Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine
  • Time zone: GMT + 1hour

Source: SARIO, 2011

macroeconomic overview
MacroeconomicOverview

GDP Prediction for 2011

EC 3 %

OECD3,6%

IMF3,8 %

National Bank of SR 3,4 %

GDP Prediction for 2012

OECD 4,4 %

GDP growth

Source: International Monetary Fund, Eurostat,

Slovak Statistics Office, Central office of Labour, social affairs and family

slide4

Ratings& Outlook

Source: www.standardandpoors.com,www.moodys.com, www.fitchratings.com, www.jcr.co.jp, www.r-i.co.jp, www.oecd.org

slide5

1st Rank in CEE in DOING BUSINESS 2012 !

Methodology

Starting a business

Construction permits

Registering property

Paying taxes

Enforcing contracts

Protecting investors

The Doing Business project

provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Closing business

Trading across borders

Getting credit

Source: World Bank Group – Doing Business Report 2012

low labour cost high labour productivity
Low Labour Cost & High Labour Productivity

Gross monthly salary

Slovakia reaches

the highest labor productivity

976 €

23 951 CZK

Czech Republic

806 €

3 224,98PLN

Poland

769 €

Slovakia

760 €

202 576 HUF

Hungary

472 €

1936 RON

Romania

328 €

642 BGN

Bulgaria

GDP (in PPS) per hour worked as compared to EU15 (100)Source: Eurostat 2011

Data for 2010Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania

exchange rate (as of 23March 2011)

member of the eurozone
Member of theEurozone

1st January 2009

Slovakia joined the EURO Zone

EURO IMPLEMENTATION IMPACT:

  • Limitation of Foreign Exchange Risk
  • Lowering Transaction Costs
  • Growth in Foreign Trade
  • Increased Financial Stability

Source: SARIO, 2011

slide8

Simple and Fair Taxes

19% Flat Tax Rate

19%

Corporate Income Tax

Personal Income Tax

Value Added Tax - VAT

Dividend tax

Inheritance and Gift Tax Real Estate Transfer Tax

Repatriation of profits

20%

0%

100%

Source: SARIO 2011

regional d ifferences

686 €

10,86%

594 €

17,75%

657 €

9,51%

716 €

16,78%

18,86%

635 €

8,17%

705 €

991 €

4,63%

11,76%

636 €

RegionalDifferences

in Unemployment Levels

Source: Central Officeof Labour, Social Affairs and Family, 2011

new labor code since sept 1 st 2011 more flexible more motivating business friendly
NEW LaborCode since Sept. 1st, 2011!!! …more flexible, more motivating & business friendly!

3/6 months/ upon agreement- probation period

1/2/3 months – noticeperiod depends on length of employment <1/ 1-5/ 5+ yrs

40 hours - Weekly working time + 30 min unpaid break

longer working times for Managers up to 56 hrs./agreement

Introducing “flexi account” of working time

+ 150 hours/year- Unpaid overtime can be orderedby the employer/ max. up to 400hrs.

+ 250 hours/year – Agreed overtime with employeesin managerialpositions/max. 550hrs.

20 days/ 25 days after 15 years of work - Annual leave

5 weeks in case employee reaches 33 yrs. (January, 2012)

Reduction of Labor Unions Influence

Shorter period for recruitment ban; easier process of collective redundancies; work in night shift in 2 weeks in a row,…

Bonuses for: above the law overtime: 25% of hour wage andbank holidays: 50% of hour wage

Source: SARIO, 2011

road n etwork
RoadNetwork

Source: National Motorway Company, 2011

aerospace n etwork
AerospaceNetwork

Krakow (PL) 180 km

Krakow (PL) 180 km

Prague

Prague

Prague

Brno (CZ) 120 km

Brno (CZ) 120 km

Prague

Vienna

Bratislava

Prague

Vienna

Bratislava

Prague

Sliač

All major European cities

All major European cities

Budapest (HU)

Vienna (AT)

All major European& Worldcities

All major European& Worldcities

Source: www.slovak-airports.net

railway infrastructure
Railway Infrastructure

Source: Ministry of Transport, Post and Telecommunications of the Slovak Republic, SARIO, 2011

top sectors of the slovak economy
TOP SECTORS OF THE SLOVAK ECONOMY

Electronics

Leading Slovak Exporter – driver of economic and technological growth

Automotive

1st in world car production in 2010

SSC/ICT

SR is becoming a hive of SSC and ICTs

key s ector automotive
KeySector: Automotive

CarProduction in Slovakia

1st Place in 2010

103/1000 inhabitants

in World Car Production/1000 inhabitants

Full Capacity of 3 automobile companies

1,000,000 cars/year

Source: SARIO 2011, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot

established 1991 7 000 employees vw plants bratislava martin and ko ice
established 1991

7.000 employees

VW plants: Bratislava,

Martin and Košice

Three World Car Producers in Slovakia

  • established 2003
  • 3.000 employees
  • PSA plant in Trnava
  • established 2004
  • 1st production plant in EU
  • 3.000employees
  • KIA plant in Žilina, and 2nd
  • KIA engine plant is under
  • construction

Source: www.volkswagen.sk; www.kia.sk; http://psa-slovakia.sk/

key sector electronics
Key Sector: Electronics
  • Assembly of Bravia models for the European market doubled in 2008 to 4mil.
  • 3D TV from April 2010
  • Production of LCD 10 mil pcs.
  • Assembly of LCD
  • Logistic center
  • Europe service center
  • 3D TV from February 2010
  • Production of LCD moduls
  • Only 1 in Europe
  • Headquarter for Europe
  • 3000 new jobs
  • Investment 191,3 mil Eur

Source: SARIO, 2011

map of ssc s cc s success stor ies top destinations
Map of SSCs & CCs Success StoriesTop Destinations

Over 48 SSCs & CCs

…employing> 25 800+ professionals

investment incentives eligible projects
InvestmentIncentives: ELIGIBLE PROJECTS
  • Industry
  • Shared ServiceCenters
  • R&D Centers
  • Tourism
slide21

InvestmentIncentives: Aid is calculated from...

  • ELIGIBLE ARE COSTS OF:
  • LAND
  • BUILDINGS
  • NEW MACHINERY & TECHNOLOGY EQUIPMENT
  • LICENSES &PATENT RIGHTS
  • OR
  • WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
slide22

InvestmentIncentives: Forms & Intensity

  • INCOME TAX RELIEFup to 10taxperiods
  • - IN ALL DISTRICTS
  • CASH GRANT(paid ex post,based on annual costs report)
  • CONTRIBUTIONS ON NEW JOBS (paid ex post,based on annual costs report)
  • IN THE CASE OF INDUSTRY APPLICABLE ONLY IN DISTRICTS WITH HIGHER UNEMPLOYMENT
  • THE TOTAL AMOUNTIN ALL REQUESTED FORMS CANNOT EXCEEDTHE MAX. INTENSITY IN DISTRICT 20% -50% OF THE ELIGIBLE COSTS.
milestones
MILESTONES

WORKS ON PROJECT CAN START

EVALUATION SARIO

DRAFT OF AID OFFERMoE

AID OFFERMoE

APPROVAL GOVERNMENT

30 days

10 days

20 days

30 days

30 days

SUBMISSION

TO MoE

STATEMENT MoE

EVALUATION MINISTRIES

ACCEPTANCE INVESTOR

investment incentives industry min investment share of new machinery
InvestmentIncentives: INDUSTRYMin. Investment & Share of New Machinery

CA

NO

SK

SL

TS

KM

BJ

BY

SP

DK

ML

ZA

KK

PU

SB

PB

PP

LM

SV

LE

MT

RK

HE

IL

PO

VT

TN

SN

SA

TR

GL

NM

PD

BR

BB

MY

SO

BN

MI

KE

KS

RV

RA

SE

ZH

PN

PE

TV

DT

TO

ZV

ZC

TT

PT

HC

MA

BS

ZM

RS

PK

LC

NR

KA

14 mil EUR & 60%

SC

BA

GA

LV

VK

SA

NZ

7 mil EUR & 50%

DS

KN

3.5 mil EUR & 40%

* Region Bratislava is excluded

investment incentives tourism min investment share of new machinery
InvestmentIncentives: TourismMin. Investment & Share of New Machinery

CA

NO

SK

SL

TS

KM

BJ

BY

SP

DK

ML

ZA

KK

PU

SB

PB

PP

LM

SV

LE

MT

RK

HE

IL

PO

VT

TN

SN

SA

TR

GL

NM

PD

BR

BB

MY

SO

BN

MI

KE

KS

RV

RA

SE

ZH

PN

PE

TV

DT

TO

ZV

ZC

TT

PT

HC

MA

BS

ZM

RS

PK

LC

NR

KA

10 mil EUR/40%

SC

BA

GA

LV

VK

SA

NZ

5 mil EUR/20%

DS

KN

3 mil EUR/20%

* Region Bratislava is excluded

state aid effectivity
State Aid Effectivity

In the period 2002 – 2011:

  • 109approved investment project
  • 41,057number of newly created jobs
  • 25% - average intensity of state aid
  • 29,000 EUR– average intensity of state aid per 1 newly created job
important facts
Importantfacts
  • Investment must be implemented withinmax. 36 months
  • Submission of investment planbefore start of the work on project
  • Work on the project can start after the Ministry of Economy issues a preliminary statement (takes approx. 40 days)
  • The investor must meet his investment plan in all material aspects (especially amount and no. of newly created jobs)
  • The beneficiary of the aid is obliged to keep investmentat least 5 yearsafter completion of investment plan
  • Also newly created position must be maintainedat least 5 yearsafter their creation
slovakia s success stories
Slovakia´s Success Stories

Source: SARIO, 2010

slide36

Small CountryofGreat Opportunities

Golf opportunities

Wellness

Visit the mysterious caves

Beautiful mountains

Skiing opportunities

Charming Castles

A place where history meets future

Rafting

Spa resorts

Aqua parks

Delicious Slovak Food

Source: SARIO, 2010

sario closer to you strategy key focus new services 18 october 2011 ko ice
SARIO – Closer to You Strategy Key Focus New Services18 October 2011, Košice
sario who we are
SARIO Who We Are

Government Funded Organization

under the direction of the Slovak Ministry of Economy

MISSION EXECUTED THROUGH

3 CORE SECTIONS

Foreign Direct Investment

Foreign Trade

Structural Funds of the EU

sari o services
SARIO Services

From providing

General services & informationto all subjects interested in FDI in Slovakia

Tailor-made solutions for potential investors

exploring Slovakia such as

Best Location for Your Investment

Best Location for Your Expansions

Through

Assistence in STATE AID application processfor investments into:

INDUSTRY

SHARED SERVICE CENTERS

R&D CENTERS

TOURISM

Support foreign trade via match-making & subcontracting

To

AFTERCARE services- for established foreign companies

Governmental

Agency:

Services

Free of Charge

business development department
Business Development Department

Gateway for Investors

  • Broad network of cooperation partners
  • Promotion of Slovakia home & abroad
  • Latest developments in business environment:
    • Comprehensive investment package (tax, legal, HR, costs, …)
    • Investment incentives information
    • Sector & regional analyses
  • Assistance to incoming commercial & official delegations
corporate development department
CorporateDevelopment Department

Dedicated to Investor’s Needs

  • Extensive experience in supporting business & investment activities
  • Local presence in each region of Slovakia
  • Individual client approach
  • Updated database of existing investors
  • Contacts to sub-suppliers and other business entities
thank you for your attention
Thank you for your attention!

Foreign Direct Investment Section

For more information, you can contact us at:

Address: Slovak Investment and Trade Development Agency

Martincekova 17

821 01 Bratislava

Slovak republic

Tel.: +421 2 58260 100

Email:invest@sario.sk

Source: SARIO, 2011