Benefits of Slovakia for business in 2023

Benefits of Slovakia for business in 2023

Slovakia offers many advantages to foreign investors, including a favorable strategic location between the western and eastern parts of Europe. It is part of the EU and has excellent road and rail connections to major European markets. Other advantages of Slovakia for business in 2023 include security, political stability, an open economy, and attractive support mechanisms.

Slovakia's advantages for business

Slovakia is considered one of the EU's safest and most politically stable countries. It has the lowest risk of political censorship, expropriation, and restrictions on remittances. In addition, the official currency is the Euro, so investors can work without worrying about the risk of losing money on the exchange rate.

Other advantages of Slovakia 

  • Shortly, Slovakia can become an important logistics hub in Europe. Several major EU transport roads pass through the country, and the road and rail infrastructure is very well-developed.
  • Excellent prospects for the IT business. The country is a regional leader not only in the number of industrial robots per employee but also in the ability of personnel to adapt to innovative technology. It indicates a high potential for technological and industrial projects.
  • The country is part of the EU and a member of the UN, which ensures excellent working relations with many countries worldwide. It is also part of the Schengen area, which allows unimpeded travel across Europe.
  • Skilled and inexpensive workforce when compared to Western European countries.
  • The highest labor productivity in the region allows manufacturers to achieve excellent results.

Incentives for foreign investors

To open a company in Slovakia in 2023, a foreigner does not need to have local partners. Slovakia's laws allow foreigners to own the business entirely. If necessary, they can go to court to assert their rights.

Slovakia has signed double taxation agreements with many countries worldwide, benefiting foreign investors. Under these agreements, businesspeople are exempt from several taxes or have reduced tax rates.

Taxes in Slovakia:

  • The standard corporate tax is 21%. The reduced rate is 15% applies to companies whose income is less than €49,790 for the tax period. 
  • The standard VAT rate is 20%, and the reduced rate is 10%. It applies to goods of prime necessity.
  • The export of goods and services is not taxed.

Slovakia is open to investments. Therefore a foreign business registered in the country can take advantage of the regional investment incentive scheme and other mechanisms of support. The country provides them to companies that operate in the following areas:

  • industrial production;
  • technological centers;
  • general service centers;
  • tourism.

Each category must meet certain conditions to receive benefits. They are granted in the following forms:

  • industrial production;
  • technology centers;
  • general service centers;
  • tourism.

Each category must meet certain conditions to receive benefits. They are granted in the following form:

  • income tax reductions;
  • subsidies for the purchase of tangible and intangible assets;
  • purchase of real estate at a lower price.

Companies can receive tax benefits if they are engaged in research and development. In some cases, a company can even recover its costs in full. To do so, the project must comply with the rules that govern the Income Tax Act.

How to open a business in Slovakia

Contact IT-OFFSHORE experts to register a business in Slovakia in 2023.

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