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Like its counterpart in the former Czechoslovakia, the Slovak Republic has much to offer an IFA looking for an extremely profitable business environment, incredible leisure pursuits and an all-around great quality of living. In fact, the nation closely mirrors the Czech Republic in terms of many of its economic, leisure and collectively positive attributes.
The country is vigorously moving forward in economic terms. The free market spirit is thriving and free enterprise abounds. And, as in the Czech Republic, the Slovak Republic attracts very large numbers of high net worth expat investors, employees and retirees.
Slovakia, as it is more commonly called, is a landlocked republic in Central Europe, bordering the Czech Republic and Austria in the west, Poland in the north, Ukraine in the east and Hungary in the south. The country is divided into four regions of interest: Bratislava, the High Tatras, central Slovakia, and eastern Slovakia.
Slovakia and the Czech Republic peacefully separated in January 1993. However, the two now-independent countries have remained close partners with each other - and with other Central European countries.
Slovakia became a member of the European Union in May 2004.
The nation successfully weathered the difficult transition from a centrally planned economy to a modern – and thriving - market economy. Most major privatizations are complete and foreign investment has steadily increased.
Foreign Investment Attraction
Slovakia is considered to be among the most appealing countries in the EU for foreign investors, largely due to low labour costs (among the lowest labour costs in the European Union) and low tax rates. In recent years, the country has spear-headed a policy of encouraging foreign investment.
Bratislava – the nation’s capital - has become the eastern European prize of the multinationals, and foreign investment in that city alone is expected to total close to GB£2 billion this year. The capital city is an ideal location for a broad range of investors, in both manufacturing and the service sectors.
The World Bank estimates that Slovakia has witnessed the fastest transforming business environment in the world in recent years.
“Next Hong Kong or Ireland”
Forbes magazine recently termed the country the "next Hong Kong or Ireland". Slovakia’s attractiveness as a business destination is tied to a very long list of factors. Among the most often-cited contributors is the flat-tax reform (including company taxes and VAT). In addition, many taxes - such as the capital tax - were eliminated entirely. Labour market reforms have also been implemented, and various attractive special incentives have been offered to investors.
In 2004, the country’s real GDP growth was 5.5 percent, and is expected to increase in the coming years. Slovakia is becoming increasingly popular among investors from all over the world. Its low labour costs, low taxes and political stability afford Slovakia the reputation of being one of the most attractive economies in Europe.
The biggest investments in Slovakia have been in the automotive industry. Peugeot-Citroen, Kia Motors, Ford Motors, Hyundai and Volkswagen are among the companies either operating – or soon-to-be- operating – sizeable businesses there.
According to one estimate, in less than two years, “Slovakia is expected to produce more cars per head than any other country in the world.” And that has translated not only into a boom for the local auto industry – but for most other areas as well.
Foreign direct investment (FDI) in Slovakia has increased spectacularly. The government opened doors for foreign investors and introduced competitive incentives schemes, including a 19% flat income tax for corporations and individuals. Statistics indicate that Slovakia’s cumulative FDI quintupled between 2000 and 2004.
In 2000, Slovakia became the thirtieth member of the Organization for Economic Cooperation and Development (OECD). Germany is Slovakia's largest trading partner; other major partners include the Czech Republic, Italy, Russia, and Austria.
Bratislava
The country’s capital city has always attracted and enchanted a large number of tourists. Nowadays, in addition to its leisure-time attractions, Slovakia’s capital is teeming with foreign investment.
Bratislava is a stunning city on the Danube River, which flows from southern Germany to the Black Sea. The capital city is modern, with first class restaurants and hotels, and is about an hour’s drive from Vienna. It is the centre of banking, universities, galleries and theatres and it hosts many international fairs and exhibitions. Bratislava’s location at the foot of the Western Carpathian Mountains makes for a perfect place for tourism, cycling and many other leisure activities.
The old city and the Bratislava Castle form two of the greatest features of the capital. The old city offers an abundant number of museums and palaces. One of the most striking buildings of the town, the Bratislava Castle is situated on a plateau 82 metres above the Danube. The castle was a frontier post of the Roman Empire, and has been rebuilt several times - most recently during the 1950s and 1960s.
Today, with a per capita GDP of around 108% of the EU-25 average, Bratislava and its surrounding areas constitute the second most prosperous region in Central and Eastern Europe.
Eat, Drink & Be Merry!
While in Slovakia, you must try some of the local food and drink on offer. Make sure your samplings include:
- Halušky: Small dumplings stuffed with sheep's cheese
- Robust garlic soup
- Slovak white wine
- Schnitzels, goulashes and other traditional Central European offerings
- Richman: A large bread roll filled with cabbage and cheese and/or meat with mayonnaise
- Sizeable "bageta" sandwiches, filled with cheese, ham and eggs
- Kofola: A Slovak and Czech soft drink similar in looks to Coca Cola, but widely considered much tastier
- Vinea: A Slovak soft drink made from grapes
- Slovak beers, including Zlatý bažant, Šariš, Smädný mních, and Topvar
For a special meal experience, head to Bartislava’s TV tower on Kamzik and enjoy a meal at the revolving Veza restaurant, which provides a 360 degree view of the city.
Let’s Talk About Play
So, when you’re not working, eating or drinking, what is there to do?
Among the most popular outdoor activities are golfing, sailing on the Danube, tennis, and horseback riding. Rafting on the Dunajec River in Pieniny National Park is also considered by many a must-do experience.
Winter sports, including skiing, cross-country skiing and tobogganing are also among the most sought-after leisure activities in Slovakia. Many outstanding ski-resorts in the Tatras Mountains boast first-class facilities, equipment rental and qualified instructors.
In addition, Slovakia is well-known as one of Eastern Europe's prime hiking areas. A 12,000 kilometre system of hiking trails offers entrée to unspoiled wilderness in the many state parks and preserves, where local wildlife abounds.
All-in-all, the country is a tremendous destination in terms of business, pleasure and all points in between!
For further information about Slovak Republic we recommend that you visit http://en.wikipedia.org/wiki/Slovak_Republic where you will find many useful links and informative articles to prepare you for your move.