Slovakia
Location Central Europe
Neighbouring countries Austria, The Czech Republic, Poland, Ukraine, Hungary
Area 49 034 km2
Population 5 426 645 inhabitants
Membership in international organizations EU, UN, OECD, WTO, NATO, Visegrad group
Currency EUR €
Tax burden Income tax: 19%
VAT: 20% (10% on medicaments, books, etc.)
Dividend tax: 0%
Annual inflation 1,3%
Unemployment rate 12,1% (324 thousand persons)
Registered unemployment 12,7% (380 thousand persons)
Average monthly income 725 €
Average monthly income in industry 762 €
Labour productivity in industry 12 043,36 €
Current rating of Slovakia
Agency Standard & Poor's Moody's Fitch Ratings R&I JCR
Rating A+
stable outlook		 A1
positive outlook		 A+
stable outlook		 A
stable outlook		 A+
stable outlook
Date of issue 11 November 2008 31 July 2008 8 July 2008 16 July 2008 21 August 2008

Economy of Slovakia

Slovakia belongs to the EU member states with the most rapid growth. In 2007 it became the European leader in the pace of GDP growth, which reached 10.4%. Slovakia became this way one of only two EU-27 member states, where the GDP growth was expressed by a two digit figure. The other one was Latvia with the growth rate at 10.3%. Growth of employment, labour productivity, high inflow of foreign investments, as well as Slovak integration in the Eurozone, are accompanying features proving the improving state of the Slovak economy.

Business area

There are currently no serious barriers to doing business in Slovakia. Conditions for starting business have improved in particular, the tax system has been simplified, bankruptcy processes have become more effective, more transparent rules for provision of state aid to investors have been adopted, etc. The business sector development was positively influenced mostly by macroeconomic environment stability and gradual acceleration of economic growth in Slovakia. According to the evaluation by the World Bank in its annual publication Doing Business 2009, which observes ten quantitative indicators in the area of business environment, Slovakia has ranked 36th out of 181 observed world economies.

Assessment of Slovak business environment
Source: Doing Business 2010
Ranking of the Slovak Republic 2009 2008 2007 Change
Ease of doing business 42 36 32 +6
Starting Business 66 48 72 +18
Dealing with Construction Permits 56 53 50 +3
Employing People 81 83 75 -2
Registering Property 11 7 5 +4
Getting Credit 15 12 7 +3
Protecting Investors 109 104 98 +5
Paying Taxes 120 126 122 -6
Trading Across Borders 113 116 90 -3
Enforcing Contracts 61 47 50 +14
Closing a Business 39 37 36 +2

Investment incentives

State aid for initial investments and new jobs created in connection with these investments is provided in the form of incentives for investment projects or projects of industrial production expansion, technological centres, centres of strategic services and complex tourist centres on the basis of Act 561/2007 Coll. on investment aid.

A special category of the Slovak business environment support is made up by the sources from Structural funds and Cohesion fund of the European Communities. The Žilina region area is in the period 2007 – 2013 eligible for the support under the objectives Convergence and European Territorial Cooperation. Operational Programmes Competitiveness and Economic Growth, Employment and Social Inclusion and Research and Development are among the most important financial tools from the point of the business environment support and high innovation potential.

Overview of investment incentives in Slovakia in 2001 – 2007
Source: Slovak government
Form of state aid to investors in mil. Total figures Share
Financial aid for property obtaining 16 570,656 51,5
Tax relief 11 772,786 36,6
Retraining contribution 1 495,016 4,7
Contribution for new jobs 2 238,351 7,0
Transfer of property 70,616 0,2
Total state aid 32 147,425 100,0
Contribution to municipalities 11 167,571  
State aid and contribution to municipalities in mil. SKK 43 314,996