A large share of the Slovak Republic’s FDI directly depends on the Eurozone, and the country is heavily dependent on the economic health of its neighbours (especially Germany and France), as well as being sensitive to regional tensions. Its main investors are the Netherlands, Czech Republic, Austria, and Germany, who invest in manufacturing and industrial production, financial / insurance, and wholesale / retail. It is one of the most export-oriented and open economies in the EU.
The Republic is an attractive FDI destination thanks to a skilled, relatively low-cost, labour force, its location in the heart of Central Europe, and low corporate tax rate. The overall outlook for public and private investment is encouraging, though recent increases in corporate taxes, changes to the Labour Code, and slow dispute resolution are factors that can undermine attractiveness.
In addition, energy costs are high; the country imports 90% of its energy. The infrastructure needs work, and there is a shortage of qualified labour. And ensuring tax compliance will take about 200 hours per year. All of which contribute to the Slovak Republic’s Ease of Doing Business ranking of 48/190.
AUXADI can become your ideal investment partner in the Slovak Republic. We offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.