Slovakia. A small spot on the map often confused with Slovenia. Is it worth doing business and living here? If yes, what are the biggest advantages you should know about? In this article, we will explore some of the main benefits Slovakia has to offer.
Favorable conditions for business growth
Slovakia is known for its dynamic economy, which tends to grow. A strong base of IT experts, a long-standing industrial tradition (including the automotive industry), and its natural heritage form a solid foundation for the development of IT services, industry, tourism, and energy sectors. Opportunities in this area include government support for businesses through various projects and programs that make market entry easier for foreign investors.
Slovakia as a member of the European Union
Additionally, Slovakia is a member of the European Union, ensuring access to a 500-million-strong market and providing entrepreneurs with stability and trust. Slovak companies have access to various European funds that can be used to finance projects, research and development, or innovation support. Slovak legislation is also gradually harmonized with European standards, simplifying business operations for foreign companies and facilitating the export of Slovak products and services abroad.
Relatively low labor costs
The country also boasts a strong workforce that is educated, flexible, affordable, and adaptable. Relatively lower labor costs compared to other European countries represent a significant competitive advantage for companies moving their business here. For example, Volkswagen Slovakia has produced over seven million vehicles in 25 years of operating in Slovakia, consistently achieving the highest revenue of all companies in the country. The Kia plant in Žilina, operated by the South Korean automaker, is also celebrating 20 years in Slovakia.
Low taxes and an attractive investment environment
One of the most appealing aspects of doing business in Slovakia is its low taxes. Starting in 2025, a reduced tax rate of 10% for startups or small businesses with taxable income up to €100,000 will serve as a strong incentive. Larger companies can benefit from the ability to deduct investment costs over six years instead of four. Additionally, various exemptions and tax breaks are available for startups and innovative companies.
The headquarters of your organization
For many entrepreneurs, the location of their company headquarters is crucial. Slovakia offers flexibility and straightforward administrative processes for setting up and operating a business. Compared to other countries, the business environment is predictable and transparent, not only in terms of legislation but also regarding administrative obligations.