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Business environment &
FDI opportunities in
Slovenia
4Qs4U
Four Qs For You
ime in priimek
SLOVENIA:
dynamic EU member
•
Area: 20,273 sq. km
•
Capital: Ljubljana
•
Population of 2 million
•
EU member state - May 2004
•
Euro area - January 2007
•
Schengen Space - December 2007
•
EU presidency - first half of 2008
•
Invited to Join the OECD
•
GDP per capita (2008) =
92.1% EU-27
•
Average GDP annual growth of
4% in past 10 years
Slovenia
EU countries
Non-EU countries
SLOVENIA – macroeconomic
indicators 2010
GDP – current prices
EUR 36.4 billion
GDP – real growth rate
0.9%
GDP per capita
EUR 17,866
GDP per capita, PPS*
86.8% EU-27
*Purchasing Power Standard
EXPORTS of goods and services
real growth rate
4.1%
IMPORTS of goods and services
real growth rate
1.8%
INFLATION, annual average
1.5%
Unemployment rate (by ILO)
6.7%
Source: Institute of macroeconomic analysis and development, 2010
Export driven economy
Sectors, 2008
_____________
Transport
equipment; 20%
•
High value-added products and services exported
•
Nearly 70% of exports destined for EU
•
EUR 19.9 bn exports of goods and services in
2008; 60% of GDP
Food and
beverages; 3%
Crude materials
and fuels; 3%
Products for
investments;
20%
Manufactured
goods; 34%
Geographic distribution, 2008
______________________
Russian
Other countries federation;
of Former
USA; 1.4%
4.0%
Yugoslavia;
EFTA; 1.1%
8.7%
Other; 7.2%
Croatia; 8.6%
Consumer goods;
20%
Source: Institute of macroeconomic analysis and development, 2009
EU; 69.0%;
of which
DE 18.9%,
IT 12.1%,
AU 7.9%,
FR 6.5%
SLOVENIA – The Right Mix of
Qualities
4Qs4U
(Four Qs For
You)
Quality of life
• High standard
of living
• Low crime rate
• Cultural and geographical
diversity
• At the intersection of
Roman, German and
Slavic culture
• Nestled between Alps
and Adriatic Sea
• Mixture of Alpine,
continental and
Mediterranean climates
• Huge continuous forest
ecosystem – 3rd in
Europe after Finland and
Sweden
Quality of workforce
•
•
•
Technologically-minded (long industrial tradition), innovative spirit
Highly educated: 16% university degree, 62% secondary school
Excellent IT & foreign language skills (English, German, Italian, Serbo-Croatian …)
Not cheap but
cost-effective
60
50
Minimum gross wage
• € 734.15
40
30
20
10
0
France
Austria
Italy
Germany Slovenia
Czech
Rep.
productivity (GDP per employee per hour, US$)
compensation (per employee per hour, US$)
Source: IMD World Competitiveness Yearbook 2009
Slovakia
Est. monthly gross
labour costs:
• low skilled € 700
• skilled € 1,000
• engineer € 1,700
• computer engineer:
€ 2,200
Full-time working hours
may not exceed 40 hours a
week
Quality link to regional
markets
• Strong export orientation
• Well established links with neighbouring countries and countries of
former Yugoslavia
• Hub for foreign companies to serve the EU and Central European
markets
• Advantages:
 Economic and political stability
 Knowledge of circumstances, language,
culture, people
 Geographical location with a strategic edge
• Slovenia is an important investor in the
SE Europe
Quality infrastructure
• Well-developed general
infrastructure at the
intersection of 5th and 10th
European transportation
corridor
Welldeveloped
ICT
infrastructure
• Port of Koper
– ideal as a logistics and distribution centre
– the fastest developing port in the Adriatic basin
– the shortest sea connection between Central Europe and Asia
Taxes
Corporate income tax
20%
Tax relief
- 20-40% of the amount invested in R&D
- tax relief on employment of certain workers
- up to 30% of the amount invested in equipment and
intangible long-term assets
Profit repatriation tax
0% on dividends paid abroad for EU residents
Capital gains tax
0 – 20% (depending on a holding period)
VAT (Value added tax)
20% - standard rate; 8.5% - reduced rate
Property tax
0%
Immovable Property Transfer Tax
2%
Social security contributions
16.1% paid by employer; 22.1% paid by employee
Payroll tax
abolished in 2009
Personal income taxes
progressive tax rates: 16%, 27% and 41%
FDI in Slovenia
FDI stock end-2008
Sectoral distribution of FDI
9.543
4.000
2.000
0
6.822
5.580
5.047
6.000
6.434
8.000
1998
Financial services & insurance
46%
Retail
15%
Chemicals
10%
Engineering
4%
Business services & leasing
3%
Telecoms & transport
3%
Motor vehicles and trailers
3%
Main investing countries
into Slovenia
2.370
EUR million
10.000
10.996
12.000
2003
2004
2005
2006
2007
2008
Italy; 5%
year
Germany; 5%
France; 7%
Netherlands; 7%
Belgium; 4%
Luxembourg ; 3%
Croatia; 3%
Other; 8%
Switzerland; 11%
Source: Bank of Slovenia, 2009
Austria; 47%
Financial incentives
Estimated Foreign direct investment (FDI) grant scheme for 2010:
VALUE OF
INVESTMENT
NUMBER OF NEW
JOBS
€ 1 million
25
Strategic services
€ 0.5 million
10
R&D
€ 0.5 million
5
ACTIVITY
Manufacturing projects
Amount of incentives
• up to 30% of the total eligible investment costs
• amount of the incentive may be increased by 10 percentage points for
medium-sized companies, and 20 percentage points for small
companies
Decree on Financial
incentives for FDI
ARTICLE 22 Special procedure for grant incentives without public
tender
Terms of project:
• investment value higher than € 12 million
• 50% more new jobs created than provided for specific activity
• significant impact on Slovene economy development (considered after
evaluation of the commission).
For any further information, please contact FDI support team:
[email protected]
JAPTI
– Public
Agency
for
JAPTI
– Javna
agencija
RS
Entrepreneurship
& Foreign
za podjetništvo
in tuje
Investments
investicije- Divisions
DIVISION FOR
DIVISION FOR FOREIGN DIRECT
ENTREPRENEURSHIP
INVESTMENTS,
SME development
INTERNATIONALIZATION and
REPRESENTATIVE OFFICES OF
activities
JAPTI ABROAD
• Business support
Foreign direct investment
services for
• Investor services (information, site
micro and SME’s
selection, fact-finding visits etc.)
• Entrepreneurial support
• Investor’s growth and development
• Environment and culture
• Image building
development
• Policy advocacy
• Entrepreneurial
• Financial incentives support
education
Internationalization promotion
•Voucher consulting and
• Internet portal for Slovenian
Network of foreign offices
qualifications
companies
Milan
•VEM network
• Services for foreign buyers of
Düsseldorf
•Slovenian Centre for
Slovenian goods
Shanghai
Competitiveness and
• Business Delegations
Kazan
• Co-financing Business Clubs
Innovation
Sao Paulo
Thank you for your attention!
JAPTI – Public Agency of the Republic of Slovenia for
Entrepreneurship and foreign Investments
Verovškova ul. 60
SI-1000 Ljubljana
Phone: +386 1 5891 870
[email protected]
www.InvestSlovenia.org