Transcript slovakia
SLOVAKIA Ideal Investment & Business Destination Slovakia – Growing Heart of Europe I I I I I I Establishment: Official name: Area (km2): Population: Capital: Member of: I Official currency: I Official Language: I Government: I Election term: I Neighbours: I Time zone: Source: SARIO, 2011 1st January 1993 Slovak Republic 49,035 5,437,126 Bratislava OECD, WTO, NATO, EU, Schengen area EURO Slovak Parliamentary democracy 4 years Austria, Czech Republic, Hungary, Poland, Ukraine GMT + 1hour Macroeconomic Overview 12 10 GDP Prediction for 2011 GDP growth 8 EC 3% 6 OECD 3,6% 4 IMF 3,8 % 2 National Bank of SR 3,4 % 0 GDP Prediction for 2012 -2 -4 -6 2002 2003 2004 2005 2006 European Union 2007 2008 2009 2010 2011 OECD Slovak Republic 2008 2009 2010 2011 1Q 2011 2Q Real GDP growth 6,4% -4,7% 4% 3,5% 3,3% HICP Inflation 4,6% 1,6% 0,7% 3,4% 3,3% Unemployment 7,7% 11,4% 14,4% 13,9% 12,9% 723 744,5 769 746 781 Average monthly gross salary (€) Source: International Monetary Fund, Eurostat, Slovak Statistics Office, Central office of Labour, social affairs and family 4,4 % Ratings & Outlook COUNTRY RATINGS (Sovereign foreign currency ratings) OECD Country risk SLOVAKIA CZECH REPUBLIC A+ AA- positive stable A1 A1 stable HUNGARY POLAND BULGARIA ROMANIA BBB- A- BBB BB+ negative stable stable stable Baa3 A2 Baa3 Baa3 stable negative Stable positive stable A+ A+ BBB- A- BBB- BB+ stable positive stable Stable negative stable A+ A BBB+ A- BBB BBB- stable stable negative Stable stable stable 4 4 A A BBB A- stable stable stable stable 0 0 0 2 Source: www.standardandpoors. com,www.moodys.com, www.fitchratings.com, www.jcr.co.jp, www.r-i.co.jp, www.oecd.org 1st Rank in CEE in DOING BUSINESS 2012 ! Methodology 80 72 70 Starting a business 59 60 48 50 Construction permits 62 64 51 40 30 Registering property 20 10 Paying taxes 1 0 Singapore Slovakia Hungary Bulgaria Poland Czech Republic Romania Enforcing contracts Protecting investors The Doing Business project Closing business provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level. Trading across borders Getting credit Source: World Bank Group – Doing Business Report 2012 Low Labour Cost & High Labour Productivity Gross monthly salary Slovakia reaches the highest labor productivity 976 € 23 951 CZK Czech Republic 90 806 € 80 Poland 70 3 224,98 PLN 769 € Slovakia 760 € 202 576 HUF Hungary 472 € 1936 RON Romania 328 € 642 BGN Bulgaria 60 50 40 30 20 10 Slovakia Romania Poland Hungary Czech Republic Bulgaria 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GDP (in PPS) per hour worked as compared to EU15 (100) Source: Eurostat 2011 Data for 2010 Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania exchange rate (as of 23 March 2011) Member of the Eurozone € 1st January 2009 Slovakia joined the EURO Zone EURO IMPLEMENTATION IMPACT: Limitation of Foreign Exchange Risk Lowering Transaction Costs Growth in Foreign Trade Increased Financial Stability Source: SARIO, 2011 Simple and Fair Taxes 19% Flat Tax Rate Corporate Income Tax Personal Income Tax Value Added Tax - VAT 0% 19% 20% Dividend tax Inheritance and Gift Tax Real Estate Transfer Tax Repatriation of profits 100% Source: SARIO 2011 Regional Differences in Unemployment Levels 10,86% 686 € 17,75% 594 € 9,51% 657 € 18,86% 635 € 8,17% 705 € 4,63% 991 € 11,76% 636 € Source: Central Office of Labour, Social Affairs and Family, 2011 16,78% 716 € NEW Labor Code since Sept. 1st, 2011!!! …more flexible, more motivating & business friendly! I 3/6 months/ upon agreement - probation period I 1/2/3 months – notice period depends on length of employment <1 / 1-5 / 5+ yrs I I 40 hours - Weekly working time + 30 min unpaid break longer working times for Managers up to 56 hrs./agreement I Introducing “flexi account” of working time I I + 150 hours/year - Unpaid overtime can be ordered by the employer/ max. up to 400hrs. + 250 hours/year – Agreed overtime with employees in managerial positions/ max. 550hrs. I I 20 days/ 25 days after 15 years of work - Annual leave 5 weeks in case employee reaches 33 yrs. (January, 2012) I Reduction of Labor Unions Influence I Shorter period for recruitment ban; easier process of collective redundancies; work in night shift in 2 weeks in a row,… I Bonuses for: above the law overtime: 25% of hour wage and bank holidays: 50% of hour wage Source: SARIO, 2011 Road Network Source: National Motorway Company, 2011 Aerospace Network KrakowKrakow (PL) 180 km180 km (PL) Prague Prague Prague Brno (CZ) 120 km Brno (CZ) 120 km Prague Vienna Bratislava Prague Vienna All major European cities Sliač Bratislava Prague All major European cities Vienna (AT) All major European & World cities Source: www.slovak-airports.net Budapest (HU) All major European & World cities Railway Infrastructure Source: Ministry of Transport, Post and Telecommunications of the Slovak Republic, SARIO, 2011 TOP SECTORS OF THE SLOVAK ECONOMY Automotive 1st in world car production in 2010 Electronics Leading Slovak Exporter – driver of economic and technological growth SSC/ICT SR is becoming a hive of SSC and ICTs Key Sector: Automotive Car Production in Slovakia 1st Place in 2010 103/1000 inhabitants in World Car Production/1000 inhabitants Full Capacity of 3 automobile companies 1,000,000 cars/year Source: SARIO 2011, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot Three World Car Producers in Slovakia I established 1991 I 7.000 employees I VW plants: Bratislava, I established 2003 I 3.000 employees I PSA plant in Trnava Martin and Košice Source: www.volkswagen.sk; www.kia.sk; http://psa-slovakia.sk/ I I I I established 2004 1st production plant in EU 3.000 employees KIA plant in Žilina, and 2nd KIA engine plant is under construction Key Sector: Electronics IAssembly of Bravia models for the European market doubled in 2008 to 4mil. I3D TV from April 2010 I Production of LCD 10 mil pcs. I Assembly of LCD I Logistic center I Europe service center I 3D TV from February 2010 IProduction of LCD moduls IOnly 1 in Europe IHeadquarter for Europe I3000 new jobs IInvestment 191,3 mil Eur Source: SARIO, 2011 Map of SSCs & CCs Success Stories Top Destinations Over 48 SSCs & CCs …employing > 25 800+ professionals Insight into Investment Incentives Investment Incentives: ELIGIBLE PROJECTS Industry Shared Service Centers R&D Centers Tourism Investment Incentives: Aid is calculated from... ELIGIBLE ARE COSTS OF: LAND BUILDINGS NEW MACHINERY & TECHNOLOGY EQUIPMENT LICENSES & PATENT RIGHTS OR WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS Investment Incentives: Forms & Intensity INCOME TAX RELIEF up to 10 tax periods - IN ALL DISTRICTS CASH GRANT (paid ex post, based on annual costs report) CONTRIBUTIONS ON NEW JOBS (paid ex post, based on annual costs report) - IN THE CASE OF INDUSTRY APPLICABLE ONLY IN DISTRICTS WITH HIGHER UNEMPLOYMENT -THE TOTAL AMOUNT IN ALL REQUESTED FORMS CANNOT EXCEED THE MAX. INTENSITY IN DISTRICT 20% - 50% OF THE ELIGIBLE COSTS. MILESTONES WORKS ON PROJECT CAN START EVALUATION SARIO 30 days SUBMISSION TO MoE 10 days DRAFT OF AID OFFER MoE 20 days STATEMENT MoE AID OFFER MoE 30 days APPROVAL GOVERNMENT 30 days EVALUATION MINISTRIES ACCEPTANCE INVESTOR Investment Incentives: Industrial Projects Minimum investment 14 mil. / 7 mil. / 3.5 mil. EUR out of that at least 7/3.5 /1.75 mil EUR to be covered by own equity Eligible costs land, buildings, machinery & other manufacturing equipment, licenses or patents Machinery, technology - at least 40%, 50% or 60% (depending on the unemployment rate) of the eligible costs - new, not depreciated, not used before Min. new jobs created no limitation Maximum incentives up to 20%-50% Investment Incentives: INDUSTRY Min. Investment & Share of New Machinery CA NO BY SP MT LM RK PP TR PD BN PN TO ZH PE HC NR SC GA LC KA LV KS KE MI PT BS ZM PK RV TV DT ZV ZC TT MA BA SO RA SE VT GL BR BB SV HE PO SN NM MY SB LE TN SA ML KK PB IL BJ DK ZA PU SK SL TS KM VK RS 14 mil EUR & 60% SA DS NZ 7 mil EUR & 50% KN 3.5 mil EUR & 40% * Region Bratislava is excluded Investment Incentives: INDUSTRY - Max. Aid Investment Incentives: Shared Service Centers Center providing services with a high added value employs qualified experts in • Software development center • Expert solution center • High-tech repair center • Customer support center • HQs of multinational corporations Minimum investment 400 000 EUR out of that at least 200 000 EUR to be covered by own equity Eligible costs land, buildings, technological equipment, software, licenses or patents Min. new jobs created no limitation Other conditions at least 30% employees with university education Maximum incentives up to 30% - 50% (depends on further examination) Investment Incentives: SSCs- Max. Aid Investment Incentives: Technology Centers 500 000 EUR Minimum investment at least 250 000 EUR to be covered by own equity Eligible costs land, buildings, machinery & other equipment, know-how, licenses or patents Minimum newly created jobs - no limitation - at least 60% of newly created jobs for employees with university education Maximum incentives up to 30%-50% depending on the level of unemployment Investment Incentives: Technology Center - Max. Aid Investment Incentives: Tourism Minimum investment 10 MIL. / 5 MIL. / 3 MIL. EUR out of that at least 5 / 2.5 / 1.5 mil EUR to be covered by own equity Eligible costs land, buildings, machinery & other equipment, know-how, licenses or patents Machinery, technology - at least 20% or 40% (depending on the unemployment rate) of the eligible costs - new, not depreciated, not used before Maximum incentives up to 30%-50% depending on the level of unemployment Other conditions Tourism Center Complex with Combination of more Services Responsible institution Minister of Transport,Construction and Regional Development of the Slovak Republic Investment Incentives: Tourism Min. Investment & Share of New Machinery CA BY NO PU PB MT IL KK LM RK PP TN SA MY SE TT MA BN BA PD VT LV RV KS KE MI TV PT LC KA GA SV HE PO SO DT ZV ML GL RA BS ZM VK SA NZ DS LE BR BB ZC HC NR SC TR ZH PE TO PK SB SN NM PN BJ SP DK ZA SK SL TS KM KN * Region Bratislava is excluded RS 10 mil EUR/40% 5 mil EUR/20% 3 mil EUR/20% State Aid Effectivity In the period 2002 – 2011: I 109 approved investment project I 41,057 number of newly created jobs I 25% - average intensity of state aid I 29,000 EUR – average intensity of state aid per 1 newly created job Important facts I Investment must be implemented within max. 36 months I Submission of investment plan before start of the work on project I Work on the project can start after the Ministry of Economy issues a preliminary statement (takes approx. 40 days) I The investor must meet his investment plan in all material aspects (especially amount and no. of newly created jobs) I The beneficiary of the aid is obliged to keep investment at least 5 years after completion of investment plan I Also newly created position must be maintained at least 5 years after their creation Slovakia´s Success Stories Source: SARIO, 2010 Small Country of Great Opportunities WellnessVisit the mysterious caves Beautiful mountains Skiing opportunities A place where history meets future Charming Castles Golf opportunities Spa resorts Rafting Delicious Slovak Food Source: SARIO, 2010 Aqua parks SARIO – Closer to You Strategy Key Focus 18 October 2011, Košice New Services SARIO Who We Are MISSION EXECUTED THROUGH 3 CORE SECTIONS Foreign Direct Investment Foreign Trade Structural Funds of the EU Government Funded Organization under the direction of the Slovak Ministry of Economy SARIO Services From providing General services & information to all subjects interested in FDI in Slovakia Tailor-made solutions for potential investors exploring Slovakia such as Best Location for Your Investment Best Location for Your Expansions Through Assistence in STATE AID application process for investments into: INDUSTRY SHARED SERVICE CENTERS R&D CENTERS TOURISM Support foreign trade via match-making & subcontracting AFTERCARE services - for established foreign companies To Governmental Agency: Services Free of Charge Business Development Department Gateway for Investors I Broad network of cooperation partners I Promotion of Slovakia home & abroad I Latest developments in business environment: I Comprehensive investment package (tax, legal, HR, costs, …) I Investment incentives information I Sector & regional analyses I Assistance to incoming commercial & official delegations Corporate Development Department Dedicated to Investor’s Needs I Extensive experience in supporting business & investment activities I Local presence in each region of Slovakia I Individual client approach I Updated database of existing investors I Contacts to sub-suppliers and other business entities Thank you for your attention! Foreign Direct Investment Section For more information, you can contact us at: Address: Slovak Investment and Trade Development Agency Martincekova 17 821 01 Bratislava Slovak republic Tel.: Email: Source: SARIO, 2011 +421 2 58260 100 [email protected]