Why Invest and Set Up Business in Slovenia
Slovenia, a small country located in Central Europe, is the world’s 156th largest country with the total land area of 20,273 square kilometres. Bordering Austria, Croatia, Italy and Hungary, Slovenia is a small country with a population of 2.08 million people. Slovenia is a mountainous country. It is also one of the most forested countries in Europe that comprises four major European geographic landscapes, namely the Mediterranean coast, the karstic Dinaric Alps, the Pannonian and Danubian lowlands and hills, as well as the European Alps. Then, start to set up business in Slovenia as its location is a big factor for business growth.
Slovenia’s Economy Overview
In 20017, Slovenia became the first member to have both joined the European Union (“EU”) and adopted the euro (since the creation of the currency in 1999). It is also the member of the Organisation for Economic Co-operation and Development (“OECD”) since 2010. As an advanced, independent and stable country, Slovenia has been an open market after its successful economic transition in the 2000s. Foreign trade is the important pillar of Slovenia’s economy where it represents around 120% of GDP (exports and imports combined). Slovenia maintains a good trade relationship with other EU countries. Germany, Austria, Italy, and France have been the major trading partners of Slovenia. The service sector of Slovenia is one of the most significant pillars in the Slovenian economy especially in the fields of information and communications technology (ITC), financial and commercial services, and retail business. The service sector accounts for 56.39% of the GDP.
Why Invest in Slovenia
Strategically located at the heart of Europe, Slovenia has one of the fastest-growing economies in central and eastern Europe. Foreign investors choose Slovenia as their preferred investment destination for a multitude of reasons. These reasons are Slovenia’s strategic position at the heart of Europe, its well-connected transportation, a pro-business and stable investment climate, state-of-art infrastructure, and a well-educated workforce in the country. Slovenia follows EU standards in many areas, ranging from economic and commercial legislation, requirements for setting up a business to taxation policies in the country. Slovenia’s key investment areas include the automotive industry, electrical engineering, electronics, life science, pharmaceuticals and chemical industry.
Slovenia’s foreign investment policy plays an important role in attracting foreign investment into the country. The government has since set up an agency known as Invest Slovenia as part of its strategy to promote foreign investment in the country. The Slovenian government has mapped out strategies to support entrepreneurship in the country as well as to encourage innovation in the SME’s and youth entrepreneurship. The corporate tax rate of Slovenia is lower if compared with other countries in the region. Further to the supportive government incentives, the Slovenian government will also provide financial aids and fiscal incentives to investors. The investment made in research and development is eligible for 20% tax deduction (from the overall tax base) where the deduction can be further increased to as much as 30-40% based on the region.
On a final note, Slovenia makes the ideal investment destination due to many reasons. For one, its strategic location has given it an edge to be the investment springboard to traipse into nearby European countries. For another, Slovenia’s well-connected rail, road and water networks provide traders and manufacturers reliable and faster trade routes. Besides, Slovenia is blessed with abundant natural resources, such as zinc, mercury, lead, lignite coal, hydropower, and silver. The perfect combination of natural resources and state-of-art infrastructure is the game-changer in driving economic growth of Slovenia. Foreign investors who want to develop a business foundation in Europe, they can always start their business expansion plan from Slovenia.