Slovenia is a relatively small Central European country that borders Hungary, Italy, Croatia, and Austria. It only has a population of 2 million people and is mostly mountainous. With this in mind, it might not seem like a great place to set up a business but if you investigate further, it is so much more than a travel destination. It is a perfect option when you look for a financial heaven for a startup.
Why Should You Consider Investing In Slovenia?
For starters, the country is located right in the middle of the continent. It now shows a very fast-growing economy, one of the fastest in Eastern and Central Europe. For foreign investors, Slovenia is preferred right now due to its strategic position as the main factor.
Slovenia has a stable investment climate, which is in part because of its strategic position. Its infrastructure is modern and the workforce is well-educated, way more than people expect. EU standards are respected in various areas. This ranges from commercial legislation and economic legislation to requirements when it comes to set up businesses and the country’s taxation policies.
The most important investment areas in Slovenia are electrical engineering, life science, electronics, the automotive industry, the chemical industry, and pharmaceuticals.
Attracting Foreign Investors
Slovenia has very attractive foreign investment policies. This is because the government is actively trying to bring in money from other countries. There is even an agency, Invest Slovenia, set up by the government with the purpose of promoting foreign investments.
Several strategies were developed to support country entrepreneurship and to encourage SME innovation. Even youth entrepreneurship is highly supported. Then, Slovenia’s corporate tax rate is now lower than that of other countries around it.
The Slovenian government took things further with supportive incentives like fiscal incentives offered to investors and financial aids. For instance, when you invest in the field of research and development, you are eligible to receive a tax deduction of 20%. This can even go as high as 40% in some regions of the country.
The Economic Overview Of Slovenia
In the year 2017, Slovenia became a member of the EU (European Union) and adopted the EUR. It is also a part of the OECD (Organization for Economic Co-Operation and Development) ever since the year 2010. After the successful economic transition that happened in the 2000s, Slovenia has become a truly open market with foreign trade being a huge pillar of the economy. Right now, foreign trade represents 120% of exports and imports combined (GDP).
Very good trading relationships are maintained with several EU countries. This includes France, Italy, Austria, and Germany as major trading partners.
A huge focus should be put on some specific parts of the economy as great opportunities for foreign investors. These are information and communications, retail, commercial services, and financial services. The Slovenian service sector now makes up 56.39% of GDP.
On The whole, Slovenia is a wonderful investment destination. It is strategically located and is very well-connected. Also, the country is filled with several natural resources, like lignite coal, silver, hydropower, mercury, and zinc.