Slovakia in Figures

Transcription

1 Slovakia in Figures Developed Infrastructure Productive and Modern Industry Beautiful Nature Petržalka in - The most dense urban area in Central Europe Kia in Slovakia - State-of-the art production facility Tatras - View from Štrbské pleso The Best Deal in the Eurozone = Slovakia The Largest Economy in the World GEO BIH MDA GDP in 2012: EU: 12.9 trillion USA: 11.8 trillion MNE AZE MKD RUS ARM SRB ALB UKR The Council of Europe pop: 820 mil. 47 countries European Economic Area pop: 500 mil. EU Customs Union European Union BUL Eurozone pop: 330 mil. 17 countries IRL CYP AND ROU UK European Free Trade Association AUT BEL EST FIN FRA GER GRE ITA NED POR DEN SMR LIE ISL LUX SUI CZE TUR MLT HUN CRO NOR SVK SLO ESP MON POL Schengen Area VAT Population: 5.4 mil. Unemployment: 14,5% Avg. monthly salary: 826 Avg. labor cost: 1,200 Currency: Euro ( ) SLOVAKIA SWE Agreement with EU to mint Euros LAT LTU SLOVAKIA Eurozone countries Euro adopted unilaterally ISBN The fastest desktop Internet; the 10th fastest mobile Internet - excellent IT infrastructure The most productive labor force in OECD - the highest return on labor investment The lowest labor cost in Eurozone Achieve outstanding results. We help companies become and stay leaders in their markets. Tel.: +(421) , Fax: +(421) , info@ecenter.net 19 Years in Slovakia 20 Percentage of Slovakia s GDP produced by AmCham members 320 Number of members 100,000 Number of employees in AmCham membership 15,500,000,000 Turnover in EUR of our top 100 companies Crowne C ro rown wne e Plaza, H Hodžovo námestie , Slovak Republic T T:: ((+421-2) E: of ce@amcham.sk E: W W: PROVIDING FULL SERVICE LEGAL ADVICE IN SLOVAKIA AND ACROSS THE GLOBE Advokátska kancelária Squire Sanders s.r.o. Zochova 5, Office in 19 Countries squiresanders.com 2013, ECENTER and The American Chamber of Commerce in the Slovak Republic, All Rights Reserved

2 Population 5.4 mil. (Similar to Denmark, Finland, Singapore, Minnesota, or New Zealand) Košice The Largest Cities in Slovakia (population) Martin Poprad Spišská n. Ves Prievidza Košice Michalovce Ukraine B Nové Zámky Komárno Zvolen Other 7% Rusyns 0.6% Czechs 0.6% Ethnicity 2 Literacy: 99%. Roma* 2% Life Expectancy: 80 yrs. females; 72 yrs. males. (2011) Hungarians 9% Slovaks 81% Total Area: 49,000 sq km / 18,933 sq mi Slightly larger than Denmark(43,000 sq km), Netherlands (42,000 sq km), or Switzerland (41,000 sq km); slightly smaller than Costa Rica (51,000 sq km). *Unofficial estimates place the Roma population between 6%-10%. Source: Slovakia census 2011 No religion 13,4% Not specified 10.6% Evangelical Methodist 0.2% Jehovah's Witnesses 0.3% Orthodox 0.9% Reformed Christian 1.8% Greek Catholic 3.8% Evangelical of the Augsburg Confession 5.9% Religions Roman Catholic 62% Politics & Ratings Government The 2nd highest rating in V4 region V4 - Visegrad countries:,, and Slovakia President Ivan Gašparovič ( ; spring 2014) Prime Minister Róbert Fico ( spring 2016) Smer-SD Type: Parliamentary democracy. Countries Ratings (Oct 1, 2013) Independence: The Slovak Republic was established January 1, 1993 MOODY S&P FITCH (former Czechoslovak Republic established 1918). SK A2 A A+ Branches: CZ A1 AA- A+ Executive - President (head of state), Prime Minister (head of government), PL A2 A - A - cabinet. HU BA1 BB BB+ Legislative - National Council of the Slovak Republic (150 seats). Judicial - Supreme Court, Constitutional Court. Highest rating Source: Slovenská Sporiteľňa, 2013 Political parties: 150 parliamentary seats: Smer-SD (83)[55%]; KDH (16); OLaNO (16); Most-Hid (13); SDKU-DS (11); SaS (11) Next parliamentary elections: 2016 Suffrage: Universal at 18 years. Administrative divisions: 8 administrative regions, 79 districts. Economy, R&D and Knowledge Centers High Quality Labor: a hub for ICT and shared service centers Main Slovak Academic and Research Clusters Higher end services Page 2 [19 000], (9.8%) [74 000], (6.2%) [10 000], (11.1%) [23 000], (14%) [19 000], (12.6%) Zvolen [18 000], (19.5%) Poprad Lower end production [12 000], (20.1%) Košice [29 000], (18.7%) Ukraine Top 8 ICT companies: Employees At The Year End # Company IBM AT&T n/a n/a 3 T-systems Dell HP n/a 6 Accenture Lenovo First Data n/a n/a [number of students at universities and colleges] (unemployment in regions) Total Total nunber of college and university students Y/Y Growth 15% 14% 17% n/a Source: Slovak Statistics Office, 2013 Source: TREND, 2013

3 Labor Productivity and Export/Import SLOVAKIA: The world leader in vehicles produced per capita Labor Productivity of the Total Economy (Index) Slovakia Source: OECD, 2013 Estimates Slovak Republic Korea Estonia United States OECD - Total Japan Euro area (15 countries) 1.04 Switzerland Export/Import by countries in 2012 # Export % Import % 1 21,3 16,4 2 14,1 Russia 11,5 3 8,1 10,6 4 7,2 South Korea 6,4 5 6,7 China 6 6 5,4 4,1 7 4,7 4,1 8 Russia 4,2 3,4 9 3,9 3,4 10 Netherland 2,3 2,3 Others 22,33 Others 31,8 Source: Ministry of Economy, August 2013 Year Import (mil. ) Export (mil. ) Trade Balance Change Source: Ministry of Economy, August 2013 Labor Market The most productive and the lowest cost labor in Eurozone Unemployment rate and number of unemployed people in regions (June 2013) 12.6% = % = % = % = Košice Ukraine 9.8% = % = % = % = ppl National Holidays: 15 days lowest highest Source: Central Office of Labour, Social Affairs and Family Labor Cost Structure (simplified) Employee Employer Social Security 9,40% 25,20% Healthcare Insurance 4,00% 10,00% The fees are derived from employees gross salaries Slovak labor is the most productive in the Eurozone. Labor costs are the lowest. Skilled workers are readily available. Labor laws allow more flexibility for employers than those in the other Eurozone countries. Ireland Netherlands Belgium Denmark Sweden Norway Slovakia offers the lowest labor cost in Eurozone (2012 in /hour) Slovakia 8.3 Estonia 8.4 Greece 14.9 Spain x Slovakia 3x Slovakia 4x Slovakia 5x Slovakia Source: EUROSTAT, April 2013; Selected countries only Logistics & ICT Infrastructure Modern and developed infrastructure Easily accessible from Western Europe - only 70km from Vienna, Prague 260km Page 3 Vienna 70km Budapest 50km Zvolen Krakow 100km Internet: Warsaw 450km Poprad Košice Existing highway Highway in construction Planned highway Expressway Planned expressway Main railway Airport Fastest desktop Internet in the world 10th fastest mobile Internet in the world source: Google, Inc., 2012 Kiev 815km Mobile service operators: Orange, T-Mobile and O2 Mobile Network coverage: Orange: 99.6% of population / 90% of the country Slovak Telekom: 99% of population O2: 96% of population Mobile Data Connection: Orange: 42.2 Mbps download / 5.8 upload (72% of population) FTTH (Fiber To The home) 100Mbps download / 100Mbps upload: available in 17 cities to 15.9% of population. Slovak Telekom: 42 Mbps download / 5.8 upload Internet optik: 80 Mbps download / 8 upload available in 22 cities to 368,000 households. O2: 14.4 Mbps download / 2 upload 100 Mbps download / 20 upload (pilot LTE technology) Various options of high-speed Internet are available through landlines and satellite operators. Source: Orange, Slovak Telekom, O2

4 Stable and Sustainable Economy Debt: Only 53.3% of GDP; Labor cost of producing $100 is only $29.6 Slovakia Netherlands Spain Cyprus Belgium Portugal Greece General Government Debt (% of GDP) Labor cost of producing $100 GDP in Source: EUROSTAT, Selected countries only Slovakia Estonia Portugal Slovenia Ireland Spain Greece Luxembourg Netherlands Norway Belgium Finland Denmark Sweden x Slovakia % $ 3x Slovakia USD Sources: GDP per hour worked: OECD. Labor cost per hour worked: Eurostat. Exchange rate USD/EUR used was the average of Calculations: ECENTER. All countries with data available are presented Top Slovak Companies Largest companies: 14,500 employees, 6.6 bil. in sales # Rank in TOP 200 # The Largest Nonfinancial Companies (Slovak Headquarter Location) Total sales (EUR 1,000) Change (%) Value added/ total sales (%) After - tax profit (EUR 000) Average number of employees / Volkswagen Slovakia, a.s., ,9 8,5 7, Automotive 2. Slovnaft, a.s., ,2 6,5 5, Petroleum ref. 3. Kia Motors, s.r.o., ,7 12,2 10, Automotive 4. Samsung Electronics Slovakia, s.r.o., Galanta ,7 5,6 9, Electronics 5. Slovenské elektrárne, a.s., ,9 19, Energy 6. U.S. Steel Košice, s.r.o., Košice ,4 16,6 15, Metallurgy 7. Slovenský plynárenský priemysel, a.s., ,5 11,8 17, Energy 8. PCA Slovakia, s.r.o., , ,8 n Automotive 9. Tesco Stores SR, a.s., ,4 n n n Retail 10. Západoslovenská energetika, a.s., ,5 24,3 26, Energy Source: Trend, Top 200, July 2013 The Largest Employers in Slovakia (Slovak Headquarter Location) Average number of employees Change (%) Increase (decrease) in number of employees Personal costs (EUR 1,000) Profit per employee (EUR) Sales per employee (EUR) / Železnice SR, , Slovenská pošta, a.s., , n n U.S. Steel Košice, s.r.o., Košice , Tesco Stores SR, a.s., , n n n Volkswagen Slovakia, a.s., , Železničná spoločnosť Cargo Slovakia, a.s., , Železničná spoločnosť Slovensko, a.s., , Slovenské elektrárne, a.s., , INA Skalica, s.r.o., Skalica , Kaufland Slovenská republika, v.o.s., , n n n Source: Trend, Top 200, July 2013 Sector Page 4

5 Economic Forecast 2013: GDP + 0.8%; Inflation + 1.6% Taxes, State Aid, Subsidies, and Support The tax system is compliant with the tax systems of the EU Corporate income tax: 23% (planned to decrease to 22%, since ) Capital Gains tax: 23% Withholding tax: Interest: 19%, Royalties: 19% Dividends: Not subject to tax VAT (Value Added Tax or Sales Tax): 20% - almost all products and services 10% - textbooks and most healthcare related products and services 0% - certain financial and insurance services Personal Income tax and Capital Gains tax: 19%. It is 25% when the tax base is over EUR 34, Foreign persons can be subject to Slovak taxation if they spend more than 183 days of the specific year in Slovakia. Excise tax: imposed on certain types of goods: mineral oils, liqueurs, beer, wine, tobacco products, electricity, coal and natural gas. Page 5 Indicator (Slovakia, if not mentioned otherwise) in Real GDP in current prices bil.eur Real GDP growth % GDP in the Czech republic (real growth) % GDP in (real growth) % GDP in Eurozone (real growth) % Household consumption real growth % Household consumption nominal growth % Average monthly salary growth % Average monthly salary real growth % Salaries as % of GDP % Average Nominal Monthly Salary Average Nominal Monthly Salary Growth ( 805 in 2012) % Private Sector ( 804 in 2012) % Public Sector ( 810 in 2012) % Labor Productivity % Unit labour cost % Employment: average growth % Unemployment rate (%) % Real disposable income growth % CPI Growth (Consumer Price Index - Inflation) % Harmonized Index Of Consumer Prices (HICP) % Account Balance (as a % of GDP) % Consumption of Public Administration (real growth) % Creation of Gross fixed capital (real growth) % Export /products and services/ (real growth) % Import /products and services/ (real growth) % International Trade Balance bil. EUR Exchange rate (Eur/USD) EUR/USD Euribor (3 month average) % Yield of Slovak 10 year bonds % Net Inflation (average) % Deflators Growth - GDP % Foreign Direct investment (net inflow to Slovakia - capital and reinvested profit) mil. USD Crude oil (average price) USD/bl Foreign Direct investment (net inflow to Slovakia / GDP) % Slovakia's bond Yield - 10 year (average) % Source: Ministry of Finance of the Slovak Republic, September 26, There are three Real Estate Property taxes: 1) land tax and 2) tax on apartments and non-residential premises within apartment buildings 3) tax on buildings. Tax on land is levied at 0.25% of the tax base which would be assessed by the municipality. Rates vary depending on the type of land and its location. Real Property tax: Tax on buildings - depending on the municipality, it is usually between Eur 0.03 to Eur 0.33 per sq. m. of the floor area. Real Estate tax: Transfer tax was abolished in 2005; Capital gains are taxable as regular income tax. VAT registration is obligatory for entities with revenues exceeding EUR within 12 consecutive months. There are special taxes imposed on certain assets (i.e. vehicle road tax). Some adjustments are expected to be introduced in Real 2011 Real 2012 Simple tax system; Available state aid The Largest State Aid Projects # Company/Project State Aid (Eur) Year 1 KIA Motors, s. r. o. (Project 1) 135,225, PCA Slovakia, s.r.o 120,543, Mobis Slovakia, s. r. o. 35,581, AU Optronics Slovakia 34,900, KIA Motors, s. r. o. (Project 2) 34,134, SONY SLOVAKIA, spol. s r.o. 31,381, Samsung Electronics Slovakia s.r.o. 29,438, Universal Media Corporation /Slovakia/ s.r.o. 21,038, KIA Motors, s. r. o. (Project 3) 15,070, Johnson Controls Lučenec, s. r. o. 13,333, Source: SARIO, Ministry of Finance of the Slovak Republic Stimulus laws: - Act no. 561/ Act no. 231/ Act no. 56/ Act no. 481/ Act no. 231/ Act no. 5/ Act no. 595/ Regional National Map ( ) Forecast State aid in regions: : 0% Western Slovakia: 40% Central Slovakia: 50% Eastern Slovakia: 50% (Percent value represents maximum level of state aid contribution per project in a specific region.)

6 PROVIDING FULL SERVICE LEGAL ADVICE IN SLOVAKIA AND ACROSS THE GLOBE Squire Sanders can provide your business with tailored solutions to all of your commercial legal needs. As one of the biggest law firms in the world, we provide legal advice across 140 jurisdictions and in more than 40 languages meaning we can be as global or as local as you need. Contact us to find out how we can help your business succeed. Julian Juhasz Partner T E julian.juhasz@squiresanders.com Tatiana Prokopová Partner T E tatiana.prokopova@squiresanders.com Jana Pagáčová Partner T E jana.pagacova@squiresanders.com 39 Office in 19 Countries squiresanders.com