DISCLAIMER Information in this document is of a general nature only and is not intended to address specific circumstances of any particular

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2 DISCLAIMER Information in this document is of a general nature only and is not intended to address specific circumstances of any particular individual or entity nor does it amount to expert or legal advice. SPIRIT Slovenia accepts no responsibility or liability regarding the application of this information. The reproduction of content is subject to copyright and is permissible for informative, noncommercial use only. 2

3 1 ABOUT US Since 1994 the InvestSlovenia Team provides tailor solutions to foreign investors. We put you in touch with private and public organisations including an aftercare programme. We create partnerships with foreign investors in order to pave the way to taking advantage of new opportunities for the benefit of all stakeholders broadly perceived as essential to the long-term economic success of Slovenia and its partner countries. Support and facilitation of services for investors are free of charge and include: Complimentary service for businesses Answering enquiries about local investment opportunities Providing guidance on site location and selection Facilitating business-to-business linkages Connecting investors to specific professional services Facilitating introductions with sector experts and all government levels. SPIRIT Slovenia - Public Agency of the Republic of Slovenia for Entrepreneurship, Innovation, Research, Investment and Tourism InvestSlovenia Team Verovskova Ljubljana Slovenia tel.: fax: invest@spiritslovenia.si 3

4 2 ABOUT SLOVENIA 2.1 Slovenia A snapshot Population 2,061,923 Area Capital Major towns 20,273 km Ljubljana (280,300 inhabitants) Maribor (110,950); Celje (48,700); Kranj (55,450), Velenje (32,850); Koper (53,150); Novo mesto (36,400) EU member state Since the 1 st of May 2004 OECD member country Since May 2010 Adoption of EURO The 1 st of January 2007 Source: Statistical Office of the Republic of Slovenia, Main economic indicators MAIN MACROECONOMIC INDICATORS est forecast 2016 forecast GDP real growth rate (%) GDP in mil. EUR 36,220 36,868 36,006 36,144 37,111 38,216 39,047 GDP per capita, PPS* in EUR 21,000 21,500 21,600 21, GDP per capita, in EUR 17,678 17,960 17,506 17,550 17,986 18,500 18,885 Trade balance as a % of GDP External debt as % of GDP Gross external debt in EUR million 40,838 40,292 41,503 40,205 44, Rate of unemployment by ILO in % Gross wage per employee; real growth rate Labour productivity; (% of GDP per employee) Gross fixed capital formation as a % of GDP Average exchange rate USD/EUR Inflation * PPS - Purchasing Power Standard Source: IMAD,

5 2.3 Export driven economy In 2013, Slovenian exports of goods and services totalled 21.6 billion, which is approximately 61 % of national GDP. Export by country in million, 2013 MARKET MILLION EU-28 14,144 Germany 4,395 Italy 2,495 Austria 1,897 Croatia 1,484 France 1,140 Poland 643 Hungary 628 Czech Republic 560 United Kingdom 441 SEE 1,551 Serbia 665 Bosnia & Herzegovina 557 Macedonia 168 Other countries 5,854 Russian Federation 1,018 USA 364 Switzerland 290 Turkey 214 Oman 1.6 TOTAL 21,549 Source: Statistical Office of the Republic of Slovenia, 2014 Top export categories of goods, 2013 Wood and wooden products, including furniture Rubber and 5.9% plastic products 6.7% Steel and iron and their products 5.7% Aluminium 3.7% Other 25.4% Mineral fuels and oils 7.3% Pharmaceutical products 10.6% Electrical appliances 12.2% Machinery and mechanical appliances 11.0% Motor vehicles 11.5% Source: Statistical Office of the Republic of Slovenia,

6 3 FOREIGN DIRECT INVESTMENT The Slovenian Government is keen to attract new inward investment and has introduced a number of measures to assist investors. Companies making foreign direct investments and meeting certain criteria may be eligible for financial assistance in the form of grants details of which you can find in a later section of this document. Foreign investors are able to invest freely in most types of business undertakings. Repatriation of profit and capital is unlimited provided taxes due to the Slovenian Tax Administration have been paid. Withholding tax on dividends transferred is 15%, 0% when transferred to the EU Member States. Investors take advantage of four qualities (4Qs) of Slovenia: Quality workforce. Well-educated, flexible staff with language and IT skills and innovative spirit. Quality link to regional markets. Excellent geostrategic position of Slovenia makes it a natural hub for companies that serve markets of EU and South-Eastern Europe where Slovenia has a traditionally good business contacts and reputation. Quality infrastructure. Excellent transport connections and high ICT penetration. Quality of life. A quality business environment and a quality lifestyle add to individual companies results. 3.1 Major investors Foreign direct investment by investing countries ( 8.9 billion end-year 2013) Luxembourg; 2.4% United Kingdom; 2.5% Netherlands; 4% Croatia; 5.1% Belgium; 1.6% Other; 20.3% France; 6% Italy; 7% Germany; 6.4% Switzerland; 10.2% Austria; 34.3% Source: Bank of Slovenia, 2015 Major foreign investors in Slovenia Manufacturing: Brigl & Bergmeister, BSH Bosch und Siemens Hausgeräte, Carthago, Danfoss, EGO, Geberit, GKN Driveline, Goodyear Dunlop Tires Europe, Grammer Automotive, Gruppo Bonazzi, Hella, Henkel, Johnson Controls, Lafarge Perlmooser, Mayr Melnhof, Palfinger, Pfleiderer, Poclain Hydraulic, Renault, Safilo Group, Sandoz (Novartis Pharma), Securidev, Siemens, Sogefi, Styria, Sumida, Titus International, Vogtronics, Yaskava Financial services: UniCredit Bank, Hypo-Alpe-Adria-Bank, KBC, Reiffeisen Bank, SanPaolo IMI, Societe Generale Retail: Aldi Süd, E.Leclerc, Eurospin Italia, Lidl Internacional, MOL, ÖMV, Rutar, Spar... Other services: AC Nielsen, Aviat Networks, Debitel, Deloitte&Touche, DHL, Ernst&Young, Gfk, KPMG, IBM, ISS Servisystem, McDonald s, Microsoft, Mobilkom, Oracle, PriceWaterhouseCoopers, SAP, Schenker, Sodexho Alliance, S&T... 6

7 4 TAXATION 4.1 Selected tax rates Overview of selected tax rates Corporate income tax 17% Tax relief Profit repatriation tax Up to 100% of the amount invested in R&D Up to 40% of the amount invested in equipment and intangible long-term assets Tax relief on employment of certain group of workers 15% on dividends paid abroad, unless otherwise provided in a bilateral agreement 0% for EU residents Personal income tax Progressive tax rates: 16%, 27%, 41%, and 50% Income tax on interest, dividends and capital gains 20% interests 20% dividends 0 25% capital gains (depending on a holding period) Property tax 0% Immovable Property Transfer Tax VAT (Value added tax) 2% 22% - standard rate 9.5% - reduced rate (including food, excluding beverages) Social security contributions Employer: 16.1 % Employee: 22.1 % Payroll tax Payroll tax paid by employer was abolished in 2009 No. of bilateral agreements on avoidance of double taxation 58 Source: Ministry of Finance of the Republic of Slovenia, 2014 For more details please contact: Ministry of Finance of the Republic of Slovenia Tax Administration of the Republic of Slovenia Smartinska cesta 55, 1001 Ljubljana Tel: Fax: gp.durs-gdu@gov.si 7

8 5 ADMINISTRATIVE ISSUES, COMPANY REGISTRATION When establishing a company in Slovenia, it takes up to 8 days to get through all the steps. From February 2008 the registration of a limited liability company is made simpler. Registration of a single-member limited liability company may be done on-line through the state portal for business called e-vem ( The founder has to obtain digital certificate, provided by one of the certification authorities in Slovenia and Slovenian tax number at Tax Administration in order to use e-vem. Simple limited liability company with two or more founders may be registered at any of 200 VEM access points (one-shop agencies) in Slovenia. Certain conditions have to be met (prescribed form of Act on Establishment has to be used and capital has to be wholly paid in cash); in other cases, registration has to be done through notary public. Slovenian tax number has to be obtained at Tax Administration prior the registration. By registering through e-vem or VEM founders automatically register in the Court Register and in the Business Register at AJPES (The Agency of the Republic of Slovenia for Public Legal Records and Related Services), and forward information to the Tax Administration, and apply for compulsory health insurance at the Health Insurance Institute of Slovenia. The Companies Act recognizes the following types of undertaking: Partnerships (organized according to general provisions of continental law): Limited partnership (Kommanditgesellschaft), General partnership (Offene Handelsgesellschaft), Silent partnership (Stille Gesellschaft). Corporate forms: Persons who wish to establish a commercial enterprise in Slovenia can choose from the following types of business undertakings: delniška družba (d.d.) a public limited company/a joint-stock company družba z omejeno odgovornostjo (d.o.o.) a company with limited liability/a private limited company samostojni podjetnik posameznik (s.p.) a sole proprietorship/a sole proprietor/a sole trader družba z neomejeno odgovornostjo (d.n.o.) a general partnership komanditna družba (k.d.) limited partnership dvojna družba a dual company, komanditna delniška družba (k.d.d.) a limited partnership/a partnership limited by shares (Kommanditgesellschaft auf Aktien, the German model) podružnica branch office (legally organized unit of foreign legal entity; the parent company is responsible for all liabilities arising from the operations of its branch) The most common forms are limited liability company (d.o.o.) and joint stock company (d.d.). Establishing a limited liability company or a branch office is the most common practice of foreign companies establishing their business in Slovenia. 8

9 6 WORKFORCE 6.1 Working hours Full-time working hours may not exceed 40 hours a week. The law or collective bargaining agreement may determine less than 40 hours a week as full-time working hours, but not less than 36 hours. Less than 36 hours per week may exceptionally be allowed for jobs that involve increased risk of injury or damage to health. An employee is obliged to work in excess of full-time working hours if so requested by the employer in the event of an exceptional increase in the volume of work, if continuation of the work or production process is required in order to prevent material damage or danger to human life and health, if it is necessary to prevent damage to work resources that could cause a disruption of work, if it is required in order to ensure the safety of people and property and traffic safety, and in other exceptional, urgent and unforeseen cases determined by law or by the collective agreement that applies to the activity in question. Overtime work may last a maximum of 8 hours a week, 20 hours a month and 180 a year (in a period that may not exceed six months). The working day may last a maximum of 10 hours. An employee is entitled to annual leave of not less than 4 weeks in an individual calendar year. 6.1 Availability Unemployment by regions (December 2014) Statistical region Rate of registered unemployment (%) Number of registered unemployment SLOVENIA ,458 Pomurska (Murska Sobota) ,934 Podravska (Maribor) ,089 Koroška (Slovenj Gradec) ,836 Savinjska (Celje) ,678 Zasavska (Trbovlje) ,197 Spodnjeposavska (Krško) ,655 Jugovzhodna Slovenija (Novo Mesto) ,870 Osrednjeslovenska (Ljubljana) ,453 Gorenjska (Kranj) 8.9 8,472 Notranjsko-kraška (Postojna) ,895 Goriška (Nova Gorica) ,551 Obalno kraška (Koper) ,517 In December 2014 the registered unemployment rate in Slovenia was 12.6%*. 25.2% of those in the age up to 30, 30.8% over 50 years old. * The data on registered unemployed persons are mediated by the Employment Service of Slovenia. Source: Slovenian Unemployment Office, December 2014 The composition of active labour force in Slovenia shows that 16% have a university degree and 62% have finished secondary school. Workers have a high work ethics, a consensual approach to work and good industrial relations that are regarded as the key factors of stability. After elementary and secondary education, school-leavers may enrol in one of the four universities or one of numerous institutions offering higher education. The University of Ljubljana, University of Maribor, University of Primorska, University of Nova Gorica with 56 faculties and academies and 12 9

10 other higher-level education institutions have over 90,000 students (study year 2014/2015). In 2013, 18,774 graduates received degrees, over 60% of them are women and 2,954 students postgraduated. Foreign languages, especially English and German as well as Serbian/Croatian are widely spoken. Level of education of unemployed people Post-secondary education (not higher education) or higher education (asademially & professionaly oriented) & post-graduate education (specialisation, master's and doctor's degree) 15.9% Secondary general education 27.3% Secondary vocational education (short term) or secondary technical education 28.0% Without education, incomplete basic education or completed basic education 28.8% 0% 10% 20% 30% 40% Source: Slovenian Unemployment Office, Skills A typical Slovenian is computer literate and speaks two or more foreign languages. English is taught at school, German and Italian are widely used. Language availability (%) Source: Eurobarometer, Europeans and their languages 10

11 6.3 Labour costs Minimum labour wage is settled at per month. Estimated gross annual labour costs per employee in selected industries INDUSTRIES Unskilled worker ( ) Skilled worker ( ) Highly skilled worker ( ) Engineers and professionals ( ) Automotive industry 14,000 14,200 21,400 27,300 (project manager) Chemicals & Pharmaceuticals Industry Electronics & Electrical Industry ICT Industry Logistics & Distribution 14,200 15,600 26,600 14,000 14,200 17,700 16,800 (Operator in call center) 19,700 (technical consultant) 24,900 Computer engineer) 14,000 15,200 22,500 31,700 (quality manager) 22,200 (electrical engineer) 34,500 (manager on a higher level) 34,500 (project manager) Machining & Metalworking Industry 14,000 14,100 15,500 20,400 (mechanical engineer) Wood-processing Industry 14,000 14,200 16,000 21,000 (project manager) Source: Adecco & SPIRIT Slovenia's calculations, 2015 Structure of Labour Cost 1. STARTING LEVEL GROSS WAGE (according to General Collective Agreement) 2. + Supplements on active employment (0.33% of (1) for every year of employment) 3. - Employee s social security contributions (22.1% on items (1)+(2)) 4. - Personal income tax (on items (1)+(2)+(6)-(3)) 5. STARTING LEVEL NET WAGE (1)+(2)-(3)+(4) 6. + Annual holiday bonus (set by law from up to 70% of the average gross wage) 7. + Meal expenses reimbursement (minimum set by law 3.78 per day) 8. + Reimbursement of travelling expenses to and from work (depends on the price of public transport; otherwise 0.18 /km) 9. TOTAL MONTHLY EARNINGS (5)+(6)+(7)+(8) 10. EMPLOYER S SOCIAL SECURITY CONTRIBUTIONS (16.1% on items (1)+(2)) 11. MONTHLY LABOUR COST (1) +(2) +(6) +(7) + (8) + (10) Source: Institute of the Republic of Slovenia for macroeconomic analysis and development,

12 7 REAL ESTATE 7.1 Costs of real estate Most land in Slovenia is privately owned and can freely be sold and purchased. Real estate costs in EUR per m2 Leasehold (monthly) Freehold Ljubljana Maribor Ljubljana Maribor Residential apartments ,800-4, ,500 Offices , ,000 Production facilities Warehouse facilities Source: SPIRIT Slovenia, Industrial and business zones in Slovenia Web application One-stop-shop for business locations in Slovenia The portal provides information to Slovenian businesses and foreign investors seeking a suitable location for their business investment in Slovenia (greenfield, brownfield or acquisition). Navigate your way through more than 200 listings of stand-alone industrial and commercial properties and sites located in business/economic/enterprise zones across Slovenia. The unoccupied real estate meets the requirements of both start-up investment projects and expansion of economic and business activities. 12

13 8 UTILITIES 8.1 Electricity Big Industrial Users The electricity market was opened in 2001 when the internal market was opened for authorized consumers (i.e. those using in excess of 41 kw in a single outlet there are approximately 8,000 such consumers in Slovenia) and all electricity distributors. Big industrial users are now able to negotiate the price of electricity with several distributors. Different rates of the electricity network fee are applied, depending on the voltage level, season (high-middle-low) and overall consumption of power. Electricity prices for industry in the 3 rd quarter of 2014 (EUR/kWh) Annual Consumption of Standard Consumer Energy Network Exclusive of taxes Additions and contributions Exclusive of VAT All taxes included IA (<20 MWh) IB (20 to <500 MWh) IC (500 to <2,000 MWh) ID (2,000 to <20,000 MWh) IE (20,000 to <70,000 MWh) IF (70,000 to <=150,000 MWh) Slovenia Source: Statistical Office of the Republic of Slovenia, Natural gas Natural gas prices for industry in the 3 rd quarter of 2014 (EUR/GJ and EUR/Sm 3 ) EUR / GJ EUR/Sm3 Annual Consumption of Exclusive Exclusive All taxes Exclusive Exclusive All taxes Standard Consumer of taxes of VAT included of taxes of VAT included I1 (to 1,000 GJ) 10, , ,7793 0,4028 0,4583 0,5591 I2 (1,000 to <10,000 GJ) 11, , ,9641 0,4395 0,495 0,6039 I3 (10,000 to <100,000 GJ) 10,104 11, ,1162 0,3822 0,4377 0,534 I4 (100,000 to 1,000,000 GJ) 8,58 10, ,2569 0,3246 0,3801 0,4637 I5 (1,000,000 to <=4,000,000 0 GJ) GJ) z z z z z z Slovenia 9, , ,8689 0,3435 0,399 0,4868 Source: Statistical Office of the Republic of Slovenia,

14 8 TRAVEL INFORMATION The development of transport and other infrastructure has been going hand in hand with the changes in economic and travel patterns. Traffic jams are rare but plan your trips to avoid the most popular routes in high tourist season and don t forget that many people are on the move around Easter and Christmas. 8.1 By air Three international airports provide easy access by plane to every corner of Slovenia. The Ljubljana Jože Pučnik Airport, 25 km from the capital Ljubljana, is the main Slovenian airport for passengers and cargo. Regular and charter flights carry passengers to all important European destinations. The national carrier Adria Airways, member of the Lufthansa group Star Alliance, boasts a modern fleet of aircraft for passenger and cargo service. Detailed information about scheduled flights from/to Ljubljana Jože Pučnik Airport are available at There is a taxi service from the airport and one-way fare to Ljubljana city should not exceed EUR 50. If you provide your flight details, most of the hotels in Ljubljana will organise you the shuttle service from/to the airport (one-way fare is around EUR 30 per person). There are flights from Maribor (charter planes in high season) and Portorož (private planes and sightseeing tours). Several air strips are available for light aircraft and gliders. 8.2 By Road It is easy to reach Slovenia from anywhere in Europe by car or lorry within a day or two. Currently, there are about 630 km of well-maintained motorways and around 1,050 km of trunk roads. The completion of the motorway network is scheduled for Motorway toll for passenger vehicles has to be paid with vignettes (toll stickers). Yearly vignette for vehicles with the permissible maximum weight of 3.5 ton is EUR 95, price for monthly vignette is EUR 30. Vignettes are sold at petrol stations in Slovenia and neighbouring countries and at branches of the national and foreign automobile clubs, at post offices in Slovenia and at some magazine stands (Vignettes' sales points). How far are major cities from Slovenia's capital? Destination km* Time Zagreb 135 1:30 Venice 250 2:30 Vienna Munich Budapest Milan Sarajevo Belgrade *Distances and approximate journey time by road from Ljubljana 14

15 8.3 By Rail Railway infrastructure on the Pan-European Transport Corridor No. 5 (Barcelona - Kiev) and Corridor No. 10 (Salzburg - Thessalonica) is being modernised at fast pace. Thanks to huge investments, rolling-stock has been replaced to provide speed and comfort in commuter service and high-speed trains for other domestic and international travellers. Freight traffic is well developed, and the rail link between the Adriatic Sea and the waterways connected to the Danube River offer plenty of opportunities. The new shunting yard in Ljubljana guarantees quick transport across the Slovenian territory criss-crossed by more than 1,200 km of railway lines. International passenger trains connect Slovenia with other countries on the continent. The national rail operator is Slovenske železnice - Slovenian Railways. The company runs both passenger and freight services with focus on frequency, passenger safety, shorter travel time and good customer service. 8.4 By Sea Port of Koper is a fast-growing cargo port at the Adriatic Sea. It provides 7 to 10 days shorter route for shipments arriving from Asia than Europe s northern ports. There are currently 11 modern and fully equipped terminals specialised for various types of goods. Ferry lines connect Slovenia with coastal towns of Mediterranean countries, while pleasure boats take holiday-makers on trips in summer months. 15

16 9 FDI INCENTIVES 9.1 Fiscal incentives General corporate tax rate is set at 17% of taxable base. An important tax incentive applies: A deduction from the tax base of 100% of the investment in R&D; A deduction from the tax base of 40% for investments in equipment and intangible long-term assets; A deduction from the tax base of the wages paid to apprentices, pupils or students, but no more than 20% of average monthly wages of employees in Slovenia; A deduction from the tax base when employing unemployed disabled people. Expenditure on plant and machinery generally qualifies for annual writing-down allowances. The depreciation allowance on buildings and equipment are quite favourable. Depreciation may not exceed the level arrived at using straight-line depreciation methods and the set annual depreciation rates. 9.2 Financial incentives SPECIAL PROCEDURE The Promotion of Foreign Direct Investment and Internationalisation of Enterprises Act (Official Gazette RS, Nos. 107/06 and 11/11) also enables the allocation of financial incentives under a special procedure. Under this procedure, upon the proposal of the Ministry of the Economic Development and Technology, the Slovenian Government may under a direct contract allocate financial incentives for large investment projects that will substantially contribute to the development of the Slovenian economy under the following conditions: The amount of investment is more than 12 million Euro or The investment projects will create at least 10 new jobs in the research and development activity, 20 jobs in internationally traded services, or 50 jobs in the manufacturing sector, and If the conditions as referred to in the Decree on Financial Incentives for Foreign Direct Investments are fulfilled. Foreign investors can apply under this special procedure, while the enterprises registered in the Republic of Slovenia in which the foreign investors directly participate with an ownership interest of at least 10% will be the recipients of the incentives. Enterprises may file applications under the special procedure with the Ministry of the Economic Development and Technology. For more information please contact the Ministry for Economic Development and Technology ( gp.mgrt@gov.si). PUBLIC INVITATION TO EMPLOYERS TO CARRY OUT THE PROGRAMMES/SCHEMES FOR ON-THE JOB TRAINING Purpose/subject of the call for tender/eligible costs: The program allows the employers to get to know an unemployed person in a particular work situation and to train the participants for a post in accordance with the training program. An employer may apply for a limited number of unemployed persons. Duration of training and maximum of reimbursable costs (for training implementation): - one month and per participant (for simple jobs) - two months and per participant (for more demanding jobs) - three months and per participant (only for persons younger than 30 years). The participants will a bonus for being active and for transport. 16

17 A person is trained at the specific workplace full time and under mentorship. A mentor can monitor up to 5 persons involved in the training. Operator: Employment Service of Slovenia Available funds: EUR 8 million Deadline for the submission of projects (applications): Applications may be submitted daily until 1 July 2015 Contact person: Ms. Dragomila Šeško; dragomila.sesko@ess.gov.si FROM THE FACULTY TO THE PRACTICE Purpose/subject of the call for tender/eligible costs: The purpose of the program is to promote obtaining first working experiences of young people through training for a specific job. The program will include young people up to 29 years of age with tertiary education (at least 1st Bologna level) who are unemployed and seeking first job. The program is carried out for full-time employment (the company recruit a young unemployed person) at the workplace appropriate to the type of education of the recruited person, lasting at least one year. The program may be performed as a traineeship. The company may recruit up to 5 unemployed persons from the target group. Applications shall be submitted at the regional office of the Employment Service of Slovenia where the employer is registered. Selected applicants/companies will get co-financing in the amount of EUR 6,000 for the costs of giving young people full-time employment for 12 months, or less depending on the working hours of employment of a disabled person. Operator: Employment Service of Slovenia Available funds: EUR 5 million Deadline for the submission of projects (applications): Applications may be submitted daily until 30 June 2015 Contact person: Ms. Sabina Špehar Pajk; sabina.spehar@ess.gov.si WORKING TEST FOR YOUNG PEOPLE 2015 Purpose/subject of the call for tender/eligible costs: The program enables companies to organise working test for young unemployed people (registered at the Employment Service of Slovenia) before employing them full-time. The activity shall include a minimum of 100 hours, lasting a maximum of one month. A person is tested at the specific workplace full time and under mentorship. A mentor can monitor up to 5 persons involved in the working test. The employer may submit successive applications but at the time a new application is submitted the previous working test should be completed. Applications shall be submitted at the regional office of the Employment Service of Slovenia where the employer is registered. Working tests must be completed by 31 October Operator: Employment Service of Slovenia Available funds: EUR 1 million Deadline for the submission of projects (applications): Applications may be submitted daily until 1 1 September 2015 at 1pm or until the the use of funds Contact person: Ms. Dragomila Šeško; dragomila.sesko@ess.gov.si 17

18 9.3 Other incentives In addition, tenders are open in various areas (co-financing the purchase of new technological equipment in SME, direct co-financing for joint development and investment projects) subject to the condition that they have to operate in Slovenia for at least one year. Municipalities may offer different forms of incentives; these may include easy access to industrial sites, utility connections and holidays from local taxes. DEVELOPMENT SUPPORT TO THE POMURJE REGION Slovenian Government promulgated on 1 January 2010 the Act on Development Support to the Pomurje Region in the Period designed to encourage businesses to locate and expand in Pomurje. The measures in place until 2015 include: The Government-backed program designed to sharpen the competitive edge of the Pomurje region: grants are available for the business environment improvement and capital investments; On the jobs front: tax incentives and refunds of social and health insurance contributions paid by employers; Fiscal incentives for investment: pre-tax profit can be reduced by 70% of the capital expenditure for investment making the tax charge proportionally lower; Priority treatment of the investment projects to be located in Pomurje when bidding for financing from the national development funds and the EU Cohesion Fund; Institutional support provided by the Government Office for Local Government and Regional Policy in Pomurje. DEVELOPMENT SUPPORT TO THE BELA KRAJINA SUBREGION Bela Krajina is a part of Jugovzhodna Slovenia region. For the sub region a government programme of encouraging competitiveness and development aid measures in the period was implemented (i. e. Pokolpje programme): Measure 1 a competitiveness promotion programme in Pokolpje region worth EUR 20,000,000: the most important objective for companies are public tenders for encouraging initial investments and creation of jobs; Measure 2 reimbursement of social security contributions; Measure 3 tax reliefs for hiring and investing: a taxable person may claim a reduction of the tax basis by 70 % of the employee s costs or 70 % of the amount invested in new initial investments; Measure 4 incentives for sustainable rural development from the Rural Development Programme; Measure 5 - guarantees with interest rate subsidies for investment loans to companies in the Pokolpje region under regional guarantee schemes for Southeastern Slovenia In addition to these measures, Bela Krajina subregion is the priority area of development policies in the period

19 10 USEFUL ADDRESSES SPIRIT SLOVENIA - Public Agency of the Republic of Slovenia for Entrepreneurship, Innovation, Research, Investment and Tourism FDI Division Verovskova 60, SI-1000 Ljubljana, Slovenia Tel: +386 (0) Fax: +386 (0) invest@spiritslovenia.si Website: Ministry of Economic Development and Technology Kotnikova 5, 1000 Ljubljana Tel: Fax: gp.mg@gov.si Website: Chamber of Commerce and Industry of Slovenia Dimiceva 13, 1504 Ljubljana Tel: Fax: infolink@gzs.si Website: Ministry of Labor, Family and Social Affairs Kotnikova 5, 1000 Ljubljana Tel: Fax: Website: Employment service of Slovenia Rozna dolina, cesta IX / 6, p.p. 2962, 1001 Ljubljana Tel: Fax: info@ess.gov.si Website: Ministry of the Environment and Spatial Planning Dunajska cesta 48, 1000 Ljubljana Tel: Fax: gp.mop(at)gov.si Slovenian Environment Agency Vojkova 1b, 1000 Ljubljana Tel: Fax: gp.arso@gov.si Ministry of the Republic of Slovenia for Foreign Affairs Consular Department Presernova 25, 1000 Ljubljana Tel: Fax: info.mzz@gov.si Website: 19