Doing business in Slovakia: Slovkia trade and export guide
Updated 11 May 2015
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This publication is available at https://www.gov.uk/government/publications/exporting-to-slovakia/doing-business-in-slovakia-slovkia-trade-and-export-guide
Brexit
Learn about changes for UK exporters to Slovakia if the UK leaves the EU without a deal.
Managing risk
Find out how UK companies can control risks when doing business in Slovakia.
Export opportunities and advice
Find more export advice and explore opportunities overseas on great.gov.uk.
1. Slovakia export overview
Slovakia is one of 9 Central and East European (CEE) markets. It has enormous growth potential.
Contact a Department for International Trade (DIT) Slovakia export adviser for a free consultation if you’re interested in exporting to Slovakia.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Slovakia.
Over 100 UK owned companies operate in Slovakia. Tesco is Slovakia’s top retailer and one of the main employers in the country. Other major UK investors include Shell, Provident Financial, CP Holdings, Amec, Tate and Lyle, BAE Systems, GlaxoSmithKline and Allen and Overy.
Benefits for UK companies exporting to Slovakia include:
- English accepted as a business language
- gateway to emerging markets of eastern Europe
- one of a few countries in CEE to use the euro
- direct international air services
- English widely spoken
Strengths of the Slovak market include:
- stable economic and political environment
- strategic geographical position
- excellent telecommunications infrastructure
- highly skilled and flexible labour force
- high labour productivity with favourable labour costs
Read the European Union’s practical guide to doing business in Europe.
2. Challenges
Slovakia is a member of the EU so European business practices and standards generally apply. There are no major cultural differences to consider.
The main challenges to doing business in Slovakia include:
- bureaucracy
- corruption
- non-transparent public tenders
- e-government readiness
- Slovakia is in the top 25% in the World Bank’s ‘Ease of Doing Business’ ranking
You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.
3. Growth potential
3.1 Economic growth
The Slovak Republic’s economy is converging rapidly towards the living standards of advanced Organisation of Economic Cooperation and Development (OECD) economies.
The Institute for Fiscal Policy (IFP) forecasts Slovakia’s Gross Domestic Product (GDP) will grow by around 2.9% in 2015 from 2.4% in 2014. The growth will be driven mainly by increased consumption and investment. In 2016 economic growth should slightly accelerate and reach 3.6%.
3.2 Trade agreements
Slovakia is a member of the EU and the World Trade Organization (WTO). Goods manufactured in the UK are exempt from import duties.
Contact the SOLVIT team if you have market access issues relating to the operation of the Single Market.
3.3 EU funding
Slovakia has been allocated around EUR 14 billion in total for 2014 to 2020 through the structural and cohesion fund programme.
The main investment priorities are:
- infrastructure
- human development
- innovation
- energy efficiency
3.4 Emerging Europe
Slovakia is part of the Emerging Europe region. UK exports are worth over £16 billion, with goods exports doubling over the past decade, and services exports - over £4 billion - trebling.
The region offers numerous opportunities, particularly in 6 main sectors:
- advanced manufacturing
- energy
- defence and security
- healthcare and life sciences
- infrastructure
- services
High Growth Europe: Grow your business close to home
Watch our other videos on growing your business in CEE markets.
4. UK and Slovakia trade
The UK is the 14th largest investor in Slovakia. It exported £451 million in goods to Slovakia in 2014. Bilateral trade was worth £2.37 billion.
UK’s top exports to Slovakia:
- petroleum oils and gases
- vehicles and car parts
- chemical materials and products
- medicaments
- articles for funfair, table games
5. Opportunities for UK businesses in Slovakia
Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.
Access high value public procurement notices via Tenders Electronic Daily (TED). TED contains all procurement notices above a certain threshold from the EU and European Economic Area (EEA).
Read our publication ‘Emerging Europe - Central and Eastern Europe 2015/2016: The top 50 commercial opportunities’.
5.1 Railways
Slovakia is in receipt of EU funds to develop railway infrastructure.
Opportunities for UK companies include:
- track modernisation related to increasing speed and safety, electrification, and European Rail Traffic Management System (ERTMS)
- new passenger rolling stock
- upgrading railway stations
- building of 25 new tunnels totalling 40km
- reducing railway noise
Contact Peter.Kratky@fco.gov.uk for more information on rail opportunities in Slovakia.
5.2 Water and waste
Slovakia can still draw around EUR 160.5 million from the Cohesion Fund (2007 to 2013 period) for construction of water and sewage networks and water treatment plants. All such projects must be completed by 31 December 2015.
Large volumes of the waste in Slovakia end at landfills. There are 118 landfill sites in Slovakia and 19 incinerators. Only 2.8% of the total waste and 6.8% of municipal waste is used for energy generation.
Opportunities for UK companies include:
- technology to increase use of waste for energy and recycling
- biomass waste energy projects
Contact Peter.Kratky@fco.gov.uk for more information on water and waste opportunities in Slovakia.
5.3 Automotive
Slovakia produces more cars per capita than any other country in the world. There are 3 Original Equipment Manufacturers (OEMs) based in Slovakia:
- Volkswagen in Bratislava
- PSA Peugeot Citroen in Trnava
- KIA Motors in Zilina
Supply chain opportunities for UK companies include:
- castings
- forgings
- metal sheets
- plastic mouldings
- design engineering services
- testing services
Contact ivana.winbladh@fco.gov.uk for more information on automotive opportunities.
5.4 Retail
The retail market is dominated by foreign retail chains.
Demand for clothing and fashion accessories in Slovakia has been increasing in recent years. Slovak consumers are becoming more brand conscious. An increase in real disposable incomes is expected to result in an increase in the sale of higher priced goods.
Opportunities for UK companies include:
- fashion
- luxury products
- Internet retailing
Contact ivana.winbladh@fco.gov.uk for more information on retail opportunities.
5.5 Healthcare
Slovakia spends a relatively high proportion of GDP on healthcare, estimated at 8.6% in 2013. The healthcare system is still very much in the public sector, although the majority of pharmacies and health spas are now privately owned.
Opportunities for UK companies include:
- pharmaceuticals
- medical equipment and supplies
- equipment for medical laboratories
- eHealth
Contact ivana.winbladh@fco.gov.uk for more information on healthcare opportunities.
6. Start-up considerations
To enter the Slovak market you can:
- appoint a local representative, distributor/agent
- set up branch office
The EU starts-ups guide provides information on setting up a company or subsidiary branch in Slovakia.
7. Legal considerations
Slovakia’s legal system is largely harmonised with EU requirements.
Contact the Department for International Trade (DIT) team in Slovakia to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
Products and packaging should meet EU standards.
Slovakia’s Standards, Metrology and Testing Authority has responsibility for standards and technical regulations.
All labels and packaging must be in Slovak.
7.2 Intellectual property
Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.
IP law, especially for patent protection, is not totally harmonised within the EU.
The Industrial Property Office of the Slovak Republic has responsibility for intellectual property protection.
8. Tax and customs considerations
8.1 Value Added Tax (VAT)
The standard rate of VAT is 20%. A 10% rate applies to certain pharmaceuticals, healthcare products and books.
Check with HM Revenue and Customs (HMRC) regarding VAT refund of business expenses incurred in Slovakia.
8.2 Corporate taxation
The corporate tax rate is 22%.
8.3 Personal income tax
Income tax is 19% on incomes not exceeding EUR 35,002. A 25% rate is levied on incomes above this.
8.4 Customs
The internal market of the EU is a single market which allows the free movement of goods and services. Therefore, no import duties apply.
9. Entry requirements
You do not require a visa to travel or work in Slovakia. Passports must have a minimum of 6 month’s validity.
9.1 Travel advice
If you’re travelling to Slovakia for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.
10. Contacts
Contact the Department for International Trade (DIT) team in Slovakia for more information and advice on opportunities for doing business in Slovakia.