HomeReportsBureau of Economic and Business Affairs2022 Investment Climate Statements...Slovakia

# 					2022 Investment Climate Statements: Slovakia			

 In this section										/

													Executive Summary											

                -  Executive Summary 
                -  1. Openness To, and Restrictions Upon, Foreign Investment                    -  Policies Towards Foreign Direct Investment 
                  -  Limits on Foreign Control and Right to Private Ownership and Establishment 
                  -  Other Investment Policy Reviews 
                  -  Business Facilitation 
                  -  Outward Investment 
                -  2. Bilateral Investment and Taxation Treaties   
                -  3. Legal Regime                    -  Transparency of the Regulatory System 
                  -  International Regulatory Considerations 
                  -  Legal System and Judicial Independence  
                  -  Laws and Regulations on Foreign Direct Investment 
                  -  Competition and Antitrust Laws 
                  -  Expropriation and Compensation 
                  -  Dispute Settlement 
                  -  Bankruptcy Regulations 
                -  4. Industrial Policies                    -  Investment Incentives 
                  -  Foreign Trade Zones/Free Ports/Trade Facilitation 
                  -  Performance and Data Localization Requirements 
                -  5. Protection of Property Rights                    -  Real Property  
                  -  Intellectual Property Rights  
                -  6. Financial Sector                    -  Capital Markets and Portfolio Investment  
                  -  Money and Banking System  
                  -  Sovereign Wealth Funds  
                -  7. State-Owned Enterprises (SOEs)                    -  Privatization Program  
                -  8. Responsible Business Conduct   
                -  9. Corruption   
                -  10. Political and Security Environment   
                -  11. Labor Policies and Practices   
                -  12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs   
                -  13. Foreign Direct Investment Statistics   
                -  14. Contact for More Information   

## Executive Summary

Slovakia is a small, open, export-oriented economy with a population of 5.5 million people. It joined the EU and NATO in 2004 and the Eurozone in 2009. Slovakia is an attractive destination for foreign direct investment (FDI), with a favorable geographic location in the heart of Europe and an investment-friendly regulatory environment. The current ruling coalition, which took power in March 2020, has implemented a range of measures to improve the investment and business climate.

The Slovak economy grew by 3.1 percent in 2021, slowed by three waves of COVID-19, which profoundly affected the hospitality, tourism, retail, sports and recreation, transport, and culture sectors. These industries remained shuttered for extended periods of time or were open only to limited groups of the population based on their COVID-19 or vaccination status. Business representatives noted that pandemic measures changed frequently, were announced at the last moment, or lacked sufficient clarity. Anti-pandemic measures were lifted in March 2022.

Employers’ combined social and health contributions are equivalent to 35 percent of wages. The corporate income tax is 21 percent for companies with revenues at or above €100,000. The tax rate for companies with revenues below €100,000 is 15 percent.

Attracting higher value-added investment is a priority for the current ruling coalition, as well as attracting investment in less-developed regions of Slovakia. In April 2021, the government approved Slovakia’s Recovery and Resilience Plan, which presents a roadmap for spending €6.3 billion in EU grants by 2026 on key reforms and investments in the areas of green economy, education and research, healthcare, digitization, and rule of law. Inefficiencies in drawing EU funds persist, however. Slovakia’s government continued its anti-corruption agenda and measures in 2021, resulting in an improvement in the business community’s perception of its impact on the business environment.

Slovakia’s economy relies heavily on energy-intensive manufacturing. These companies were particularly affected by global supply chain disruptions leading to shortages of key components including semiconductors and chips, as well as by the rapid price growth of key inputs, including raw materials and energy.

Slovakia remains the largest per capita car producer in the world, with four major car producers and hundreds of suppliers. Manufacturing industries, including automotive; machinery and transport equipment; metallurgy and metal processing; electronics; chemicals; and pharmaceuticals remain attractive and have the potential for further growth.

Positive aspects of the Slovak investment climate include:

- Membership in the EU and the Eurozone

An open, export-oriented economy close to western European markets

- Investment incentives, including for foreign investors
- A firm government commitment to EU deficit and debt targets
- A sound banking sector deeply integrated with Europe

Negative aspects of the Slovak investment climate include:

- High sensitivity to regional economic developments
- Weak public administration and an inefficient judiciary
- Significant regional disparities, suboptimal national transport network
- Low rates of public and private R&D investment
- Heavy reliance on EU structural funds, chronic deficiencies in allocation of funds

 

							1. Openness To, and Restrictions Upon, Foreign Investment					

### Policies Towards Foreign Direct Investment

Slovakia has one of the most open economies in the EU.  The government’s overall attitude toward foreign direct investment (FDI) is positive, and the government does not limit or discriminate against foreign investors.  FDI plays an important role in the country’s economy, with major foreign investments in manufacturing and industry, financial services, information and communication technologies (ICT), and business service centers, where U.S. companies have a significant presence.

The benefits of investing in Slovakia, including access to skilled labor, the country’s EU and Eurozone membership, and its central location in Europe have attracted a significant U.S. commercial and industrial presence, with investments from Accenture, Adient, Amazon, Amphenol, AT&T, Cisco, Dell, Garrett, GlobalLogic, Hewlett-Packard, IBM, Lear, Oracle, U.S. Steel, Whirlpool, and others.

The Ministry of Economy coordinates efforts to improve the business environment, stimulate innovation, and attract investment, and it also coordinates support for less-developed regions.  Within the Ministry of Economy, the Slovak Investment and Trade Development Agency (SARIO) is responsible for identifying and advising potential investors, as well as for providing in-depth information on the Slovak business environment, investment incentives, the process for setting up a business, and advising on suitable locations and real estate leasing. The government encourages investment through tax incentives and grants to support employment, regional development, and training. The current ruling coalition, in power since March 2020, has made it clear that it intends to award government incentives primarily for investments in less-developed regions of Slovakia. Section Four of the Regional Investment Aid Act (57/2018 Coll.) specifies the eligibility criteria for receiving assistance.

According to the National Bank of Slovakia’s preliminary data, in 2020, inward FDI flows to Slovakia reached €1.7 billion, and inward FDI stock was €52 billion.  EU Member States, including the Netherlands, Austria, the Czech Republic, Luxembourg, and Germany are the largest foreign investors in Slovakia.  South Korea remains by far the largest investor among non-EU countries.

The Act on a Special Levy on Regulated Sectors (235/2012 Coll.) imposes a special tax on regulated industries, including the energy and network industries, insurance companies, electronic communications companies, healthcare, air transport, and others.  The levy applies to profits generated from regulated activities above €3 million.  A special levy on the banking sector, in effect since January 2012, was abolished effective January 2021.

The Slovak government requires ride-sharing and app-based hospitality platforms that are active on the local market to register a permanent office in Slovakia for tax collection purposes. Those that do not face withholding taxes ranging from 19 to 35 percent on the fees collected that are paid to foreign entities.

The government has a formalized process in place to involve employers in policymaking, including in the process of setting the minimum wage, via a social dialog process that includes government representatives, trade unions, and employer/business associations. The government also regularly engages in bilateral talks with major investors and employers to address their needs or concerns.

### Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign and domestic private entities have the right to establish and own business enterprises and engage in all forms of remunerative activity in Slovakia.  Businesses can contract directly with foreign entities.  Private enterprises are free to establish, acquire, and dispose of business interests, but must pay all Slovak obligations of liquidated companies before transferring any remaining funds out of Slovakia. All new businesses registered from October 2020 onwards must provide the national registration numbers of their partners, authorized representatives, and members of the boards of directors and supervisory boards when registering a business. Foreigners must provide their passport or residence permit numbers when registering a business.

In February 2021, the Slovak Parliament approved legislation, over the opposition of representatives of the business community, requiring government review of ownership transfers larger than 10 percent of companies considered “critical infrastructure,” which includes a number of companies with foreign ownership. The law was passed through a fast-track procedure in response to a reported demand from Russian Sberbank that Slovakia’s electricity generator Slovenske Elektrarne back its debt to the bank with equity. While the Economy Ministry announced it would replace the fast-tracked legislation with a more robust Foreign Investment Screening Mechanism in 2021, based on EU Investment Screening Regulation 2020/1298, as of March 2022 the mechanism is pending government and parliamentary approval.

Slovakia has no formal performance requirements for establishing, maintaining, or expanding foreign investments.  Large-scale privatizations are possible via direct sale or public auction.  Apart from the above-mentioned procedure for reviewing ownership changes in “critical infrastructure” installations, there are no formal requirements to approve FDI, though the government ultimately approves investment incentives.  If investment incentives apply, the Economy Ministry manages the associated government approval process.  The Act on Regional Investment Aid (57/2018 Coll.) specifies that only three categories of projects may be subsidized: industrial production, technology, or business services.  An amendment to the Act in force from January 2021 slightly relaxed the conditions for receiving investment aid by increasing the maximum time to finish work on an investment project from three to five years.

The Slovak government treats foreign entities established in Slovakia in the same manner as domestic entities, and foreign entities face no impediments to participating in R&D programs financed and/or subsidized by the Slovak government. Since January 2020, up to 200 percent of R&D spending is tax deductible. In 2023 this share is set to decrease to 100 percent, but a new deductible in the amount of 15 to 55 percent for selected higher value-added investments into moveable property will enter into force.

The Slovak government holds stakes in a number of energy companies.  It has historically been less open to private investment in energy assets that it considers to be in the national security interest.  There are no domestic ownership requirements for telecommunications and broadcast licenses.  The Act on Civil Air Transport (143/1998 Coll.) sets out rules for foreign airline operators seeking to operate in Slovakia.

Please consult the following websites for more information:

- R&D Tax-Deductions:

### Other Investment Policy Reviews

Slovakia’s investment and business climate is independently assessed on an annual basis by the European Commission in the course of the so-called European Semester. For more information, please see the European Commission’s latest Country Report on Slovakia from 2020 as well as the its Analysis of the Recovery and Resilience Plan of Slovakia from 2021, which replaced the Country Report for 2021. The OECD’s Economic Survey of Slovakia, released in January 2022, provides an independent assessment of major challenges faced by Slovakia, evaluates the short-term outlook, and makes specific policy recommendations.

The following local civil society organizations carry out regular reviews of investment policy-related concerns in Slovakia – the Institute of Economic and Social Studies (INESS), the Institute for Economic and Social Reforms (INEKO), Transparency International Slovakia (TIS).

### Business Facilitation

According to the World Bank’s Doing Business 2020 report, the last one available, Slovakia ranks 118 out of 190 countries surveyed on the ease of starting a business, up from 127 in 2019.  It takes, on average, 21.5 days to start a business, versus 26.5 days in 2019, and involves seven procedures. There are private business development companies that help navigate the process of establishing a new business. The main agencies with which a company must register are the business registry, tax office, social security agency, and, if the company employs at least one employee, a healthcare insurance company.

In 2022, the government approved a package of nearly 200 measures meant to decrease the administrative burden on businesses, adding to 114 measures introduced by a previous package focused on cutting red tape, which was adopted in 2020. The Ministry of Economy also implemented regular regulatory fitness checks and reviews of EU directive implementing legislation to ensure that implementing laws do not create additional administrative burdens beyond what is required by EU law.

The Central Government Portal “slovensko.sk” provides useful information on e-Government services for starting and running a business, citizenship, registering vehicles, social security, etc.  Checklists of procedures necessary for registrations, applications for permits, etc., are currently available on the websites of the business registry, tax office, social security agency and health insurance companies. The Economy Ministry is working on streamlining the information into one common platform.  The government has also announced plans for a major overhaul to the e-Government service portal to streamline access to public services.

Please consult the following websites for more information:

- Central Government Portal:
- Commercial Register:
- Slovak Business Agency:
- Slovak Investment and Trade Development Agency:

### Outward Investment

Due to their limited size, Slovak companies have not made significant outward foreign direct investments, registering just €5.2 million in 2020.

Several state agencies share responsibility for facilitating outward investment and trade.  SARIO is officially responsible for export facilitation and attracting investment.  The Slovak Export-Import Bank supports exports and outward investments with financial instruments to reduce risks related to insurance, credit, credit guarantees, and financial activities. It assists both large companies and small and medium sized enterprises (SMEs), and is the only institution in Slovakia authorized to provide export and outward investment-related government financial assistance.  The Ministry for Foreign and European Affairs runs a business center that provides services for exporters and helps identify investment opportunities. Slovakia’s diplomatic missions, the Ministry of Finance’s Slovak Guarantee and Development Bank, and the Ministry for Investments, Informatization, and Regional Development (MIRRI) also play a role in facilitating external economic relations. Slovakia does not restrict domestic investors from investing abroad.

							2. Bilateral Investment and Taxation Treaties					

Slovakia has signed 64 Bilateral Investment Treaties (41 remain in force) and another 78 treaties with investment provisions (57 remain in force) both before and after accession to the EU. Some are legacies of the former Czechoslovakia, while others have come into force following independence in 1993. The 1992 U.S.-Slovakia Bilateral Investment Treaty governs the basic framework for investment protection and dispute resolution between the two countries. An amended bilateral investment treaty entered into force on May 14, 2004, after Slovakia joined the EU. Slovakia signed a Bilateral Income Tax Treaty with the United States in 1993.

The United States and Slovakia agreed to the Foreign Account Tax Compliance Act (FATCA) in July 2015, and Slovakia subsequently approved the Act on Automatic Exchange of Information on Financial Accounts (359/2015 Coll.) in order to fully comply with FATCA. Slovak financial institutions are now required to report tax information of American account holders to the Slovak Government, which then forwards that information to the U.S. Internal Revenue Service (IRS).

Slovakia is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and party to the 2021 Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy.

Please consult the following websites for more information:

- U.S.- Slovakia Bilateral Investment Treaty:
- U.S.- Slovakia Income Tax Treaty:
- UNCTAD:
- List of Slovakia’s Bilateral Investment Treaties and Treaties with Investment Provisions:

							3. Legal Regime					

### Transparency of the Regulatory System

Companies in Slovakia frequently complain about the country’s complex and unpredictable legislative and regulatory environment. The current ruling coalition is making significant efforts to address this issue. Starting June 1, 2021, all government ministries as well as 20 non-ministry central government institutions are legally bound to adhere to a “one-in-one-out” principle, meaning every new regulation that will increase administrative burden by €1 must be matched with a proposal to decrease the administrative burden by €1. As of January 2022, the principle has been further expanded to “one-in-two-out.” Failure to comply does not, however, result in the annulment of the regulation or any other material consequences. The Ministry of Economy flags violations through a mandatory interdepartmental consultation procedure on all draft legislation and prepares an annual report on implementation of the rule.

Regulations are drafted on the local and national level with the latter usually having more direct consequences to foreign investors. The Legislative and Information Portal of the Ministry of Justice, Slov-Lex, is a publicly accessible centralized online portal for laws and regulations, including draft texts and information about the interdepartmental and public review processes. Draft bills, including investment laws proposed by ministries through a standard legislative procedure, are available for public comment through the portal, with a comment period of usually between two to three weeks. When fast tracking legislation and regulations comment periods may shrink to one-week, leaving little time for public comment. Affected business associations note that government reactions to comments are often superficial and generic, rather than substantive.

While the process of adopting new laws and regulations follows clearly defined rules, MPs or parliamentary groups have the option of proposing legislation without having to adhere to the same legislative rules as the government and without having to hold any public consultations, thus rendering the legislative process less predictable and less transparent than draft laws introduced by the government. Legislative rules are also frequently circumvented by using the “accelerated legislative procedure.” This procedure is, by law, conditioned on extraordinary circumstances, threat to public safety, or imminent economic damage. However, in practice, the procedure is sometimes used to approve bills that do not appear to meet these criteria. In an effort to reduce abuse of the procedure, the President has repeatedly exercised her suspensive veto right in cases when the accelerated procedure was used to pass legislation without clearly meeting the aforementioned criteria.

Legislation and regulations are, in most cases, not reviewed on the basis of scientific data assessments and critics assert that some mandatory impact assessments are conducted superficially. Analytical institutes at some ministries produce data-driven assessments of proposed policies or large investment projects, but not all ministries have the needed personnel and/or technical capacity to ensure a uniform and high-quality level of data-driven policymaking across the whole of government. Impact assessments for proposed legislation are available online, as are most policy and/or investment assessments prepared by the analytical units at government ministries.

The Commercial Code (98/1991 Coll.) and the Act on Protection of Economic Competition (136/2001 Coll.) govern competition policy in Slovakia. As an EU Member State, Slovakia follows relevant EU legislation. The Anti-Monopoly Office, a part of the EU’s European Competition Network (ECN), is an independent state administrative body responsible for ensuring a competitive marketplace.

The Public Procurement Office (PPO) supervises and administers public procurement. Public procurement legislation is frequently amended, and challenges remain in striking an adequate balance between protecting competition and eliminating corruption, while keeping the bureaucratic burden and average tendering time at acceptable levels. The PPO has made efforts to improve transparency and communication with stakeholders, as well as to strengthen supervisory activities. Since March 2021, the PPO accepts self-declarations from U.S. companies that are bidding in public procurements, rather than requiring companies to produce non-standard documentation issued by U.S. state or federal entities – which had been overly burdensome to obtain. In October 2021, parliament approved an amendment to the public procurement act aimed at accelerating and streamlining the public procurement process by increasing the threshold for when public tenders are required from €5,000 to €10,000 and by preventing the abuse of the complaint procedures to stall tenders via repetitive formal complaints. The amendment also introduces changes to increase the transparency of the tendering process by moving all tender-related communication online via a specialized electronic platform, by strengthening the independence of the PPO, and by prohibiting selected public servants from doing business with the state. The amendment to the public procurement act will enter into force on March 31, 2022.

Oversight over the legality of administrative and regulatory processes, and decisions of the central government, as well as municipalities, is carried out by the prosecution service and an administrative court system consisting of first-instance courts, which are part of regional courts, and a Supreme Administrative Court. Complaints related to administrative malpractice can also be raised via the Public Defender of Rights and, in case these include breaches of fundamental rights and freedoms, also via the Constitutional Court.

The government does not proactively promote or require companies’ environmental, social, and governance (ESG) disclosure. As an EU member state, Slovakia is bound by the EU Taxonomy Regulation, which seeks to create a common framework to determine whether certain economic activities can be regarded as environmentally sustainable. All measures implemented through Slovakia’s Recovery and Resilience Plan, including investments and reforms, must be in line with the environmental objectives laid down by the EU Taxonomy and must not breach the ‘do no significant harm’ principle.

As an EU Member State, Slovakia conforms to the European System of National and Regional Accounts (ESA 2010), which is the EU’s most recent internationally compatible accounting framework, as well as the International Financial Reporting Standards (IFRS-EU). Slovakia meets the minimum criteria of the U.S. Fiscal Transparency Report. Budget proposals, enacted budgets, and closing statements are substantially complete and publicly available. Departures from budget goals are common. The current ruling coalition introduced a number of changes to the 2021 and 2022 national budgets that have improved transparency and led to better projections compared to previous years. The Ministry of Finance publishes monthly reviews of budget execution, which provide an overview of public revenues and expenditures broken down by source and type. Annex 6 of the State budget describes the Debt Management Strategy including volume, total cost, debt service, structure, financing, forecast, and risk assessments.

In February 2022, the government adopted sweeping changes to construction and zoning legislation with the aim to significantly accelerate, streamline, and digitize the process of obtaining construction permits and prevent the ex-post legalization of buildings built without requisite permits. While the business community generally welcomed the legislative changes as long overdue, municipalities and some non-governmental organizations argue that the legislation will strengthen the position of large real-estate developers, while reducing public scrutiny over proposed construction projects.

Please consult the following websites for more information:

- Legislative and Information Portal Slov-Lex:    (Note: all legal acts and regulations mentioned throughout this report can be found on this portal.)
- World Bank:
- Anti-Monopoly Office of the Slovak Republic:
- Office for Public Procurement:
- Public Administration Budget, Ministry of Finance:
- The European Commission Country Report – Slovakia 2020:

### International Regulatory Considerations

Slovakia is subject to European Court of Justice (ECJ) jurisdiction and must comply with all EU legislation and standards, including the Trade Facilitation Agreement (TFA). The national regulatory system is enforced in areas not governed by EU regulatory mechanisms. Slovakia is a WTO member, and the government notifies the WTO Committee on Technical Barriers to Trade of technical regulations.

Please consult the following websites for more information:

- WTO:

### Legal System and Judicial Independence 

Slovakia is a civil law country. The Slovak judicial system is comprised of the Constitutional Court and general courts, including the Specialized Criminal Court, the Supreme Court, and the Supreme Administrative Court, functional from August 1, 2021.  General courts decide civil, commercial, and criminal matters, and review the legality of decisions by administrative bodies. However, as of March 2022, a proposal to create a new system of separate first-instance administrative courts in January 2023 is pending Parliament’s approval, as part of the government’s judicial reform plan. The Supreme Administrative Court serves as the second-instance administrative court, including as a disciplinary court for judges, prosecutors, and some other legal professions. The Specialized Criminal Court focuses on cases involving corruption, organized crime, serious crimes like premeditated murder, crimes committed by senior public officials, and crimes related to extremism, such as hate crimes. Enforcement actions are appealable and are adjudicated in the national court system. The right to appeal regulations is limited to some state institutions and selected public officials.

The Slovak Constitution and the European Convention on Human Rights guarantee property rights.  Slovakia has a written Commercial Code including contract law in the civil and commercial sectors.  The basic framework for investment protection and dispute resolution between Slovakia and the U.S. is outlined in the 1992 U.S.-Slovakia Bilateral Investment Treaty.

Court rulings by EU Member States are recognized and enforced in compliance with existing EU regulations.  Third country rulings are governed by bilateral treaties or by the Act on International Private Law.  Contracts are enforced through litigation or arbitration.

Laws guarantee judicial independence; however, public perception of judicial independence is among the lowest in the EU.  According to the 2021 EU Justice Scoreboard, public trust in the judiciary is low, with trust among the general public standing at 28 percent and 30 percent among the business community. The trend has been improving, however, with the trust in the judiciary among businesses doubling since 2020. In 2019 and 2020 numerous investigations into judicial corruption were opened and about 20 judges were arrested on suspicion of corruption, while several additional judges resigned from office. Businesses and NGOs report that the justice system remains relatively slow and inefficient, and characterizing some verdicts as unpredictable and often poorly justified.  Investors generally prefer international arbitration to resolution in the national court system.

The government is pursuing an ambitious set of judicial reforms, aiming to address alleged corruption ties, low public trust, and inefficiency, and is also following the recommendations of the Council of Europe Commission for the Efficiency of Justice (CEPEJ). Judges remain divided on the need for reform though, and a consensus on the reform’s elements within the ruling coalition has not been reached as of March 2022. Accountability mechanisms ensuring judicial impartiality and independence exist and are increasingly utilized. Courts use a digital system for random case assignment to increase transparency. As of 2021, the functional immunity of judges related to their decision-making was significantly reduced, to prevent arbitrary and poorly justified rulings, and a new offence of “abuse of law”, inspired by German law, was introduced to enable prosecution of judges for arbitrary, unlawful decisions.

Please consult the following websites for more information:

- Constitutional Court:
- Supreme Court:
- Supreme Administrative Court:
- Ministry of Justice, Analytical Centre, judicial map reform plan:
- EU Justice Scoreboard:
- European Commission 2021 Rule of Law Report:
- European Commission for the Efficiency of Justice (CEPEJ) 2017 report on the Slovak judiciary:

### Laws and Regulations on Foreign Direct Investment

Slovakia is a politically and economically safe destination for foreign investment. Investment incentives are available to motivate investors to place new projects in regions with higher unemployment and to attract projects with higher added value.  In February 2021, the government approved a law that allows the Economy Ministry to review and potentially stop ownership transfers larger than 10 percent of companies classified as critical infrastructure (see Section 1 for more detail).

The Slovak Investment and Trade Development Agency (SARIO) is a specialized government agency in charge of attracting foreign investments to Slovakia and serves as a one-stop shop for foreign investors. Their website offers easily accessible information on laws, rules, procedures, and reporting requirements relevant to investors or those wanting to register a business. The Slovak Business Agency (SBA) runs a National Business Center (NBC) in Bratislava and several other cities; it provides information and services for starting and establishing businesses. Startups can use a simplified procedure to register their company in order to facilitate the entry of potential investors. The Interior Ministry operates Client Centers around the country where many formal administrative procedures can be completed under one roof.

In the World Bank’s Doing Business 2020 report, the most recently published edition, Slovakia placed 45 out of 190 countries in the report’s overall ranking.

Please consult the following websites for more information:

- Ministry of Economy:
- Startup Visa: https://www.economy.gov.sk/inovacie/podnikatelsky-zamer-na-realizaciu-inovativneho-projektu
- Slovak Business Agency:
- Slovak Investment and Trade Development Agency:
- Information on requirements for investing or registering a business: https://sario.sk/sites/default/files/data/pdf/sario-invest-in-slovakia-ENG.pdf
- Central Public Administration Portal:
- Interior Ministry:
- World Bank Ease of Doing Business Ranking:

### Competition and Antitrust Laws

The Anti-Monopoly Office of the Slovak Republic is an independent body charged with the protection of economic competition.  This office intervenes in cases of cartels, abuse of a dominant position, vertical agreements, and validates that state aid and mergers comply with antitrust law. Decisions of the Anti-Monopoly Office can be appealed to an independent committee and, in the second instance, to administrative courts. The key antitrust legislation regarding fair competition is the Competition Law (136/2001 Coll.). Slovakia complies with EU competition policy. Certain decisions related to competition policy and enforcing competition rules are directly under the purview of the European Commission.

In January 2022, the Anti-Monopoly Office fined three Slovak companies nearly €9 million, the second highest issued fine in the authority’s history, for allegedly entering an illegal cartel agreement related to a €38 million renovation of an electricity substation for the Slovak transmission system operator. The involved companies appealed the decision to the Committee of the Anti-Monopoly Office and the case is pending.

Please consult the following website for more information:

- The Anti-Monopoly Office:
- The European Commission:

### Expropriation and Compensation

The Slovak Constitution guarantees the right to property.  There is an array of legal acts stipulating property rights, including the Constitution.  The Act on Expropriation of Land and Buildings (282/2015 Coll.) mandates that expropriation must only occur to the extent necessary, be in the public interest, provide appropriate compensation based on fair market value, and shall only occur when the goal of expropriation cannot be achieved through agreement or other means. In April 2021, the Slovak Parliament voted to extend by 10 years a sunset clause on expropriations of property for roads, which expired at the end of 2020. Expropriations are used by the government primarily for acquiring land on which planned highways are built, or large industrial parks, and only in the event that direct negotiations with landowners fail.

In February 2022, the government proposed, without prior stakeholder consultation, and adopted a 50 percent tax on “excess profit” from electricity generated in nuclear power plants. Reportedly, this would have cost Slovakia’s nuclear operator, a majority foreign-owned company (with state minority ownership), more than €300 million annually, depending on wholesale electricity prices. The proposed tax was withdrawn just before parliamentary approval, after the government and the utility signed an MOU, under which the electricity generation company will provide a set volume of electricity at below market rates for household consumers through the end of 2024. According to a joint press conference announcing the agreement, the government, in turn, agreed to not alter the business environment for the company through 2025. The company is reportedly set to lose an estimated €850 million on the deal.

### Dispute Settlement

ICSID Convention and New York Convention

Slovakia is a contracting state to the International Centre for Settling International Disputes (ICSID) and the World Bank’s Commercial Arbitration Tribunal (established under the 1966 Washington Convention). Slovakia is a member of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitrage Awards, which obligates Slovakia to accept binding international arbitration. The Finance Ministry leads on bilateral investment treaty matters and manages and represents Slovakia in international arbitration. Investment contracts with foreign investors in Slovakia are covered by respective ministries depending on the sector, in most cases by the Ministry of Economy.

Investor-State Dispute Settlement

The basic framework for investment protection and dispute resolution between Slovakia and the United States is governed by the 1992 U.S.-Slovakia Bilateral Investment Treaty with an additional protocol that came into force in 2004.

To date, twelve known cases of international arbitration have concluded, all of which Slovakia won. In one of the international arbitrations, a U.S. investor made claims under the U.S.-Slovakia Bilateral Investment Treaty, but respected the decision of ICSID, which ruled in Slovakia’s favor. In October 2021, a U.S. firm registered a request to commence arbitration proceedings against Slovakia at the ICSID, with a claim under the U.S.- Slovakia BIT related to oil and gas extraction. As of February 2022, the case remained pending.

The legal system generally enforces property and contractual rights, but decisions may take years, thus limiting the relevance of the courts in dispute resolution. According to the World Bank Doing Business 2020 report, the last one available, Slovakia ranked 46 out of 190 countries in the “enforcing contracts” indicator, with a 775-day average for enforcing contracts. The report notes that Slovakia made enforcing contracts easier by implementing electronic processing services. Slovak courts recognize and enforce foreign judgments, subject to the same delays. Although the commercial code generally appears to be applied consistently, the business community continues to cite a lack of legislation protecting creditor rights, corruption, political influence, lengthy procedures, and weak enforcement of court rulings as persistent problems. U.S. and other investors privately described instances of multi-million-dollar losses that were settled out of court because of doubts about the court system’s ability to offer a credible legal remedy.

International Commercial Arbitration and Foreign Courts

There are two acts applicable to alternative dispute resolution in Slovakia – the Act on Mediation (420/2004 Coll.) and the Act on Arbitration (244/2002 Coll.). The Slovak Act on Arbitration is largely modeled after UNCITRAL model law.  Local courts in Slovakia recognize and enforce foreign arbitral awards.

The alternative dispute resolution mechanisms in Slovakia are relatively fast compared to the court system.  The list of permanent arbitration courts authorized by the Slovak Ministry of Justice is published on the Ministry’s website.  Decisions should be reached within 90 days of the date when the lawsuit was filed.  It is possible to lodge an appeal to a civil court against an arbitration decision within three months of the date of its issuance or lodge a complaint about an arbitration decision to the chairman of the permanent arbitration court or to the Ministry of Justice.

Alternative dispute resolution proceedings for consumer disputes can also be initiated by filing a motion with one of the alternative dispute resolution entities from a list maintained by the Ministry of Economy.  Dispute settlement takes place through written communication and has a 90-day timeframe for completion.  Unless the parties reach an agreement, the alternative dispute resolution entity will prepare a justified opinion. If any attempt to settle the dispute by mutual agreement fails, and the arbitration entity issues an opinion, there is no avenue for appeal.

The other option for extrajudicial dispute settlement is mediation.  Mediation can be used even after a court proceeding has started.  The agreement resulting from mediation is legally enforceable only if it has the form of a notarial record or court settlement.  The list of mediators is published on the website of the Association of Mediators.  In the case of an unsuccessful mediation, parties can still take the case to arbitration or to court.

Please consult the following websites for more information:

- List of alternative dispute resolution entities:
- List of permanent arbitration courts:
- List of Mediators:
- U.S.- Slovakia Bilateral Investment Treaty:
- Finance Ministry – International Arbitrations:
- Slovak Chamber of Commerce:
- World Bank Ease of Doing Business Ranking:

### Bankruptcy Regulations

The Law on Bankruptcy and Restructuring (377/2016 Coll.) governs bankruptcy issues. Companies can undergo court-protected restructuring, and both individuals and companies can discharge their debts through bankruptcy. After its implementation, the International Monetary Fund praised this law for speeding up the bankruptcy process, strengthening creditor rights, limiting the discretion bankruptcy judges may use in adjudicating cases, and randomizing the allocation of cases to judges to reduce potential corruption. The Law on Bankruptcy and Restructuring contains provisions to prevent preferential treatment for creditors over company shareholders, reduce arbitrariness in bankruptcy administrators’ conduct, and impose stricter liability rules for those initiating the bankruptcy proceedings. The Commercial Code also contains provisions on bankruptcy and restructuring preventing speculative mergers during ongoing bankruptcy proceedings.

Slovakia ranked 46 out of 190 in the World Bank’s Doing Business 2020 ranking of the ease of resolving insolvency, with an average of four years for resolving insolvency.

Please consult the following websites for more information:

- Slovak Banking Credit Bureau:
- Non-Banking Credit Bureau:
- Justice Ministry:
- Insolvency Register:
- Dlznik.sk:
- Central Register of Debtors:

							4. Industrial Policies					

### Investment Incentives

The Economy Ministry manages and coordinates investment aid with other relevant agencies (see Policies Towards Foreign Direct Investment in Chapter 1). Eligibility for investment incentives is defined in the Act on Regional Investment Aid (57/2018 Coll.). Investors are encouraged to implement projects in less-developed regions and to invest in high value-added activities.

Investment incentives are available to foreign and domestic investors for projects in sectors including industrial production, technology, and shared service centers.  The incentives are provided as tax relief, cash grants, contributions for newly created jobs, and transfers of state or municipal property at a discounted price. Eligible costs include acquisition of land, acquisition and construction of buildings, acquisition of technology equipment and machinery, as well as intangible assets (e.g., licenses, patents, etc.) and wages of new employees for a period of two years.

Apart from investment aid, the Economy Ministry offers innovation vouchers, that companies can use to innovate their products, services, or technology through cooperation with research and development institutions. The Economy Ministry also provides special loans through its Investment Fund. Individual ministries run EU-supported projects to spur investment in their respective areas of responsibility.

State aid granted by the Slovak government must comply with valid EU regulations.  The Anti-Monopoly Office of the Slovak Republic is the coordinating body for state aid granted by individual ministries, as per the Act on State Aid (358/2015 Coll.), and there is a dedicated state aid web portal. The European Commission must approve state aid schemes above a certain threshold.

Producers of electricity from renewable sources receive feed-in-tariffs, which are included in the final cost of electricity paid by all consumers. The government also has numerous schemes in place to support clean energy investments, including energy storage, energy efficiency, low-carbon transport and fuels, and decarbonization. These schemes are managed by the Ministries of Economy and Environment and are primarily funded from the EU structural and investment funds and the EU Recovery and Resilience Facility. While Slovakia has made important progress in reducing carbon emissions and the share of renewables in its energy mix since the fall of communism in 1989, there is still significant potential for green investments to reduce the energy intensity and carbon footprint of the economy, which remain one of the highest in Europe.

Please consult the following websites for more information:

- Investment Aid:
- State Aid:
- Ministry for Investments, Information, and Regional Development:
- Recovery and Resilience Plan:
- Ministry of Economy:
- Ministry of Environment:

### Foreign Trade Zones/Free Ports/Trade Facilitation

Slovakia eliminated all foreign trade zones and free ports in 2006.  There are no Special Economic Zones in the country.

### Performance and Data Localization Requirements

There are no special requirements for foreign IT providers to turn over their source code or to provide access to encrypted documents. However, according to the Act on Electronic Communications (351/2011 Coll.), entities providing public networks or public services that use coding, compression, encryption, or other form of signal transfer concealment must, at their own expense, provide information requested through a legally issued wiretap or network monitoring order to relevant authorities. Slovakia follows the EU General Data Protection Regulation (GDPR) regulating data protection and privacy. There are no automated or systemic mechanisms in place enforcing rules on local data storage. Slovakia follows the EU regulation on the free flow of non-personal data 2017/0228 (COD) that sets out the principle that non-personal data is allowed to be located and processed anywhere in the EU without unjustified restrictions, with some exceptions on the grounds of public security. The relevant authority for data localization is the Ministry of Investments, Informatization, and Regional Development and the Office for Personal Data Protection.

Slovakia does not engage in “forced localization,” with the exception of military equipment tenders, where, in some cases, the involvement of the local defense industry is either specifically required or is considered in the evaluation of submitted bids.

Foreign entities have equal access to investment incentives, as per the Act on Regional Investment Aid (57/2018 Coll.). For more details on eligible projects, please see Section 1 on Investment Incentives.

							5. Protection of Property Rights					

### Real Property 

The mortgage market in Slovakia is growing rapidly and Slovak households are taking up new debt, primarily in the form of mortgages, at the highest rate in the European Union. In 2021, Slovakia enjoyed the third lowest interest rates among the EU countries, which oscillated around 1 percent. A reliable system of record keeping for both mortgages and liens exists. Secured interests in property and contractual rights are recognized and enforced.

Less than 10 percent of the land in Slovakia lacks a clear title, however, there are instances when a property’s owner is unknown.  In such cases, real estate titling can take a significant amount of time to determine.  Legal decisions may take years, limiting the utility of the court system for dispute resolution.

The fragmentation of land ownership and complications in user relations in Slovakia have their roots in Hungarian inheritance law and later in collectivization. Parcels commonly have a very high number of co-owners.  There are currently 8.4 million parcels, 4.4 million recorded owners of land, and 100 million co-owning relationships.  On average, one parcel has 11.93 co-owners, and one owner has an average of 22.74 parcels.  To address this issue, the Agriculture Ministry started a robust land ownership reform in 2019, projected to last 30 years, to gradually consolidate parcels and simplify ownership records in the cadaster database. A dedicated web portal allows users to verify land information and property ownership.

Foreign individuals and private companies can acquire real property without restrictions.  In 2021, plans by the Hungarian government to buy Slovak agricultural land through its State Capital Fund met with fierce opposition in Slovakia. While diplomatic talks resulted in the proposed land purchases being withdrawn, in October 2021 the Agriculture Ministry launched an amendment to the Act on the Acquisition of Ownership of Agricultural Land (140/2014 Coll.), with the aim of preventing future foreign government purchases of agricultural land in Slovakia. New regulatory requirements introduced by the legislation include establishing preemption rights for the government and selected public entities and mandatory publication of all offers for the transfer of agricultural land and expressions of interest in such land. As of February 2022, the legislative amendment was not yet approved by parliament.

Squatting is illegal in Slovakia and ownership of unoccupied property will not revert to squatters or other parties unless they are entitled to own the land.

Slovakia was 8 out of 190 countries in the World Bank’s 2020 Doing Business “registering property” indicator, averaging 16.5 days to register a property compared to average of OECD high income countries of 23.6 days.

Please consult the following websites for more information:

- Cadastral portal on land and property ownership:
- World Bank Doing Business 2020:

### Intellectual Property Rights 

The Slovak legal system provides strong protection for intellectual property rights (IPR). The country is bound by robust EU regulations and adheres to major international IPR treaties, including the Berne Convention, the Paris Convention, Beijing Treaty on Audiovisual Performances, and numerous others on design classification, registration of goods, appellations of origin, patents, etc.  The protection of IPR falls under the jurisdiction of two agencies: the Industrial Property Office of the Slovak Republic, the central government body that oversees industrial property protection including patents, and the Culture Ministry, responsible for copyrights including software. The Financial Administration, which is part of the Finance Ministry, plays an important role in enforcing IPR and deals with customs, including the fight against counterfeit goods. Since a new president was appointed to lead the Financial Administration in 2020, the institution has become more open about its law-enforcement activities. In case of IPR infringements, rights holders can bring a civil lawsuit in the district courts in Bratislava, Banska Bystrica, and Kosice and, if applicable, have the right to claim lost profits.  The courts can issue injunctions to prevent further infringement of IPR.  In certain cases, violation of IPR can be considered a criminal offense. Intellectual property theft is uncommon in Slovakia.

In February 2021, the Slovak Parliament approved an amendment to the Copyright Act (185/2015 Coll.), which also transposed EU Directives on copyright 2019/790 and 2019/789 into law. The Amendment, which went into effect at the end of March 2022, brought an extension of mandatory copyright exceptions to include, for example, cultural heritage preservation; introduced a new regulation of obligations and rights in online content sharing services; rolled out new licensing possibilities and dispute resolution methods; and incorporated the country-of-origin principle. In January 2021, an amendment to the Broadcasting and Retransmission Act (308/2000 Coll.), the Telecommunications Act (195/2000 Coll.), and to the Act on Digital Broadcasting of Program Services and Provision of Other Content Services via Digital Transmission (220/2007 Coll.), came into effect, which brought deregulation, the liberalization of conditions for commercial media communication, and removed previous limitation on the number of broadcasting licenses available. Slovakia is not included in USTR’s Special 301 Report Watch Lists or the Notorious Markets List.

There were 1,826 suspected breaches of IPR in 2020 for goods imported from third countries (down from 2,781 cases in 2019), primarily in the form of perfumes, cosmetics, jewelry and accessories, sports shoes, and toys. The value of seized counterfeit goods decreased sixteen-fold from 2019 to €414,000. The number of domestic IPR infringement cases decreased from 1,108 in 2019 to 364 in 2020 with a respective decrease in value by 57.5 percent to €892,000. In November 2021, the Financial Administration, together with its Czech and Polish counterparts, disbanded an organized crime group of illicit tobacco producers operating in Slovakia and seized illicit goods with a market price of over €32 million.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/.

Please consult the following websites for more information:

- Ministry of Culture, Copyright Act: and its current Amendment
- Intellectual Property:
- Industrial Property Office:
- Financial Administration:
- Financial Administration Annual Report for 2020 (latest):   https://www.financnasprava.sk//_img/pfsedit/Dokumenty_PFS/Zverejnovanie_dok/Vyrocne_spravy/FS/2021.06.04_VS_2020.pdf
- American Chamber of Commerce in the Slovak Republic:

							6. Financial Sector					

### Capital Markets and Portfolio Investment 

The Bratislava Stock Exchange (BSSE) is a member of the Federation of European Securities Exchanges (FESE).  An effective regulatory system exists that encourages and facilitates portfolio investment. BSSE is a joint-stock company whose activities are governed primarily by the Stock Exchange Act (429/2002 Coll.) on the Stock Exchange and Stock Exchange Rules. The stock market in Slovakia is among the smallest in Europe, and dominated by bonds, which constitute 95 percent of sales volume.  In 2021, the total volume of transactions at the BSSE was slightly less than €240 million (a 23 percent increase compared to 2020).  As of December 31, 2021, the total nominal value of book-entry securities in Slovakia’s Central Depository of Securities reached €102 billion, compared to €94 billion in 2020. The nominal value of shares was roughly €37 billion and the value of bonds €64 billion.

The European Single Market and existing European policies facilitate the free flow of financial resources.  Slovakia respects International Monetary Fund (IMF) Article VIII by refraining from restricting payments and transfers for current international transactions.  Credit is allocated on market terms in Slovakia and is available to foreign investors on the local market.

Please consult the following websites for more information:

- Bratislava Stock Exchange:
- Central Depository of Securities:
- Central Bank of Slovakia:
- Central Register of Regulated Information:

### Money and Banking System 

Slovakia joined the Eurozone on January 1, 2009, becoming part of the Euro system, which forms the central banking system of the euro area within the European System of Central Banks.  The Central Bank of Slovakia (NBS) is the independent central bank of the Slovak Republic.

Most banks operating in Slovakia are subsidiaries of foreign-owned institutions.  Slovak branches operate conservatively and showed strong resilience during the 2009 financial crisis and subsequent EU-wide stress tests.  The combined total assets of the financial institutions active in the Slovak market were more than €106 billion and the total capital adequacy ratio of Slovak banks was on average 19.67 percent at the end of 2021.

Significant negative impacts of the COVID-19 pandemic on the local banking sector, anticipated at the onset of the pandemic, have failed to fully materialize and the Slovak financial and banking sector continues to be stable and profitable. Owing to two serious waves of the pandemic crisis and associated closures of certain economic segments in early and late 2021, the non-performing loan (NPL) ratios increased slightly across all products but remained at sustainable levels with the ratio for non-performing housing loans standing at just 2.2 percent. The NPL ratio for consumer credit stood at 8.8 percent and the ratio for loans to non-financial corporations at 3 percent in September 2021. The net profit of Slovak banks in 2021 is estimated at €229 million, compared to €185 million in 2020 and €167 million in pre-pandemic 2019. The annualized return on equity of Slovak banks increased from 5.88 percent to 7.33 percent q-o-q in Q2 2021 and stood just below the EU median of 7.96 percent. The rise in profitability is attributed primarily to the abolishment of a special levy on the banking industry in 2021.

Foreign nationals can open bank accounts by presenting their passport and/or residence permit, depending on the bank.

Please consult the following websites for more information:

- Central Bank of Slovakia:

Foreign Exchange and Remittances

Foreign Exchange

Slovakia joined the Eurozone on January 1, 2009.  The exchange rate is free floating.

The Foreign Exchange Act (312/2004 Coll.) governs foreign exchange operations and allows for easy conversion or transfer of funds associated with an investment.  The Act liberalizes operations with financial derivatives and abolishes any limits on the export and import of domestic and foreign banknotes and coins.  It also authorizes Slovak residents to open accounts abroad and eliminates the obligation to transfer financial assets acquired abroad to Slovakia.  Slovakia meets all international standards for conversion and transfer policy.  Non-residents may hold foreign exchange accounts.  No permission is needed to issue foreign securities in Slovakia, and Slovak citizens are free to trade, buy, and sell foreign securities.

Remittance Policies

The basic framework for investment transfers between Slovakia and the United States is set within the 1992 US-Slovakia Bilateral Investment Treaty.

Following Slovakia’s approval of the Foreign Account Tax Compliance Act (FATCA) in July 2015, and per the Act on Automatic Exchange of Information on Financial Accounts (359/2015 Coll.), Slovak financial institutions are obligated to report tax information of American account holders to the Slovak Government, which then forwards that information to the U.S. Internal Revenue Service.

Slovakia does not impose limitations on remittances.  Dividends are taxed at seven percent.  Transfer pricing for controlled transactions must be based on market prices.  An obligation to pay a 21 percent tax applies to companies that are moving their assets or activities abroad.

Please consult the following websites for more information:

- U.S.-Slovakia Bilateral Investment Treaty:
- U.S.- Slovakia Bilateral Taxation Treaty:
- MONEYVAL:

### Sovereign Wealth Funds 

Slovakia does not maintain a Sovereign Wealth Fund.  Slovak Investment Holding (SIH) is a fund of funds fully owned by the Slovak Guarantee and Development Bank.  Resources are allocated as revolving financial instruments, through financial intermediaries or directly to final beneficiaries, and focus on strategic investment priorities in transport infrastructure, energy efficiency, waste management, SMEs, and social economy.

Please consult the following websites for more information:

- Slovak Investment Holding:

							7. State-Owned Enterprises (SOEs)					

There are 95 fully or partially state-owned enterprises (SOEs) in Slovakia that employ approximately 85,000 employees. SOEs are mostly active in strategic sectors, including health and social insurance, ground transportation, and energy.  Gas industry SOEs are the most profitable with SPP Infrastructure (gas infrastructure) at the top of the list with a profit of €268 million in 2021. Of the three largest employers in Slovakia, two of them are SOEs: ZSR, a rail infrastructure company with a net loss of €15 million in 2020 and €3.7 billion in assets, and the Slovak postal service Slovenska Posta, with a net loss of €16 million in 2020 and assets worth €500 million. ZSR employs more than 13500 people and Slovenska Posta has a staff of almost 12,000. Five wholly SOEs are among the ten largest employers in Slovakia.

Among fully state-owned SOEs Narodna Dialnicna Spolocnost (National Highway Company) has the most assets, totaling €10 billion.  The second largest in terms of assets is SPP Infrastructure with €6 billion.  The 30 fully state-owned enterprises with the most assets total roughly €25 billion in assets collectively.  In 2020, the Slovak state budget received roughly €430 million in revenue from SOEs with €250 million coming from SPP and another €170 million from key electricity distribution companies ZSE, SSE, and VSE. Slovenske Elektrarne, a major utility company with 34 percent state ownership, has assets worth €12 billion. According to the government’s Value for Money unit, 37 percent of SOEs are rated as being in a good financial health, while the same percentage are rated as have serious financial problems.

In 2019, Transparency International Slovakia (TIS) published a ranking of 100 Slovak companies with state, municipal, and regional ownership, assessing their openness in publishing economic results and access to information. TIS deemed these SOEs to be generally non-transparent, with limited openness to public control. In December 2020, the Supreme Court responded to a TIS complaint regarding SPP’s concealment of the salaries paid to its board members, ruling that SOEs manage public funds and citizens have a right to know how they manage them.  Wider concerns over transparency of public tenders persist, including those involving the SOEs.

A company is designated as a SOE in Slovakia based on its ownership, not the legal structure of the company. Most SOEs are structured as joint-stock companies governed by boards that include government representatives and government appointees, and the government plays a key role in SOE decision making.  SOEs with more than fifty employees, €4 million in assets, or an €8 million turnover threshold are required to publish their audited financial statements in accordance with the Accounting Act.  They submit their audited financial statements to the Finance Ministry’s dedicated portal.

Slovak SOEs are largely organized by their respective sectoral ministry. Most ministries publish a list of companies in which they have partial or full ownership on their web portals.  The list includes SOE equities and profits broken down by enterprise and is publicly available.

Slovak SOE ownership is exercised in accordance with the Act on State-Owned Enterprises (111/1990) and is consistent with the OECD Guidelines on Corporate Governance for SOEs.  The 2021 Amendment to Act on Critical Infrastructure granted the Ministry of Economy additional oversight authority for companies deemed critical infrastructure and requires the government’s approval for changes in ownership exceeding 10 percent. The list of companies included as critical infrastructure include several wholly and partially state-owned enterprises.

Please consult the following website for more information:

- Register of Financial Statements:
- 2019 Ranking of SOEs’ openness by Transparency International Slovakia:
- Equity of key Slovak SOEs:
- Economic data about Slovak companies including SOEs:

### Privatization Program 

Foreign investors are free to participate in privatization programs for SOEs, however, no privatization efforts are currently under way.  Privatization programs are usually executed through direct sale, although Slovakia tends to complete large privatization projects through public tenders, especially in the energy sector

According to Act on Transfer of State Assets to Other Entities (92/1991 Coll.), relevant ministry plays a central role in the SOE privatization process.  Previous privatization programs commonly resulted in foreign investors bidding and winning the tenders.

							8. Responsible Business Conduct					

Responsible Business Conduct (RBC) has not yet been officially defined nor standardized by the Slovak government. In 2018, the Slovak Association of Corporate Governance, a non-profit civic organization grouping CEOs and managers from two dozen companies, issued a Code of Administration for state-owned companies to be used as guidelines. Slovakia has adopted and agreed to support and monitor the implementation of the OECD Due Diligence Guidance for Responsible Business Conduct. The Ministry of Interior on its webpage refers to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The Ministry of Labor, Social Affairs and Family continues to refer to Howard R. Bowen’s 1953 text on Social Responsibilities of the Businessman for its definition of social responsibility. The Ministry has not updated the generic webpage on social responsibility nor boosted the awareness of RBC in recent years.

Slovakia is a party to the Aarhus Protocol. Consumer protection is guaranteed and enforced through the Civil Rights Act, Consumer Protection Act, and the Act on E-Commerce. In line with OECD Guidelines, Slovakia has adopted key legislation on product safety, protection of the economic interests of consumers, and legislative norms on consumer health protection enforced by the Department of Consumer Protection of the Ministry of Economy. The Slovak Trade Inspection authority supervises the implementation of Consumer Protection Act (634/1992 Coll.). Slovakia has accepted the United Nations Guiding Principles on Business and Human Rights and is setting up a working group tasked with preparing a national action plan on business and human rights. As an OECD member, Slovakia adheres to the OECD Guidelines for Multinational Enterprises.  A National Contact Point (NCP) was established to promote these guidelines among the wider public (business community, government, trade unions, etc.) and to help resolve RBC disputes. The Slovak Public Procurement Act has integrated several RBC objectives related into public procurements.

The NCP can be contacted here:

Ministry of Economy of the Slovak RepublicThe Strategy UnitDepartment of Bilateral Trade CooperationMlynské nivy 44/A827 15 Bratislava 212Slovak RepublicTel.: +421 2 4854 2309 E-mail: nkm@mhsr.sk

Slovakia’s principle human rights challenges are related to the poor living standards and societal discrimination of the sizable local Roma minority, which according to some estimates makes up nearly 10 percent of the total population of Slovakia. According to civil society organizations, a large part of the Slovak Roma minority lives in marginalized settlements without access to basic amenities and services, and faces discrimination in almost all aspects of life, including access to education and employment. Human rights organizations also cite a lack of acceptance in society and occasional instances of physical or verbal violence against members of the LGBTQI+ community. Inequities in the labor market affect women and mothers, where women are less likely to be offered employment and face a 15 percent pay gap. A lack of affordable childcare effectively prevents many women from reentering the labor market after maternity leave. There have not been any claims filed by indigenous or other communities for land or natural resources ownership. Slovakia adopted Act 330/1991 Coll. that regulates the process of land consolidation and ownership rights, under which an individual or entity whose property was wrongly confiscated may have ownership reinstated.

The Slovak government respects the rights of workers and enforces the law prohibiting child labor and discrimination effectively, though does not specifically prohibit discrimination based on HIV status. The law concerning acceptable conditions of work and occupational health and safety is enforced effectively. There have been occasional reports of abuse targeting migrant workers and members of the Roma minority by private employers. Despite progress in recent years, the Slovak government continues to face some challenges in effectively enforcing legislation prohibiting forced or compulsory labor and trafficking in persons. NGOs reported male and female migrants, especially from non-EU countries, substance abusers, people with disabilities, and marginalized Roma, and children in welfare systems or aging out of such systems were particularly vulnerable to become trafficking victims.

The Acts on Environmental Impact Assessment (24/2006 Coll.), Air (137/2010 Coll.), and Waste (313/2016 Coll.) govern environmental protection affecting businesses.  The mandatory Environmental Impact Assessment (EIA) process applies to a number of industries, including mining, energy, steel, chemical, pharmaceutical, wood, food, agriculture, and infrastructure projects.  The Act on Air defines legal obligations for emitters, including emissions limits, monitoring, and reporting in line with valid national and EU legislation.  The Act on Waste establishes the obligations for companies producing packaging as well as rules on waste recycling and recovery.

Slovakia has corporate governance legislation that protects and facilitates the exercise of shareholder rights and ensures equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders have the right to obtain effective redress for violation of their rights and the right for compensation arrangements pursuant to this legislation. The primary sources of the legislation are the Commercial Code, the Accounting Act, and the Securities Act.

Many companies and NGOs adhere to the principles of RBC and actively promote and advocate for this concept. The most significant program is the Via Bona Awards, developed by the Pontis Foundation, which annually recognizes Slovakia’s best RBC programs.  The American Chamber of Commerce in Slovakia also plays an important and active role in promoting and advocating for RBC.

As an EU member state, Slovakia adheres to the 2017/821 regulation based on the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The country also enforces similar domestic measure through Act 332/2020 Coll. regulating supply chain due diligence for companies that source minerals from conflict-affected areas.

Slovakia has ratified the Extractive Industry Transparency Initiative (EITI) but is not a participant in Voluntary Principles on Security and Human Rights Initiative (VP). Slovakia is not a signatory of The Montreux Document on Private Military and Security Companies nor a participant in the International Code of Conduct for Private Security Service Providers’ Association (ICoCA).

Additional Resources

Department of State

- Country Reports on Human Rights Practices ;
- Trafficking in Persons Report ;
- Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ;
- U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ; and;
- Xinjiang Supply Chain Business Advisory 

Department of the Treasury

- OFAC Recent Actions

Department of Labor

- Findings on the Worst Forms of Child Labor Report ;
- List of Goods Produced by Child Labor or Forced Labor ;
- Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World  and;
- Comply Chain

Climate Issues

Slovakia’s environmental regulatory framework is in line with EU policies. Limits imposed by Slovak environmental legislation are stricter than the OECD average, though some critics note that implementation and environmental law enforcement lag. The government’s “Environmental Policy Strategy until 2030,” adopted in 2019, outlines a path toward increased environmental protection and minimizing the use of non-renewable natural resources by 2030. In 2020, Slovakia adopted its Integrated National Energy and Climate Plan (INECP) for 2021 to 2030 to meet its EU greenhouse gas emission (GHG) reduction commitments. The INECP addresses five dimensions: decarbonization, energy efficiency, energy security, internal energy markets and research, innovation, and competitiveness. Slovakia has committed to the EU Green Deal and endorsed the EU Commission’s “Fit for 55” legislative package, with the aim to achieve a 55 percent reduction of GHG emissions by 2030 and carbon neutrality by 2050. In January 2020, the Slovak government passed the “Low-Carbon Development Strategy until 2030 with a View to 2050.” This Strategy lays down a roadmap for moving to a low-carbon economy and introduces sectoral targets of GHG emission reductions through 2030. Both the INECP and the Low carbon Strategy are set to be updated in 2022, to reflect the new EU-wide GHG emission reduction target of 55 percent and updated EU emissions calculations.

The state provides regulatory incentives, many of which can be co-financed with EU funds. Some businesses have noted that the conditions for environmental compensations are often set inappropriately by administrators, resulting in incentive money being left on the table. In March 2022 the Environment Ministry reported that only by 38 percent of the total allocated for the State Program for Remediation of Environmental Burdens budget was expended.

Due to record-high prices of emission allowances and energy inputs starting in 2021, energy intensive industry leaders have advocated for higher levels of reimbursement from the Environmental Fund for modernization valued at over €1 billion, which is funded in part by emission allowances. The Fund returned €11million to industry as of March 2022, while in 2021 it was only €3 million. Some large industrial emitters are working with the government to develop comprehensive emission reduction action plans that include state aid schemes. Electromobility and hydrogen have been government priorities, with the government providing subsidies to consumers for electric cars purchases and grants. State energy authorities have been working on a plan to increase electricity network capacity, solutions to which may be an opportunity for foreign investment.

As one of the EU’s most industrialized countries with a large energy-intensive economy, Slovakia will have to invest significant public and private resources to achieve its ambitious climate and environmental objectives. Slovakia has allocated €2.17 billion of its €6.3 billion Recovery and Resilience Plan towards green investments in energy efficiency and building renovation, renewable energy, sustainable transport, decarbonization, and climate adaption and biodiversity. Some 40 percent of the €13 billion of European Structural and Investments Funds available to Slovakia in the 2021-2027 programing period will also be spent on green investments. Polluters are able to access significant public funding for projects related to decarbonization, energy efficiency, energy storage, and renewable sources from the Modernization Fund and the Environmental Fund, which are funded from profits from Emission Trading Schemes (including the EU ETS) covering about 50 percent of all emissions. Slovakia is also eligible for nearly €1 billion in EU funding from the EU’s “Just Transition Fund” to transition away from coal. Slovakia committed to end the use of domestic coal in electricity and heat generation by 2023. It pledged to end state aid for coal mining beginning January 2024.

In January 2022, the government launched a new deposit return scheme for plastic bottles and aluminum cans in which larger retailers are required to participate. The government’s aim is to achieve a ninety percent return rate of recyclable packaging by 2025.

Agriculture is a sector vulnerable to both climate change and especially effected by environmental legislation related to land use, animal husbandry practices, and herbicide/pesticide use. In February 2022, the Slovak government approved a Strategic Plan of the Common Agricultural Policy for 2023-2027, which included EU-wide priorities on environmental protection and a domestic focus on modernization and innovation with a budget of €4.3 billion.

The Slovak Environmental Inspectorate provides regulatory relief to certified companies by reducing the frequency of inspections to once every ten years. Landowners are granted property tax relief for land use choices, such as leaving intact habitats such as swamps, sodium-rich soils, peat bogs and groves, windbreaks, and water protection zones. Slovakia also introduced tax incentives for environmentally friendlier modes of transport such as a tax exemption for electricity and natural gas in railway, water, and public transport. Slovakia is active in green public procurement and has a National Action Plan for Green Public Procurement (GPP) in place that mandates that central and local contracting authorities apply GPP rules. The Slovak Environment Agency organizes educational activities on green public procurement for public authorities. Within its Strategy for a Greener Slovakia, a component of the Environmental Policy Strategy, the Slovak government committed that GPP will cover at least 70 percent of the total value of public procurement by 2030. The strategy also obliges contracting authorities that carry out ten or more public procurement procedures in a calendar year to make environmental considerations in at least six percent of contracts; reduce negative environmental impacts of the procurement; contribute to environment protection; promote adaptation to climate change; and support sustainable development.

Slovakia ranked 20 on the 2021 Global Energy Innovation Index, up four places from 2016. It scored 4.4 points in the MIT Technology Review’s Green Future Index, putting it at 50th place. According to Global Green Growth Institute’s 2019-2020 Global Green Growth Index, Slovakia ranked 7 in Europe, improving 10 places since 2005.

Please consult the following websites for more information:

- Environment Ministry’s Law Carbon Strategy:
- Economy Ministry’s Integrated National Energy and Climate Plan:
- Ministry of Agriculture:
- Recovery and Resilience Plan, Green Economy Section:
- Action Plan for the Transformation of the Upper Nitra Region:

							9. Corruption					

Slovakia is a party to international treaties on corruption.  Among them are the OECD Convention on Combating Bribery of Foreign Public Officials, the UN Anti-Organized Crime Convention (UNTOC), the UN Anti-Corruption Convention (UNCAC), and the Criminal Law Convention on Corruption and Civil Law Convention on Corruption.  Slovakia is a member of the Group of States against Corruption (GRECO) and the Open Government Partnership (OGP). The Corruption Prevention Department of the Prime Minister’s Office is a member of the Council of Europe’s Network of Corruption Prevention Authorities. Slovakia is a party to the International Anti-Corruption Academy (IACA).

Giving or accepting a bribe constitutes a criminal act according to Slovak law.  Since 2021, the law was expanded to include a definition of indirect corruption, making it a crime to accept or offer unjustified benefits or undue advantages. Slovak criminal law incorporates criminal liability for legal persons, including corporations.

A major concern for years among the business community, data suggest that corruption concerns among the public and investors are improving.  According to the Special Eurobarometer survey from December 2019, the latest one available, 79 percent of respondents believed that corruption is part of Slovakia’s business culture (above the EU average of 61 percent).  However, in Transparency International’s 2021 Corruption Perceptions Index, Slovakia ranked 56 out of 180 countries, up four spots since 2020, and improved its score to its all-time best.  Thirty-nine percent of Slovak respondents in Transparency’s 2021 Global Corruption Barometer, indicated a decrease in their perceptions of the level of corruption over the previous year and 61 percent said the government is doing well in tackling corruption. The trend stands out in the Visegrad region and is attributed to the increased efforts and performance in the investigation and prosecution of corruption, as well as the government’s anti-corruption measures. There is no data available on whether U.S. firms identify corruption as an obstacle to foreign direct investment. A regular survey conducted by seven foreign chambers of commerce showed positive movement in the business community’s assessment of the government’s fight against crime corruption, moving from a negative attribute in surveys since 2004 to a neutral one in 2021.

The ruling coalition’s agenda has focused heavily on strengthening anti-corruption measures.  In 2020, it amended legislation regulating selection procedures for the Prosecutor General and the Special Prosecutor, and introduced new leadership in key law enforcement institutions. A new Whistleblower Protection Office commenced operations in September 2021.  In 2019, Parliament streamlined an anti-shell company law that requires private companies to reveal their ownership structure in the Register of Public Sector Partners before entering into business contracts with public entities.  Disclosure of contracts in the Central Registry of Contracts by public authorities and state-owned enterprises is compulsory.  In addition to EU legislation, the public procurement law provides for fair and transparent government procurement, and the Public Procurement Office (PPO) oversees its implementation, including countering possible conflicts of interest. The PPO has a reputation for being effective and independent. A major reform of public procurement law designed to reduce red tape and gold-plating by speeding up procurements organized by government agencies and municipalities entered into force in March 2022. Since 2021, a new law on asset seizure and forfeiture prevents the legalization of assets through their transfer to third parties, and thus extends to family members or close associates. A new Office for the Management of Seized Assets operational from August 2021 should provide for streamlining of the related processes in close cooperation with law enforcement.

In January 2020, a regulation on conflicts of interest in the civil service was adopted by Cabinet decree, introducing a Code of Conduct for Civil Servants (400/2019 Coll.). NGO analysts and GRECO point out that conflict of interest and asset declaration regulations lack the necessary level of detail to be implemented and enforced in practice.   In its Integrity Review, the OECD recommends Slovakia consider strengthening institutional and technological capacity to process, verify, and audit asset declarations for public officials, and to strengthen parliamentary oversight of adherence to integrity standards. Despite the government’s commitment to address the absence of lobbying regulation, neither a regulatory framework for lobbying nor an associated mandatory register of lobbyists and a code of conduct have been introduced. The OECD Integrity Review published in March 2022 acknowledges Slovakia’s progress towards a strategic approach to public integrity but recommends a range of measures to step up its implementation and delivery of goals. These include applying a risk-based approach, allocating appropriate financial resources, strengthening monitoring and evaluation, and fostering a culture of public integrity.

Corruption related probes, including those against former high-ranking officials and influential businesspeople advanced in 2021; during which 136 individuals were indicted for corruption-related crimes, up from 124 in 2020 and 83 in 2019. From 2019-2021 a number of judges, the former Prosecutor General, the former Special Prosecutor, the former Economy and Environment Minister, former Deputy Ministers of Justice and Finance, two former Police Corps Presidents, two former Financial Administration Presidents, several high-ranking Agriculture Ministry officials, several businesspeople and lawyers were charged with corruption, interference in the independence of courts, and organized crime.  At least 26 former officials pleaded guilty.

Government authorities do not require private companies to establish internal codes of conduct that would prohibit bribery of public officials. However, businesses have adopted such measures voluntarily, especially those with foreign ownership that often have company-wide internal codes of conduct. In many cases such companies extend these codes of conduct to their contractors.  Public entities and private companies with at least 50 employees are required by law to set up an internal channel to report corruption or unlawful conduct.

NGOs investigating corruption do not enjoy any special protection, however, they are regularly consulted by government agencies, such as the Prime Minister’s Office, the Ministry of Justice, and the Public Procurement Office.

Please consult the following websites for more information:

- European Commission, Special Eurobarometer 502, Corruption, December 2019:
- Transparency International 2021 Corruption Perceptions Index:
- Transparency International 2021 Global Corruption Barometer – European Union:
- Spring 2021 Foreign Chambers of Commerce Joint Survey:
- GRECO’s 5th Evaluation Round Compliance Report on the Slovak Republic, 2021:
- OECD Integrity Review of the Slovak Republic, March 3, 2022:
- Whistleblower Protection Office:
- The Register of Public Sector Partners:
- Central Registry of Contracts:
- Public Procurement Office:
- Office for the Management of Seized Assets:
- Code of Conduct for Civil Servants:

Resources to Report Corruption

Contact details of government agencies responsible for combating corruption:

Daniel LipsicHead of the Special Prosecutor’s OfficeOffice of the Special Prosecution under the General Prosecutor’s OfficeSuvorovova 4343902 01 PezinokTelephone: +421 33 690 3171Daniel.Lipsic@genpro.gov.sk

Lubomir DankoDirector of the National Criminal AgencyMinistry of Interior, National Police HeadquartersRacianska 45812 72 BratislavaTelephone: +421 964052102Lubomir.Danko@minv.sk

Contact details of “watchdog” organizations:

Michal PiskoExecutive DirectorTransparency International SlovakiaBajkalska 2582718 BratislavaTelephone: +421 905 613 779pisko@transparency.sk

Zuzana PetkovaExecutive DirectorStop Corruption FoundationStare Grunty 18841 04 Bratislavapetkova@zastavmekorupciu.sk

Peter KunderExecutive DirectorFair Play Alliance

Hubeneho 7P. O. Box 75830 05 BratislavaTelephone: +421 911 724 189kunder@fair-play.sk

							10. Political and Security Environment					

Politically motivated violence and civil disturbances are rare in Slovakia, but as the government continued imposing stringent measures and a series of lockdowns in response to the COVID-19 pandemic, the country has seen an increase in the number of anti-government demonstrations. The protests often attracted hundreds to thousands of people and remained largely peaceful, though several protests resulted in minor damage to government property, riot police intervention, traffic disruptions, arrests, and minor injuries to police officers and participants. During two separate protests against anti-pandemic measures in July 2021, protestors paralyzed traffic in downtown Bratislava for several hours and verbally and physically harassed journalists. One of the protests resulted in a crowd of several dozen attempting to forcibly enter the parliament building.

There have been no recent reports of politically motivated damage to property, projects, and installations nor violence directed toward foreign-owned companies. However, in October and November 2021, coordinated groups targeted large grocery stores (which were generally international grocery retailers) for anti-mask defiance actions, in protest against anti-pandemic measures. On several occasions the incidents resulted in hours-long store closures, causing financial losses to the retailers. In response, an association of the largest companies in retail and wholesale sector in Slovakia, including Billa, Kaufland, Lidl, Metro, and Tesco, issued a call to public authorities to urgently address the situation and take swift and effective action, which drew increased police engagement. There have been no recent reports of similar incidents after government relaxed anti-pandemic rules.

The two years of the COVID-19 pandemic measures and their politicization, as well as an antagonistic domestic political scene have contributed to increased political and societal polarization and made space for extremist rhetoric in the mainstream. While some threats were made against Slovak politicians for their support of a politicized international agreement, there have been no reports, however, of actual politically motivated violence.

							11. Labor Policies and Practices					

Slovakia is one of the most industrialized economies in the EU with almost 28 percent of the workforce employed in industry, 70 percent in services (including construction), and the rest in agriculture.  After a sharp increase in the unemployment rate during the first year of the COVID-19 pandemic, the unemployment rate declined in 2021, dropping from 7.81 percent in January 2021 to 6.96 percent in January 2022, though unemployment still remained well above the pre-pandemic low of 4.92 percent in December 2019.  Long-term unemployment remains prevalent in poorer regions, especially in the marginalized Roma communities.

Foreign companies frequently praise the labor force’s motivation and productivity, and especially commend younger workers for their proficiency with foreign languages.  However, businesses consistently complain about the growing gap between their labor market needs and popular areas of study, with shortages in technical education at both the high school and higher education levels, and the education system’s insufficient focus on teaching critical thinking and soft skills.  Slovak PISA (Program for International Student Assessment) scores are persistently below the EU average. The health and IT sectors are among those facing the most severe long-term labor shortages, but most regions also report shortages in workers for lower-skill construction and machinery operation jobs.

The minimum wage law indexes the minimum wage to overall wage growth in the economy.  The minimum wage increased 4 percent to €646 per month in 2022.  Nominal wages grew by 6.8 percent and real wages by 3.5 percent in 2021.  The average nominal wage in 2021 increased to €1,171 per month, with wages in the wholesale and hospitality segments increasing the most at 15 and 10 percent y-o-y, respectively. In 2020, the average hourly labor cost was €13.40, significantly lower than the EU average of €28.50.  According to Eurostat, the gender pay gap declined from 19.8 to 15.8 percent between 2018 and 2020 but remained above the EU average of 13 percent. The gender employment gap stood at 7.3 percent in 2020.  A lack of childcare facilities for children below three years of age combined with three years of paid maternity and parental leave discourages mothers from returning to work and aggravates the gender pay gap.  According to the European Commission Education and Training Monitor from January 2022, participation in early childhood education in Slovakia remains among the lowest in the EU.  As part of its Recovery and Resilience Plan, Slovakia has allocated significant resources to improve the availability of formal childcare and early childhood education.

The Slovak Labor Code (311/2001 Coll.) governs the national labor market, including for foreigners.  Businesses cite burdensome labor regulations, frequent and arbitrary changes to the labor code, and a lack of stakeholder input as some of the obstacles to doing business in Slovakia.  Employers also note that the system for determining the annual increase in the minimum wage are disconnected from productivity gains, weighing on production costs and reducing the competitiveness of local businesses in comparison to foreign competitors.

As of March 2022, a permanent “kurzarbeit” social insurance program entered into force, under which employers may reduce their employees’ work hours instead of laying them off, while receiving a government subsidy of up to 60 percent of a worker’s salary. The “kurzarbeit” scheme may be triggered in an extraordinary situation, including for example the COVID-19 pandemic.

On January 1, 2020, the Amendment to the Act on Employment Services (5/2004 Coll.) simplified the process for hiring non-EU nationals by decreasing wait times for temporary residence permits from 90 to 30 days and reducing the wait time for work permits to 20 days.

The number of foreign nationals from both EU and non-EU countries in the Slovak labor market had been steadily increasing since Slovakia’s 2004 accession to the EU but saw a dip at the onset of the COVID-19 pandemic. In 2021 there were 167,000 foreign nationals residing in Slovakia, of which 66,000 were legally employed. The number of Ukrainian workers in the Slovak labor market, who together with Serbian nationals already accounted for 80 percent of all non-EU foreign laborers, is expected to rise exponentially in connection with the Russian invasion of Ukraine and the decision of the Slovak government to extend a temporary refuge status to all Ukrainian nationals fleeing war, which permits their stay and enables status holders to legally work and access government services.

The Anti-discrimination Act (365/2004 Coll.) and the Labor Code ban discrimination in the workplace based on gender, race, nationality, sexual orientation, health impairment, age, language, religion, and political affiliation. It does not, however, specifically prohibit discrimination based on HIV status. Activists frequently allege that employers refused to hire Roma, and an estimated 70 percent of Roma are legally unemployed, although many are believed to work in the informal economy.

Slovakia has a standard workweek of 40 hours and the law mandates a maximum workweek of 48 hours, including overtime, except for employees in the health-care sector, whose maximum work week is 56 hours.  The Labor Code caps overtime at 400 hours annually and sets minimum remuneration for overtime and work during public holidays or on weekends.  There are no serious concerns regarding compliance with international labor standards.

The Labor Code differentiates between layoffs and firing.  The cost to lay off employees stipulated by the Labor Code is generally less expensive than in Western Europe, ranging from two to three months’ severance pay, depending on the employee’s time in service.

Social insurance contributions are compulsory and include healthcare, unemployment, and pension insurance.  Both employers and employees must pay social contributions – the employer’s combined social and health contributions amount to 35 percent of wages. The combined tax and mandatory contribution cost-wedge on labor in Slovakia is above average in the region and may discourage legal employment. According to the World Bank Informal Economy Database, the informal economy in Slovakia represented 16.1 percent of GDP in 2018 but experts asserted that the share likely declined since then, consistent with a gradually improving tax collection rate.

Collective bargaining is voluntary and takes place without interference from the state. There is a formal trilogue used in negotiating national minimum wage levels for the following year. In absence of an agreement, which has been the norm for several years, the minimum wage is automatically adjusted using a mathematical formula based on average wages. Provisions agreed in multi-employer as well as single-employer collective agreements are legally binding for the contracting parties.  EU Agency Eurofound reports up to 35 percent of employees in the national economy are covered by a collective agreement.  At the sectoral or regional level, the coverage is about 10 percent. No official national data exist on collective bargaining coverage.  The standard mechanisms for dealing with collective labor disputes is conciliation – used in vast majority of cases – and arbitration.

Union membership has declined in recent years.  A “tripartite arrangement” is used as a discussion platform including state representatives, labor unions, and employer associations.  Slovakia is a member of the International Labor Organization and has ratified all eight core conventions.  Labor strikes are infrequent in Slovakia.  In February 2022, truck drivers organized a series of smaller scale strikes, disrupting traffic at major thoroughfares and border crossing points.

Please consult the following websites for more information:

- The European Commission Country Report – Slovakia 2020:
- OECD Economic Survey – Slovak Republic 2022:
- Central Office of Labor, Social Affairs and Family:

							12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs					

As a high-income economy, Slovakia does not qualify for DFC support outside of energy infrastructure projects. Before OPIC transformed into DFC, it offered U.S. investors in Slovakia insurance against political risk and expropriation of assets or damages due to political violence. Slovakia is a member of the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) which also provides political risk insurance.

							13. Foreign Direct Investment Statistics