Slovenia

Investing in Slovenia

FDI in figures | Why you should choose Slovenia | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Slovenia has a fully liberalized foreign investment regime in line with EU and OECD which is not drawing a distinction between foreign and domestic investor.

The first strategic partnerships among domestic and foreign companies can be traced back to the 1970s (Bayer, Semperit, Naue). The first substantial FDI inflows a decade later (Renault, Bosch, Siemens, Henkel, ÖMV). The largest recent FDI inflows are the post-privatisation takeovers (Goodyear) or classic takeovers (Lek by Novartis, Simobil by Mobilkom, SKB by Societe Generale etc.).

By the end of 2006 the accumulated sum of FDI reached almost 7 billion EUR and more than half of this total inflow is result of the last years period from 2001 to 2006. Major investors are Austria (32%), Switzerland (14%), Netherlands and France (9%), Germany (8%), Italy (6%), Croatia, Belgium and Luxembourg (all 4%), UK and USA (both 2%). They mostly invested into financial services and insurance (21%), retail (17%), business services and leasing (16%), chemicals (13%), tyres and plastic products (5%), engineering, pulp & paper, telecoms and transport, motor vehicles and trailers, electrical engineering and other.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	577	645	1,426
FDI stock (millions USD)	7,259.2	8,924.0	10,349.8
Performance Index*, ranking on 141 economies	55	103	94
Potential Index**, ranking on 141 economies	33	33	-
Number of Greenfield investments***	20	23	23
FDI inwards (in % of GFCF****)	10.4	6.9	6.8
FDI stock (in % of GDP)	21.1	24.0	23.1

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose Slovenia

Strong points: Quality link to regional markets - the Slovenia capital is geographically located within two hour flight of 450 million consumers in Europe in all directions. Quality labor force - providing a well-educated and internationally savvy workforce .
Quality infrastructure - well-developed maritime, land and air transport infrastructure as well as excellent IT-networks and platforms, centres of excellence and clusters as evidence of a high-level innovation activity. Quality of life - a safe place to raise the family and enjoy natural beauties and historical sights in a country of multilingual and friendly citizens.
Politic and economic stability and tradition of an export oriented economy.
Weak points: Non persuasive government attitude towards FDI, lack of building sites for business activity, low mobility of the labor force.
Government measures to motivate or restrict FDI: Slovenia is very ambivalent about FDI: on one hand it would like to be open to FDI while on the other it is very cautious about them. Therefore, the government FDI cost-sharing grant scheme is focusing incentives to the investments that will have a positive impact on new employment, knowledge and technology transfer, facilitation of balanced regional development and will foster alliance between foreign investor and Slovenian companies.
Government grants are available for investments of more than 0.5 mio. EUR in industry, strategic services (Customer Contact Centres, Shared Services Centres, Logistics and Distribution Centres, Regional Headquarters) and R&D. The most welcome FDI are greenfield investment with "clean" ("green") high technology.

Procedures relative to foreign investment

Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Slovenia.
Obligation to declare: Slovenia has a fully liberalized foreign investment regime - foreign investments enjoy full national treatment.
Requests for specific authorizations: The only exception to the principle of full national treatment relates to the right of branches of foreign companies originating in non-EU member states to obtain ownership over real estate in Slovenia. Foreign investment in the companies related to the production and trade of armaments is subject to the prior approval of the government. For more details click here.