Republic of Slovenia is located in the southern Central Europe and we often say that is ” The land on the sunny side of the Alps”.
Historically the current territory of Slovenia was part of much different state formation from Roman Empire to Socialist Federal Republic of Yugoslavia.
In 25 June 1991, after of introduction of multi-party representative democracy Slovenia formally split from Yugoslavia and became an independent country. On 22 May 1992 the Republic of Slovenia became the 176 Member State of the UN. In 2004 it entered into the European Union and NATO and in 2007 was the first former communist country to join the Eurozone and the Schengen area.
Romania recognized the Republic of Slovenia on 18 January 1992, diplomatic relation were established in August the same year. Since there the two countries have built good and close relations with each other. We have good cooperation in the political, economic and culture area. On the political field we do not have open issues; Slovenia is vocal supporter of Romania´s entry into Schengen. During my mandate we organized some excellent events with the most prominent Slovenian writers, film directors, painters and singers such as Boris Pahor, Drago Jančar, Metod Pevec, Bogdana Herman, Gregor Kresal , Andrej Medved, Miklavž Komelj and Majda Skrinar.
Economic change between two countries is growing year by year, however there are still many opportunities for strengthening the cooperation. From 2007 the exchange grows rapidly, with slide fall during the economic crises and another rapid growth in 2014 due to the automobile industry. Renault Slovenia imports parts for “Twingo”, produced in Slovenia.
In year 2014 trade between two countries reached 627.355 million EUR, import from Romania reached 277.257 EUR due to the automobile industry.
The global economic crisis did not spare Slovenia, but country is back on track with economical growth due to its quality products, efficiency and responsiveness of our people and today we can say that Slovenia is finally back to growth and keeps changing for the better.
According to the European Commission economic forecast GDP growth for this year is projected at around 2,3%and 2,1% in 2016. Compared with earlier projections, the upward revision at 2,6% for 2014 is the result of a faster recovery in foreign demand, easing of the situation in the domestic labour market at the turn of the year and also a slightly improved confidence in the economy. As projected by the Central Bank, solid export growth could widen the current account surplus to more than 7% of GDP. In the absence of demand-side pressures and supply shocks, inflation is expected to remain low in the coming years. Slovenia´s economic competitiveness has improved recently which has enabled faster export growth. Exports forecast by IMAD (Institute for Macroeconomic Analysis of Slovenia) shows grow of 4,8% in 2015, significant growth of 2,9% registered in 2013 when the situation in public finance was marked by a continuous decline in revenue and an increase in expenditure.
Slovenia is striving to be an attractive tax environment and present an interesting investment opportunity. It has a great strategic location, country lies in the middle of the world´s most exciting business region and it connects several of Europe´s historical crossroads. As such is heavily connected to the EU business network. The country has well educated labour force and is trying to systematically eliminate administrative obstacles related to business and investments. In the last few years there have been some changes to the tax legislation with the aim of improving the competitive advantage of Slovenia and to boost production activities.
Currently resident companies are taxed on worldwide income whereas non-resident companies are taxed only on Slovenian sourced income. Taxpayers whose revenue in the previous year does not exceed EUR 50,000 can elect to take a lump sum deduction (equal to 70% of annual revenue) for expenses. The corporate income tax rate is seat at 17% and should remain at this level. In comparison to the rates in some neighboring countries, the tax rate is still among the lowest in the EU.
Comparing Slovenia with others EU countries Slovenia is more flexible than our competition within the EU, we have a secure business environment which is not emphasized enough, Slovenia is one of the most secure countries in the world.
Slovenia can be seen as a Haven for foreign investors who want high-tech production, it is as effective as some other EU countries with very friendly business environment. .
Dividends, interests and royalties paid to a non-resident are subject to a 15% withholding tax unless the rate is reduced under a tax treaty or exempt under the EU parent-subsidiary directive or EU interest and royalties directive which are both fully incorporated in Slovenian law. Currently Slovenia has concluded over 55 tax treaty agreements with different countries.
Personal income tax is levied on six categories of income: income from employment, business income, income from basic agriculture and forestry, income from rents and royalties, income from capital (dividends, interest and capital gains) and other income that varies from 16% to 25%. The Value Added Taxation in Slovenia is 22%; while a reduced rate, which applies to specified goods and services, is 9,5%.
Allow me to specifically mention tourism as one of the most important economic sector. Slovenia formed 2012-2016 Slovenian Tourism Development Strategy . Slovenia is developed tourist destination with a modern, diverse and top -quality tourist offer based on innovative and quality integral tourist products and high value-added services aimed to satisfy tourist. Slovenian tourism is focused on different tourism niches (rural tourism, congress tourism, health tourism) and can offer to the tourists very high level of quality service with focusing on e healthier lifestyles.
More information about Slovenia and its tourism offer you can find on www.Slovenia.info.