Why does Slovakia attract Russians for business and real estate purchases?

General information about the quality of life in Slovakia

According to the Organisation for Economic Co-operation and Development (OECD), Slovakia ranks 19th in the world in terms of quality of life and working conditions, ahead of countries such as the USA, Australia, Israel, Japan, and Spain.

The country's successes can be explained by a number of factors, which include:

• affordable labor costs;
• favorable tax conditions;
• a stable political situation.

These features create a favorable environment for doing business in Slovak territory. Many international companies are actively developing their operations in the country, including:

• well-known car brands such as Volkswagen, PSA Peugeot Citroën, and Kia Motors;
• technological giants like Siemens, IBM, HP, Dell, and Lenovo.

The economic situation and the real estate market

The economic situation in Slovakia is also reflected in the stable development of the real estate market, which mirrors overall economic trends. From 2006 to 2008, prices for residential real estate in the country showed steady growth, increasing annually by 16.8% to 23.8%.

The maximum housing prices were recorded in the second quarter of 2008, when the price per square meter reached 1,549 euros. After the onset of the financial crisis, the decline in the real estate market was less pronounced compared to other countries. In 2009, according to reports from the National Bank of Slovakia, the price drop was 11.1% over the year. In 2010 and 2011, the rate of decline began to slow down, with a decrease in the price per square meter of 3.9% and 3.1%, respectively.

Positive changes in the real estate sector

Since 2012, there has been a positive trend in the real estate sector. In the third quarter of this year, housing prices decreased by only 0.6% compared to the previous year, and subsequent studies have shown that a price increase has begun.

In the second quarter, the average price per square meter was 1,227 euros, and by the third quarter, it had increased to 1,240 euros.

Data analysis from 2005 to 2012 shows that the most expensive apartments are owned by residents of Bratislava, where the average price per square meter reaches 1,662 euros. The most significant price increases are observed in the historical center of the capital, where annual increases range from 15% to 20%. At the same time, in regional cities, the cost of housing is more than one and a half times lower than in the capital.

The interest of Russian citizens in Slovakia

Additionally, it is worth noting the growing interest among Russian citizens in Slovakia, especially in comparison to neighboring Czech Republic and Austria. The complexities of tax legislation in Austria have a negative impact on Russians:

• Income up to 10,000 euros per year is not subject to taxes.
• If your income is up to 25,000, you need to pay 38.33%.
• Income up to 51 thousand — 43.60%;
• over 51 thousand — 50%.

In Slovakia, the corporate tax rate is only 23%. Additionally, the minimum share capital for registering a limited liability company in Austria is 35,000 euros, while in Slovakia it is only 5,000 euros, and the process of setting up a company can take just two days.

Conditions for obtaining a residence permit

In recent years, the conditions for obtaining a residence permit in the Czech Republic for emigrants from the former USSR have become stricter. One of the reasons for tightening the rules is the significant increase in the number of Russians who open companies to obtain a residence permit but do not pay taxes.

As a result, many Russians find more favorable conditions for implementing their business ideas and conducting commercial activities in Slovakia. Considering all the factors mentioned, it becomes clear that Slovakia is becoming an increasingly attractive place for business and living for foreign citizens, especially from Russia.

Introduction

Government structures are facing a shortage of administrative resources to conduct thorough checks on the financial status and integrity of each entrepreneur's business. It is important to note that the situation is also influenced by the economic crisis in Europe.

Changes in the deadlines for extending residence permits

Previously, the extension periods for residence permits ranged from one to two years, but now they have been reduced to just three months. This change requires those wishing to extend their status to make more frequent tax payments, which, in turn, increases budget revenues. These innovations have affected the number of Russians wanting to start a life and open a business in the Czech Republic.

Advantages for migrants in Slovakia

For migrants from post-Soviet countries, one of the significant advantages is the absence of a language barrier when purchasing property in Slovakia.

• Most locals speak Russian fluently.
• The real estate prices are pleasantly surprising; they are 3-4 times lower than in Moscow and 2 times lower than in St.

Conclusion

The conclusion I would like to share summarizes the favorable situation observed in Slovakia for both international business and Russian investors. Slovakia, thanks to its strategy aimed at creating comfortable conditions for doing business, is demonstrating success, outpacing several developed countries such as the USA and Japan. It is clear that this country offers numerous opportunities for companies looking to expand their horizons beyond their home market.

Attractiveness for investors

It is undeniable that Slovakia attracts the attention of Russian investors, and this is not only due to favorable tax rates but also the absence of a language barrier. Russians living here can fully enjoy the quality of life, which is more accessible compared to other European countries. Housing projects in Slovakia offer many interesting opportunities, making the real estate market more appealing.

Advantages of buying real estate

Buying real estate here is a significant step towards securing the future. Considering Slovakia's good location in the center of Europe, with easy access to cities such as:

• Vienna
• Budapest
• Prague

This makes the choice even more sensible. It should also be noted that many Russian companies see Slovakia as a key to the European market, creating additional investment opportunities and prospects.

The future of Slovakia

Undoubtedly, this is a new reality in which Slovakia continues to develop and demonstrate economic stability, which in turn generates interest from both domestic and foreign investors. It is in this context that we should consider the future of Slovakia and its role in the international business environment. I am confident that over time, interest in this country will only grow, making Slovakia an important point on the investment map of Europe.