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Relocation to Slovakia for business purposes
Today it is clear that Slovakia, a beautiful, peaceful and modern country located in the center of Europe, is a desirable destination for migration. One way to immigrate to Slovakia is by opening a business within its borders. Compared to most EU countries, it is easy and cost-effective to open and run a business in Slovakia. Here are some things to consider if you are considering immigrating to Slovakia and planning to open a business in the country.
What kind of business can you open in Slovakia?
There are several options that the country encourages, including for foreigners who wish to open a business in Slovakia. You can invest in real estate, open a business like a bar or a hostel. There is a preference for businesses that require a sought-after profession: technology businesses, car services, hair salons, building, metal processing, and other fields where there is a shortage of local businesses. Food production can also be considered, but of course, local requirements should be checked as they are different from Israel. There is also a demand for pharmacies, travel agencies, and of course, hi-tech start-ups, but this requires a different level of licensing.
Regardless of the planned activity type, your new company must be registered as either a tax-exempt operator, an authorized operator, or a limited liability company. Each type of registration has its own advantages.
What are the conditions for migration for business people?
Business migration to Slovakia is an option that many consider as a legal way to move to one of the beautiful countries in the European Union. A temporary residence permit for the business owner in Slovakia can be extended up to 5 years, after which you will be eligible for permanent residency. Of course, family members also receive temporary residence permits with you.
What do you need to do? Register the business as a legal entity, prove that you have a housing option and have money available in both your accounts for your livelihood and business development. All these are conditions for obtaining a temporary residence permit.
Permits for opening a business in Slovakia
A business visa is a permit given to those who open a business in Slovakia, and for this, a deposit of only a few thousand euros is required, making this option attractive. After the business has been active for a year and you have proven its profitability, you can receive an extension of the temporary residence status. The advantage is that you are not dependent on employers or places of study in order to obtain and extend the permit. The matter depends only on you. If you have a freelance business or work as a freelancer, this option may be suitable for you in several respects. As a rule, the conditions for business people in Slovakia are very comfortable, taxes are low relative to both Europe and Israel, and the cost of living there is several levels lower than in Israel. This is also a good way to eventually obtain Slovak citizenship.
The most profitable sectors in Slovakia
Tourism is one of the most profitable sectors in Slovakia, attracting tourists from all over Europe, with attractions such as ski resorts and thermal springs. However, setting up a tourism business may prove complex due to the high competition in the industry. The food sector, such as bakeries, food stands, restaurants, cafes, candy production, and more, may succeed in Slovakia, and it is worth considering for those whose profession is related to this field. Basic products are considered good, and there is high demand for such businesses. Of course, the information technology sector is the most sought-after, and therefore, many startups are opening up. It is a promising field in Slovakia, as in almost every country in the world. Other thriving sectors include everything related to the automotive industry. A foreign entrepreneur can benefit greatly from the entire field of car repairs, sales, car rentals, and more.
How to register a business in Slovakia
If you’re considering opening a business in Slovakia, you’ll need to prepare the necessary documents in advance. Once you have gathered the complete package, a notarized confirmation of the documents is required, which must be translated into Slovak. Then you need to register your new company in the trade register and with the tax authority. Additionally, a license is required from the Trade Office, which actually allows you to engage in the type of business activity specified in the documents you prepared. Such a license is given only to Slovak residents, but since opening a business will grant you temporary residency, this is not a problem. There are businesses that do not require a license – it is advisable to clarify this in advance.
In the next step, you need to approach the bank
In order to register a business in Slovakia, you need to open a bank account in the country and deposit at least 5,000 euros. In addition, 15,000 euros are required for the company’s development deposit, but if you are founders and receive temporary residency approval, you will be able to withdraw this money. Remember that the minimum income you will need in the business to continue to enjoy the approval is 12,000 euros, which is the net annual income in your account after paying taxes.