Inversió estrangera directa (IED) a Eslovènia

FDI in Figures

Slovenia is completely open to foreign investment, in accordance with the principles of the European Union and the OECD, and does not discriminate between national and foreign investors. According to UNCTAD's World Investment Report 2024, FDI inflows to Slovenia totalled USD 1.1 billion in 2023, down by 46% year-on-year but still above the 2018-20 average (USD 1 billion). At the end of the same period, the total stock of FDI was estimated at USD 23.7 billion (from 21.5 billion one year earlier). The overall rise in FDI stock was driven by reinvested earnings (EUR 0.8 billion), followed by equity investments (EUR 0.5 billion) and increased debt financing (EUR 0.2 billion). Data from the Slovenian Central Bank show that, as of the end of 2023, the majority of FDI stocks were held by Austria (21.6%), Luxembourg (13.1%), Germany (8.7%), Croatia (7.6%), Italy and the Netherlands (7% each). The leading five investor nations collectively held slightly over three-fifths of the entire stock of inward FDI in Slovenia by the conclusion of 2023. Cumulatively, Europe accounted for 77.6% of the stock. As per sectors of activity, manufacturing accounts for one-third of FDI, followed by financial and insurance services (21.2%), wholesale and retail trade (17.8%), information and communication (6%), and real estate (5.9%). The latest figures from the OECD show that FDI inflows totalled USD 685 million in the first half of 2024, compared with a negative inflow of USD 351 million recorded in the same period one year earlier.

The country has a strategic location by the Adriatic Sea, along with developed infrastructures and a well-educated workforce. In recent years, Slovenia’s economy has grown faster than most other EU member states, and the country has enjoyed rising incomes, growing domestic consumption, falling unemployment, low inflation, and burgeoning consumer confidence. However, around one-fourth of Slovenia’s economy remains state-owned or state-controlled, and foreign investors reported the lack of transparency in economic and commercial decision-making, time-consuming bureaucratic procedures, opaque public tender processes, regulatory red tape, and a heavy tax burden for high earners as the main factors hindering FDIs. Both foreign and domestic private entities have the right to establish and own business enterprises and engage in various forms of remunerative activity. The country has relatively few formal restrictions on foreign ownership or control.; however, as of June 9, 2023, the National Assembly enacted legislation instituting a permanent FDI screening framework. Effective July 1, 2023, FDI notifications must be accompanied by evidence verifying the accuracy of the submitted information, which includes transaction documentation. According to the new FDI regulations, foreign investors are exclusively defined as non-EU entities. Slovenia ranks 34th among the 133 economies on the Global Innovation Index 2024 and 43rd out of 184 countries on the latest Index of Economic Freedom.

What to consider if you invest in Slovenia

Strong Points

Slovenia has many assets including:

• Strong political stability and good international relations reinforced by the country's accession to the European Union
• The adoption of the euro since 1 January 2009, which made it possible to eliminate the risks associated with the exchange rate
• A performing economy based in particular on a sustained growth rate (Coface forecasts a 4.9% growth rate in 2021), low inflation, excess external accounts since 2012 and very satisfactory recovery of tax revenues after the stock market crash of 2013
• The economy is more diversified and fits perfectly into the European production chain.
• Overall, the business environment is pro-business as evidenced by the country's 37th place in the 2020 Doing Business ranking.
• The geographical location in the heart of Europe, which gives companies in the country easy access to regional markets
• Quality infrastructure

Weak Points

Slovenia still faces a number of challenges, slowing the attractiveness of FDI, including:

• Very high government debt of 80.9% of GDP (OECD, 2021)
• Banking sector still recovering and remains vulnerable
• Reforms that are struggling to emerge because of frequent government instability
• A small domestic market
• Several formal and informal barriers to FDI (including high taxation and high social security contributions)
• Significant exposure to global economic fluctuations
• Exports are highly dependent on the EU economic climate
• A labour force shortage due to an ever-ageing population and stagnant population growth

Government Measures to Motivate or Restrict FDI

Slovenia has an ambivalent attitude towards FDI, which swings between openness and caution towards foreign investors. As a result, the government is trying to establish measures that would have a positive effect on job creation, knowledge and technology transfer and improved regional development, and could stimulate alliances between Slovenian companies and foreign investors.

State-owned concessions are available for investments of more than €500 000 in industry sectors, strategic services (customer service centres, distribution logistics centres, regional headquarters), research and development. The most sought-after investments are in so-called "green" technologies.

The government is trying to attract foreign investment in some underdeveloped and economically fragile regions. In addition, since 2013 the corporate tax has decreased (17%). Finally, the government has initiated the privatisation of several state-owned enterprises.

In Slovenia, the only free trade zone (FTZ) is the port of Koper. According to the Slovenian Customs Act, those trading in free trade zones are not required to pay customs duties and are not subject to any additional trade policy measures until the goods are brought into free circulation.

Bilateral investment conventions signed by Slovenia

Slovenia has signed several Bilateral Investment Treaties, accessible in this link.