German market welcomes Slovaks with their businesses

Companies do not need to establish a local company to expand in Germany.

Poprad-based Tatravagónka is one of the companies with a branch in Germany.(Source: TASR)

While the automotive sector is the most significant of sectors in Slovak industry, German companies also play an important role. The strongest EU economy is also the most important commercial partner for Slovakia.

The relationship between these two countries enables a mutual exchange of businesses in other areas as well. The interest of companies from Slovakia in moving or opening a branch in Germany is significantly growing now. The Slovak Investment and Trade Development Agency (SARIO) records the continuing interest of Slovaks in the German market, particularly in the subcontracting sector for larger German businesses.

Read also:Companies ride on a successful wave

“The reason is geographical, linguistic and cultural proximity,” SARIO wrote for The Slovak Spectator.

However, expansion is certainly dependent on the financial conditions that Slovak companies are able to negotiate for work in Germany, said Patrícia Tóthová, managing partner at the ProfiDeCon consulting company, which mediates business in Germany.

“Companies have to count profitability after the reimbursement of their labour cost and cost of subcontractors,” Tóthová told The Slovak Spectator.

Small percentage

The current situation of Slovak businesses on the German market reflects the amount of foreign direct investments (FDI). In 2016, there were about €41.321 million in Slovak FDI in Germany, according to the statistics of the National Bank of Slovakia (NBS).

Read more: What incentives can be drawn in Germany? Does Slovakia provide any support? What do companies willing to open their business in Germany have to remember?

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

So blue! Slovakia has another record in UNESCO

It is not easy to create a perfect blueprinted fabric.

Russia expels Slovak military diplomat

He must leave the country within 48 hours.

Illustrative stock photo

Slovak airports have unused potential

But several obstacles prevent their growth.

The Transport Ministry will receive more funds from the 2019 budget to support the development of airports in Slovakia.

How can we improve the integration of foreigners in Bratislava?

Municipalities recognise there is a lack of outreach on the part of administrators to foreigners, but the problem goes both ways.

Several foreigners attended the latest round table hosted by the Human Rights League.