The year 2023 will most likely be the year in which the fewest children will be born in Slovakia since the First World War

The year 2023 will most likely be the year in which the fewest children will be born in Slovakia since the First World War. Yes, in principle this information is just an irrelevant statistic, which today in the objective world we encounter perhaps only visually when driving through dying villages. But if electoral risks materialize, who knows what negative multiplier effect the reduced birth rate, emigration of young Slovaks and weaker immigration (after all, even those economically and socially compatible Ukrainians are not wanted by tens of % of people here) will have not only on the prices and liquidity of real estate in Detva. Unfortunately, it is quite likely that for a long time to come the last reform effort of some Slovak public authority will be to reduce the number of lanes on the Vajanského embankment. Reforms require political courage. They are often unpopular and it is uncertain whether they will be successful. And even if they are successful (including the one on the Vajanského nábreží embankment), it will take a long time for Slovakia to regain its ‘Tatra tiger’ moniker. That is why various painless “quick wins” seem to be simple and quick tools to improve our sentiment. For example, Peter Cmorej ‘s significant reduction in cryptos taxation has resonated around the world. This is despite several technical flaws in that amendment (I have written about them in past statuses). We now have several inquiries from young people from abroad who are considering (some even implementing) steps to move their tax residency to Slovakia because of this change. And being a tax resident in Slovakia means that you also have to live here for a relevant period of time. We will not build a flagship like the flat tax in 2003 so quickly. Neither will the Estonian tax. And neither one nor the other probably have sufficient marketing cveng. That’s why the statement “In Slovakia, young people don’t pay taxes from 2024” could be another such simple improvement. Of course this has its legal and economic pitfalls, but as a legitimate basis for debate it could serve that: ➡️ it can be a strong marketing message not only for foreigners but also for young Slovaks to stay here;
➡️ if we want to attract/not attract freelancers, freelancers as self-employed pay low taxes anyway (as I explain in this part of the podcast);
➡️ young employees also pay low (or no) taxes, so this may not have a dramatic impact on public revenues. I cover this topic more in the podcast. You can find a link to the full podcast in the comments. I’ll be glad for any insights. ✅And yes, Slovakia should/could be a more attractive country for young people. It would certainly help long-term sustainable real estate liquidity as well. Not only those in Detva…