regulation is not perfect, but it is mostly conducive to entrepreneurial
activities. Starting a business is easy and inexpensive, with the one stop shop
office, but the minimum paid in capital of 2500 euro is unnecessarily high.
This is, actually, often circumvented by just signing a declaration that the
proprietor owns this sum. Obtaining a construction permit is a long process,
mostly due to long and inefficient procedure at the municipality level, but it
incurs very few actual monetary costs. Compliance with tax rules is burdensome,
requiring long working hours, although most of the tax compliance is done
online, most visible in the recent case of VAT electronic filing. Recent
improvements include lowering the total number of property tax payments.
electricity is expensive, but overall not a very burdensome task. Inefficient
government bureaucracy, corruption and restrictive labour regulations are often
considered as biggest obstacles to a better business environment. Labour
regulation changes that were made in 2015 regulated work through an employment
agency, which decreased flexibility, since this area was not regulated prior to
this action. The minimum wage is now following indexation, in line with the
rise in the overall wages in the economy, a procedure that is expected to
lessen political influence in determining its level; however, there was a
significant rise of almost 10% in the minimum wage in 2017. Although labour
regulation is overall flexible, fixed term contracts are restricted to the
duration of only 24 months. Working hours are flexible, with the maximum number
of work days a week being 6. But, the total number of overtime hours is limited
to 400 annually. Reassignment obligations in case of redundancy, as well as
trade union notification, pose obstacles in case of firing of redundancy.
Notice periods, as well as severance pay, rise with the years in tenure, thus
going in favour of more seasoned workers.