The main principles of Slovenia's tax system
The tax system of the Republic of Slovenia is based on the principles of progressive taxation, transparency and equality of taxpayers. It applies to individuals and legal entities and includes several key categories of tax: personal income tax (dohodnina), corporate income tax, value added tax (VAT), social contributions and property taxes.
Personal income tax (dohodnina)
Slovenia has a progressive income tax scale: the higher the income, the higher the rate on the amount above a certain threshold. For 2025 the following rates apply:
| Income band | Rate |
|---|---|
| up to €9,210.26 | 16% |
| €9,210.26 – 27,089.00 | 26% |
| €27,089.01 – 54,178.00 | 33% |
| €54,178.01 – 78,016.32 | 39% |
| over €78,016.32 | 50% |
The tax is calculated on a step basis — taking into account a fixed part from the previous bands. In addition, tax allowances and deductions are provided for certain categories: parents with children, pensioners and people with disabilities.
Corporate income tax
Legal entities registered in Slovenia must pay corporate income tax at a rate of 19%. For small and medium enterprises, allowances are possible under certain conditions — for example, with investment in business development or innovation. It is easier to assess the practical impact of the current rates on a company's budget together with the article the cost of running a d.o.o. company.
VAT (value added tax)
VAT is one of the country's main sources of budget revenue. The standard rate is 22%; reduced rates of 9.5% and 5% apply to certain goods and services: medicines, books, food.
Companies must register as VAT payers if annual turnover exceeds €50,000. Voluntary registration is also possible at lower turnover — to take part in international trade, work with VAT suppliers or reclaim VAT on expenses. Registration is done through the tax authority FURS by filing form DDV-PPS.
Social contributions
In Slovenia social contributions are split between the employee and the employer:
- the employee pays 22.10% of the gross salary;
- the employer contributes an additional 16.10%.
The contributions cover pension and health insurance, as well as unemployment insurance and insurance for temporary incapacity. The total burden on the payroll is 38.2%.
Property taxes
Slovenia has no single national property tax. Instead, local levies apply — for example, the compensation for the use of building land (NUSZ), which municipalities set; its amount depends on the type, use and location of the property. When buying, selling or transferring property, transfer and capital gains taxes apply additionally.
Tax residency for foreigners
Foreign nationals who actually reside in Slovenia for more than 183 days in a calendar year may be recognised as tax residents if they have their centre of life interests in the country. Recognition of residency is arranged on the basis of an application to FURS (the Financial Administration of Slovenia), which assesses the presence of a permanent home, business and social ties, family, work, educational institutions for children and other factors.
Being recognised as a tax resident means an obligation to declare all worldwide income, including income received abroad, and at the same time makes it possible to apply double taxation treaties, if such a treaty has been concluded between Slovenia and the country where the income originates.
Important: being recognised as a tax resident is not always advantageous. If your country of citizenship has lower tax rates, no personal income tax or a preferential regime, the tax burden after residency recognition in Slovenia can rise noticeably. Before applying, it is worth doing tax planning and consulting a specialist.
Tax allowances and incentives for business
The Slovenian government actively supports investment, digitalisation and innovation projects:
- deductions for R&D expenses — up to 100% of costs can be deducted from taxable profit;
- reduced rates and a simplified regime for startups under state support for innovation activity;
- allowances for professional training and staff development — deductions for courses, internships, certification programmes;
- support for digitalisation and "green technologies" — subsidies and grants from European and national funds;
- environmental incentives through Eko sklad — subsidies for a legal entity buying an electric vehicle for business purposes;
- funding through EU programmes — Horizon Europe, Digital Europe and others — for technology and environmental projects;
- state guarantees and loans through SID Bank and the Slovene Enterprise Fund for small and medium businesses.
Penalties for breaching tax law
Breaching Slovenian tax law can lead to serious fines and sanctions. It is important to file tax returns on time and calculate tax amounts correctly — if in doubt, you should seek advice from specialists who know the specifics of Slovenian law.
Summary
Slovenia's tax system is transparent and predictable, which makes the country attractive to foreign specialists and investors. But to avoid mistakes and unnecessary costs, it is worth understanding the details in advance — especially when choosing the grounds for a permit and registering a business. More about how taxes fit into business immigration is in the article a Slovenian permit through business.