When you receive a#nbsp;TIN, you are registered as#nbsp;a#nbsp;taxpayer, then you start receiving notifications on#nbsp;the amount of#nbsp;taxes and the deadlines for paying them. Let’s study the basic list of#nbsp;taxes.
Value Added Tax, VAT#nbsp;— Davek na#nbsp;dodano vrednost, DDV
There are three VAT rates in#nbsp;Slovenia:
5% - on#nbsp;library loans, books, newspapers and periodicals.
9.5% - on#nbsp;groceries, water supply, medicines, passenger transportation, event tickets, hotel accommodation.
22% - on#nbsp;everything else.
In#nbsp;Slovenia, VAT is#nbsp;included in#nbsp;the final goods' price, so#nbsp;individuals don’t pay it#nbsp;separately. A#nbsp;company must pay VAT if:
The taxable turnover in#nbsp;the last 12 months exceeded €#nbsp;50,000.
The company purchases goods in#nbsp;the#nbsp;EU and the total amount per calendar year exceeds €#nbsp;10,000.
The company was established in#nbsp;Slovenia but provides services to#nbsp;another state or#nbsp;receives services from there.
It#nbsp;is#nbsp;an income tax imposed on#nbsp;individual entrepreneurs#nbsp;— s.p. It#nbsp;is#nbsp;paid on#nbsp;each salary or#nbsp;other income and has a#nbsp;progressive rate: the more you earn, the higher the tax.
Annual income: Up#nbsp;to €#nbsp;8,755#nbsp;— Tax rate: 16%. Annual income: From €#nbsp;8,755 to €#nbsp;25,750#nbsp;— Tax rate: + 26% for difference over €#nbsp;8,755. Annual income: From €#nbsp;25,750 to €#nbsp;51,500#nbsp;— Tax rate: + 33% for difference over €#nbsp;25,750. Annual income: €#nbsp;51,500 to €#nbsp;74,160#nbsp;— Tax rate: + 39% for difference over €#nbsp;51,500. Annual income: From €#nbsp;74,160#nbsp;— Tax rate: + 50% for difference over €#nbsp;74,160.
Here is#nbsp;a#nbsp;tax calculation example. Imagine you earned €#nbsp;30,000 for the year:
16% - €#nbsp;1,360 for income up#nbsp;to €#nbsp;8,500.
26% - €#nbsp;4,290 for income from 8,500 to €#nbsp;25,000.
33% for difference of €#nbsp;30 000 minus €#nbsp;25 000 = on €#nbsp;5 000#nbsp;— €#nbsp;1 650.
So, the tax on#nbsp;income of €#nbsp;30,000 will be €#nbsp;1,360 + €#nbsp;4,290 + €#nbsp;1,650#nbsp;€ = €#nbsp;7,300.
Slovenia has tax incentives#nbsp;— davčna olajšava. In#nbsp;2023, the total amount of#nbsp;income is#nbsp;5,000#nbsp;€. With this income, the entrepreneur in#nbsp;the example above will pay a#nbsp;tax of €#nbsp;5,650#nbsp;— €#nbsp;30,000 minus €#nbsp;5,000, i.e. only €#nbsp;25,000 will be#nbsp;taxed.
Corporate income tax#nbsp;— Davek od#nbsp;dohodkov pravnih oseb
Legal entities pay annual income tax at#nbsp;the beginning of#nbsp;the year for the previous year after submitting the annual report by#nbsp;March 31. The tax rate is#nbsp;the same for everybody#nbsp;— 19%.
Property tax
All real estate is#nbsp;taxed at#nbsp;100% of#nbsp;the generalized market value. The tax rate depends on#nbsp;the property type: resident or#nbsp;non-resident. The tax is#nbsp;higher for the latter, where the owner is#nbsp;not registered and there is#nbsp;no#nbsp;rent agreement for at#nbsp;least six months.
Tax for different real estate types:
0.07% - for a#nbsp;forest land plot.
0.15% - for the resident’s housing.
0.75% - for commercial and industrial real estate.
There is#nbsp;a#nbsp;road fee for car owners. You will know the fee amount when registering your vehicle in#nbsp;Slovenia. The amount depends on#nbsp;the vehicle type, its power, the number of#nbsp;drivers and their history, and the vehicle’s ecological class.
Thinking about starting a#nbsp;business in#nbsp;Slovenia? You can leave a#nbsp;requestand we’ll help you figure out taxation processes.