Slovenia Company Formation

What is the Corporation Tax rate in Slovenia?

The Corporation Tax rate in Slovenia is 19%. This rate applies to the net profit generated by legal entities. Note that certain deductions and allowances may be available, which can lower the effective tax rate for some companies.

How are dividends taxed in Slovenia?

Dividends in Slovenia are subject to a withholding tax rate of 27.5%. However, this rate can be reduced under various double taxation treaties that Slovenia has with other countries. Residents may also benefit from exemptions under specific conditions.

What is the Income Tax structure for individuals in Slovenia?

Individual income tax rates in Slovenia are progressive, ranging from 16% to 50%. The tax brackets for 2023 are as follows:

Up to €8,500: 16%

€8,501 to €25,000: 26%

€25,001 to €50,000: 33%

€50,001 to €72,000: 39%

Over €72,000: 50%

What is the VAT (Value Added Tax) rate in Slovenia?

The standard VAT rate in Slovenia is 22%. There are reduced rates of 9.5% for certain goods and services, such as basic foodstuffs and pharmaceuticals, and a zero rate for specific transactions. Businesses must register for VAT if their annual turnover exceeds €50,000.

Are there any other significant taxes in Slovenia?

Yes, Slovenia has several other taxes, including property tax, capital gains tax, and inheritance tax. Property tax varies based on the property type and location. Capital gains from the sale of assets held for more than five years are generally taxed at a reduced rate of 15%. Inheritance tax rates vary based on the relationship to the deceased and the inherited amount.

This information provides a foundational overview of the tax landscape in Slovenia for individuals and businesses. For specific tax advice, consulting a local tax professional is recommended

Learn more: Visit our Full FAQ page
or contact our tax and company formation team at [email protected]

What are the requirements for non-residents to form a company in Slovenia?

Non-residents looking to form a company in Slovenia need to fulfill several requirements. Firstly, they must determine the type of business entity they wish to establish, such as a limited liability company (d.o.o.) or a sole proprietorship. A non-resident must have a registered address in Slovenia and obtain a tax number. It’s also important to provide identification documents, such as a passport, and, in some cases, a certificate of no criminal record. Consulting with a local attorney or a business advisor can help streamline this process.

How long does the company registration process take in Slovenia?

The company registration process in Slovenia can vary depending on several factors, including the type of entity and the completeness of the submitted documentation. Typically, it takes between 5 to 10 business days to register a limited liability company. However, if everything is in order and the application is straightforward, it can sometimes be completed in as little as 3 days. For a streamlined experience, it’s advisable to work with a local professional who understands the legal requirements and can expedite the process.

What are the costs involved in forming a company in Slovenia for non-residents?

The costs for forming a company in Slovenia can vary based on several factors such as the type of company and additional services required. Generally, you can expect setup costs to include registration fees, notary fees, and possibly legal fees if you hire a consultant. The total costs can range from approximately €1,000 to €4,000 or more depending on these factors. Ongoing operational costs, such as accounting and tax filings, should also be considered for budgeting purposes.

Do non-residents need a local representative to open a company in Slovenia?

While non-residents can establish a company in Slovenia without a local representative, having an appointed local resident can facilitate processes such as banking and legal representation. If a non-resident does not have a known local contact, many companies provide professional representation services for an additional fee. This local representative can assist in dealing with local authorities and ensure compliance with local regulations during and after the registration process.

Is it necessary to have a business plan to register a company in Slovenia?

While it is not explicitly required to present a business plan when registering a company in Slovenia, having a solid business plan is highly beneficial. It serves as a roadmap for your business operations and can be critical when seeking financing or attracting investors. A well-prepared business plan also demonstrates to the regulatory bodies your commitment and seriousness, potentially making the registration process smoother.

What taxes should non-residents expect when operating a business in Slovenia?

Non-residents operating a business in Slovenia should be aware of various taxes they will need to pay. The corporate income tax rate is currently set at 19%. Additionally, they might need to pay Value Added Tax (VAT) at a standard rate of 22%, depending on their business activities. Payroll and social security contributions are also applicable if the business intends to hire employees. It’s advisable for non-residents to consult with a tax advisor familiar with Slovenian tax laws to ensure compliance and optimize their tax situation.

Learn more: Visit our Full FAQ page
or contact our tax and company formation team at [email protected]