Slovenia: Worked Example of Tax on Rent

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Tax Example: Rent

Non-resident couple's joint monthly rental income1		€1,500	€6,000	€12,000
Annual Rental Income		18,000	72,000	144,000
Less: Standard Costs2		(7,200)	(28,800)	(57,600)
= Taxable Income		€10,800	€43,200	€86,400
Income Tax Rates3
Flat rate	25%	2,700	10,800	21,600
Annual Income Tax Due		€2,700	€10,800	€21,600
Tax Due as % of Gross Income		15%	15%	15%
Thanks to:

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on OCtober 02, 2007.

Notes

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

² A standard deduction of 40% of gross income is allotted for income-generating expenses. Instead of using the standard deduction option, taxpayers can opt to itemize their income-generating expenses but supporting documents must be presented.

³ Non-resident foreigners’ income is taxed at a flat rate of 25%.

Non-Resident Couple (‘Income from Business Activity’ Option)
Non-resident couple's joint monthly rental income1		€1,500	€6,000	€12,000
Annual Rental Income		18,000	72,000	144,000
Less: Standard Costs2		(4,500)	(18,000)	(36,000)
= Taxable Income		€13,500	€54,000	€108,000
Income Tax Rates3
Up to €6,800	16%	2,160	2,176	2,176
€6,800 – €13,600	27%	-	3,672	3,672
Over €13,600	41%	-	10,988	33,128
Annual Income Tax Due		€2,160	€16,836	€38,976
Tax Due as % of Gross Income		12.00%	23.38%	27.07%
Thanks to:

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on OCtober 02, 2007.

Notes

¹ Non-resident foreigners can opt to consider their rental income as income from business activities. In this case, they must register at the Agency of the Republic of Slovenia for Public Legal Records and Related Services to be considered as a sole trader. The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner).

² Under this case, the standard deduction is 25% of gross income, if some conditions are fulfilled. Instead of using the standard deduction option, taxpayers can opt to itemize their income-generating expenses but supporting documents must be presented.

³ Non-resident foreigners earning income considered as income from business activities are subject to progressive taxation on their net taxable income.

Non-Resident Couple (Through A Local Corporation)
Non-resident couple's joint monthly rental income1		€1,500	€6,000	€12,000
Annual Rental Income		18,000	72,000	144,000
Less: Costs2		(4,500)	(18,000)	(36,000)
= Taxable Income		€13,500	€54,000	€108,000
Income Tax Rates3
Flat rate	23%	3,105	12,420	24,840
Annual Income Tax Due		€3,105	€12,420	€24,840
Tax Due as % of Gross Income		17.25%	17.25%	17.25%
Thanks to:

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on OCtober 02, 2007.

Notes

¹ The property is jointly owned by husband and wife through a local corporation.

² Income-generating expenses are deductible from the gross income but supporting documents must be presented. There are no standard deduction options for corporations.

³ Corporations’ income is taxed at a flat rate of 23% for 2007. The corporate tax rate will be 22% in 2008, 21% in 2009, and 20% in 2010.

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