Living There

January 04, 2018

INDIVIDUAL TAXATION

Residents of Slovenia are liable to pay tax on their worldwide income. Married couples are taxed separately.

INCOME TAX

All kinds of income are aggregated and are taxed at progressive rates. There are several categories of income in Slovenia: (1) employment income, (2) business and professional income, (3) income from primary agricultural and forestry income, (4) income from renting movable and immovable property, and from intellectual property, (5) income from capital such as interest, dividends, and capital gains, and (6) other income.

Taxable income is generally computed by deducting income-generating expenses from the gross income.

INCOME TAX 2017

TAXABLE INCOME, €
TAX RATE
Up to €8,021.34 16%
€8,021.34 - €20,400 27% on band over €8,021.34
€20,400 - €48,000 34% on band over €20,400
€48,000 - €70,907.20 39% on band over €48,000
Over €70,907.20 50% on all income over €70,907.20
Source: Global Property Guide

INCOME TAX 2016

TAXABLE INCOME, €
TAX RATE
Up to €8,021.34 16%
€8,021.34 - €18,960.28 27% on band over €8,021.34
€18,960.28 - €70,907.20 41% on band over €18,960.28
Over €70,907.20 50% on all income over €70,907.20
Source: Global Property Guide

Dividends, interest and capital gains (passive income) are taxed separately at flat rates (schedular taxation).

Resident taxpayers are entitled to the following income tax reliefs:

  • General income tax relief of €3,30.70 to €6,519.82
  • Tax relief for dependent family members
  • €2,436.92 for the first child, and the amount increases for each subsequent dependent child
  • €8,830 for a depended child who requires special care
  • €2,436.92 for any other dependent family member
  • Disabled person tax relief of €17,658.84 for 100 percent disability

Rental Income Tax

rental income less income-generating expenses, and it can be computed in two ways:

  • Deduct actually incurred income generating expenses, such as maintenance and repair costs, management fees (supporting documents must be presented)
  • Claim standard deduction of 10% of gross rent to account for maintenance costs

CAPITAL GAINS TAX

Capital gains realized from the sale of properties are taxed varying rates, depending on how long the owner held the property prior to the sale.Taxable capital gains are computed by deducting acquisition costs and incidental costs from the gross selling price, which is at least the market value of the property.

CAPITAL GAINS TAX 2017

HOLDING PERIOD TAX RATE
Up to 5 years 25%
5 years - 10 years 15%
10 years - 15 years 10%
15 years - 20 years 5%
Over 20 years 0%
Source: Global Property Guide

Capital gains derived from the disposal of immovable property acquired before 1 January 2002 are not subject to capital gains tax.

Capital gains on immovable property which was used as a permanent home of the owner for at least three years preceding the disposal are tax exempt.


PROPERTY TAXATION

Property Tax

Property tax is levied on property owners. The tax is levied on the property value as determined by law. Property tax is levied at progressive rates and is set by local municipalities.

The tax rate for dwellings or residential properties varies from 0.10% to 1.00%. The tax rate for premises used for rest and recreation varies from 0.20% to 1.50%. The tax rate for business premises varies from 0.15% to 1.25% and it is increased by 50% for vacant business premises.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are subject to corporate income taxat 17%.In computing taxable income, all income-generating expenses are deductible.

Company assets are depreciated using the straight line method, and the maximum annual depreciation rates vary depending on the category of the assets (as assessed by the government). The maximum annual depreciation rate for building projects, including investment property, is 3%.

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