Taxes are moderate

January 04, 2018

INDIVIDUAL TAXATION

Nonresident foreigners are taxed on their Slovenian-sourced income. Married couples are taxed separately.

Residents of EU member states who file income tax returns in Slovenia can claim some allowances.

Rental Income Tax

Nonresident foreigners' income is taxed at a flat rate of 25%. Taxable rental income may be computed by:

  • 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 rentto account for maintenance costs

Rental Income Considered as Income from Business Activities

Nonresident 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.

Under this case, taxable rental income may be computed by deducting actually incurred income generating expenses, such as maintenance and repair costs, management fees (supporting documents must be presented) from the gross rental income.


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.

Comments

bondy | May 12, 2012

Please note that Slovenia is introducing a new property tax. If an owner (physical person or a company) owns real estate whose value is more than 500.000 EUR, an owner need to pay 0.5% property tax. If value of all real estates is more than 1 000 000 EUR the tax is 1% of the value of the real estate(s)

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