Income tax in Slovenia – all Slovenian tax residents have to pay it
When doing business in Europe it is important to know how the taxation system works. How is it in Slovenia? You need to pay income tax in Slovenia for income you earn in Slovenia. But you also have to pay it for income you earn abroad if you are a tax resident in Slovenia. If you earn money abroad, you need to report it to the tax office in Slovenia. The payer of the income has to report the income that it pays out to a natural person in Slovenia. This all means that all Slovenian tax residents have to pay income tax in Slovenia regardless of the coutry that they earn the income in. There are some exceptions for this. Those are listed in the international treaties that Slovenia has with other countries.
Foreigners and the income tax in Slovenia
When do foreigners have to pay income tax? They have to pay income tax in Slovenia on very few occasions. It is only when the source of income is Slovenia. Usually this is income from doing business, like with sole traders. The other is income from renting out real estate (when the foreigner is the owner of the real estate). It can also be if a foreigner sells a property he or she owns in Slovenia. Mostly, the tax they pay in Slovenia is recognized in the other country as a deduction. This is role of the international treaties so that you can avoid double taxation. Follow our Facebook and Instagram for more useful tips.
Income tax in Slovenia for income earned abroad
If Slovenian tax residents get income from outside of the country they have to report it. The most common income that Slovenians receive from abroad are:
- salary if they are employed abroad
- pension from other countries,
- income from rent of a property which is in another country,
- income from artists and sportsmen,
- payment for work in governmental offices of other countries (like embassies, …)
- income from service contracts.
Employment with a company outside Slovenia but doing the work from Slovenia
The most common cases are receiving salary and other income while being employed with a company outside of Slovenia. Do you then have to pay income tax in Slovenia? People can also do work for a company which is outside of Slovenia. They can work remotely. This way they can live in Slovenia but they get their salary from abroad. If the person is doing the work in Slovenia, they also need to pay the tax from the salary in Slovenia. In practice it looks like this: the worker registers with the insurance office in Slovenia and gets access to the eDavki online portal. Then they send the confirmation about Slovenian social insurance to the foreign employer. All the taxes from the salary are paid in Slovenia.
Calculation of contributions
Here the worker has to take care of the social contributions. The worker has to prepare and submit the calculation of the contributions at the eDavki portal. They also have to submit and report the income tax in Slovenia in a special form. The due date for submitting it is 15 days from the day they receive the income for the first time in a tax year.
You pay the advance payment of the income tax in Slovenia on a monthly basis. On a yearly basis you can submit the objections of the income tax calculation. You can do it if you want to report any changes, or a deduction of a tax you paid abroad. Then you receive a final decree which states if you have to pay income tax or if you receive a return. Our legal experts can help you understand what you have to do.