Sole proprietorship and flat-rate taxation in Slovenia/EU

Sole proprietorship and flat-rate taxation in SloveniaEU

Sole proprietorship (s.p.) is a company type for an individual, who will continue to work as a self-employed person. There are many reasons to set up your first s.p. Maybe the self-employed person has a hobby that will become a business option. You also perhaps plan to start a business on your own or agreed  with a potential client to start working with the company as an s.p. Did you know that opening a sole proprietorship in Slovenia also allows you to take part in a lucrative flat-rate taxation? Find out more in our article.

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Who can open a sole proprietorship in Slovenia?

In Slovenia, people who want to do a business can open a sole proprietorship. EU citizens can open it without residing in Slovenia before that. Non-EU citizens can open it if they have been living in Slovenia at least 1 year. This type of business does not need any initial capital of the company.

The reduced contributions for opening the first sole proprietorship in Slovenia

By the opening of the first s.p., the sole proprietor has the right to a reduced rate of social contributions. In the first year, the person pays 50% lower pension contributions, in the second year these contributions are lower by 30%. Thus, in the first year , you will pay EUR 273.86 per month for contributions, instead of EUR 401.98 per month.

For more information on business setup in Slovenia/EU call us on +386 40 530 718 (Viber/WhatsApp)!

Sole proprietorship and the flat-rate taxation in Slovenia/EU

In Slovenia, the tax law allows the so-called flat-rate taxation. It is very popular for those businesses that do not have much expenses. The standardized s.p. enables a natural person who is in a regular employment relationship, but also performs the so-called afternoon activity, not to have taxed profit together with his salary on the income tax scale, but to pay the final tax at the rate of 20%.

The conditions for the taxation based on standard expenses

A sole proprietor may be taxed on the basis of the standard expenses. The condition is that in the previous tax year his income does not exceed:

  • 50,000 EUR (for “afternoon” s.p.) or
  • 100,000 EUR (“regular s.p.”). But there has to be at least one full-time employee in the company for at least five months.

Pension in Slovenia/EU

Sole proprietorship and the amount of standardized expenses

This type of business uses the standardized expenses of 80% of generated revenues, but there are also limits here:

  • The “afternoon” s.p. has a maximum of € 40.000 recognized expenses
  • regular s.p. has recognized a maximum of € 80.000 expenses

Below is an example. If a sole proprietor is taxed on the basis of the standard expenses and has an afternoon s.p., where he has a total annual income of € 80,000, the calculation is as follows:

Revenue € 80,000 – Standard costs € 40,000 = Tax base € 40,000 * Tax rate 20% = Tax € 8,000.

How can you open a web shop in Slovenia/EU?

Do you need help with your business in Slovenia, EU? Contact DATA for support!

Do you plan to start a business in Slovenia and want to learn more about the sole proprietorship?  Send us an email to You can also call us on +386 1 6006 270/+386 1 6006 274 (our landline). You can also use our Viber/Whatsapp +386 40 530 718/+386 64 173 023. We are also available on skype data.business7. Also, you can follow us on Facebook. Also, you can attend our webinar on company registration in Slovenia.

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