When do you obtain tax residence in Slovenia? A natural person has to become a tax resident of Slovenia, if he is directly located in Slovenia for more than 183 days in a calendar year. In this case, you should fill out a questionnaire at the tax office of the Republic of Slovenia. Based on this questionnaire the tax office decides if you can apply for a tax residence or not. In case of obtaining the tax residence, you have to make sure that you have been removed from the registry of tax residents in your country; otherwise you would have to pay tax from your income in both countries. If you are a tax resident of Slovenia and you will have income in other countries, with which Slovenia does not have an international agreement, and you will pay part of your tax there, it is still possible to make a request to ensure that, in order to avoid paying double tax in Slovenia, you only pay the difference in the tax assessment.
What are the benefits of tax residence in Slovenia?
Slovenia has made international agreements to avoid double taxation with many countries. This means that natural persons in Slovenia pay from 5-15 % tax for dividends, interests and other property rights and they pay the difference (or not) in their country. Non-residents can also take advantage of the benefits – they can request a deduction or exemption of paying tax, if according to the international treaty the income tax is lower or exempt of tax in Slovenia or if the decision about the refund of excess tax was already made.
It is also worth considering that if an international treaty determines the tax exemption, then the recipients has the whole tax amount returned to them. The entrepreneur has to take into account the principle of international revenue and pay the prescribed tax on income earned in Slovenia but at the same time this obligation is deducted from the obligation at their home country.
Conventions, made with each country, differ from county to country, so it is necessary to check each country individually – what kind of international agreement was made and what obligations await the entrepreneur in Slovenia.
If you cannot decide, if you need tax residence in Slovenia, you can always turn to our tax experts for help.