Ljubljana, August 2025 – The New Slovenia party (NSi) has submitted a new proposal to the National Assembly that aims to reinstate the previously valid flat-rate taxation system for sole proprietors, known as normiranci. The proposal seeks to reverse key changes introduced by the current government in January this year through the latest amendment to the Personal Income Tax Act.

This time, the initiative has received broader political support. In addition to opposition party NSi, one of the three ruling coalition parties, the Social Democrats (SD), has publicly endorsed the return to the previous system.

What the proposal includes:

  • Restoring higher income thresholds for entering the flat-rate regime:
    • Full-time sole proprietors: from EUR 60,000 back to EUR 100,000 in annual income.
    • Part-time sole proprietors: from EUR 30,000 back to EUR 50,000 in annual income.
  • A single unified exit threshold:
    • The current tiered system (EUR 60,000 or 30,000 depending on status) would be replaced by a unified threshold of EUR 150,000 average income over the past two years, as was in place before January 2025.
  • Repeal of additional restrictions:
    • The EUR 45,000 income cap for those who were insured in only one of the past two years would be removed.
    • The proposal also allows for another insured person (not necessarily the taxpayer) to count toward eligibility, reducing the required period of insurance from 9 months to 5 months.
  • Changes for farm household heads:
    • Income threshold for flat-rate taxation would rise from EUR 60,000 back to EUR 100,000 for both the head of household and an insured household member.
    • The same EUR 150,000 average exit threshold would apply.

Estimated fiscal impact:

NSi estimates that the proposed changes would reduce personal income tax revenues by approximately EUR 20 million per year but would significantly ease the burden on small business owners.

Background and implications:

The current government had abolished the previously more favorable system in January 2025, citing tax fairness and the need to reduce budget deficits. The reform introduced lower income thresholds and additional administrative burdens, forcing many sole proprietors to switch to standard bookkeeping or close their businesses altogether.

NSi argues that the previous system was simple, predictable, and low in bureaucracy, enabling thousands of individuals to start businesses without heavy compliance costs. Since the reform, many small entrepreneurs face higher taxes, greater uncertainty, and increased costs related to bookkeeping.

In July 2025, a similar NSi proposal was rejected in the National Assembly by a narrow vote (41 against, 32 in favor). With SD now signaling support, the political balance may shift.

SIBIZ Commentary:

At SIBIZ, we work closely with small business owners, including many normirani sole proprietors. We provide accounting and tax advisory services and are specialized in supporting foreign businesses, corporate clients, business professionals, and digital nomads operating in Slovenia and across the EU. These changes, if adopted, would represent a return to a more entrepreneur-friendly environment and could influence decisions about launching or maintaining a small business in Slovenia. We will monitor the legislative process closely and advise our clients accordingly.

For more information contact us: www.sibiz.eu