Renting out real estate in Slovenia creates tax obligations for individuals, including foreign property owners.

Income from real estate located in Slovenia is treated as Slovenian source income.

This creates a direct tax filing obligation in Slovenia for the property owner. You pay income tax in Slovenia regardless of your tax residency status.

This rule applies equally to Slovenian tax residents and to individuals who are not tax residents of the Republic of Slovenia, as long as the rented property is located in Slovenia.

1. February 28 filing deadline

The February 28 deadline applies to all individuals renting out property in Slovenia.

This includes non residents who live abroad but earn rental income from real estate located in Slovenia.

Missing the deadline leads to late filing procedures and potential penalties, regardless of residency status.

2. Who must submit a tax return

You must submit a Forecast for the Assessment of Income Tax on Income from Leasing Property if you are a natural person who rents property to:

• another natural person who is not performing a registered activity

 • a foreign legal entity

This obligation applies even if you are not a Slovenian tax resident.

Natural persons and condominium owners who earn income from renting common areas in a multi unit building through a building manager do not submit a tax return. In these cases, the building manager pays income tax on your behalf.

3. What counts as taxable rental income

The most common form of taxable income is rent.

Taxable income also includes other compensation related to leasing, such as:

• compensation for restricted use of the property

• premiums

• obligations assumed by the tenant

 • services performed by the tenant

Operating costs paid by the tenant are not treated as rental income.

Income from renting equipment, mobile homes, and means of transport such as aircraft, motorhomes, or camping trailers is also subject to taxation.

4. Rental income tax rate

The rental income tax rate is 25 percent and applies from January 1, 2023.

5. Tax base and deductible costs

The tax base equals gross rental income.

This amount is reduced by standardized costs of 10 percent.

Instead of standardized costs, you may claim actual property maintenance costs. These costs must be supported by invoices and must preserve the useful value of the property.

Eligible maintenance costs include:

• painting rooms

• replacing worn parquet or tiles

• repairing drains or gutters

• replacing broken windows

Costs that increase the value of the property, extend its useful life, or adapt it to a new use are not deductible. Examples include adding a bathroom, building a balcony, replacing the roof, or major structural upgrades.

Actual costs are claimed in the Forecast for the Assessment of Income Tax on Income from Leasing Property:  Forecasts for the assessment of income tax on income from the leasing of property.

How and where to submit the tax return

You submit the tax return to the Financial Administration of the Republic of Slovenia, known as FURS.

Submission is possible:

• electronically via the e Taxes system e-Davki: Forecast for the assessment of income tax on income from property rental

• in paper form at the competent tax office  FURS

The deadline for submission is February 28 of the current year for rental income earned in the previous year.

About SIBIZ

SIBIZ Business Services supports foreign entrepreneurs, digital nomads, business professionals, and corporate clients operating in Slovenia.

We advise on real estate rental taxation, tax compliance, and ongoing reporting obligations for Slovenian and foreign property owners.

For more information: www.sibiz.eu