Legal Residency vs Tax Residency in Slovenia: What Every Expat, Digital Nomad, and Global Entrepreneur Should Know

Introduction

Moving to Slovenia, whether for work, investment or family, often raises one crucial question: Where will I pay taxes?
Many newcomers confuse legal residency (your right to live in Slovenia) with tax residency (your obligation to pay tax in Slovenia). While they sometimes overlap, they are not the same. Misunderstanding the difference can lead to unexpected tax bills, double taxation or compliance issues.

This article explains Slovenia’s rules on tax residency under the Personal Income Tax Act (ZDoh-2), highlights how they differ from legal residency and provides guidance for expats and entrepreneurs to avoid costly mistakes.

What Is Legal Residency?

Legal residency in Slovenia is about your immigration status. You become a legal resident when the Slovenian authorities grant you:

• a temporary residence permit for work, study, family, business or other justified reasons
• a permanent residence permit
• EU Blue Card or other special immigration status

This gives you the right to live in Slovenia, rent or buy property, access healthcare and education systems and in some cases eventually apply for citizenship.

However, holding a residence permit does not automatically make you a tax resident.

What Is Tax Residency in Slovenia?

Tax residency determines where you are taxed on your income. In Slovenia, you are considered a tax resident if you meet at least one of the conditions under Article 6 of ZDoh-2:

• You have a registered permanent residence in Slovenia
• You stay in Slovenia for more than 183 days in a tax year
• You have your center of personal and economic interests in Slovenia (for example, family, employment or business)
• You move to Slovenia with your family (spouse, children)
• You maintain your habitual abode in Slovenia

The Formal Process

Tax residency is not automatic. To establish it, you must file an Application for Determination of Tax Residency with the Financial Administration of the Republic of Slovenia (FURS).

• The form is called “Questionnaire for the Determination of Tax Residency – Arrival in Slovenia” and is available on the eDavki portal of the Financial Administration of the Republic of Slovenia
• Required documents may include proof of residence, employment contracts, lease or property ownership agreements, family registration details and other supporting evidence
• FURS will issue a formal decision confirming whether you are a Slovenian tax resident

Double Residency and Tax Treaties

What happens if you qualify as a tax resident in both Slovenia and another country? This is common for cross-border workers, digital nomads and expats with global ties.

In such cases, Slovenia applies the tie breaker rules in international Double Taxation Agreements (DTAs). These agreements prevent double taxation and usually resolve residency conflicts by checking, in order:

1. In which country do you have a permanent home
2. If both, where are your closer personal and economic ties (center of vital interests)
3. If unclear, where is your habitual abode
4. If still unresolved, which citizenship do you hold
5. If all else fails, the two tax authorities will reach a mutual agreement

Legal Residency vs Tax Residency – Key Distinctions

Legal Residency	Tax Residency
Immigration right to live in Slovenia	Obligation to pay taxes in Slovenia
Based on permits, visas or registration	Based on Article 6 of ZDoh-2
Managed by the Administrative Unit or Immigration Office	Managed by FURS (Tax Authority)
Grants rights such as stay, healthcare, work, study	Imposes obligations such as income tax and worldwide reporting
Independent of tax treaties	Strongly influenced by DTAs

Why This Difference Matters

Failing to distinguish between legal and tax residency can lead to:

• Unexpected worldwide taxation in Slovenia, even if your income is foreign sourced
• Double taxation, if you are considered a resident in two countries but fail to apply treaty rules
• Banking and compliance issues, since banks report tax residency under CRS and FATCA rules
• Fines or penalties, if you do not register correctly with FURS

Common Mistakes Expats Make

• Assuming that holding a residence permit automatically makes you a tax resident
• Believing that deregistering your address cancels your tax obligations
• Not filing the official application with FURS
• Ignoring family relocation, since if your spouse and children live in Slovenia, FURS will likely consider Slovenia your tax home
• Forgetting to check Double Taxation Agreements when you have ties to more than one country

Planning Ahead: How We Can Help

At SIBIZ, we assist individuals, business professionals, entrepreneurs and corporations with:

• Preparing and filing residency determination applications with FURS
• Reviewing your global ties to assess whether Slovenia will claim you as a tax resident
• Advising on double taxation treaty protections and avoiding dual residency pitfalls
• Supporting corporate executives, digital nomads and foreign investors in aligning immigration and tax strategies

Conclusion

Slovenia offers an attractive lifestyle and business environment, but navigating residency rules requires careful planning. Always remember: legal residency lets you live in Slovenia, while tax residency determines where you pay tax and can extend to your worldwide income.

For personalized support in managing your residency status, compliance and cross-border tax planning, contact us at SIBIZ.

About us
SIBIZ – www.sibiz.eu – is a Ljubljana based advisory firm specializing in supporting foreign individuals, digital nomads business professionals, companies and corporations in Slovenia. With strong expertise in legal advisory, compliance and corporate law, we ensure that our clients navigate Slovenian regulations with clarity and confidence. Our team also provides integrated support in accounting, taxation, real estate and relocation.

For more information contact us at www.sibiz.eu