Are you a self-employed professional or small business owner in Slovenia? Significant changes have just come into effect that make it easier to enter or remain in the simplified tax system, often referred to as the flat rate or lump sum system (locally known as “normiranci”).

The Financial Administration of the Republic of Slovenia (FURS) has implemented the amendment to the ZPZR-A Act, which introduces more lenient conditions for entering and maintaining this tax regime.

Understanding the “Flat Rate” (Lump-sum) System

In Slovenia, the flat tax system is a simplified way of determining your tax base. Instead of keeping track of every single receipt for your expenses, the government simply “recognizes” a fixed percentage of your income as expenses (lump sum expenses). You then pay tax only on the remaining amount. This system is very popular among foreigners and expats because it reduces the administrative burden.

Key Legislative Dates and Validity

The Act Amending the Act on the Right to Winter Recess and the Reform of Determining the Tax Base with Normalized Expenses (ZPZR-A) was officially adopted on February 26, 2026.

  • Effective Date: The amendment entered into force on March 7, 2026.
  • Immediate Application: These new, milder conditions are already applicable for the 2026 tax year.

Major Breakthrough: Removal of the 5-Year Ban

One of the most important updates is the elimination of the 5-year re-entry ban. Previously, if you stopped doing business or voluntarily left the lump sum system, you were barred from re-entering for five years. This restriction has been completely removed, giving entrepreneurs  more flexibility to move between tax regimes as their income fluctuates.

New Revenue Entry Limits

To enter the system in 2026, the average revenue from your activities for the two consecutive preceding tax years must not exceed:

  1. 120,000 EUR: If you were full-time insured (at least 75% of full insurance hours) via self-employment in both years.
  2. 50,000 EUR: If you did not meet the insurance requirement in those two years.
  3. 85,000 EUR: For mixed cases (e.g., meeting the insurance requirement in only one of the two years).

Proportional Calculation for New Businesses

If you have only been active for part of the last two years, the income limit is now adjusted proportionally based on the actual number of days you were active. This makes it much easier for individuals who started their business mid-year to qualify for the lump sum system.

Important Deadline: March 31, 2026

If you qualify under these new rules but haven’t applied yet:

  • Retroactive Entry: You can still opt for the flat rate system for 2026 until the end of the month.
  • Action Required: Submit the NF-LD document via the eDavki portal.
  • Strict Deadline: This must be done by March 31, 2026.

Navigating the Slovenian tax system can be complex for foreigners. Staying compliant while optimizing your tax position is key to successful business growth.

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SIBIZ is a leading consulting firm providing comprehensive support for digital nomads  business professionals, corporate clients, and individuals navigating the Slovenian market. We specialize in business migration, tax consulting, and corporate accounting to ensure your transition and operations in Slovenia are seamless.

For more information: www.sibiz.eu