Slovenia completed a major legislative package. Parliament confirmed the mandatory winter bonus and approved higher thresholds for sole proprietors using the flat tax system. Both measures affect payroll, business planning and compliance for employers, freelancers, digital nomads and foreign investors.
Mandatory winter bonus of 639 EUR is tax free and contribution free. Employers must pay it in December. Companies with liquidity issues receive limited flexibility and may pay by the end of March.
Winter supplement of 150 EUR for pensioners and disability benefit recipients will be paid in December.
Flat tax thresholds rise. Entry limit increases from 60,000 EUR to 120,000 EUR. For part time sole proprietors the limit increases from 30,000 EUR to 50,000 EUR.
Exit thresholds increase to 120,000 EUR for full sole proprietors, 50,000 EUR for part time sole proprietors and 85,000 EUR for other taxpayers.
Concerns highlight pressure on employers with liquidity issues.
Supporters note higher purchasing power and clearer rules.
Critics warn about frequent adjustments to the flat tax framework.
Key provisions for the winter bonus:
Amount: The winter bonus equals half of the minimum salary and must be paid in cash. Current data shows 639 EUR.
Proportional payment: Employees who worked only part of the year or work part time receive a proportional share, except in specific cases under ZDR 1.
Deadline: Employers must pay the bonus no later than 18 days after paying November salaries. If the deadline falls on a non working day, the payment must be executed on the next working day. Activity level collective agreements may set a later deadline in case of liquidity issues, but no later than 31 March 2026.
Exceptions: Employers that did not pay profit distributions, buy back shares or pay management bonuses in 2025, or until 31 March 2026, may pay one quarter of the bonus by 18 December 2025 and the remainder by 31 March 2026. In case of liquidity issues the payment deadline may also move to 31 March 2026.
Tax treatment: The winter bonus does not count toward the income tax base up to the statutory limit. Any excess is treated as performance pay.
Penalties: Employers who do not pay the winter bonus in the required amount or by the deadline face fines.
Updated details on the flat tax system:
Full time sole proprietors
For income up to 60,000 EUR the tax base equals one fifth of revenue. The tax rate is 20 percent. Effective taxation equals 4 percent of revenue.
For income above 60,000 EUR the tax base equals full revenue. The tax rate is 20 percent. Effective taxation becomes 20 percent of revenue up to 100,000 EUR.
Income above 120,000 EUR is taxed at 35 percent. If revenue exceeds this amount in two consecutive years, the sole proprietor must leave the flat tax system for at least five years.
Changes mean that revenue between 60,000 and 100,000 EUR carries a higher effective tax burden compared to previous rules.
Social security contributions rise. Minimum monthly contributions for full time sole proprietors are slightly below 600 EUR or around 7,200 EUR per year. In 2021 these contributions were 425 EUR per month.
Part time sole proprietors
For income up to 12,500 EUR the tax base equals one fifth of revenue. Effective taxation equals 4 percent, the same as earlier.
For income between 12,500 and 30,000 EUR the tax base equals 60 percent of revenue. The effective tax rate equals 12 percent.
For income between 30,000 and 50,000 EUR the tax base equals full revenue. The effective tax rate equals 20 percent.
Income above 50,000 EUR is taxed at 35 percent. If this threshold is exceeded in two consecutive years, the taxpayer must leave the flat tax system.
Social contributions for part time sole proprietors remain linked to income levels. Minimum contributions are slightly above 100 EUR per month or about 1,200 EUR per year.
What changes for taxpayers
Sole proprietors retain access to the flat tax system up to 120,000 EUR of average annual revenue, instead of the earlier planned 60,000 EUR limit.
Part time sole proprietors can remain in the system up to 50,000 EUR of average annual revenue.
Compared with older rules that applied before recent reforms, the effective tax burden rises for revenue above 60,000 EUR for full time sole proprietors and for revenue above 12,500 EUR for part time sole proprietors.
Impact for employers, digital nomads and foreign entrepreneurs:
Plan bonus payments without delay.
Check your status under the new flat tax thresholds.
Update payroll procedures before December.
About SIBIZ Business Services Accounting, tax, legal and business advisory support for foreign entrepreneurs, business professionals, companies, digital nomads and corporate clients in Slovenia and the EU. We help with company formation, relocation, migration, employment, payroll, compliance and ongoing business support. Our team also provides practical assistance in everyday situations.
Brussels, November 2025 – The European Commission has adopted stricter rules for issuing Schengen visas to Russian citizens. The new measures, which come into force this Saturday, are a response to the growing security risks associated with Russia’s ongoing aggression against Ukraine. EU High Representative Kaja Kallas highlighted recent drone incidents and acts of sabotage […]
The Parliamentary Committee on Infrastructure has approved a proposal to simplify the procedure for foreign residents from North Macedonia, Bosnia and Herzegovina, Montenegro, Kosovo and Serbia to exchange their national driver’s licenses for a Slovenian one. If approved by the National Assembly, the amendment would allow holders of valid licenses from these countries who have […]
Following up on our previous article Slovenia Reintroduces Flat Tax Rules – A Flat Tax Rate from Just 4%, the Slovenian government has now approved a comprehensive proposal to modernize the flat-rate taxation system (sistem normirancev). The reform aims to curb misuse of the system while maintaining simplicity for small entrepreneurs. Key proposed changes include: […]
