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:
Higher revenue thresholds for entering the system: • Full-time sole proprietors: from €60,000 to €120,000 • Part-time sole proprietors (popoldanci): from €30,000 to €50,000
Progressive taxation replaces the flat rate: • 20% up to the base equivalent of €120,000 in revenue • 35% above that threshold
Exit conditions also become stricter, aligning with the new income thresholds.
Five-year re-entry restriction introduced to prevent cyclical entry and exit from the system.
The government explains that the reform seeks to motivate business growth, reduce the shadow economy, and enhance tax fairness between small and larger enterprises. Still, many entrepreneurs worry that introducing a progressive structure may erode the simplicity and predictability that made the flat-tax system so attractive.
About SIBIZ SIBIZ Business Services Ltd, based in Ljubljana, Slovenia, provides integrated legal, tax, accounting, and business advisory services for foreign entrepreneurs, investors, digital nomads, business professionals, and corporate clients.
We help our clients optimize their business operations, navigate Slovenia’s evolving tax and legal framework, and ensure full compliance and long-term sustainability.
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