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.
Our team delivers tailored support for company formation, cross-border structuring, and regulatory compliance across Slovenia and the EU, combining local expertise with an international outlook.
Get consultations and important information first hand!
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. This update builds on our previous articles. Key points: Key provisions for the winter bonus: […]
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 […]
