Slovenia is reintroducing a more favorable flat-tax system (“normiranci”) after last year’s restrictive reforms that significantly limited its use. Widely relied upon by entrepreneurs and self-employed professionals, the regime is once again opening space for growth by raising thresholds and adjusting tax brackets, aiming to encourage entrepreneurship while still ensuring fair taxation.

Why the Flat-Tax System Matters

Flat-tax regimes are especially attractive for digital nomads, highly skilled freelancers, and independent professionals who typically work with multiple international clients in fields such as IT, consulting, design, finance, and other specialized services. The simplicity of the system where expenses are recognized at a fixed percentage rather than tracked individually reduces administrative burden and provides clarity for both local and foreign professionals working in Slovenia.

Key Changes in the 2025 Proposal

  • Higher income thresholds:
    • Full-time sole proprietors can remain in the system with revenues up to €120,000 (up from €60,000).
    • Part-time entrepreneurs can operate under the regime up to €50,000 (up from €30,000).
  • Expense recognition and taxation:
    • Full-time: 80% expenses recognized up to €60,000; no expenses beyond this amount; revenues over €120,000 taxed at 35%.
    • Part-time: 80% expenses recognized up to €12,500; 40% up to €30,000; none above that.
  • Exit and re-entry: Businesses must leave the regime if their two-year average exceeds €120,000 (full-time) or €50,000 (part-time). Re-entry will only be allowed after five years.

Opportunities and Challenges

For entrepreneurs with revenues below €60,000, the effective tax burden remains very low: around 4%making Slovenia one of the most competitive jurisdictions for small business taxation in the EU. For those whose revenues exceed this level, taxation becomes significantly higher, meaning careful planning is crucial.

This makes Slovenia particularly appealing for:

  • Digital nomads who wish to establish a tax base in the EU.
  • Independent contractors and freelancers working across multiple projects and clients.
  • Entrepreneurs in specialized sectors (IT, consulting, creative industries, engineering) who value administrative simplicity.

Easy Company Registration with SIBIZ

At SIBIZ, we operate our own in-house SPOT registration point, allowing entrepreneurs to quickly and compliantly establish a sole proprietorship (s.p.) or other company forms directly through us.

Alongside seamless registration, our experienced team provides comprehensive accounting, tax, and business advisory services to help clients navigate regulatory changes, plan strategically, and take full advantage of the opportunities Slovenia offers. We work with individuals, companies, business professionals, digital nomads, and corporations to ensure their operations are structured efficiently and remain fully compliant with Slovenian law.

For more information, visit www.sibiz.eu.