Slovenia officially passed the Act on Intervention Measures for the Development of Slovenia (ZIURS ) on May 11, 2026. This comprehensive law introduces significant changes in taxation, energy costs, the labor market and healthcare. For foreign residents, sole proprietors (S.P. – Samostojni podjetnik) and business owners, understanding these details is critical to navigating the Slovenian business environment.

Note: In Slovenia, an S.P. stands for “Samostojni podjetnik”, which is the standard legal form for a sole trader or self-employed person.

1. Tax relief and cost of living measures

The government has introduced targeted measures to reduce the cost of living and stimulate the housing market.

  1. Rental Income Tax Reduction: The general tax rate on rental income will be reduced from 25% to 15%.
  2. Targeted 5% rate: A special 5% rate applies if the property is rented to
    1. Residents raising at least one child under the age of 18.
    1. Young residents under 30.
    1. Requirement: The tenant must actually reside there and have a registered permanent residence.
  3. 0% VAT on Basic Foods & Agriculture: In an effort to curb inflation, a 0% VAT (Value Added Tax) rate now applies to
    1. Flour, bread, pasta, meat (beef, pork, poultry), milk, yogurt, butter, eggs, cheese, fresh fruit, vegetables, sunflower oil, and sugar.
    1. Agricultural Support: Seeds, seedlings and fertilizers of animal or vegetable origin are also moved to the 0% VAT category (Article 26).
  4. Energy Relief (9.5% VAT): The government can now set a reduced 9.5% VAT rate on electricity, natural gas, district heating and firewood for a one-time period of up to 9 months (Article 40).

2. Reform for sole traders (S.P. – Normiranci)

The system for sole traders with normalized expenses (known as “Normiranci”) has been significantly restructured. Below is a breakdown of the new brackets and a comparison of the tax burden. FURS (Financial Administration of the Republic of Slovenia) will administer these new brackets.

Full-time sole traders (insured for at least 5 months)

The “5-month rule” requires coverage for at least 41% of annual full-time hours.

Tax Comparison (in EUR):

Part-time Sole Traders (“Popoldanski s.p.”)

Designed for those who are already fully insured through another employment (part-time business).

Tax Comparison (in EUR):

Note: Calculations assume a 20% tax rate on the determined tax base, as per the new legislative proposal.

3. Labor Market: Social Cap and Active Aging

  • Social Cap (Socialna kapica): As of July 1, 2026, the maximum monthly base for all social security contributions will be capped at €7,500. Income above this amount will not be subject to further contributions (Article 14).
  • Dual status (100% pension): Retired persons who continue to work or return to work are entitled to receive 100% of their pension in addition to their full salary (Article 19).
  • Lower insurance base for new businesses: For sole proprietors and farmers whose annual income does not exceed the minimum wage, the insurance base can be set as low as 45% of the minimum wage (Article 21).
  • Termination of Employment: Contracts now terminate automatically when an employee reaches full retirement age. Continued employment requires 90 days written notice (Article 24).

4. Healthcare and Hospitality (Airbnb) Restrictions

  • Restrictions in the healthcare sector: Employees of public institutions may only work for other providers with written permission and are limited to 8 hours per week. Importantly, public entities are prohibited from entering into service contracts (podjemne pogodbe) with their own employees, except for specific national programs (Article 34).
  • Airbnb & Hospitality (ZGos-1): The application of the new, stricter Hospitality Act is suspended until December 31, 2026.
    • Short-term rentals (Airbnb/Booking) will not be subject to the new time limits in 2027.
    • The registration deadlines for the new registry have been extended to June 2027 (Article 43).

Final implementation note

The Act becomes effective the day after it is published. Most of the income tax changes are retroactive to the tax year beginning January 1, 2026. FURS will allow corrections to tax returns until June 30, 2026 for those who wish to opt into the new “normirani” system rules.

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