Here's a practical guide to starting and managing a freelance business in Slovenia, covering setup options, tax obligations, and financial management.
*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.
Freelancers in Slovenia must comply with taxation, social contributions, VAT, and registration requirements. These are crucial for maintaining legal and financial stability as you build your business.
Flat Tax for Contract-Based Freelancing: 15.5% on income from contract work.
Pension and Disability Contributions: ~24% for non-contract work.
Health Insurance Contributions: ~13% for non-contract work.
Freelancers become subject to personal income tax after spending more than 183 days in Slovenia.
Social contributions in Slovenia are regulated under the Pensions and Disability Insurance Act, covering services like pensions, health insurance, and maternity leave.
Effective bookkeeping and accounting are essential for tracking earnings, expenses, and taxes. Freelancers can choose from several accounting methods depending on their business needs:
Cash Accounting: Suitable for freelancers starting small, focusing on actual income and expenses.
Accrual Accounting: Recognizes income and expenses as they are incurred, ideal for growing businesses.
Tax Basis Accounting: Optimizes tax liabilities through depreciation and deductions.
VAT (Value Added Tax) in Slovenia is administered by the Ministry of Finance. Freelancers must register for VAT if their annual income exceeds €50,000.
Standard Rate (22%): Applies to most goods and services.
Reduced Rate (9.5%): Covers food, agriculture, artwork, real estate, and clothing.
Second Reduced Rate (5%): Applies to books and newspapers, both physical and digital.
Choose a Business Name and Accounting Method
Decide between cash, accrual, or tax basis accounting based on your business needs.
Register as a Sole Trader
Register your business with the Slovenian Business Register.
Sole traders retain all profits after taxes but are personally liable for debts.
Start Marketing Your Services
Build your client base by showcasing your expertise and networking with potential clients.
Freelancing in Slovenia is an exciting opportunity for solopreneurs seeking a blend of professional growth and personal fulfillment. By understanding the legal requirements, taxation system, and VAT obligations, you can set up and run a successful freelance business.