Salaries and Taxation

Working in Europe | Taxation/salaries | Slovenia

Salaries in Slovenia

Average monthly salary in Slovenia is approximately 38% lower than EU average salary (source). Thus was Slovenian average gross salary in April 2016 1.561,26 EUR (source). However, research in development sector has higher average salaries: average gross salary in R&D sector in May 2016 was 2.076,28 EUR (source).

 

Taxation

For individuals, two most common types of taxation in Slovenia are personal income tax and value added taxation. Foreign employees that will receive any form of income in Slovenia have to apply for a tax number (this usually done by the employer of such employee). Tax residents are subject of all relevant taxation; tax non-residents are subject only to taxes directly related to their income in Slovenia. More information about tax residency can be found on the website of the Financial administration of the Republic of Slovenia.

Personal income tax applies to one’s individual income. The annual taxable base is computed after compulsory social security contributions and certain allowances are deducted. Income is taxed according to a progressive tax rate with four tax brackets.

Example of Brackets for 2017

Income from (in EUR) Income to (in EUR) Taxation amount Additional taxation
0,00 8.021,34 16% of taxable base 0
8.021,34 20.400,00 1.283,41 27% from the amount above 8.021,34
20.400,00 48.000,00 4.625,65 34% from the amount above 20.400,00
48.000,00 70,907,20 14.009,65 39% from the amount above 48.000,00
70,907,20 22.943,46 50% from the amount above 70.907,20

 

There are two value added taxation (VAT) rates in Slovenia: the standard rate of 22% and a reduced rate of 9.5%. The reduced rate applies to the food stuffs for human and animal consumption (including food services in restaurants) and for some other categories.

Additional information on taxation (including the form/application for entry of the individual into the tax register and detailed explanation of tax numbers) is available on the Tax Administration of the Republic of Slovenia website.