Incentives


The creation of a stimulating investment environment has been a challenge to Slovenia's economic development. 

Grant aid is a common feature of EU Member States and has also been a tool of regional policy in addition to an adequate legal framework and a stable macroeconomic environment. Slovenia has developed an incentive system in an effort to give impetus to foreign direct investment expected to boost the country's economic development:

the creation of new jobs, the transfer of new technologies and know-how, and outsourcing opportunities where the local companies would get new business partners.

The instruments of the Government's pro-active stance to investment policy also serve to motivate the foreign investors who are already running operations in Slovenia to expand or upgrade their capacities. After all, Slovenia's track record clearly shows that foreign investors who have discovered this "right mix of qualities" are here to stay and as a rule take every opportunity to expand their operations in Slovenia.


Fiscal incentives


Corporate Tax

General corporate tax rate has been set at 17% of taxable base.

Corporate income tax by country, 2015

Corporate income tax by country
Source: OECD, 2016

Tax Reliefs for Investment 

Corporate income tax base can be reduced by:

  • either 40% of the amount invested in plant and equipment and/or intangible assets 

A taxpayer may carry forward the unused portions of allowance over the next five tax years after the investment, but not exceeding the tax base.

  • or 100% of the amount invested in R&D (only up to the taxable base) 

A taxpayer may reduce the tax base in some cases: see Corporate Income Tax.

Loss Carried Forward

A taxpayer may carry forward the loss incurred in one accounting period by reducing the tax base but only up to the amount of the tax base for the fiscal period.

Depreciation Allowances

The depreciation allowance on buildings and equipment is quite favourable. Depreciation and amortization may not exceed the level arrived at using straight-line depreciation.

Read about maximum annual depreciation rates

Financial Incentives


Call for Proposals under the FDI Incentive Scheme – First Capital Entry into the Republic of Slovenia 2016/2017

Types of investment projects

ACTIVITYINVESTMENT VALUENUMBER OF NEW JOBS CREATED IN 3 YEARS’ TIME
Manufacturing€ 1 million25
Internationally marketable services€ 0.5 million10
R & D€ 0.5 million5


Beneficiaries/recipients: the foreign owned companies duly entered in the company register of the Republic of Slovenia

The beneficiary/recipient of the co-financing must provide funding in the amount of at least 25 per cent of eligible costs of investments in property, plant and equipment and/or in intangible assets.

Eligible costs/expenses: costs of property, plant and equipment, costs of intangibles assets. Value-added tax (VAT) shall not be deemed eligible for co-financing.

Co-financing will be approved on the basis of the filed application; the application for co-financing must be filed prior to the commencement of the investment project; the procedure for the examination of the application and the approval of co-financings takes up to 60 days.

These investment projects and new jobs shall remain located in the Republic of Slovenia for no less than 5 years for large-sized companies and no less than 3 years for small- and medium-sized companies.
Maximum size of the project: EUR 50 mn

For any further information and documents, please contact InvestSlovenia Team: invest@spiritslovenia.s

Regional aid map 2015-2020

The amount of financial incentives:

1.   In the area “a” of regional aid map is not more than:

  • 25 % of the eligible costs for large enterprises,
  • 35 % of the eligible costs for medium-sized enterprises, and
  • 45 % of the eligible costs for small-sized enterprises.

2.    In the area “c” of regional aid map the amount of financial incentives is not more than:

  • 15 % of the eligible costs until 31 December 2017 and 10 % from 1 January 2018 onward for large enterprises,
  • 25 % of the eligible costs until 31 December 2017 and 20 % from 1 January 2018 onward for medium-sized enterprises,
  • 35 % of the eligible costs until 31 December 2017 and 30 % from 1 January 2018 onward.

List of current tenders for companies (registered in Slovenia)

 

Only open tenders (still have open date for submitting the projects) are listed. Invest Slovenia Team updates the list once a month. 

 

List of Current Tenders for Companies

Other incentives


Regional development support programs for disadvantaged regions

What started as a financial crisis has turned into a manufacturing recession in some parts of the country and even as banks and the housing market are stabilizing, unemployment figures show how hard the manufacturing centers have been hit.

As company restructuring continues, the government has assigned a special status to four administrative regions where unemployment has hit hardest, so that they may benefit from the temporary development support measures. The idea is to equip viable enterprises with the necessary skills to get a foothold in international markets. Exports have been a leader out of the economic crises also in the past and by participating in global value chains, enterprises from these parts of the country will be able to build on their resources and knowledge and experience of their people.

Overview of development measures

2016 - 2018
Corporation tax relief70% of the invested amount for new start-up investments in plant and equipment, and in intangible assets
Corporation tax relief for employmenta tax base reduced by up to 70% of expense for a disadvantaged* employee (for at least 12 months employment)
Refund of social security contributions paid by the employer16.1% of the gross wage of previous unemployed person

* Volnerable target group: long-term unemployment, unemployed without vocational education, the elderly, disabled, first time job seekers.

Local Incentives

Municipalities may offer different forms of incentives, which are negotiated on a case-by-case basis. These incentives may include easy access to industrial sites, utility connections and holidays from local taxes.

Employment Incentives

The Employment Service of Slovenia carries out a series of measures for encouraging employment through which it advises and finally supports employers that employ new workers.

Employers who intend to hire unemployed persons may apply for free training and retraining provided by local employment offices throughout Slovenia.

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