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.
General corporate tax rate has been set at 19% of the taxable base.
Corporate income tax by country, 2018
Tax Reliefs for Investment
Corporate income tax base can be reduced on:
- The amount invested in R&D (100%) can be claimed for tax reduction up to 63% of the pre-tax profit in the first year, the remaining difference can be claimed over the next 5 years
- The amount invested in equipment and intangible long-term assets (40%) can be claimed for tax reduction up to 63% of the pre-tax profit in the first year, the remaining difference can be claimed over the next 5 years
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.
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.
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:
- 10 % of the eligible costs for large enterprises,
- 20 % of the eligible costs for medium-sized enterprises,
- 30 % of the eligible costs for small-sized enterprises.
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.
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.
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 (2020)|
|Corporation tax relief||70% of the invested amount for new start-up investments in plant and equipment, and in intangible assets|
|Corporation tax relief for employment||a 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 employer||16.1% 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.
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.