Taxes and Payroll in Slovenia: 2025 Guide for Foreigners

Understanding Tax Residency in Slovenia

For foreign nationals working in Slovenia, the first step in determining tax liability is establishing tax residency status. Under the Personal Income Tax Act, an individual is considered a Slovenian tax resident if they meet at least one of the following criteria:

They have an officially registered permanent residence in Slovenia.
They are present in Slovenia for more than 183 days in a single calendar year.
Their center of personal and economic interests (e.g., family, employment, property) is located in Slovenia.

Residents are taxed on their worldwide income, while non-residents are only taxed on income derived from sources within Slovenia. To formalize residency status for tax purposes, individuals must submit an application to the Financial Administration of the Republic of Slovenia (FURS).

Official information regarding residency status can be found on the FURS official website.

The Slovenian Payroll Structure

Payroll in Slovenia is structured around the concept of "Gross 1," "Gross 2," and "Net" salary. It is critical for foreigners to distinguish between these figures when negotiating employment contracts.

Gross and Net Calculations

Gross 1 (Bruto): The amount stated in the employment contract. Employee social security contributions and personal income tax are deducted from this amount.
Net (Neto): The actual take-home pay received by the employee after all deductions.
Gross 2: The total cost to the employer, which includes the Gross 1 salary plus employer-paid social security contributions (16.1%).

Non-taxable Allowances

Unique to the Slovenian system, employers are legally required to pay additional monthly allowances that are generally not subject to income tax or social security contributions up to certain limits:

Meal Allowance: A daily amount for lunch, typically ranging from 6.12 EUR ($6.73 USD, Jan 2026) to 7.96 EUR ($8.76 USD, Jan 2026) per working day.
Transportation Allowance: Reimbursement for commuting costs, usually based on the price of public transport or a per-kilometer rate.
Annual Holiday Allowance (Regres): A mandatory annual payment usually paid by June 1st. In 2025, the minimum amount is tied to the minimum wage, roughly 1,253.90 EUR ($1,379.29 USD, Jan 2026).

Slovenia utilizes a progressive tax system where higher income earners pay a higher percentage of tax. The rates are periodically adjusted for inflation.

Tax Brackets (Provisional 2025/2026)

Personal income tax is calculated after deducting social security contributions and the general tax relief. The current progressive brackets are:

Up to 9,000 EUR: 16%
9,000 EUR – 19,000 EUR: 26%
19,000 EUR – 51,000 EUR: 33%
51,000 EUR – 74,000 EUR: 39%
Over 74,000 EUR: 50%

Social security is mandatory and covers health insurance, pension and disability insurance, unemployment insurance, and parental protection. The rates are split as follows:

Employee Contribution: 22.1% (deducted from Gross 1).
Employer Contribution: 16.1% (paid on top of Gross 1).

Note: Self-employed individuals (s.p.) are subject to different social security calculation bases. For specific data on entrepreneurial taxes, consult the Government Portal for Labour.

Administrative Procedures and Deadlines

For most employees, income tax is withheld monthly by the employer (pay-as-you-earn system). However, there are year-end procedures to be aware of:

Annual Tax Assessment: FURS automatically generates an informative tax calculation by May or June each year. If an individual does not receive this or disagrees with it, they must file a declaration manually.
Tax Number: Every foreigner working in Slovenia must obtain a Slovenian tax number (davčna številka) before starting employment. This is issued by FURS upon submission of form DR-02.
Double Taxation: Slovenia has signed treaties to avoid double taxation with many countries. Foreigners should check if a treaty exists between Slovenia and their home country to claim tax credits.

Failure to report foreign income for residents can result in significant fines. It is recommended to maintain records of all global income and taxes paid abroad to ensure compliance with Slovenian regulations.