Slovenia recognizes the growing trend of remote work and the influx of expatriates and digital nomads. To attract and retain skilled professionals, the country offers a range of tax incentives tailored to these individuals.
Eligibility Criteria
To qualify as an expatriate or digital nomad for tax purposes in Slovenia, individuals must meet specific criteria:
- Expatriates: Individuals who are not Slovenian citizens or permanent residents but have been employed in Slovenia for at least 183 days in a calendar year.
- Digital Nomads: Individuals who work remotely for companies outside Slovenia and have a temporary residence in the country.
Types of Tax Breaks
Expatriates and digital nomads in Slovenia can benefit from the following tax breaks:
- Personal Income Tax Exemption: Expatriates who earn income from foreign sources are exempt from paying personal income tax on that income for up to five years.
- Reduced Tax Rate: Digital nomads who earn income from remote work performed for non-Slovenian companies are eligible for a reduced tax rate of 10% on their income.
- Tax Deductions: Expatriates and digital nomads can deduct certain expenses related to their work, such as travel, accommodation, and equipment costs.
Application Process
To claim these tax breaks, expatriates and digital nomads must apply to the Slovenian Tax Authority. The application process involves submitting the following documents:
- Proof of residency or employment in Slovenia
- Income statements from foreign sources
- Expense receipts for tax deductions
Legal Framework
The tax incentives for expatriates and digital nomads in Slovenia are established by the following legal texts:
- Personal Income Tax Act (ZDoh-2): Article 42a outlines the personal income tax exemption for expatriates.
- Tax Procedure Act (ZDavP-2): Article 107a provides for the reduced tax rate for digital nomads.
- Income Tax Act (ZDoh-2): Article 38 defines the tax deductions available to expatriates and digital nomads.
These tax policies aim to:
- Attract and retain skilled professionals and remote workers to Slovenia.
- Promote economic growth by fostering innovation and entrepreneurship.
- Support the development of Slovenia as a hub for international talent.
If you need any other informational tax guides for other countries, feel free to browse our other articles below:
Heavnn
If navigating the complexities of Slovenian tax regulations seems daunting, consider seeking professional guidance. Heavnn's team of experts can simplify your tax planning journey in Slovenia, ensuring you maximize the benefits available to expatriates and digital nomads.
