“Flat-Rate” sole proprietors in Slovenia 2025 / 2026

On 20. November 2025, the Act on the Right to Winter Allowance and the Revision of the Tax Base Determination Taking into Account Standardized Expenses (Official Gazette of the Republic of Slovenia, No. 91/2025 of November 19, 2025), which also regulates the changed taxation system for “flat-rate” sole proprietors, who determine the tax base on the basis of flat-rate expenses.

Entitlement and conditions for payment

New revenue conditions for entry into the system of determining the income tax base based on actual revenue and flat-rate expenses (hereinafter the flat-rate system) have been enacted. A taxpayer may enter the flat-rate system only if his or her revenue in the preceding year does not exceed the following threshold

If the taxpayer did not carry on an activity in the previous year, the income from business activity for that year is deemed to be zero.

In their annual tax return for 2025 and later “Flat-rate sole proprietors” will also have to report revenue obtained from a related party or from an employer with whom they are in an employment relationship on the basis of an employment contract.

The taxpayer may enter the system as a full-time flat-rate sole proprietor provided that he or she is compulsorily insured on the basis of self-employment for full-time work (40h/we) for at least nine consecutive months in the current calendar year

Determination of flat-rate expenses

The determination of flat-rate expenses for sole proprietors remains the same in 2026 as before, which means:

Table of flat-rate expenses for a full-time sole proprietor:

Table of flat-rate expenses for an “afternoon” sole proprietor:

For both a full-time and afternoon flat-rate sole proprietor the maximum flat-rate expenses will remain the same at 48,000 EUR and 17,000 EUR respectively.

Tax Rates

Full-time flat-rate sole proprietors will be taxed according to the following brackets:

“Afternoon” flat-rate sole proprietors will be taxed according to the following:

Example A – 2025: A full-time flat-rate sole proprietor who determines the tax base on the basis of flat-rate expenses had revenue from business activity of 140,000 EUR in 2025 and 0 EUR in 2024. How will they be taxed? 

• Flat-rate expenses = 60,000 EUR × 80% = 48,000 EUR; this is the general maximum amount of flat-rate expenses.

• Tax base = 140,000 EUR – 48,000 EUR = 92,000 EUR.

• Tax on income from business activity = 92,000 EUR × 20% = 18,400 EUR – final tax.

• Net revenue = 140,000 EUR – 18,400 EUR = 121,600 EUR.

Example B – 2026: The taxpayer will have revenue from business activity of 140,000 EUR in 2026 – what will the taxation be?

• Flat-rate expenses = 60,000 × 80% = 48,000 EUR; this is the general maximum amount of flat-rate expenses.

• Tax base = 140,000 – 48,000 = 92,000 EUR.

• The tax base for 2026 is taxed as follows:

• 72,000 × 20% = 14,400 EUR

• 20,000 × 35% = 7,000 EUR

• Tax on income from business activity: 21,400 EUR – final tax.

• Net revenue = 140,000 EUR – 21,400 EUR = 118,600 EUR.

With the same revenue from business activity, the tax burden of a sole proprietor who determines the tax base on the basis of flat-rate expenses will in 2026 (15.3%) be approximately 2.1 percentage points higher than in 2025 (13.1%).

Mandatory exit from the flat-rate system

A taxpayer must exit the flat-rate system if the average revenue from business activity in the two preceding years exceeds:

• 120,000 EUR, if the taxpayer was a full-time flat-rate sole proprietor in both years;
• 85,000 EUR, if the taxpayer was a full-time flat-rate sole proprietor in one year and an afternoon sole proprietor in the other;
• 50,000 EUR, if the taxpayer was an afternoon sole proprietor in both years.

A taxpayer who exceeds the above-mentioned two-year average already in the first year of business will therefore have to exit the flat-rate system after the first year.

The criterion for remaining in the “flat-rate” sole proprietor system in 2025 is an average income from business activity for 2023 and 2024 together that does not exceed 150,000 EUR.