Sole proprietor (s.p.) income tax?

senpablo · 2018-03-02T03:04:05+01:00

Get insights on income tax for sole proprietors in Slovenia. Learn about tax rates, normalized costs, and what to expect when relocating.

senpablo New member

Member since 02 March 2018

senpabloNew member02 March 2018 01:04:05

Hi,
I'm a freelance software developer, I'm currently living in Uruguay. I'm looking into moving to Slovenia and register as a sole proprietor (s.p.). It would be great to get some insight on how much income tax would I have to pay there.
I understand that if I earn less than 100,000 euro annually I can use normalized costs and pay only 4% tax. My business doesn't have any relevant costs. In case I earn more than 100,000 euro, then how much income tax would I have to pay?
Thanks

Birja Active member

Member since 24 May 2014

BirjaActive member02 March 2018 05:46:04

Hi,听 as听 s.p听听you pay 3 type听 of taxes :

1.听 social contributions health and pension听 etc听听38,2 %听听of听 insurance base听 (level depend on your income听 )
(contributions are obliagatory听 except听 you have a proof you already pay them in some other country...but it could be complicated when you get sick听 in any case听 you must have some health insurance otherwise cost of hospital rise into heaven听 )

2.听听 personal听 income tax

Over听听听听听听听听To听听听听听听
0听听听听听听听听听听听 8.021,34听听听听听听听听听听听听16%
8.021,34听听听听听听听 20.400,00听听 1.283,41听听听听+27%听听 over听 8.021,34
20.400,00听听 48.000,00听听 4.625,65听听听听听听+34%听听 over听 20.400,00
48.000,00听听听 70.907,20听听 25.535,16听听听+39%听听 over 48000
70.907,20听听听听听听听听听听听听听听听25.535,16听听听+50%听听 over 70.907,20

3, VAT tax听 22 %听

But for your work are special conditions around VAT it is matter of discussion because it is quite complicated.

This is in short.听 IR

senpablo New member

Member since 02 March 2018

senpabloNew member02 March 2018 07:26:31

So if I earn 鈧�99,000 I can use normalized expenses (Normiranec), then I'd pay annually 鈧�99,000 * 0.04 = 鈧�3960 (4% tax).
But if I earn 鈧�101,000 I can't use Normiranec (I'd have to use the progressive tax table), so I 'd have to pay 鈧�40581.56 (40% tax)?

Birja Active member

Member since 24 May 2014

BirjaActive member02 March 2018 11:30:25

Yes it would be听 4% , but dont forget social contributions which听 could听听be听听a very high听 cost at this revenue
You can be听 'normiranec'听 up to听 300.000 eur听听 but听听not听 with 80% of costs.听
If you your income would be higher听听your听 cost听 will be always听 80.000听 Eur听 So this mean that the听 max of cost is :听听80.000 eur

For example :听 you have income 150.000听听Eur听 your tax听 base will be听 70.000听 Eur听听 etc .听听
150000-80000听 =听 70.000听听 tax听 =听 14.000 Eur
If you have in next听 two years听 all together听听300.000 Eur听 you听 can't be normiranec anymore.

So this year听 you can听 have 150.000 eur听 and听 next听 140.0000 you can听 caontinue as normiranec.
Than if yur partner is doing same bussines听 (wife)听听听 etc.听 ( conected听 person)听 the income of both partners sum togheter听 for purposes听 of taxation. But听 if听 you diffrent听 do听 busseines both can keep听 separate taxation.听听

This is new from听 1.1.2018.
regards

senpablo New member

Member since 02 March 2018

senpabloNew member02 March 2018 17:25:22

Thanks a lot for the explanations. How much would I have to pay in social contributions if I earn:
a) 50.000 eur?
b) 100.000 eur?

Birja Active member

Member since 24 May 2014

BirjaActive member02 March 2018 18:14:50

Maximum is听 2. 118,71 Eur听听Montly听听 but is changing all he time听 , depend on average payroll in Slovenia听听听, i should make calculation it is pretty comlicasted听 , regards

senpablo New member

Member since 02 March 2018

senpabloNew member03 March 2018 00:16:13

If I earn 50.000 eur, how much is the insurance base?
Thanks

Birja Active member

Member since 24 May 2014

BirjaActive member03 March 2018 07:30:24

= min听听363,20听听montly听听 at 50000听 income
听听aprox 580听听montly听 at听听 100 .000听 income听

but听 this is changing听 according听 to听听the听听many听 other听听 circumstances听
so calculation听 is听 aproximating.听
come听 here听 and have a听听look听
only the moving听听to slovenia will be very听 hard听 .听 a lot听 of听 bureaucracy
then听 hard听听 weather听听
but not everything听听bad听
some听 things are听 very good听
i just don't want听 to give you an illusion , just a realistic听 picture
dont听 forget听 on听 VAT听听 identification听听听
it is not so easy as it seems

if you decide听 to听 move i would听 be glad听 of your responce听

good luck听 ir

senpablo New member

Member since 02 March 2018

senpabloNew member03 March 2018 17:20:02

Thanks a lot for the detailed info and the advice
I travelled in Slovenia last december with my wife and it was cold, but we really liked it anyway. I'm polish so I hope it won't be too complicated to settle in Slovenia.
About VAT, I export software development services to companies in the US, so VAT would be 0.
Do social contributions include public health insurance for my wife too or only for me? We don't have kids.
Thank you!

Birja Active member

Member since 24 May 2014

BirjaActive member03 March 2018 21:19:53

#10

Public insurance can include also your family members听听but i dont know how will be the case with y wife...guess she is not slovenian .听 If you plan to be developer only for third听 countries (out of EU)听 this is
True听 but in EU听听it听 is听听False ...so everything is relative.

regards ir

senpablo New member

Member since 02 March 2018

senpabloNew member03 March 2018 22:58:14

#11

I really appreciate your explanations, thanks a lot
I hope we can move to Slovenia soon, such a beautiful country!

Omar Vector Member

Member since 14 November 2019

Omar VectorMember14 November 2019 05:16:29

#12

Hello

I know this quite old post, but it really helped me to understand more about SP and Tax system.

Not sure if would be anyone still following up with the post bec I want to ask a question about insurance.

If I have a private insurance here in slovenia, do I still have to pay Insurance and social contributions