Published on and written by Cyril Jarnias
Expanding your business internationally as an entrepreneur is always a gamble. But in Slovenia, this gamble takes place in an astonishingly favorable environment: a stable economy, digitized administration, a dense startup ecosystem, attractive tax policies, and a quality of life rarely matched in Europe. For an expatriate, the country combines economic seriousness, a human scale, and access to the entire European Union market.
This operational guide details the essential steps and aspects for a foreign entrepreneur: analysis of the economic environment, choice of legal structure, administrative procedures, taxation, fundraising, identification of promising sectors, obtaining residence and work permits, as well as practical aspects like opening a bank account, accounting management, and evaluating the cost of living.
Why Slovenia is Attracting More and More Foreign Entrepreneurs
Slovenia ticks an unusual number of boxes for a country of 2.1 million inhabitants. Located in Central Europe, at the crossroads of Italy, Austria, Croatia, and Hungary, it offers direct access to the European single market and the Schengen Area, with the euro as the official currency and no exchange controls. Capital flows freely, accounts can be held in any chosen currency, and profits can be freely repatriated.
Annual GDP growth approached 5% during the peak startup years, illustrating the impact of entrepreneurial development.
This strategy is not just declarative. The state has implemented an arsenal of measures: massive simplification of procedures (SPOT portal, free online registration for simple forms), creation of an official startup registry, the national action plan “Slovenia, The Land of Innovative Startup Enterprises,” an inter-ministerial group dedicated to removing obstacles identified by the entrepreneurial community, and the digitization of procedures (eBDP for recruitment, STOP Bureaucracy portal to report administrative blockages).
Slovenia is ranked among the safest countries in the world (8th in the 2019 Global Peace Index). Furthermore, its capital Ljubljana was a European Green Capital, and the country was named the most sustainable in the world by National Geographic Traveler. These intangible assets offer a rare equation for an expatriate looking to reconcile a professional project, family life, and quality of life.
Understanding the Slovenian Entrepreneurial Ecosystem
Slovenia is often described as a “compact” ecosystem: everything is close, the players know each other, and the networks are dense. This modest size becomes an advantage: contacts are quick, mentors are accessible, and meetings with banks, investors, incubators, or administrations can be scheduled within a few days.
The Slovenian startup scene has been structured around key players offering support, funding, and guidance.
Coaching, mentoring, access to investors, and workspaces are provided by structures such as the ABC Accelerator, the University of Ljubljana Start-Up Incubator, and the University of Maribor incubator.
Funds and business angels, such as Silicon Gardens and the Slovene Enterprise Fund (SEF), intervene in seed funding, convertible notes, and co-investment.
Cooperation with the academic world is strong, particularly through programs like the Strategic Development‑Innovation Partnership (SDIP) which funds collaborative projects between companies, universities, and research institutes. Concrete projects have thus benefited from several million euros, for example on 5G or AI-based advertising platforms.
Major structuring events are plentiful: the PODIM conference, for example, connects local startups and international investors every year, while the “100% Start:up” forum brings together all public and private ecosystem players to align funding, support, and public policies.
Goal: Residence and Business – What Pathways for an Expatriate?
For a non-European entrepreneur, the key question is not only to create a company, but to be able to legally live and work there. The Slovenian framework therefore clearly distinguishes several situations.
For third-country nationals, the entrepreneurial setup follows three steps: obtaining an entry visa (often multiple-entry), creating the company, then applying for a single permit for residence and work. This single permit merges the work authorization and the residence title into a single application, processed by an administrative unit that automatically requests the opinion of the Employment Service (ZRSZ).
Several types of permits are specifically suited to business projects: a work permit for a foreign representative (director or authorized representative), an employment permit for a majority shareholder (at least 51% of shares) exempt from the labor market test, or a personal work permit for self-employment (for those who wish to operate as sole proprietors [s.p.], subject to conditions of duration of stay, financial means, and professional premises).
Slovenia offers a specific program for foreign investors, requiring a minimum investment of €50,000 in a Slovenian company. This investment can materialize through a capital contribution, hiring at least one Slovenian or EU citizen employee, or demonstrating a monthly turnover of at least €10,000 for six consecutive months. In return, the investor obtains a one-year renewable residence permit. After five years of uninterrupted residence, they can apply for permanent residence, and after ten years of presence (including five continuous years), for potential naturalization.
This scheme is not akin to an “investment-for-passport” program: there is no true “golden visa” nor direct citizenship by investment. Naturalization always assumes classic criteria: no criminal record, sufficient resources, Slovenian language test, integration, and an oath of allegiance.
Choosing the Right Legal Form: d.o.o., s.p., Branch…
For an expatriate, the structure to prioritize is not the same depending on whether one aims for hyper‑growth, freelance activity, or a simple commercial presence in Europe. Slovenian legislation, aligned with European law, offers several types of entities.
The premier form for a foreign founder is the limited liability company, the famous d.o.o. (družba z omejeno odgovornostjo). It offers liability limited to contributions, accepts 100% foreign capital, does not require a local director, and can be created by a single person (natural or legal). Its flexibility makes it almost indispensable for serious projects, especially because it is the most natural form for combining business and a residence permit.
The minimum capital contribution is €7,500, to be deposited into a Slovenian bank account in the name of the company being formed. Each partner must contribute at least €50, with a minimum of 25% of their share before registration, to collectively reach the legal threshold. Contributions can be in cash or in kind (equipment, assets), but in-kind contributions require more complex appraisals and notarial deeds.
For very individual activities (consulting, freelance, crafts), the sole proprietorship form, or s.p. (samostojni podjetnik), is simple to register and requires no minimum capital. However, it is not a separate legal entity: the entrepreneur is liable with all their personal assets, and this form is less directly usable for building a residence pathway when coming from a third country, as it often requires a prior year of regular stay to register the activity.
For entrepreneurs who already have a company abroad wishing a local presence, a branch is an option. It is not an autonomous company but an extension of the foreign headquarters. No minimum capital is required, but it depends legally and fiscally on the parent company. It is mandatory to translate and certify the parent company’s documents. This form is suitable for testing the market without replicating the entire corporate structure.
Finally, for projects requiring larger capital (industry, finance, etc.), the joint‑stock company (d.d.) exists with a significantly higher minimum capital, €25,000, and more complex formalities. In practice, it remains rare in the startup phase for expatriates.
Incorporation Steps: From the SPOT Portal to the AJPES Registry
One of the Slovenian specificities most appreciated by expatriates is the centralization of formalities around physical one-stop shops and an online portal: SPOT (Slovenski poslovni portal). For simple structures – a single‑member d.o.o. with cash contributions or an s.p. – registration is free and largely digitized.
The process unfolds in several stages. First, the entrepreneur obtains a Slovenian tax number from the Financial Administration (FURS). This number is mandatory, regardless of nationality. Next, they need to define their company name: a unique name in Slovenian territory, containing the legal form (d.o.o., s.p., etc.) and respecting certain rules (using the word “Slovenija” or a well‑known personality’s name requires specific authorization).
Approximate monthly cost of a virtual office service for a company’s registered office in the French capital.
Next comes opening a provisional professional bank account, essential for depositing the share capital. The banking system, integrated into the eurozone and supervised by the Bank of Slovenia, is robust: around twenty institutions (major banks like NLB or NKBM, savings banks, branches of Italian or Austrian banks, etc.) offer business accounts with a European IBAN and SEPA access. The physical presence of the legal representative is generally still required for KYC, although some intermediaries or fintech solutions facilitate the process.
After depositing the capital, the bank issues a certificate necessary to finalize the registration. The articles of association (or deed of incorporation) must then be signed, either before a notary (cost around €200 to €500), or for free via a SPOT/e‑VEM counter for standard cases. All documents are then submitted to the business registry (AJPES), which assigns an identification number, marking the company’s acquisition of legal personality.
Most “simple” cases are processed within two to three working days after submission. The entire process, from document preparation, account opening, signing, and registration, often takes about a week, with just a few hours of effective action if the file is well prepared.
Registration is not the final step, however. The following must then be done: apply for a VAT number (mandatory from €50,000 annual turnover on a rolling 12‑month basis, or even from the first euro for some non‑residents), set up accounting compliant with Slovenian or IFRS standards, register employees with social security, and open payroll and contribution declarations with the competent authorities.
Bank Accounts and Financial System: A Mandatory Step
For Slovenian companies, opening a local bank account is a regulatory obligation and a prerequisite for company formation, as it serves as the receptacle for the share capital. Over 70% of the country’s companies use a dedicated professional account, which greatly facilitates accounting and tax tracking.
The banking landscape is shared between eleven commercial banks, three savings banks, and two branches of eurozone banks, under the supervision of the Bank of Slovenia. Major local players like NLB or NKBM coexist with subsidiaries of UniCredit, Austrian or Italian banks. Neobanks and electronic money institutions (Wise, N26, Revolut, etc.) complete the picture for international and multi‑currency operations.
To open a professional account, documents such as the registry excerpt, tax numbers, identity documents, and sometimes criminal records of the beneficial owners, a business plan, proof of registered office, and bank references must be provided. Banks, subject to strict anti‑money laundering obligations, may reject a file if the business model seems unclear or too risky.
Fees remain generally competitive on a European scale, with moderate monthly packages and low‑cost SEPA transfers. International SWIFT transfers, however, come with fixed fees and exchange rate commissions. Card payments are widely accepted, and a dense network of ATMs covers the country.
Corporate Taxation: A Pro‑Business but Technical Framework
Slovenian taxation is an area where one must distinguish between the image, often summarized as “competitive corporate tax and ultra‑deductible R&D“, and the more nuanced reality after recent adjustments.
Corporate Income Tax and Taxable Base
The standard corporate income tax rate has long been 19%, placing it in the low average of the European Union. Following exceptional events (including major floods), Slovenia temporarily raised this rate to 22% for the 2024‑2028 fiscal years, via a reconstruction law. In addition to this nominal rate, banks face an additional contribution of 0.2% of their assets, capped at 30% of their profit.
The taxable base is defined, classically, as net profit after adjusting for non‑deductible expenses and including taxable income. Expenses are deductible if they are necessary to obtain income, but some categories are capped or excluded (entertainment expenses, personal expenses, penalties, interest deemed excessive, etc.).
Losses are carried forward indefinitely, but their offset is limited to 50% of the annual taxable base. They are lost in case of a significant change of control, if accompanied by a change in activity or prolonged inactivity of the company.
Deductions and Incentives: A Major Lever
The Slovenian government strongly encourages productive investment, research and development, digital transformation, and the green transition through a system of super‑deductions. R&D expenses incurred in Slovenia, whether internal or purchased from service providers, can thus be deducted at 100% from the taxable base, in addition to their booking as an expense. Concretely, €100 invested in R&D can reduce the taxable base by €200.
Incentives of 40% also exist for investments in certain equipment and intangible assets (excluding standard furniture and most vehicles, except hybrid/electric models or vehicles meeting the highest standards), as well as for expenses related to digitalization and the ecological transition (cloud, AI, big data, energy efficiency, environmental technologies).
The combination of all tax reductions is limited to a maximum decrease of 63% of the taxable base.
VAT, Dividends, and International Treaties
The VAT system is aligned with that of the EU, with a standard rate of 22%, a reduced rate of 9.5% on many essential goods (food, medicine, water, certain housing), and a super‑reduced rate of 5% on books, newspapers, and periodicals. Some operations (intra‑Community transport, exports) are at 0%. Registration is mandatory above €50,000 turnover over 12 months.
Dividends received by a Slovenian company from other companies (Slovenian, European, or from non‑”non‑cooperative” third countries) are almost entirely exempt: 95% are tax‑free, 5% remain taxable. Capital gains from the sale of shareholdings may be partially exempt subject to a minimum holding (at least 8%) and duration (more than six months).
With over 60 signed double taxation treaties, Slovenia allows for structuring intra‑group flows and distributions to foreign shareholders in a tax‑efficient manner, subject to compliance with transfer pricing rules and economic substance.
Social Contributions and Personal Taxation: What an Expatriate Must Anticipate
As soon as an expatriate begins paid or self‑employed activity in Slovenia, the question of social contributions and income tax enters the equation.
Income Tax Scale
Income tax is progressive, with five brackets ranging from 16% to 50%. An annual general allowance reduces the taxable base for each taxpayer. In parallel, certain incomes – dividends, interest, rents, capital gains – are subject to proportional withholding taxes (25% for dividends or capital income, 25% for short‑term capital gains, with a decrease based on the holding period for individuals).
Slovenian tax residence is established based on several criteria, notably if a person stays more than 183 days in the country during a year, has their center of vital interests there (main personal and economic ties), or has a permanent home there. For an expatriate settling long‑term with their business, it is crucial to check if they meet these conditions. Becoming a tax resident in Slovenia triggers taxation on worldwide income. However, international double taxation treaties can mitigate this by preventing the same income from being taxed twice.
Social Contributions: Employees and Self‑Employed
The Slovenian social protection system covers pensions, health, maternity, unemployment, and work accidents, via a mandatory contributory mechanism. For an employee, the total cost is around 38.2% of gross salary, split between employer (about 16.1%) and employee (22.1%). For a self‑employed person, they assume the entirety of these percentages, calculated on an income base that cannot be less than 60% of the national average salary nor more than 3.5 times that salary.
Self‑employed workers who are starting out benefit from reduced social contributions: a 50% reduction in the first year, then 30% in the second year. This measure facilitates the launch of their activity as a sole proprietorship (s.p.).
Deadlines are strict: the tax administration provides pre‑filled contribution calculations via the eDavki portal, and payments must be made before the 20th of the following month. For expatriates already covered by a totalization agreement (such as between the United States and Slovenia), certificates of coverage can avoid double contributions, but the process must be anticipated.
Funding, Grants, and Support: An Arsenal Rarely This Dense
One of the least‑known assets of Slovenia is the density of its support mechanisms, financial and non‑financial, also accessible to companies owned by foreigners as long as they are locally registered.
Financial Support: From Small Grants to Co‑Investment
The Slovene Enterprise Fund (SEF) plays a central role in financing SMEs, startups, and scale‑ups. It operates a range of products: seed grants, subsidized loans, bank loan guarantees, quasi‑equity, and co‑investments with business angels and private funds.
Maximum grant amount, in euros, offered by P2 aid to young innovative micro and small enterprises to develop a product with high market potential.
Products like SK75 provide €75,000 in the form of a convertible loan for the market entry phase, while the SI‑SK lines allow for co‑investments of €100,000 to €600,000 in high‑growth startups, in partnership with private investors. Other programs target specific audiences (young companies under five years old, wood industry companies, green projects, etc.).
Alongside these major tools, a “voucher” system finances very concrete needs of SMEs: participation in B2B delegations abroad, obtaining certifications, foreign market studies… The famous “Voucher V1” can for example cover up to €2,000 of international prospecting expenses.
Non‑Financial Support: A National Network
Entrepreneurs are not left on their own. A network of university and regional incubators, technology parks, chambers of commerce, regional development agencies, and coworking spaces ensures continuous support: legal and tax advice, workshops, mentoring, networking, help with internationalization.
The Start:up Slovenija portal centralizes programs, calls for projects, and events, and offers an interactive ecosystem map to identify key players by sector or region. The offering is complemented by European initiatives like Erasmus for Young Entrepreneurs, the Enterprise Europe Network, and EIT programs (digital, energy, food), often supported by European funding.
For questions of access to European or international funds, a specific contact point, FINA EU TOČKA, helps companies navigate the jungle of calls, eligibility rules, and procedures.
Promising Sectors: Where Does an Expatriate Have the Best Chance of Success?
The Slovenian economy remains diversified, with industrial pillars (automotive, machinery, chemicals, pharmaceuticals), but several areas stand out as particularly promising for a foreign entrepreneur.
The technology sector is experiencing rapid expansion, with double‑digit growth in areas like software development, IT services, fintech, gaming, and cloud solutions. Projections indicate the tech share of GDP could rise from about 6% to over 10% within a few years. This dynamic attracts giants like Microsoft, Nginx, or Salesforce, which set up centers of excellence there, and inspires a new generation of successful local startups in sectors such as crypto, adtech, and mobile apps.
Eco‑tourism stands out as an obvious axis in a country already recognized as a sustainability champion. Nature circuits, responsible experiences, green accommodations, guided outdoor activities, promotion of local cultures and short supply chains… There are many niches for those who know how to offer a differentiated offering, especially by relying on regions less saturated than classic hotspots.
The sustainable agri‑food sector benefits from increased demand for organic and local products, supported by subsidies for organic certification and investment. Meanwhile, e‑commerce, boosted by the pandemic, continues to grow thanks to mobile usage, personalized recommendations, and consumer expectations regarding sustainability.
Renewable energies (solar, biomass, wind) benefit from grants, exemptions, and subsidized loans via funds like Eco Fund, while real estate, particularly in Ljubljana, Maribor, and on the coast, sees values rising steadily, supported by interest from foreign investors.
In parallel, more “classic” sectors like restaurants, consulting, training, or personal services remain promising, especially if one knows how to play the specialization card (thematic cuisine, international consulting, digital education, etc.).
Location Matters: Ljubljana, Maribor, and Others
For an expatriate entrepreneur, choosing an operational base is a trade‑off between ecosystem, costs, and quality of life. In Slovenia, this trade‑off is often between Ljubljana, the capital, and Maribor, the country’s second city.
Ljubljana concentrates institutions, headquarters of large companies, the core of the tech ecosystem, and the majority of business events. Rents are logically higher: a one‑bedroom apartment in the city center is around €650–900 monthly, while a three‑room apartment can exceed €1,100–1,500. Products and services are on average 20–25% more expensive than in Maribor, and the overall budget for a nomad or entrepreneur there is estimated between €1,100 and €1,500 per month for a moderate lifestyle (excluding luxury), with coworking spaces, fast digital infrastructure, and a dense cultural scene.
Maribor offers significantly lower living costs compared to other cities, with rents almost half as cheap, more affordable meals, and a higher local purchasing power. Despite its human scale, the city offers a good transport network, universities, shopping centers, and exceptional natural surroundings (vineyards, mountains, winter sports), making it an attractive base for entrepreneurs who do not need to be at the heart of political institutions or major corporate headquarters.
Other cities – such as Kranj, Celje, the Adriatic coast (Piran, Koper, Portorož) – each offer their own combination of costs, infrastructure, and living environment. But in all cases, distances remain short and travel between cities is easy.
Building a Sustainable Company in the Eyes of the Authorities
A point often underestimated by expatriates is the importance, in Slovenia as elsewhere in Europe, of demonstrating the reality of economic activity. Authorities (immigration, tax, labor inspection) scrutinize the “substance” of companies, especially when they are owned by foreigners applying for a residence permit.
To be recognized as a real and not fictitious enterprise, a structure must prove tangible activity. This includes operational premises, real commercial contracts, coherent financial flows, local staff where applicable, and up‑to‑date tax and social declarations. Investment‑based immigration programs often condition the issuance and renewal of the residence permit on concrete indicators like the amount invested, number of jobs created, or turnover achieved.
For an expatriate, it is therefore strategic to prepare their file thoroughly from the start: a clear business plan, solid documentation for the bank, choosing an experienced local accountant, scrupulous respect of invoicing, VAT, account filing, and contribution payment rules.
Starting Your Business as a Freelancer or Self‑Employed Person
Not all expatriates want to set up a company with employees. Slovenia is also rather welcoming to self‑employed individuals, particularly those providing remote services.
The standard framework for a freelancer is the sole proprietorship (s.p.), whose registration is considered simple and fast. However, it involves assuming unlimited liability and bearing the full burden of social contributions. In return, the self‑employed person keeps all their profit after taxes and charges.
Registration for the four mandatory schemes (pension, health, unemployment, parenthood) is a single formality to be completed within eight days of starting the activity. Any change or cessation of activity must be declared within the same timeframe. For self‑employed workers established abroad but subject to Slovenian legislation (European law), the procedures are carried out via the Health Insurance Institute.
From a tax perspective, several regimes exist, including a standard lump‑sum basis system called “normirani” where the administration considers a fixed portion (up to 80%) of turnover as an expense, simplifying accounting obligations and in some cases reducing the tax bill for small service activities. This regime, which applies notably to sole proprietors up to certain income thresholds, is about to evolve, however, requiring one to update their information at the time of settling.
For an expatriate freelancer, it is crucial to analyze and coordinate the interactions between their tax residence, applicable international treaties, their social security regime, and their legal form (s.p. or company). This analysis must be conducted based on their income sources, client locations, and medium‑term professional project.
An Ecosystem Geared Towards Innovation and Internationalization
For an expatriate, the interest of an ecosystem is not limited to legal texts or tax rates: it is above all the possibilities for collaboration, funding, learning, and expansion that matter.
Slovenia trains over 20,000 graduates in science and technology (STEM) each year.
Public authorities support internationalization by helping Slovenian companies sell on platforms like Amazon Europe or Google Merchant, co‑financing participation in major trade shows (Startup Grind, ViennaUP, Slush, etc.), and developing cooperation channels with foreign investors and partners, notably via SPIRIT Slovenia and programs managed jointly with the European Investment Fund.
For a foreign entrepreneur, this export‑ and innovation‑oriented approach offers a dual opportunity: to establish themselves in a modest‑sized but solvent domestic market, while using Slovenia as a platform to the EU, with adapted logistics and digital infrastructure.
What an Expatriate Should Remember Before Taking the Plunge
Creating a company in Slovenia as an expatriate means benefiting from a combination quite rare in Europe: macro‑economic stability, a solid banking system integrated into the eurozone, business law harmonized with the EU, exemplary security and environmental conditions, an energetic startup ecosystem, substantial financial aid, largely digitized procedures, and an administration generally cooperative towards foreign investors.
To establish in Slovenia, rigorous preparation is essential. It includes choosing the legal structure (a d.o.o. in most cases), understanding immigration rules (single permit, investment or local employment conditions), anticipating taxation and contributions (effective rates, R&D incentives, simplified regimes), selecting a banking partner and an accountant, as well as developing a solid business plan to present to authorities and financial partners.
For an expatriate ready to invest in this preparation, Slovenia often reveals itself to be more than a “small niche market”: it is a strategic entry point to the European Union, in a country where the culture of cooperation, human scale, and quality of life facilitate both professional and personal integration.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
