Employing in Slovenia

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Expanding into Slovenia

Expanding into Slovenia – which is characterised by an excellent infrastructure, well-educated workforce, and strategic location between the Balkans and Western Europe- can bring excitement to the possibilities and significant stress to ensure the entity with the country’s structure and structure laws.

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Ensuring compliance without sufficient knowledge of the country’s laws also adds stress to getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

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Country EOR Guide - Bradford Jacobs

Download our Guide to Slovenia

Learn all about expanding into Slovenia and see what we can do to make your expansion easier.

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Download our Guide to Slovenia

Learn all about expanding into Slovenia and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs
DOWNLOAD GUIDE

Hiring Staff
in Slovenia

Slovenia is a developed/advanced country with a high-income economy ranking very high on the Human Development Index (0.918 in 2021, 23rd worldwide). With excellent infrastructure, a well-educated workforce, and a strategic location between the Balkans and Western Europe, Slovenia has one of the highest per capita GDPs in Central Europe (EUR 58.8 billion – USD 62 billion in 2022), despite having suffered a protracted recession in the 2008-09 period in the wake of the global financial crisis. Its GINI coefficient (23.9) rates its income inequality among the lowest in the world.

Historically, the country has been at the crossroads of Slavic, Germanic, and Roman languages and cultures. In October 1918, the Slovenes co-founded the State of Slovenes, Croats, and Serbs, which merged in December 1918 with the Kingdom of Serbia into the Kingdom of Yugoslavia. Germany, Italy, and Hungary occupied and annexed Slovenia during World War II, which, at the end of the war in 1945, became part of Yugoslavia again.

Although it comprised only about one-eleventh of Yugoslavia’s total population, it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its exports. In June 1991, Slovenia became the first republic to split from Yugoslavia and become an independent sovereign state.

Since then, it has vigorously pursued diversification of its trade with the West and integration into Western and transatlantic institutions. Slovenia is a founding member of the World Trade Organisation, joined CEFTA in 1996, and joined the European Union on 1 May 2004. In June 2004, it joined the European Exchange Rate Mechanism. The euro was introduced at the beginning of 2007 and circulated alongside the tolar until 14 January 2007. Slovenia also participates in SECI (Southeast European Cooperation Initiative), as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council.

Country:
Slovenia
Local Currency:
Euro (EUR)
Time Zone:
CET (UTC+1/+2 when DST)
Country Dial Code:
+386
Tax Year:
Calendar Year (1st January – 31st December)
VAT:
22%
National Minimum Wage:
EUR 1,074.4/month (USD 1,135.35/month)
Taxpayer Identification Number (TIN):

A unique 8-digit tax identifier code (Davčna številka) that every legal entity or individual entrepreneur must obtain.

TIN is noted on the Certificate issued by the Financial Administration of Slovenia within 8 days after entry into the tax register (Poslovni register Slovenije).

An SI (code for Slovenia) prefix was added to the TIN for VAT purposes: SI-TIN.

Main trading partners (2021):

Main Imports Partners: Germany, Italy, Austria, Switzerland and China.

Main Exports Partners: Germany, Italy, Croatia, Austria, France and Switzerland.

Hiring Staff
in Slovenia

Slovenia is a developed/advanced country with a high-income economy ranking very high on the Human Development Index (0.918 in 2021, 23rd worldwide). With excellent infrastructure, a well-educated workforce, and a strategic location between the Balkans and Western Europe, Slovenia has one of the highest per capita GDPs in Central Europe (EUR 58.8 billion – USD 62 billion in 2022), despite having suffered a protracted recession in the 2008-09 period in the wake of the global financial crisis. Its GINI coefficient (23.9) rates its income inequality among the lowest in the world.

Historically, the country has been at the crossroads of Slavic, Germanic, and Roman languages and cultures. In October 1918, the Slovenes co-founded the State of Slovenes, Croats, and Serbs, which merged in December 1918 with the Kingdom of Serbia into the Kingdom of Yugoslavia. Germany, Italy, and Hungary occupied and annexed Slovenia during World War II, which, at the end of the war in 1945, became part of Yugoslavia again. Although it comprised only about one-eleventh of Yugoslavia’s total population, it was the most productive of the Yugoslav republics, accounting for one-fifth of its GDP and one-third of its exports. In June 1991, Slovenia became the first republic to split from Yugoslavia and become an independent sovereign state.

Since then, it has vigorously pursued diversification of its trade with the West and integration into Western and transatlantic institutions. Slovenia is a founding member of the World Trade Organisation, joined CEFTA in 1996, and joined the European Union on 1 May 2004. In June 2004, it joined the European Exchange Rate Mechanism. The euro was introduced at the beginning of 2007 and circulated alongside the tolar until 14 January 2007. Slovenia also participates in SECI (Southeast European Cooperation Initiative), as well as in the Central European Initiative, the Royaumont Process, and the Black Sea Economic Council.

Country:
Slovenia
Local Currency:
Euro (EUR)
Time Zone:
CET (UTC+1/+2 when DST)
Country Dial Code:
+386
Tax Year:
Calendar Year (1st January – 31st December)
VAT:
22%
National Minimum Wage:
EUR 1,074.4/month (USD 1,135.35/month)
Taxpayer Identification Number (TIN):

A unique 8-digit tax identifier code (Davčna številka) that every legal entity or individual entrepreneur must obtain.

TIN is noted on the Certificate issued by the Financial Administration of Slovenia within 8 days after entry into the tax register (Poslovni register Slovenije).

An SI (code for Slovenia) prefix was added to the TIN for VAT purposes: SI-TIN.

Main trading partners (2021):

Main Imports Partners: Germany, Italy, Austria, Switzerland and China.

Main Exports Partners: Germany, Italy, Croatia, Austria, France and Switzerland.

The Main Sectors of the Slovenian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Agriculture

The agricultural sector is declining and reached only 2.1% of the GDP, employing around 4.3% of the population in 2021 (World Bank). The total utilised agricultural area equates to 30.6% of the country’s total area, with 4.8% of agricultural holdings dedicated to organic production (plus 5.4% in the system of control of the organic output). Forestry is a key economic factor, with 66% of the land area forested and an annual production value of EUR 250 million to the economy.

Slovenia is among the European countries with the highest forest coverage (around 60% of the land is covered with forest); the wood industry is one of the oldest and traditionally among the most important sectors in Slovenia. For almost twenty years, the industry has been in stagnation. Many of the key companies in the wood processing industry collapsed, and so did the most prominent furniture producers. The recent period, however, has brought a revival of this industry, especially due to the reorientation towards sustainable and low carbon footprint materials and building techniques.

The car industry has been traditionally the leading industry in Slovenia after independence. Around 20% of Slovene exports and 10% of GDP come from this industry. More than 60 companies and research institutions of the sector together organise in the Automotive cluster of Slovenia (ACS). The ACS cluster forms a strategic research innovation partnership (SRIP ACS+) with the Transport Association at Slovenia’s Chamber of Commerce and Industry. According to the data provided by the SRIP ACS+, there are more than 100 Tier 1 and Tier 2 suppliers and more than 600 sub-suppliers of the supply chain. More than 25% of all the award-winning innovations in Slovenia originate in this industry.

Although limestone, which is quarried and used in construction, is abundant, mining has declined in importance in Slovenia as resources have been exhausted and environmental restrictions have been applied. Many Slovene mines, including mercury, uranium, lead, zinc, and brown coal, have been closed, though the Velenje lignite mine is still important.

Energy & Environment

Energy has been one of the fastest-growing industries in Slovenia in the past decade, primarily due to the large-scale investments in this field. Several hydroelectric plants on the Drava, Soča, and Sava rivers generate about one-fourth of the country’s total power. Nuclear power, produced at a plant in Krško (near the Croatian border), is also important, contributing about one-third of Slovenia’s power. Slovenia shares the power generated at Krško with Croatia. The biggest trader in energy products is Petrol, one of the strongest companies in Slovenia.

Traditionally, two major companies are operating in this industry in Slovenia, Krka and Lek (part of the Sandoz group, the generic division of Novartis). The two major wholesale distributors of pharmaceutical products are Salus and Kemofarmacija. This sector is export-oriented, making a total of 2 billion Euros in income and around 200 million profit. The chemical industry is represented mostly by the successful company Cinkarna Celje, a chemical processing company (especially the production and marketing of titanium dioxide pigment), which is one of Slovenia’s largest chemical processing companies.

The tertiary remains the most significant sector in the Slovene economy. It represents 56.9% of the GDP and employs 61.6% of the total workforce. It has shown a strong growth pattern during the last ten years, especially in information and communications technology (ICT), financial, commercial services, and retail.

The tourism sector is dynamic and has been undergoing strong development recently (helped by the Strategy for Sustainable Development of Slovene Tourism for 2017-2021). This industry has been growing steadily for the last two decades. With a particular emphasis on the main tourist hubs, such as the capital Ljubljana, the alpine resort Bled, the karst caves in Postojna, and the coastal towns, the growth of accommodation capacities and various forms of activities and attractions resulted in 2021 in 4 million tourist arrivals. More than 11 million tourists’ overnight stays in Slovenia were recorded, with 31% more arrivals and 22% more overnight stays than the previous year.

The Main Sectors of the Slovenian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Agriculture

The agricultural sector is declining and reached only 2.1% of the GDP, employing around 4.3% of the population in 2021 (World Bank). The total utilised agricultural area equates to 30.6% of the country’s total area, with 4.8% of agricultural holdings dedicated to organic production (plus 5.4% in the system of control of the organic output). Forestry is a key economic factor, with 66% of the land area forested and an annual production value of EUR 250 million to the economy.

Slovenia is among the European countries with the highest forest coverage (around 60% of the land is covered with forest); the wood industry is one of the oldest and traditionally among the most important sectors in Slovenia. For almost twenty years, the industry has been in stagnation. Many of the key companies in the wood processing industry collapsed, and so did the most prominent furniture producers. The recent period, however, has brought a revival of this industry, especially due to the reorientation towards sustainable and low carbon footprint materials and building techniques.

The car industry has been traditionally the leading industry in Slovenia after independence. Around 20% of Slovene exports and 10% of GDP come from this industry. More than 60 companies and research institutions of the sector together organise in the Automotive cluster of Slovenia (ACS). The ACS cluster forms a strategic research innovation partnership (SRIP ACS+) with the Transport Association at Slovenia’s Chamber of Commerce and Industry. According to the data provided by the SRIP ACS+, there are more than 100 Tier 1 and Tier 2 suppliers and more than 600 sub-suppliers of the supply chain. More than 25% of all the award-winning innovations in Slovenia originate in this industry.

Although limestone, which is quarried and used in construction, is abundant, mining has declined in importance in Slovenia as resources have been exhausted and environmental restrictions have been applied. Many Slovene mines, including mercury, uranium, lead, zinc, and brown coal, have been closed, though the Velenje lignite mine is still important.

Energy & Environment

Energy has been one of the fastest-growing industries in Slovenia in the past decade, primarily due to the large-scale investments in this field. Several hydroelectric plants on the Drava, Soča, and Sava rivers generate about one-fourth of the country’s total power. Nuclear power, produced at a plant in Krško (near the Croatian border), is also important, contributing about one-third of Slovenia’s power. Slovenia shares the power generated at Krško with Croatia. The biggest trader in energy products is Petrol, one of the strongest companies in Slovenia.

Traditionally, two major companies are operating in this industry in Slovenia, Krka and Lek (part of the Sandoz group, the generic division of Novartis). The two major wholesale distributors of pharmaceutical products are Salus and Kemofarmacija. This sector is export-oriented, making a total of 2 billion Euros in income and around 200 million profit. The chemical industry is represented mostly by the successful company Cinkarna Celje, a chemical processing company (especially the production and marketing of titanium dioxide pigment), which is one of Slovenia’s largest chemical processing companies.

The tertiary remains the most significant sector in the Slovene economy. It represents 56.9% of the GDP and employs 61.6% of the total workforce. It has shown a strong growth pattern during the last ten years, especially in information and communications technology (ICT), financial, commercial services, and retail.

The tourism sector is dynamic and has been undergoing strong development recently (helped by the Strategy for Sustainable Development of Slovene Tourism for 2017-2021). This industry has been growing steadily for the last two decades. With a particular emphasis on the main tourist hubs, such as the capital Ljubljana, the alpine resort Bled, the karst caves in Postojna, and the coastal towns, the growth of accommodation capacities and various forms of activities and attractions resulted in 2021 in 4 million tourist arrivals. More than 11 million tourists’ overnight stays in Slovenia were recorded, with 31% more arrivals and 22% more overnight stays than the previous year.

Commercial Laws in Slovenia

Tax Authorities in Slovenia

The Financial Administration of the Republic of Slovenia (within the Ministry of Finance) is responsible for collecting taxes, social security contributions, customs duties, and other duties.

Via various measures, the Financial Administration provides security and protection for society and individuals, including carrying out activities to prevent the smuggling of illicit substances and counterfeit goods and controlling the transport of goods. The Financial Administration strives to facilitate, as far as possible, the meeting of obligations and exercising rights, e.g. to claim tax relief or refunds of excise duty by persons liable.

The Labour Inspectorate (within the Ministry of Labour, Family, Social Affairs and Equal Opportunities) exercises labour supervision in three areas.

Within the Labour Relations Inspection Service, the Inspectorate supervises the implementation of laws, regulations, collective agreements and general acts governing employment relationships, salaries and other income deriving from employment relationships, the employment of workers at home and abroad, workers’ participation in management, strikes, and the safety of workers at work, unless otherwise provided by regulations.

The Social Affairs Inspection Service is responsible for inspecting the work of public social protection institutions, concessionaires, and legal and natural persons that provide social assistance services and are entered in the register of natural and legal persons providing social assistance services. It verifies the scope of the public service network that falls within a municipality’s responsibility and approvals to prices of services granted by the competent municipal authority.

Commercial Laws in Slovenia

Tax Authorities in Slovenia

The Financial Administration of the Republic of Slovenia (within the Ministry of Finance) is responsible for collecting taxes, social security contributions, customs duties, and other duties.

Via various measures, the Financial Administration provides security and protection for society and individuals, including carrying out activities to prevent the smuggling of illicit substances and counterfeit goods and controlling the transport of goods. The Financial Administration strives to facilitate, as far as possible, the meeting of obligations and exercising rights, e.g. to claim tax relief or refunds of excise duty by persons liable.

The Labour Inspectorate (within the Ministry of Labour, Family, Social Affairs and Equal Opportunities) exercises labour supervision in three areas.

Within the Labour Relations Inspection Service, the Inspectorate supervises the implementation of laws, regulations, collective agreements and general acts governing employment relationships, salaries and other income deriving from employment relationships, the employment of workers at home and abroad, workers’ participation in management, strikes, and the safety of workers at work, unless otherwise provided by regulations.

The Social Affairs Inspection Service is responsible for inspecting the work of public social protection institutions, concessionaires, and legal and natural persons that provide social assistance services and are entered in the register of natural and legal persons providing social assistance services. It verifies the scope of the public service network that falls within a municipality’s responsibility and approvals to prices of services granted by the competent municipal authority.

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