Tax News, December 2025

In the December edition of our tax news, we inform you about the implementation of the amendment to the Foreigners Act, which introduces new provisions for digital nomads, important changes to the Tax Procedure Act, and about developments in employee profit sharing brought by the proposed law on employee profit participation.

IMPLEMENTATION OF THE ZTUJ-2I AMENDMENT: SLOVENIA INTRODUCES A SPECIAL TEMPORARY RESIDENCE PERMIT FOR DIGITAL NOMADS

This December, we bring you news regarding changes for digital nomads, effective November 21, 2025, following the amendment of the Foreigners Act (ZTuj-2I). This amendment introduces a new temporary residence permit type that allows third-country nationals to perform remote work in Slovenia for an employer based outside of the country, utilizing communication technologies.

This new temporary residence permit for digital nomads authorizes eligible third-country citizens (i.e., citizens of countries not belonging to the EU or EEA) to reside and work remotely from Slovenia for up to one year. The permit is not renewable, and upon its expiration, the holder must reside outside Slovenia for a minimum of six months before reapplying for a new permit.

To qualify, applicants must:

• Be third-country nationals,
• Be employed by a company located outside Slovenia,
• Present an employment contract or confirmation of employment with their foreign employer,
• Earn a monthly income of at least two times the average net monthly salary in Slovenia (i.e., approx. EUR 3,140 per month),
• Hold a passport that is valid for at least three months beyond the intended stay,
• Provide a police clearance certificate (confirming they do not have a criminal or police record) issued by competent authorities in their country of residence,
• Have a valid health insurance that provides at least basic healthcare coverage in Slovenia.

Eligible individuals may file their applications at a Slovenian embassy or consulate in their home country or country of residence. Applicants who are legally residing in Slovenia may submit their applications to the competent local authority (i.e., the Administrative Unit). In both cases, applicants must provide all the required documentation, pay the applicable government fees, and attend an in-person appointment to submit their fingerprints as part of the process.

Dependent family members may accompany holders of Temporary Residence Permits for Digital Nomads. Dependents may submit their applications simultaneously with the primary applicant. In cases, when their application is approved, dependents will be granted a Temporary Residence Permit for Family Members of Digital Nomads.

ACT AMENDING THE TAX PROCEDURE ACT (ZDAVP-2P)

On 19 November 2025, the National Assembly adopted the amendment to the Tax Procedure Act. The amendment was published in the Official Gazette on 4 December 2025 and applies from 1 January 2026.

Key novelties introduced by the amendment:

1. Alignment with EU rules (reporting and data exchange)

With these changes, the following are transposed into Slovenian law:

• Council Directive 2023/2226/EU of 17 October 2023 amending Directive 2011/16/EU on administrative cooperation in the field of taxation, which regulates the obligation to report and the automatic exchange of information between tax authorities of EU Member States on income from transactions with crypto-assets. Ensures the improvement of the existing framework regarding the exchange of information and administrative cooperation in the field of direct taxation. The Directive covers the reporting of additional categories of assets, such as cryptocurrencies, and income from non-custodial dividends.

• Council Directive 2025/872/EU of 14 April 2025 amending Directive 2011/16/EU, which introduces new obligations regarding tax transparency for multinational groups of companies and establishes a standardized information return for the calculation of the top-up tax. In accordance with the Directive, it is necessary to report the informative return on the calculation of the top-up tax with all required data on the group of companies and jurisdictions, no later than three months after the deadline for submitting the top-up tax return.

2. Changes to the notification procedures for asset transfers, exchanges of capital holdings, and mergers and demergers for the purpose of tax-neutral treatment

• Change of the deadline for notification of transactions in mergers, demergers, exchanges of capital holdings, and asset transfers, and determination of legal consequences in case of delay (amendments to Articles 379, 380, and 381): The deadline for notifying these transactions is now set as the period from the date of registration of the transaction in the court register until the deadline for submitting the tax return. If the notification is not made within this period, tax-neutral treatment is not possible.

• Changes regarding notification of transactions (amendment to Article 331): The amended provision states that a company managing an umbrella fund must notify taxpayers in writing about the deferral of determining tax liability no later than 15 days after the exchange.

• Amended conditions regarding the branch of activity which needs to exist at the time of transaction.

• Supplementation of penalty provisions related to the amended notification procedures (amendment to Article 397): Penalty provisions have been aligned with the new notification procedures, meaning that fines and sanctions are now adapted to the new deadlines and obligations, ensuring more effective enforcement of the legislation.

3. Changes to the amount of tax penalties

The newly added Article 400.č sets fines for various tax offences related to the exchange of information on users of digital platforms. Fines for individuals range from EUR 250 to 400, for sole proprietors from EUR 800 to 10,000, for legal entities from EUR 1,200 to 15,000, and for more serious or repeated offences, fines may be higher.

4. Stricter rules on write-offs in cases of serious violations

A write-off or partial write-off of tax on undeclared income and tax related to sham legal transactions (avoidance/abuse) will no longer be possible, as it would be contrary to the principle of fairness.

5. Restrictions on deferrals/installment payments

To improve the efficiency of tax collection, the possibility for the same taxpayer to obtain a deferral or installment payment for the same obligations more than once is limited if it has already been granted.

6. Changes to deadlines

The deadline for submitting a tax return in the course of a tax inspection is extended by ten days, from 20 to 30 days. The deadline for providing information on tax allowances for the correct preparation of the informative personal income tax calculation is also extended by ten days, i.e., no later than 15 February of the current year for the previous year.

An objective deadline of 30 days from the statutory final deadline for submitting the tax return is also introduced, instead of the current subjective deadline of 30 days from the actual submission of the tax return to the tax authority.

7. Digitalization of procedures

As a rule, data will be sent electronically via the eDavki system, except for taxpayers for whom electronic communication would represent a disproportionate burden.

NEW DEVELOPMENTS IN EMPLOYEE PROFIT SHARING BROUGHT BY THE PROPOSED LAW ON EMPLOYEE PROFIT PARTICIPATION 

On December 9, 2025, the Government of the Republic of Slovenia approved the draft law on employee participation in profit.

One of the most important changes in the draft law is that it increases the share of profit that can be distributed among employees, from the current 20 percent to 33 percent of the profit for a given business year. The draft also raises the upper limit of payouts, which will increase from 10 percent to 20 percent of the annual gross wage amount. Half of the amount (now 10 percent of the gross wage bill) can be paid in cash.

In addition, the draft law distinguishes between three different profit-sharing schemes:

• Cash scheme with profit-sharing in cash,
• Partnership scheme with profit-sharing in ownership shares,
• Shareholding scheme with profit-sharing in company shares.

The new profit-sharing arrangement is not only important for employees but also for companies, as it introduces a more favorable tax relief. Companies would be able to claim 100 percent tax deduction for the profit distributed to employees. Unlike the currently applicable regulation, they could apply this deduction as early as the following year, instead of after three years.

With the new regulation, the tax treatment of employee income would also be more favorable: for cash payments, it would be 30 percent, and for received shares and stakes, it would be 25 percent.

Participation in profit remains voluntary for both the company and the employees. All employees must be included in the profit under the same conditions and criteria, which the company and employees agree upon in a mutual contract. In the absence of a contract, the company must act in accordance with the conditions and criteria defined by law.