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Slovenia is a country in Central Europe. Its official name is the Republic of Slovenia (Slovene: Republika Slovenija). It is bounded on the west by Italy, on the north by Austria, on the northeast by Hungary, on the southeast by Croatia, and on the southwest by the Adriatic Sea. Slovenia is largely hilly and wooded, with a land area of 20,271 square kilometers (7,827 square miles), and a population of 2.1 million people (2,108,708 people). Slovenes make up more than 80% of the country's population. The official language is Slovene, a South Slavic language. With the exception of the Slovene Littoral and the Julian Alps, Slovenia has a primarily continental climate. A sub-mediterranean climate extends to the northern regions of the Dinaric Alps, which run northwest–southeast throughout the nation. In the northwest, the Julian Alps feature an alpine climate. The continental climate becomes more prominent in the northern Pannonian Plain. Ljubljana, the capital and biggest city, sits practically in the center of the nation.
Slovenia has long served as a crossroads for Slavic, Germanic, and Romance languages and civilizations. Its territory was part of several distinct nations, including the Roman Empire, the Byzantine Empire, the Carolingian Empire, the Holy Roman Empire, the Kingdom of Hungary, the Republic of Venice, Napoleon's First French Empire's Illyrian Provinces, the Austrian Empire, and the Austro-Hungarian Empire. Slovenes co-founded the State of Slovenes, Croats, and Serbs in October 1918. They joined with the Kingdom of Serbia to become the Kingdom of Yugoslavia in December 1918. During WWII, Germany, Italy, and Hungary seized and annexed Slovenia, with a small portion of the country moved to Croatia, a Nazi puppet state at the time. It was reincorporated into Yugoslavia in 1945. Yugoslavia was an Eastern Bloc ally during WWII, but following the Tito–Stalin split in 1948, it never joined the Warsaw Pact, and in 1961, it became one of the founders of the Non-Aligned Movement. Slovenia became the first republic to secede from Yugoslavia and establish itself as an independent sovereign state in June 1991.
Slovenia is a developed nation with a high-income economy that ranks high on the Human Development Index. According to the Gini index, its income inequality is among the lowest in the world. It is a member of the United Nations, European Union, Eurozone, Schengen Area, OSCE, OECD, Council of Europe, and NATO.
Regardless of whether the employee is full-time or part-time, at least four weeks of paid vacation is required.
Slovenia recognizes fifteen public holidays.
Employees can take as much sick time as they like as long as they provide a doctor's certificate. If the illness or injury was caused at work, the employer will cover the first 30 days. After that, social security will cover it.
Slovenian maternity leave is paid for 105 days, including up to 28 days before the child's birth. Pay is determined by the average of the preceding 12 months' earnings.
Paternity leave is paid for 30 days. Pay is based on a 12-month average of wages, up to 2.5 times the average monthly wage in Slovenia (currently EUR 3,664.31).
Up to 130 days of extended leave are available to each parent, paid at the same rate as maternity and paternity leave, up to 2.5 times the average monthly wage in Slovenia (currently EUR 3,664.31).
A father can give his mother the whole 130 days, while a mother can give her father up to 100 days. Up until the child completes first grade, up to 75 days can be used.
Employees over the age of 55, those with impairments, and those caring for a disabled child are all eligible for up to three additional paid days off. Parents with children under the age of 15 are entitled to an extra day per child.
Dismissals are classified into two categories: regular and unusual. Dismissal on a regular basis occurs in the event of redundancy, incompetence, or misconduct. When an employee commits a crime, fails to report to work, presents false information, denies a transfer, or commits other major violations, this is considered extraordinary.
In both circumstances, the employer must notify the employee in writing and give the employee with an opportunity to defend himself.
In the case of an extraordinary dismissal, the termination must be in writing and must include the cause for the dismissal. It must also be delivered in person.
The notice period for a regular dismissal is determined by the number of years the employee has worked for the company. The notice period is 15 days for employment of up to one year. The notice period is 30 days for employees with one to two years of service. For employment of more than two years, the notice period is 30 days plus two days for each additional year worked. If an employee is terminated for cause, the notice period is set at fifteen days. The notice period is fixed at seven days if the employee is terminated for failing to complete a probationary period. There is no notice requirement for extraordinary dismissal, but the employer must provide a termination notice within 30 days of the triggering incident.
The employment agreement could include a probation period of no more than 6 months.
When an employee is dismissed on a regular basis, he or she is entitled to a severance payment. For those who served between one and ten years, the employee receives one-fifth of the previous three months' average salary for each year served. Severance pay is 14 percent for those who served more than ten years; 1/3 for those who served more than twenty years.
Slovenia's standard work week is 40 hours spread over five days. Full-time work requires a minimum of 36 hours spread over at least four days. Employees performing hazardous jobs may work fewer than 36 hours per week.
Overtime is permitted only when an urgent business need or an emergency necessitates the additional work time. Employers must notify employees in writing of impending overtime, which cannot exceed eight hours per week, twenty hours per month, or one hundred and seven hours per year. On average, night work should not exceed eight hours per day. Overtime pay varies by industry and is typically included in the collective bargaining agreement.
Pregnant women, nursing mothers, and minors are not permitted to work at night, and other categories of employees, particularly parents of young children and the elderly, are permitted to work at night only with their consent.
The monthly minimum salary is €1024.24.
Employees pay a part of their gross wage to public health insurance, and the employer also contributes a share. The mandatory national health insurance covers all expenses for children and students, but not for adults, and coverage for prescription medicines is restricted. Slovenia also has private clinics and medical providers, and many people buy supplemental health insurance from private insurers to guarantee access to treatment beyond what is provided by the mandatory plan.
Employers generally do not offer additional private health insurance coverage. Employees of large companies are often given lunch coupons.
Slovenian taxpayers must pay corporate income tax (CIT) on their global income. Non-residents in Slovenia are taxed solely on income generated in Slovenia, including income received via permanent establishments (PEs) in Slovenia.
The CIT occurs at a rate of 19%. Non-profit taxpayers and charity organizations, associations, foundations, and so on are free from CIT on non-profit operations.
If specific criteria are fulfilled, investment funds, pension funds, and pension insurance firms may be taxed at 0%.
A resident is required to pay PIT on any income earned both within and outside of Slovenia (principle of worldwide taxation). Non-residents are required to pay PIT on any income earned in Slovenia.
PIT is computed using five different tax rates. The tax brackets are set one year in advance. In accordance with recent PIT Act changes, the following tax bands and rates will be effective in 2021.
For a taxable income of up to EUR 8,500, the tax rate is set at 16 percent.
For a taxable income between EUR 8,500 to EUR 25,000, the tax rate is set at 26 percent.
For a taxable income between EUR 25,000 to EUR 50,000, the tax rate is set at 33 percent.
For a taxable income between EUR 50,000 to EUR 72,000, the tax rate is set at 39 percent.
For a taxable income beyond EUR 72,000, the tax rate is set at 50 percent.
All taxable supplies are subject to a normal VAT rate of 22%.
Foodstuffs, live animals, seeds, plants, water supplies, medicines, medical equipment, passenger transport, books, admission fees, royalties for writers and performers, certain works of art, certain residential properties, renovation of residential properties, cleaning of residential properties, hotel accommodation, use of sport facilities are all subject to a reduced VAT rate of 9.5 percent.
As of 1 January 2020, a super-reduced VAT rate of 5% applies to the supply of books and newspapers, whether in physical or electronic form.
The Employment, Self-employment, and Work of Foreigners Act, enacted in 2015, governs work and residency permits. The permits are required for all non-EU nationals who wish to work in Slovenia. Unless they qualify for the following exception:
Immediate family members of Slovenian citizens, Non-EU nationals with a permanent residence permit, Non-EU nationals who have obtained the status of a long-term resident in another Member State of the EU after residing in the Republic of Slovenia for one year, and
Non-EU nationals of Slovenian origin up to the third successive generation
To get a long-term work permit, a person must apply for a single residence permit in Slovenia for both employment and housing (The Single Permit).
On the basis of the Employment, Self-employment, and Work of Foreigners Act and accompanying regulation, single licenses are given by the administrative unit ("Upravna enota") with the agreement of the Employment Service of Slovenia ("ESS")
Following the submission of an application for The Single Permit, the administrative unit will automatically initiate the process of obtaining consent from the Slovenian Employment Service. An application for The Single Permit can be made by either a foreigner or the employer.
Written contracts are the standard and highly advised. Written employment contracts may be in any language as long as a version in Slovene is also available. The employee must be given a draft contract at least three days before the scheduled signing date, and a copy of the final signed contract must be provided.
The following should be stated in the employment contract:
The names of the parties
The start date of the employee's employment
The job title and a short work description of the individual
The work environment
If the contract has a set term, the duration of the contract and the rationale for the fixed term must be specified
Working hours and whether the employee will work full-time or part-time
The employee's basic salary, pay period, pay date, and manner of payment, as well as information on any further compensation components or payments
Information about annual leave
Length of contract termination notice periods
In Slovenia, employment contracts are either indefinite or for a set period of time. Fixed-term contracts may not be more than two years and are only permitted for legally recognized reasons such as employment that will continue for a specific and defined duration, seasonal labor, or a few other instances. The rationale for the set term must be stated in the fixed-term contract.
The Slovenia subsidiary establishment procedure may vary according on your location, company type, and other factors. By selecting the correct location inside Slovenia, you may make your growth a bit simpler. Different cities or areas may have their own Slovenia subsidiary legislation, as well as varying prices, availability, and other factors. If you are unsure about which location is suitable for your firm, you may speak with a consultant, lawyer, or accountant who is familiar with the country's legislation.
You must also choose a kind of subsidiary. Slovenia allows a variety of organizations, including a limited liability company (LLC), a public limited company, a branch, and others. If you wish to engage in a variety of commercial activities, an LLC is generally the best option since it gives you the greatest flexibility.
Setting up your Slovenia subsidiary as an LLC entails the following steps:
1. Creating articles of incorporation that contain your firm's name and address, the names and addresses of your founders, information about management and the supervisory board, and the lifespan of your company.
2. Opening a bank account in the nation, putting down a minimum share capital, and acquiring a certificate of deposit
3. Notarizing the articles of incorporation and the deposit certificate
4. Adding both of the aforementioned papers to the electronic one-stop shop (VEM)
5. After paying taxes and submitting the necessary documentation, you will be given a registration number on the AJPES website.
While forming as an LLC has several advantages, you must follow all of Slovenia's subsidiary laws on regulations, taxes, and other matters. LLCs need a minimum share capital of 7,500 EUR and one founder. If you simply have one shareholder, the registration procedure may be completed online. If you have more than one shareholder, you must finish the procedure in person at one of Slovenia's 200 registration offices. There can't be more than 50 stockholders.
Because LLCs function similarly to resident firms, you will be subject to the same laws. For example, your firm will be subject to Slovenia's 19% corporate income tax. To maintain your book of accounts, you must also use Slovenia's double-entry accounting method.