What is the turnover threshold for a sole trader with a flat rate scheme in Slovenia?

€50,000, €100,000 or €200,000?

When opening a sole trader business, Slovenia offers a great possibility of having a flat rate scheme, meaning the taxation is of 4%. In order to start a sole trader, there is no need to present initial shared capital and the entrepreneur can operate freely with the income. The costs of the company are presented as 80% of the income, therefore the turnover-based tax applies only to the remaining 20% of the company’s turnover.

So, what is the turnover threshold?

The turnover threshold is €100,000, however, if the company is opened in the second half of the current year (after 1. July) the turnover threshold increases to €200,000. In this case the company will operate for 18 months and pay only €8,000 of turnover-based tax at the end of this period.

What is a flat rate scheme?

In the flat rate scheme, the accountancy keeps only track of the issued invoices and not the received ones, making it impossible to offload the costs. This system is therefore suitable for companies with low annual costs.

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