How to obtain a VAT number in Slovenia?
Slovenia, as a member of the European Union, had to adapt to very specific rules, regarding also the tax system. After introducing a stable and efficient tax system, the Slovenian state introduced a VAT number in line with the directives and regulations imposed by Europe.
There are two ways to get the VAT number, i.e. enter the VIES:
The first way to receive the VAT number is to apply for registration to the Tax Office and request to become a subject with VAT number in Slovenia. The DDV-P2 and DDV-P3 models are used, to which the collaboration contracts with the company’s various customers or invoices have to be attached. This guarantees and certifies that in the next twelve months the turnover will be over € 50,000.00.
The second way is instead automatic. In fact, by achieving a turnover that exceeds 50,000.00 euros in twelve months, you automatically become the owner of a VAT number in Slovenia.
Why to choose to open a VAT number in Slovenia?
By opening the VAT number
, you have completed only one passage in the process of setting up a company in Slovenia
. The Slovenian simple, fast and efficient bureaucracy, combined with Taxofia’s professional consultancy, will enable you to open a company in Slovenia in less than 24 hours.
Slovenia represents the perfectly fertile soil for the flourishing of your investments. It has a solid economy, a tax system based on efficient and solid pillars, a low-cost and specialized labour force, a fast and non-problematic bureaucracy. Additionally, Slovenia is on a commercial crossroad of great importance, between Eastern and Western Europe. This is the perfect time to invest in Slovenia.
What do you need to open a company in Slovenia?
In order to open a LLC in Slovenia, as a natural person, you will only need an identity card or a Chamber of Commerce company registration for legal persons. You also need to provide us with the name of the company, your legal office (Taxofia also offers the virtual office service), primary activity and secondary activities. Additionally, if you intend to have members, you are required to provide the information about your members and their quotas.
Immediately after the establishment of the company in Slovenia, in case you would like to be a legal entity with VAT, you will have to provide the revenue office with the collaboration agreements or invoices with customers, as you have to certify and warrant that you will have a turnover of € 50,000 in the next twelve months starting from the establishment of the company.
What is a ready-made company?
In addition to setting up a new LLC company, you can opt for the purchase of a ready-made company, that is pre-established and already included in the VIES system. This option is ideal for those who don’t have much time and want to become immediate owners of a company in Slovenia. Ready-made companies are established in the past for the sole purpose of being resold. A society that has never operated is completely safe, without having open debts and obligations. This type of company is already a legal entity with a VAT number, thus it is not necessary to wait for the Revenue Office to confirm the request.
Why is Slovenia a great state for investments?
Although being a small country with only two million inhabitants, Slovenia is a fertile and favourable area for expanding to the eastern markets and encouraging the process of internalization of your business. One additional advantage is definitely the frequent bilingualism of this territory. There are schools in Italian and along the Slovenian coast the official language is also Italian, a right protected even by the Slovenian Constitution.
By opening a company in Slovenia, you will also open a wide spectrum of business opportunities. Taxofia, the leader in this sector, will accompany you during all phases of constitution, offering also other services such as specialized accounting, virtual office and many other services you might require, because we are always available for our customer and ready to help.
Which type of companies to open in Slovenia?
The types of companies: the LLC (d.o.o.)
Opening a company in Slovenia and living in Italy at the same time will make your life easier. You can open a business in Slovenia using the same types of companies you find in Italy. You can choose between a limited liability company, an individual company, a joint-stock company and an unlimited liability company.
The most used form is definitely the LLC. To open a company in Slovenia in the legal form of a LCC, you will need a minimum social capital of 7500 euros, which you can withdraw immediately after its constitution. The members of an LLC (in Slovenian d.o.o.) are both natural persons and juridical persons. Each shareholder must pay a minimum of 50 euros.
Italians not speaking Slovenian will have to come to the notary public, in order to draft the notarial act, accompanied by a legal interpreter and two witnesses to testify the presence of the partner (of course, we will provide both the legal interpreter and the witnesses to verify your identity). If, on the other hand, the LLC has only one member, the notary act is not necessary. The Tribunal takes approximately two weeks to register your new company.
The individual company (s.p.)
A natural person may also opt to open an individual company in Slovenia. An Italian citizen will need to have a registered residence in Slovenia, also included in the services we offer. Up to a turnover of € 50,000.00, the individual entrepreneur can opt for a flat rate scheme taxed only 4%.
Which are the reasons for opening a company in Slovenia?
The basic reasons for opening a company in Slovenia are: Slovenia is a member state of the European Union, constituting a company in Slovenia is fast and cheap, the availability of raw materials is easy, labour force is cheap, the taxation system is milder, the strategic location of its territory is ideal, bureaucracy is fast and clear, proximity to Easter Europe is minimal, Italian and English language knowledge is frequent, economic and political situation is stable, having employees costs less … all this while living in your native country.
Which taxes apply to a LLC in Slovenia?
Once the operating profit has been calculated, it is possible to deduct from the taxable amount, within certain limits, the allowances invested in: research / development instruments for which amortization is planned, increase in number of positions, decrease in pollution, and so on. In the case of capital companies, the taxation of profits provides a 19% of the fixed rate. The capital gains, and consequently the dividends paid by members (natural persons residing in the Slovenian state) are subject to a taxation of 25%, as tax.
If the owner of the Slovenian legal entity corresponds to a Swiss company, the taxation of dividends is done in Switzerland, according to article 10, paragraph 3, i.e. according to the agreement between the Swiss and Slovenian states. VAT (in Slovenian DDV) corresponds to 22%, while the reduced rate corresponds to 9.5%. Finally, financial services will have to apply the 6.5% rate. The state reimburses VAT on credit within 20 days.
Which taxes are applied in Slovenia on individual companies?
The sole proprietorship in Slovenia has an income tax of only 4% up to € 150,000 if a flat-rate scheme is applied. If you exceed EUR 150,000
, you automatically enter into a non-flat-rate scheme and the tax increases in brackets.
The minimum contributions that fall on the individual company range from € 235 to € 350. The contributions are calculated based on the turnover.
What is the IRPEF (Personal Income Tax) in Slovenia?
The personal income tax (IRPEF) is calculated on the income of natural persons in accordance with the groups in the following table: 16% for income minor than or equal to 8,000 euros per year, 27% for income minor than or equal to 19,000 euros, 41% for income minor than or equal to 71,000 euros and 50% for income over 71,000 euros. The tax calculation is applied after deducting from the gross income the entitled deductions, as for example the general one of 3,300 euros applicable to everybody, the deduction of 2,500 euros for each dependent child, the deduction of around 8,400 euros for each dependent disabled person and so on. The beneficiaries of such deductions are exclusively workers residing in the Slovenian state.
What is the employee-system like?
Opening up an business activity in Slovenia will also make you save money on labour force. The net earnings of a regular worker are around 700 euro per month, for 12 months, plus a holiday repayment, falling in June and more or less equal to 780 euros per year. TFR (explanation: a sort of severance pay, or deferred salary, applied to all employed workers in the private sector) and bonus salary do not exist in Slovenia. On the gross salary, the employee has to pay a contribution of 22.10%, while the employer’s share amounts to 16.10%.
Employees working for more than 4 hours per day are entitled to a paid 30-minute lunch break. Each employee on a permanent contract (40 working hours per week – 2 and a half hours of lunch break) represents for the company a total annual cost of approximately 14,000 euros.
Why to open a company abroad?
You will be wondering upon the advantages of opening a company outside your country? Well, they are many, no matter if your intention is to protect your property, manage a new business or company, to pay less taxes or leverage better conditions existing in other neighbouring countries. The process of establishing a company abroad must be carried out carefully, step by step, in compliance with the existing legislation.
The best modus operandi is to hire an expert, a professional consultant from the country you are planning to relocate, with excellent knowledge of the legislations and laws in force in his country and in Italy, as well as of the international social law. Professional advices assure security and best opportunities in this field.
For the last several years the Italian state has been hit by a significant economic crisis, accompanied by a loss of national identity and rise of uncertainty in the bureaucratic and legislative fields. This situation pushed a significant number of Italians to start looking for new and alternative solutions and escape that enchanted circle. One of the most commonly adopted solution is to leave Italy, open a company abroad, and relocate the business activities in a country with better and easier taxation and bureaucracy.
What is the cost of living in Slovenia?
The cost of living in Slovenia is certainly lower. The food is cheaper and of excellent quality. To testify that are long rows of Italians shopping in the Slovenian malls and visiting the Slovenian restaurants over the weekends. Just to make a couple of examples, a French baguette can be found at € 0.29, a litre of partially skimmed milk at approximately € 0.59, dozen eggs at € 1.10, 1.5 litres of water at € 0.19, extra virgin olive oil at € 3,5, and so on. Thanks to the low prices of quality products, you will be able to keep a higher style of life by spending less.
Why to move to Slovenia?
One of the main reasons why more and more Italians decide to move to the beautiful and nearby Slovenia are surely the much lower costs of living. Lower population density, fast and uncomplicated bureaucracy, state-of-the-art infrastructures, low taxes, and lower cost of living are all factors that push Italian citizens to move both their businesses and their lives to Slovenia. In recent years, the number of Slovenian citizenships granted to Italians has increased significantly. At this point, the reasons for this exodus are more than clear.
In which state to start your business?
The first step is to contact an expert in the field, who will inform you about the real costs, duties, taxes and bureaucratic obligations in force in the countries you are interested in. You must prepare a good and well-defined project that takes into account some important factors, such as the economic and commercial values of your project. According to your needs, we will find the most suitable country for your business. As business requirements vary from country to country, you will have to define which services or goods you want to commercialize on that market.
Leave everything else in the hands of your expert. From your part we will only need your identity card or passport, health insurance card (personal tax code) and your presence for a day in that particular country of your choice: and that’s it.
In which countries do we open societies?
You do not need to go to the other side of the world to ensure better taxation and fast bureaucracy. In fact, what we recommend is to open a company abroad in the following countries: Slovenia, Croatia, Serbia, Kosovo and Albania. The decision will depend on your activities and business needs. We offer complete services for other countries as well.
Why to open a company in Albania?
The reasons for setting up a new company in this country are the following: low taxation, easy and fast bureaucracy, cheap labour and costs of living and strategic geographical position. Taxation on ordinary income in Bulgaria is only 15% without any increase based on turnover. Who intends to open a company in Albania must take into account that in the near future the country will become a member of the European Union. The general VAT is 20%. Due to an excellent educational level of the population, the labour force is highly qualified. The average gross salary amounts to € 403, while the minimum salary is € 350.
Why to open a company in Croatia?
Croatia is geographically smaller than Italy, but it has a very complex territory, ideal for the establishment of companies. Moreover, in the past a part of Croatia was under Italy, having as the result the prevalence of the Italian language. Tax on income ranges from 12% to 18%. The ordinary VAT (in Croatian PDV) amount to 25%, 10% in tourism, catering, accommodation, and 5% on some assets. The advantages you can enjoy when you decide to open a company in Croatia are numerous and very useful for a foreign entrepreneur, as the reduction of taxes for investments and staff recruitment.
Why to open a company in Serbia?
Serbia has a very important strategic position and is certainly the heart of the Balkans. Serbia is on the crossroads of freight transport from Eastern Europe and Asia, to the countries of northern and western Europe, but also vice versa.
It is important to remember that Serbia is not part of the European Union; however, there are numerous agreements signed between this former Yugoslav republic and the European Union (egg the free trade agreement), as well as those with individual countries, even if they are not part of the Union, including agreements with Turkey and Russia, which include the abolition of customs duties in both cases.
In Serbia, the bureaucracy is lean and fast, labour costs are low and the tax pressure relatively low, especially when compared to Italy and other European Union countries.
Opening a company in Serbia is really simple. Unlike other emerging countries, in Serbia citizens and foreign companies can open a Serbian society as well. It is not necessary for part of the capital to be Serbian, just as the presence of Serbian members or administrators is not required. In practice, according to the Serbian corporate law, there is no difference between Serbian and foreign citizens.
Why to open a company in Montenegro?
Montenegro is not part of the European Union and therefore the European regulations are not applied. Despite this, the country introduced the EURO as its official currency. The corporate income tax applies to both legal entities residing in Montenegro and those residing abroad and has been set proportionately at a rate of 9%. Furthermore, this legislation established that losses (of companies at the end of the year) may be carried forward up to a maximum of 5 years following their occurrence. Furthermore, Montenegro is much more flexible in terms of cash.
Why to open a company in Albania?
Albania has very deep bonds with Italy and with the rest of Europe thanks to its proximity to the European continent. The Albanians, at least the most educated, speak Italian or English and could be employed as secretaries, salesmen or assistants. Also even not being a member of the European Union, Albania allows entry into the country with the simple identity card and permanency up to 3 months without a visa requirement.
All these conditions make Albania very attractive for a Europeans. There are not many countries offering these advantages.
But probably the most interesting reason for investing and setting up a business in Albania is that the cost of wages and commodities is extremely low compared to almost all European countries (including the Eastern countries). Tirana is one of the cheapest capitals in Europe. The competitive advantage offered is enormous: very low costs, proximity to Europe and reduced taxation.
What are the costs of living in Croatia?
Croatia became a member of the European Union during the last enlargement. Life costs are among the lowest in Europe, as for example the prices of accommodation rents which are much more affordable when compared to those in Europe. Food is in average 10% cheaper than in the res tof the Europe. In general, the monthly costs of living in Croatia are between 700 and 1,000 euros, depending on the chosen area and preferred accommodation type. The mentioned amount covers also the expenses for food, services, transportation, leaving even some extra for entertainment, numerous and really convenient.
What are the costs of living in Montenegro?
Montenegro is not part of the European Union, but nevertheless has introduced the Euro as its currency. This factor has helped the country to grow economically after the weakening period in the Nineties. The economy is based above all on agriculture and pastoralism: among other things they cultivate cereals, tobacco, vegetables and olives. The industrial sector exploits metallurgical resources and the naval shipbuilding sector is very important. Tourism is a fundamental resource for the country: it is a constantly growing sector, able to cope with the needs of different types of tourism. The monthly budget for a decent level of living in Montenegro is EUR 350.
What are the costs of living in Albania?
Albania faces Italy from the other side of the Adriatic Sea and is, for example reachable from Bari, by ferry, in a few hours. Always considered a poor country, now it is modernizing and innovating its services. Prices have remained the same, while the quality of life increased significantly. The cost of living is certainly lower than in other parts of Europe, offering a lot. That’s why many Europeans have decided to move to this country. If you consider, for example, that in Italy an average monthly salary corresponds to € 1,300, compared to the Albanian € 250, it is clear that even with a minimum pension you can do a lot. Albanian retirees, if they own a home of their own, can live very well with 100 euros a month. For example, renting an apartment in Albania costs approximately € 200, the average price for a lunch or dinner at a restaurant is € 7, a large beer will cost you € 1, 5. One hour taxi ride will cost you € 15.