Various financial incentives are available. They may be granted in the form of grants, loans, guarantees or subsidised interest rates, or as the purchase of property of the local community at a below-market price.
Investment incentives may be granted to a domestic or foreign legal person that invests in a company in Slovenia. Investments may be made in tangible and intangible fixed assets and should relate to the setting up of a new company, expansion of a company’s capacities, diversification of production into new products, or significant changes to a company’s entire production process.
Subsidies under general conditions are granted on the basis of a call for tenders carried out by SPIRIT Slovenia. Calls for tender are published in the Official Gazette and on SPIRIT’s website.
Grants for investments that significantly contribute to developing the Slovenian economy may be awarded without a call for tenders. Investors should send their applications for a grant to the Ministry of Economic Development and Technology (hereinafter: MGRT) using the prescribed form. At its own discretion, the MGRT issues a decision to award or refuse a grant. If a grant is approved, the MGRT, the investor and the incentive recipient enter into a grant contract. On signing the contract, the investor or the incentive recipient must provide a first-call performance bond or other appropriate security.
Loans and guarantees
Companies can receive favourable loans and guarantees by SID Bank d.d Ljubljana. Recipients must secure the loan by a lien on movable or immovable property or using other appropriate security.
Purchase of property owned by a local community at a below-market price
A local community may sell property to a company at a below-market price on the basis of a property purchase contract. The decision to sell the property at a lower than market price is adopted by the local community council.
Special rules apply to strategic investments. Investors send their applications to determine compliance with conditions for a strategic investment to the MGRT on a prescribed form. If the investment meets the conditions, the MGRT, the investor and the incentive recipient sign a contract to implement the strategic investment. On signing the contract, the investor or the incentive recipient must provide a first-call performance bond or other appropriate security.
The general corporate tax rate is 19%. Various tax allowances and tax reliefs are available (see Taxation).
To encourage employment, the Employment Service of Slovenia (ESS) applies several measures through which it advises and finally supports employers that employ new workers.
The SID Bank offers various insurance and financing services intended to stimulate Slovenian exports (see Insurance and financing of Slovenian exports).
Through public calls, the SPIRIT Slovenia co-finances companies’ individual and group presentations at trade fairs abroad, brand strengthening in foreign markets through showrooms, establishing or upgrading e-commerce in SMEs, and promoting partnerships for a more effective presence in foreign markets.
Various incentives in the forms of bank loan guarantees, grants for innovative start-ups and equity financing instruments are available to micro-, small- and medium-sized companies registered in Slovenia (including companies fully owned by foreigners) via public tenders or public calls of the SEF. SEF vouchers include co-financing of B2B events, acquisition of certificates, foreign market research analysis etc.
Municipalities may offer different forms of incentives, which are negotiated on a case-by-case basis. These incentives can include easy access to industrial sites, utility connections and local tax holidays.
In addition, tenders are open in various other areas (co-financing the purchase of new technological equipment in an SME, direct co-financing for joint development and investment projects) subject to the condition that they have operated in Slovenia for at least 1 year.
A special regime applies to high-value added companies and to innovative start-up companies. The register of high-value added companies and the register of innovative start-up companies is maintained by the SEF.
The Slovenian government has adopted a range of measures aimed at reducing the economic impact of the COVID-19 health crisis. These measures include financial compensation for temporary lay-offs, tax and loan payment deferrals, loan guarantees and financing of social contributions.