Slovenia

Business Environment

Opening hours: Offices open from 7.30 AM or 8 AM to 3 PM.

Exchange rate

Current rate: Exchange rate on :

Source: Oanda, XE

Monetary indicators	2004	2005	2006
Average annual exchange rate for 1 USD	192.38	192.71	191.03

Source: World Bank - World Development Indicators

Standards

Domestic framework and international association: The products that satisfy the Slovenian standards are characterised by three letters, namely,JUS. Some standards are obligatory.
The Slovenian Republic's Office for standards and metrology is the competent body dealing with standards and the observance of these standards. The Slovenian standards vary very often as compared to the European ones. Generally the importer must adapt himself to the Slovenian rules: the characteristics of the product must be described in Slovene, the country of origin must be indicated along with weight and ingredients (among others). The Health Institute and the Veterinary Faculty supply lots of information concerning the field of health and cost of laboratory analysis. As for the information relating to packing, information can be obtained from the National Testing Laboratory.

Legal framework

Independence of justice: Slovenia is a republic state based on parliamentary democracy. Since its independence from Yugoslavia in 1991, Slovenia (official name: Republic of Slovenia) has enjoyed substantial economic and political stability. It also became a member of European Union (EU) in 2004.
President is the head of the state and is elected by a popular vote for a five-year term. President is commander-in-chief of the armed forces. The role of the President is largely ceremonial. Following parliamentary (the lower house) elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
The legislature is bicameral in Slovenia. The parliament consists of: National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms, and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly, often expressed through a vote of confidence. Prime Minister cannot dissolve the parliament, only President can do so incase such circumstances exist. The people of Slovenia have considerable political rights.
Judiciary in Slovenia is largely independent, though it is overburdened with some criminal cases which are taking long time to close. The main source of the law is the constitution of 1991. The country’s legal system is based on civil law system. Being a member of the EU, the national law in Slovenia needs to comply with the conditions of the Community legislation. The judicial language used in the country is Slovenian; having an interpreter is possible.
Slovenia is ruled by law. Foreign nationals can normally expect a free trial from the country’s judicial system. Corruption is a major concern in the country. Though it is less than those East-Central European nations entering the EU, the most general forms of corruption in the country involve conflicts of interest among government officials, an intertwining of the public and private sectors, and relying on official connections to obtain lucrative government contracts for private businesses.
Equal treatment of nationals and foreigners: Slovenia is a republic state based on parliamentary democracy. Since its independence from Yugoslavia in 1991, Slovenia (official name: Republic of Slovenia) has enjoyed substantial economic and political stability. It also became a member of European Union (EU) in 2004.
President is the head of the state and is elected by a popular vote for a five-year term. President is commander-in-chief of the armed forces. The role of the President is largely ceremonial. Following parliamentary (the lower house) elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
The legislature is bicameral in Slovenia. The parliament consists of: National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms, and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly, often expressed through a vote of confidence. Prime Minister cannot dissolve the parliament, only President can do so incase such circumstances exist. The people of Slovenia have considerable political rights.
Judiciary in Slovenia is largely independent, though it is overburdened with some criminal cases which are taking long time to close. The main source of the law is the constitution of 1991. The country’s legal system is based on civil law system. Being a member of the EU, the national law in Slovenia needs to comply with the conditions of the Community legislation. The judicial language used in the country is Slovenian; having an interpreter is possible.
Slovenia is ruled by law. Foreign nationals can normally expect a free trial from the country’s judicial system. Corruption is a major concern in the country. Though it is less than those East-Central European nations entering the EU, the most general forms of corruption in the country involve conflicts of interest among government officials, an intertwining of the public and private sectors, and relying on official connections to obtain lucrative government contracts for private businesses.
The language of justice: Slovenia is a republic state based on parliamentary democracy. Since its independence from Yugoslavia in 1991, Slovenia (official name: Republic of Slovenia) has enjoyed substantial economic and political stability. It also became a member of European Union (EU) in 2004.
President is the head of the state and is elected by a popular vote for a five-year term. President is commander-in-chief of the armed forces. The role of the President is largely ceremonial. Following parliamentary (the lower house) elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
The legislature is bicameral in Slovenia. The parliament consists of: National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms, and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly, often expressed through a vote of confidence. Prime Minister cannot dissolve the parliament, only President can do so incase such circumstances exist. The people of Slovenia have considerable political rights.
Judiciary in Slovenia is largely independent, though it is overburdened with some criminal cases which are taking long time to close. The main source of the law is the constitution of 1991. The country’s legal system is based on civil law system. Being a member of the EU, the national law in Slovenia needs to comply with the conditions of the Community legislation. The judicial language used in the country is Slovenian; having an interpreter is possible.
Slovenia is ruled by law. Foreign nationals can normally expect a free trial from the country’s judicial system. Corruption is a major concern in the country. Though it is less than those East-Central European nations entering the EU, the most general forms of corruption in the country involve conflicts of interest among government officials, an intertwining of the public and private sectors, and relying on official connections to obtain lucrative government contracts for private businesses.
Having recourse to an interpreter: Slovenia is a republic state based on parliamentary democracy. Since its independence from Yugoslavia in 1991, Slovenia (official name: Republic of Slovenia) has enjoyed substantial economic and political stability. It also became a member of European Union (EU) in 2004.
President is the head of the state and is elected by a popular vote for a five-year term. President is commander-in-chief of the armed forces. The role of the President is largely ceremonial. Following parliamentary (the lower house) elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
The legislature is bicameral in Slovenia. The parliament consists of: National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms, and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly, often expressed through a vote of confidence. Prime Minister cannot dissolve the parliament, only President can do so incase such circumstances exist. The people of Slovenia have considerable political rights.
Judiciary in Slovenia is largely independent, though it is overburdened with some criminal cases which are taking long time to close. The main source of the law is the constitution of 1991. The country’s legal system is based on civil law system. Being a member of the EU, the national law in Slovenia needs to comply with the conditions of the Community legislation. The judicial language used in the country is Slovenian; having an interpreter is possible.
Slovenia is ruled by law. Foreign nationals can normally expect a free trial from the country’s judicial system. Corruption is a major concern in the country. Though it is less than those East-Central European nations entering the EU, the most general forms of corruption in the country involve conflicts of interest among government officials, an intertwining of the public and private sectors, and relying on official connections to obtain lucrative government contracts for private businesses.
Sources of the law and legal similarities: Slovenia is a republic state based on parliamentary democracy. Since its independence from Yugoslavia in 1991, Slovenia (official name: Republic of Slovenia) has enjoyed substantial economic and political stability. It also became a member of European Union (EU) in 2004.
President is the head of the state and is elected by a popular vote for a five-year term. President is commander-in-chief of the armed forces. The role of the President is largely ceremonial. Following parliamentary (the lower house) elections, the leader of the majority party or the leader of a majority coalition is usually nominated to become Prime Minister by the President and elected by the parliament to serve a four-year term. Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The Council of Ministers (cabinet) is nominated by the Prime Minister and elected by the parliament.
The legislature is bicameral in Slovenia. The parliament consists of: National Assembly (the lower house) having 90 seats; out of which 88 are elected through proportional voting and 2 members elected by ethnic minorities to serve four-year terms, and the National Council (the upper house, more like an advisory body) having 40 seats; with its members elected indirectly (members representing social, economic, professional, and local interests) to serve five-year terms. National Assembly is the most important power centre in the country. The executive branch of government is directly or indirectly dependent on the support of the National Assembly, often expressed through a vote of confidence. Prime Minister cannot dissolve the parliament, only President can do so incase such circumstances exist. The people of Slovenia have considerable political rights.
Judiciary in Slovenia is largely independent, though it is overburdened with some criminal cases which are taking long time to close. The main source of the law is the constitution of 1991. The country’s legal system is based on civil law system. Being a member of the EU, the national law in Slovenia needs to comply with the conditions of the Community legislation. The judicial language used in the country is Slovenian; having an interpreter is possible.
Slovenia is ruled by law. Foreign nationals can normally expect a free trial from the country’s judicial system. Corruption is a major concern in the country. Though it is less than those East-Central European nations entering the EU, the most general forms of corruption in the country involve conflicts of interest among government officials, an intertwining of the public and private sectors, and relying on official connections to obtain lucrative government contracts for private businesses.

Intellectual Property

Domestic network and international agreements: In Slovenia, the duration of validity of a patent is twenty years. However, at the end of the ninth year during the period of validity, the owner of the patent must prove that his patent corresponds to the initial criteria furnished. If not, the patent is not valid. It is also possible to acquire a patent valid for 10 years. The characteristics of this patent are as follows : the procedure is flexible and the concept of innovation is toned down. These rules are applied in Slovenia. As for foreign companies, Slovenia follows the Paris Convention. This means that a foreign company having applied for a patent in one of the signatory countries also benefits from the protection of its patent in Slovenia within one year. Moreover, Slovenia is signatory to the European Patent Organisation. That is to say that the owner of the patent who is a member of that organisation can extend protection of his patent to different countries (members of that organisation too) by paying registration charges. He can therefore do so in Slovenia, by paying about 200 DEM to a Slovenian office. Rules on patents are consequently the same as the Slovenian ones.
As for trademarks, their protection is valid for ten years and can also be renewed. Trademark counterfeiting can be contested only three years after its registration. Slovenia is a member of the Madrid Convention. The registration of Trademarks is international : the features of protection are also applicable in Slovenia, but only after registration of the trade mark in a Slovenian Office. The rules are the same as those for other trademarks registered in the country.
Industrial designs and models get protection for ten years. The Slovenian protection is limited to an aesthetic character.
The designations of origin. This is a concept that is used by many in Slovenia. The institution responsible for recognition of these Controlled Designations of origin (AOC/CDO) is the Economic Chamber of Slovenia.
As for industrial property, Slovenia concedes the same rights of protection as the European Union subsequent to the signature to an agreement of co-operation between the two parties.

Texts currently applying to patents/brands

Type	Text	Date entered into law	Period of validity	Remarks
Patent	Law on Industrial Property. Consolidated text of the Law on Industrial Property of March 20, 1992, as amended and supplemented by the Law amending and supplementing the Law on Industrial Property of May 29, 1993	:	20 years	:
Trademark	Law on Industrial Property. Consolidated text of the Law on Industrial Property of March 20, 1992, as amended and supplemented by the Law amending and supplementing the Law on Industrial Property of May 29, 1993	:	10 years, renewable for further 10-year periods	:
Design	Law on Industrial Property. Consolidated text of the Law on Industrial Property of March 20, 1992, as amended and supplemented by the Law amending and supplementing the Law on Industrial Property of May 29, 1993	:	10 years	:

Tax rates

Consumption taxes

Tax rate: 20%. The government is considering increasing VAT to 21%.
Reduced tax rate: There is a reduced rate of 8.5%.
Other consumption taxes: >> To get further information on VAT rates, please check the list of VAT rates applied within the European Union

>> More detailed information on excise duties is available concerning alcoholic beverages, tobacco products, energy products on the European Commission website.

Corporate taxes

Tax rate on long-term capital gains: Capital gains are included in the taxable income and taxed at the same rate as the corporate tax.
System governing groups of companies and dividends paid by subsidiaries to their parent companies: The paying company withholds tax at 25% on each distributed dividend to a resident of Slovenia and at 15% on each distributed dividend to a non-resident unless otherwise provided by a tax treaty.
Tax rate on branches: Foreign branches are taxed on profits made in Slovenia at a 25% tax rate.

Individual taxes

Allowable deductions and tax credit: In Slovenia, taxpayers can deduct 11% of their annual income.
The families which have dependent children can deduct 10% of their annual income for the first child and 5% more for every additional child.
A deduction of 3% is granted to the taxpayers which have invested in the purchase of an active immovable property.
Living allowances, hospitalization expenses, etc. are deductible.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the convention signed on the website of the Ministry of Finance.

Sources of fiscal information

Tax Authorities: Slovenia Taxes; Customs Administration of the Republic of Slovenia

Accounting rules

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting standards: The New Slovenian accounting system was finalized in accordance with international accounting standards and general accounting principles accepted in the European Union.
The accounting procedures and the structure of accounts were clearly defined in the "Slovene Accounting Standards" (SIEVES) established in 1993.
Accounting reports: The Slovenian accounting adopts the principle of double entry. Trading companies must publish an annual report which must be disclosed within a period of 2 months after the end of the fiscal year, to the Republic of Slovenia Agency for the payment, the surveillance and the information.
Accountancy profession: The "Slovenski Institut za revizijo" is an Institute of audit is in charge of the establishment of accounting procedures and audit.
Certification and auditing: The Slovenian Republic Agency for Payment, Surveillance and Information must give everyone, on simple request, the annual report data of any company.
The audit Law adopted in June, 1993 harmonizes the Slovenian audit procedures with those defined by the directive VII of the European Union and the International Union of Chartered accountants.