Destinations Catalog

The Republic of Slovenia

Slovenia
Population:
2 069 362
Capital:
Ljubljana
UTC:
+01:00
Ease of Doing Business Index:
37
Currency:
EUR ($1 = EUR 0.90)
Unemployment Ratio:
12.6%
Income Tax:
16-50%
Corporate Income Tax:
19%
Social Tax:
16.10% - 22.10%
Notice Period:
15-80 days
Dismissal Period:
7-15 days
Turnover Ratio:
$3750 million
Office Rent:
$7-18/m2
IT Headcount:
20 975
IT Graduates:
4 000
Average Salary
Junior
Middle
Senior
Lead
$ 1 150
$ 2 100
$ 3 000
$ 4 000
English Level
Very High Proficiency
Main IT Outsorcing Destinations
Cities
IT Headcount
Main IT Outsorcing Destinations
Cities
IT Headcount
Slovenia
Country Description

Slovenia is the country which located in Southern Europe with the population a little bit over 5.5 mln people. Despite its small size, the government does everything possible to attract foreign investment into various sectors of the country's economy. As to the IT industry, the key factors that impact its growth are systematic human development, well-developed ICT infrastructure, and government commitment. Moreover, the country does its best to benefit from the EU policies aimed at involvement into target-oriented technology platforms within the European and national research programmes.

Population
2 069 362
Capital
Ljubljana
UTC
+01:00
Currency
EUR ($1 = EUR 0.90)
Ease of Doing Business Index
37
Unemployment Ratio
12.6%
Income Tax
16-50%
Corporate Income Tax
19%
Social Tax
16.10% - 22.10%
Notice Period
15-80 days
Dismissal Period
7-15 days
Turnover Ratio
$3750 million
Office Rent
$7-18/m2
IT Headcount:
20 975
IT Graduates:
4 000
Average Salary
Junior
Middle
Senior
Lead
$ 1 150
$ 2 100
$ 3 000
$ 4 000
English Level
-------

Country Description

Slovenia is the country which located in Southern Europe with the population a little bit over 5.5 mln people. Despite its small size, the government does everything possible to attract foreign investment into various sectors of the country's economy. As to the IT industry, the key factors that impact its growth are systematic human development, well-developed ICT infrastructure, and government commitment. Moreover, the country does its best to benefit from the EU policies aimed at involvement into target-oriented technology platforms within the European and national research programmes.

Income Tax

Corporate Income Tax is levied on the profit of private enterprises at a rate of 19 % with a deduction amounting to 0 % under certain conditions to “investment funds, pension funds, and insurance undertakings for pension plans”. There are also deductions possible in case if companies are in special economic zones, e.g. companies with an income of less than “€50,000/100,000 in the previous year can deduct, under certain terms, expenses up to 80% of the annual income without documents”.

Personal Income Tax rate depends on the income amount, therefore:

  • up to €8 021 – 16%
  • €8 021 – €20 400 – 27%
  • €20 400 – €48 000 – 34%
  • €48 000 – €70 907 – 39%
  • over €70 907 – 50%

Also Personal Income Tax at 25% and is imposed on dividends, interest and rental income. Capital gains rate depends on a holding period and reduces the longer the period is. Hence:

  • 25% – a holding period up to 5 years
  • 15% – a holding period from 5 to 10 years
  • 10% – a holding period from 10 to 15 years
  • 5% – a holding period from 15 to 20 years
  • tax exepmtion in case of a holding period 20+ years

Social Тax

Social Security payments are made by both individuals and employers, therefore

  • Social Security Tax for employers amounts to 22.10%
  • Social Security Tax for employees amounts to 16.10%

Notice Period

According to Slovenian legislation, all terms for the notice period are stipulated by the Employment Relationship Act. Based on the document, in case of termination of an employment agreement between the parties, the notice period lasts for

  • 15-60 days depending on the employment period
  • 80 days – 25+ years of employment (different circumstances included; however, the period shall not be less than 60 days)

Notice period may also be reduced in exchange for money compensation. All other terms may be negotiable upon mutual consent between the parties.

Dismissal Conditions

Slovenian legislation envisages both ordinary (with a notice period) and summary (without a notice period) dismissals.

In case of ordinary dismissal, the employment contract can be terminated by the employer in the following cases:

  • business reasons
  • reasons of incapacity
  • failing to perform duties due to disability
  • unsuccessful completion of probationary period

Summary dismissal may be aaplied in the following cases:

  • violation of obligations upon the contract
  • proiding false information by the candidate during the selection procedure
  • failing to come to work for 5 consecutive days
  • prohibition to work due to court decisions or imprisonment

Hiring Period

up to 6 months

Office Rent

Office rent in Ljubljana varies between $7-182 depending on whether it is furnished or not. It should be noted that the price doesn’t include management cost of $2.40-3/m2.

IT Headcount

Today almost 21K engineers are employed in the Slovenian IT sector in over 3200 companies. Slovenian companies are also establishing their presence in foreign markets by investing in other European tech companies, especially south-east ones. Amidst the local companies, international corporations have established their offices and R&D in Slovenia like Hewlett-Packard, IBM, Microsoft, and many others.

IT Graduates

One of the key prerogatives of the Slovenian government is also a huge focus on education. Up to 6 thousand students annually apply to obtain technical education, however, a little bit over 4 thousand enroll and graduate. Owing to numerous programs and grants, the graduates get a chance for employment or internship in the Slovenian tech companies which is another attractive point in favor of the ICT industry.

As to the institutions tha provide educations and training required for joining the local IT arena are:

  • University of Ljubljana
  • University of Maribor
  • Chamber of Commerce and Industry of Slovenia
  • ICT Technology Network
  • Institute for Project Management & Information Technology
  • Jozef Stefan Institute

Average Salary

The salaries of IT specialists in Slovenia are comparatively high and depend on the experience and position:

  • Junior Software Engineer – $1150
  • Middle Software Engineer – $2100
  • Senior Software Engineer – $3000
  • Technical Lead – $4000+
Need to compare any destinations? Add the destination to your comparison list.