Everyone opening a sole proprietorship (s.p.) in Slovenia hits the same question: flat-rate or standard s.p.? The answer determines how much tax you pay and how much paperwork you face – and from 2026 the rules for flat-rate traders have changed significantly. In this article we compare both options in plain language.
Disclaimer: this article is informational and does not replace tax advice. Before deciding, consult an accountant and check the current guidance from the Slovenian tax authority (FURS).
The flat-rate s.p. in brief
With a flat-rate s.p. you don't prove actual costs – FURS recognises a fixed percentage of your revenue as expenses. This means minimal administration and a predictable tax bill. The taxation is schedular (final), meaning it is not included in the annual income-tax return.
What changed in 2026
Under the new legislation, new rules apply to flat-rate traders:
- Higher entry thresholds – you can stay in (or enter) the system if the average revenue of the two preceding consecutive years does not exceed €120,000 (a full s.p. insured mainly through self-employment) or €50,000 (an after-hours s.p.); a middle threshold applies when combining both statuses.
- Flat-rate expenses – recognised at 80% of revenue up to €60,000 of annual revenue; for revenue above that limit, flat-rate expenses are no longer recognised.
- Progressive taxation – the tax base is taxed at 20%, with the part of the base above the statutory limit taxed at 35%.
The practical upshot: for revenue up to €60,000 the flat-rate s.p. remains extremely favourable (effectively around 4% tax on revenue), while at higher revenues the burden rises quickly and the calculation can tip in favour of actual expenses.
The standard s.p. (actual expenses) in brief
- Tax base = revenue minus actual, documented business costs.
- Taxed on the progressive income-tax scale, with possible reliefs (general, dependants, investment).
- Mandatory bookkeeping – usually with an accountant.
- Makes sense when you have high actual costs: premises rental, equipment, materials, subcontractors, business travel.
Quick comparison
| Criterion | Flat-rate sole trader | Standard sole trader |
|---|---|---|
| Administration | Minimal | Full bookkeeping, accountant |
| Recognised expenses | Lump sum (80% up to €60,000 revenue) | Actual, documented |
| Taxation | Final (schedular), 20%/35% of base | Progressive income-tax scale with reliefs |
| Tax predictability | High | Depends on the business |
| Best when | Low costs, service activities | High costs, investments |
Example calculation (simplified)
A service s.p. with €60,000 of annual revenue and €8,000 of actual costs: as a flat-rate trader it has a tax base of €12,000 (20% of revenue) and pays around €2,400 in final tax. As a standard s.p. its base would be €52,000, taxed on the income-tax scale – noticeably more, even with reliefs. The reverse picture: an s.p. with high costs (materials, rent, subcontractors) will almost always be better off with actual expenses.
What this means for your workspace
A detail many overlook: with a standard s.p., renting a workspace is a tax-deductible expense – including a coworking membership. At makerSP_CE you receive an invoice with VAT for your rental, which your accountant books easily. For a flat-rate trader, costs don't affect the tax – which makes it all the more important that they stay low and predictable: from €135 incl. VAT per month with everything included.
Frequently asked questions (FAQ)
By when do I register the flat-rate scheme?
When registering the s.p., or by application to FURS no later than 31 March for the current tax year.
Can I switch from flat-rate to actual expenses?
Yes, switching is possible; the rules for (re-)entry and exit changed during 2026, so check the specific deadlines and conditions with FURS or an accountant.
What happens if I exceed the revenue threshold?
If the average revenue of two consecutive years exceeds the statutory limit, you must leave the flat-rate expenses scheme and switch to actual expenses.
Conclusion
A rough guide: low costs and revenue up to €60,000 argue for the flat-rate scheme, while high costs or higher revenue argue for a standard s.p. – leave the final calculation to an accountant. Whatever you choose, one thing holds: a professional working environment pays off in both regimes. Try makerSP_CE for a day and work like a professional from your very first invoice.
🚀 Ready for a change? Book your spot at the makerSP_CE coworking space today. makerspace.si | rezervacije@makerspace.si | +386 30 393 405
Related reading
- Tax-deductible expenses for a sole trader
- 5 reasons freelancers choose coworking
- What is a coworking space?