Development Act envisages tax relief and improvements to the business environment in Slovenia

Key measures include a reduction in value added tax (VAT) on basic foodstuffs, the possibility of temporarily reducing VAT on certain energy products, the introduction of a cap on the assessment base for social security contributions, and more favourable tax arrangements for sole proprietors. The Act also provides for the possibility of receiving a full old-age pension while remaining in employment, as well as tax incentives for long-term residential rentals.

One of the key changes affecting the business environment is the introduction of a cap on the monthly gross assessment base for social security contributions, set at EUR 7,500. The measure aims to reduce the tax burden on highly skilled labour and enhance Slovenia's competitiveness in attracting and retaining qualified professionals. The Act also raises the revenue thresholds for eligibility for the flat-rate expenses taxation scheme and envisages lower social security contributions for self-employed persons and farmers with the lowest incomes.

In the healthcare sector, the Act amends the rules governing cooperation between public healthcare institutions and private healthcare providers. In the area of long-term care, it provides for an exemption from long-term care contributions for pensioners and certain categories of individuals carrying out supplementary activities. In the housing sector, the Act envisages lower taxation of rental income from immovable property and additional tax incentives for long-term residential rentals to young people and young families.

The National Assembly of the Republic of Slovenia adopted the Act on 11 May 2026. However, it has not yet entered into force due to the initiation of a referendum procedure.