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Slovenia R&D & Investment Incentives Guide

Slovenia offers generous tax incentives for research and development, including a 100% deduction of qualifying R&D costs from the corporate tax base and a 15% tax credit on R&D expenditure. Investment relief allows 40% of capital investment in new equipment and intangible assets to be deducted. These incentives significantly reduce effective corporate tax rates for innovative companies.

Finančna uprava RS (FURS) administers these incentives. For related guidance, see our Corporate Tax Guide →.

R&D Tax Deduction

  • 100% deduction of qualifying R&D costs from the corporate tax base.
  • Qualifying costs include: wages of R&D personnel, materials and supplies used in R&D, depreciation of R&D equipment, external R&D services, and intellectual property registration costs.
  • The deduction applies to both in-house R&D and contracted R&D with approved research institutions.
  • Unused deductions may be carried forward for up to 5 years.

R&D Tax Credit

  • 15% tax credit on qualifying R&D expenditure, creditable directly against CIT liability.
  • The credit is calculated on the same qualifying costs as the R&D deduction (but the two cannot be claimed simultaneously on the same expenditure).
  • Unused credits may be carried forward for up to 5 years.
  • Small and medium-sized enterprises (SMEs) may benefit from enhanced rates or simplified application procedures.

Investment Relief

  • 40% of capital investment in new equipment and intangible assets may be deducted from the tax base.
  • Maximum annual deduction: EUR 40,000.
  • Qualifying assets include: new machinery, production equipment, computer hardware, and acquired patents or licenses.
  • Used or second-hand equipment does not qualify.
  • Unused relief may be carried forward for up to 5 years.

Employment Incentives

  • Young workers: Employers hiring workers under age 26 may claim a deduction of up to 50% of gross wages for the first 24 months.
  • Older workers: Deduction for hiring workers over age 55.
  • Long-term unemployed: Additional tax relief for hiring persons unemployed for more than 6 months.
  • Apprentices: Deduction for costs related to apprenticeship programs.

Qualification & Application

  • R&D activities must be systematic and creative work undertaken to increase knowledge or develop new products/processes.
  • Companies must maintain proper documentation: project plans, cost records, personnel details, and technical reports.
  • FURS may request technological validation from the relevant ministry or research agency.
  • Advance rulings on R&D eligibility are available from FURS.