Why Slovenia Beats Italy for Foreign Company Owners

Slovenia and Italy are neighbouring EU countries in the Schengen Zone and have strong business cultures.
However, when starting and running a company as a foreigner, Slovenia clearly takes the lead.

So, why do we think Slovenia is a smarter, faster, and more tax-efficient choice than Italy?

📊 1. Tax System: Slovenia Is Simpler and More Favourable

🔹 Slovenia:

• Corporate income tax (CIT) – 22%
  
• Dividends are taxed at 25%, with possible exemptions under EU rules
• User-friendly tax filing and online reporting
• Moderate level of audits and compliance burden

🔸 Italy:

• Corporate tax (IRES) – 24%
  
• Additional regional tax (IRAP) – 3.9–4.8%, depending on location
• Complex tax reporting and a mandatory certified accountant
• High penalties and frequent audits

✅ Conclusion: Slovenia offers lower tax rates and simpler administration.

⚖️ 2. CFC Rules (Controlled Foreign Companies): Italy Is Stricter

Slovenia:

• CFC rules apply primarily to low-tax/offshore jurisdictions
• No aggressive enforcement toward transparent EU structures

Italy:

• CFC rules are much stricter
• Even EU companies can be treated as CFCs if:
  
  • Over 50% control by an Italian tax resident
  • The effective tax rate is less than 50% of the Italian standard
• High risk that foreign business income is attributed to the individual and taxed in Italy

✅ Conclusion: Slovenia poses less CFC-related risk to foreign company owners.

📄 3. Licensing and Company Setup: Bureaucracy vs Efficiency

Slovenia:

• Fully online company registration via the e-VEM portal
• Set up a d.o.o. (LLC) in just 3–7 business days
  

Italy:

• Requires a notary to register an s.r.l. (LLC equivalent)
  
• Often takes 2–4 weeks
  
• Licensing depends heavily on region, local chambers, and may delay operations

✅ Conclusion: Slovenia is faster, more digital, and easier to navigate.

💼 4. Cost of Running a Company

✅ Conclusion: Slovenia is more affordable to set up and maintain a business.

🏡 5. Residence Permits and Living Options

In Slovenia, owning an active company can qualify you for a residence permit, provided you meet specific business activity criteria (e.g., office, turnover, employment).

In Italy, getting a residence permit through business requires significantly more capital and time, often with minimum investments of €250,000+.

✅ Slovenia offers a more realistic path to EU residency for entrepreneurs.

🧠 Final Thoughts

If you’re a non-EU national looking to start a company in Slovenia, here’s why it’s the better choice:

✅ A simpler, lower-tax legal environment
✅ Minimal CFC complications
✅ Fast company formation
✅ Lower operating costs
✅ A viable route to Slovenia residence permit

✅ Want to Start Smart?

MyGlobal helps you:
✔️ Register a new company
✔️ Buy a ready-made company
✔️ Obtain residence permits
✔️ Stay legally in the EU📩 Contact us via www.myglobal.si — and let’s get started!