Slovenia’s parliament has approved revised budgets for 2026 and 2027, advancing reforms to boost investment, strengthen public services, and streamline the tax system. Alongside the budget vote, lawmakers adopted an implementation act introducing notable tax changes—including a higher corporate income tax rate, a broadened VAT base for sugary and energy drinks, new VAT simplifications, and the planned launch of VAT groups from 2026.
Slovenia’s National Assembly has adopted amendments to the state budget for 2026 and 2027 on 19 November 2025.
The budget proposes systemic reforms to strengthen science, expand access to affordable housing, promote investment, accelerate the shift to a high-productivity economy, and bolster pensions, healthcare, resilience, and security, which remain central priorities.
In addition, the National Assembly adopted the Act on the Implementation of the Budgets of the Republic of Slovenia for 2026 and 2027, which, among other provisions, sets the flat-rate municipal payment structure.
The key tax measures of this implementation act are:
Corporate tax adjustments
One of the most notable measures affecting companies is the increase in the corporate income tax (CIT) rate. Earlier, Slovenia raised the corporate income tax burden by 3 percentage points for the period 2024–2028, raising it from 19% to 22%. Another notable aspect of the Corporate Income Tax Act is a legislative proposal to provide a 0% tax rate for investment funds.
Expanded tax base for VAT
The VAT rate on sugary beverages and energy drinks has risen from 9.5% to 22%, while the government is simultaneously working to ease VAT compliance.
Other amendments to the VAT Act introduce several simplifications, including pre-filled VAT returns, the removal of invoicing requirements for vending-machine sales, and a higher threshold for mandatory VAT registration for small taxpayers. In addition, VAT groups are expected to be introduced from 1 January 2026.
Earlier, on 15 November 2025, Slovenia’s government endorsed proposed amendments to the draft Act on the Implementation of the Budgets of the Republic of Slovenia for 2026 and 2027.
