Slovenia is not exactly a tax haven in the EU, however, tax burdens are among the lowest in the share of GDP

Social security contributions, especially from households, are among the highest in the EU

28. september 2018 ob 21.23 • Ljubljana - MMC RTV SLO

The share of all tax revenues in Slovenia's gross domestic product (GDP) amounted to 22.1 percent (data from 2016), which ranks Slovenia in the 21st place in the European Union. Foto: BoBo

The public has long been convinced that Slovenia is one of the most ungracious countries when it comes to taxation, especially in the economic field. However, the comparisons of the national statistic (SURS) with other European countries, show that taxes in Slovenia are quite average.

The share of all tax revenues in Slovenia's gross domestic product (GDP) amounted to 22.1 percent (data from 2016), which ranks Slovenia in the 21st place in the European Union. GDP was also lower compared to all neighboring countries. Hungary (25.6 percent of GDP) and Croatia (26 percent of GDP) are under the EU average, on the other hand, Italy with 29.6 percent of GDP and Austria with 27.4 percent of GDP are above the European average. Denmark, Sweden, and Finland have the highest tax burden.

In terms of the share of GDB, Slovenia collects 5.5 percent less than the EU average from income tax and personal income tax, however, higher shares come from taxes on production and imports, excise duties and VAT.

"Tax burdens in Slovenia are a bit lower than in the European Union, however, on the other hand, the social security contributions are slightly higher. Tax revenues are about 4.5 percentage points lower. Social security contributions are higher mainly due to higher contributions by households, which are 3.4 percentage points higher. Social security contributions are 1.4 percentage points lower than in the European Union," explained the director general of the SURS, Genovefa Ružić.

Above average social contributions
Social security contributions in Slovenia amounted to 14.8 percent of GDP, which, according to Ružić, puts Slovenia in the 6th place in the European Union. 60.1 percent are contributed by households, while employers' social contributions amounted to 37.7 percent of total contributions. »Sweden, Denmark, and Ireland have the lowest social security contributions, which means, some countries have high contributions and lower taxes, and vice versa. It is difficult and maybe even inappropriate to make a detailed comparison between the countries because tax systems vary widely across countries,« said Ružić, adding that it is always necessary to look at the overall tax burden and social security contributions as a share of GDP. Slovenia is below the European average, which is 39.8 percent of GDP.

Slovenia is in the middle of the European Union
Last year, tax revenues and social security contributions in Slovenia amounted to 36.9 percent of GDP, while the EU average was 39.8 percent (data from 2016, however, according to SURS, 2017 won't be much different).

In terms of revenue from taxes and social transfers, Slovenia ranked 14th, which means it is in the middle of the European Union countries.