If you are advertising your flat on web-based platforms (such as Airbnb and Booking) and in other media and are renting it out to tourists, the income derived from it is subject to self-employment income tax. Renting to tourists is treated as the pursuit of a business activity. Tax returns for the prepayment of income tax and self-employment income tax must be submitted to the tax authority via eDavki by no later than 31 March of the current year for the previous year.
As an individual, you may rent out and advertise the rental of your property to tourists only provided that you have a registered rental activity. A natural person who rents out property to tourists is deemed to be performing undeclared work if he or she is not entered in the register or does not have a registered activity as required by the Prevention of Illegal Work and Employment Act (ZPDZC-1) or other acts. Since the ZPDZC-1 prohibits undeclared work, the same also applies to the advertising of undeclared work of individuals. Such advertisement is prohibited and sanctioned and the rental of property to tourists by individuals who are not properly registered for renting out property through advertisements and various web-based platforms is prohibited.
Natural persons wishing to rent out a room, a part of a flat or a whole flat to tourists for a short time period may do so in two ways:
- in the capacity of a registered landlord: a natural person who is only temporarily engaged in this activity (not more than five months in a calendar year, which means that the landlord rents out property to tourists for not more than five months, i.e. 150 days in a calendar year) and provides accommodation to 15 persons and is entered in the Slovenian Business Register;
- in the capacity of a sole trader.
The value added tax and fiscal validation of receipts
If you are let rooms through agents or web advertising agencies (Airbnb, Booking.com, etc.) established outside Slovenia you are, as the recipient of intermediary services or services of providing advertising space by these taxable persons, obliged to pay VAT on the received services in Slovenia at the general rate of 22 %. For the purpose of receiving these services, you are obliged to identify yourself for VAT purposes (even if you are not identified for VAT purposes since your turnover is less than the VAT threshold of EUR 50,000). If you are registered for VAT only as the recipient of these services (for which you must account for and pay VAT), you must supply monthly VAT returns in electronic form through the eDavki (eTaxes) system and are not eligible for VAT deduction. You must also submit a VAT return when in a particular month you do not receive a service that is subject to VAT (in such case, you must submit a blank VAT return form). In the case of such identification for VAT purposes for other supplies made in Slovenia you are not required to account for VAT (until you have reached the EUR 50,000 VAT turnover threshold for the past 12 months).
When you exceed the aforementioned EUR 50,000 turnover threshold, you must identify yourself for VAT purposes (mandatory VAT identification ) and also charge VAT on all supplies carried out in the territory of Slovenia. At the same time the landlord obtains the right to deduct VAT. You may also choose to register for VAT before the turnover threshold is exceeded (voluntary registration). In this case you must stay in the VAT system for at least 60 months.
You must issue an invoice to the guest to whom the service was provided (renting real estate to tourists) and the invoice must be tax verified, regardless of your identification for VAT purposes.
Illegal rental of property to tourists is fined between EUR 400 and EUR 30,000. Failure to submit a VAT return is fined between EUR 2,000 and EUR 125,000.
Registered landlords, i.e. natural persons who are only temporarily engaged in property rental activity, are mandatorily included in the eVročanje (eService) system. This means that they will be served with documents electronically via the eDavki system and notin paper form by post. For more detailed information, see the website of the Financial Administration of the Republic of Slovenia.