What is an s.p. and what to be careful about

If you are thinking about opening an s.p. in Slovenia, here’s some information you should know.

Becoming a sole proprietor can mean different things depending on who you are working for:

If possible, avoid working for a single customer, for example Wolt or possibly your employer, who might offer you a higher wage if you switch to s.p. It often leads to the same dependent and exploitative relationships as in any other form of employment – only with less rights. That’s because on paper you are self employed and considered an independent entrepreneur, taking the full responsibility of a formal employer. But in reality, being dependent on a single customer means that you are actually employed, but without any legal protection or means to bargain about the conditions of your work.
If you have a business idea and your own customers, than it is a business: you carry the risk and potentially reap the reward.
If you are already employed and are looking for additional work, an afternoon s.p. (popoldanski s.p.) might be a relatively convenient way to earn additional income. See about popoldanski s.p. at the end of the page.

‼️VERY IMPORTAINT: You will need to earn more than cca 37.000 € in a year otherwise you won’t be able to extend your residence permit base on self employment.

In any case keep in mind that when you are s.p.:

no one is obliged to pay you a minimum wage. In employment some employers might pay you less than that or pay part of it in cash, but they are breaking the law. That might be cold comfort, but at least theoretically there is some possibility to hold them to account. If you are s.p. they can pay you however little legally.
you need to pay your own taxes. Even if you don’t earn enough to cover the minimal tax (615€ per month or 105,75 € for popoldanski s.p.) that is your responsibility, not your employer’s.
you are solely responsible for your working hours, so if you are working 12 hour shifts there is no one to hold accountable for that.
You have no paid sick leave for the first 31 days of sickness – when you don’t work, you don’t get paid. After 31 days the state will cover your sick leave.
You have no paid vacation – when you don’t work, you don’t get paid.

How to change your residence permit to s.p.

If s.p. seems like a good option in your circumstances, below is the outline of a procedure to open it.

First you need to be a resident in Slovenia for at least 1 year before you can apply.

After 1 year you can register the s.p. at one of the SPOT points. You will need:

You’ll need certificates from your country proving that you haven’t been found to be criminally responsible for economic crimes; you haven’t been fined for wrongdoing related to worker’s rights and you do not have unpaid taxes.
If your country does not issue those certificates you can sign a statement stating that and declaring that none of the above circumstances apply to you.
You’ll need a personal document, tax number and an address where you’ll register the s.p. and a consent of the owner of that building (consent form).

When the s.p. is opened you’ll need to open a bank account at a bank of your choice.

When the s.p. is opened you can apply for a residence permit based on self employment at the Upravna enota. Application form is available here. English instructions, including which supporting documents you need are here. You’ll need:

a photograph and passport.
If you do not currently have health insurance in Slovenia, you’ll need one and attach a proof (but if you are currently employed you are already insured, so this is covered)
You will also need to prove you have sufficient means to support yourself, which is currently 494.09 €/month (and if you have family in Slovenia 291.51 € for each child). The amounts change every year, you can check the current stat on the government website.

If you are switching from employment to s.p. You can prove sufficient means by showing your pay slips and bank account statements for the last 6 months + current month, but there is a catch

‼️When you will try to extend your residence permit based on self employment (for example after one year) you will have to prove sufficient means by s.p. earnings. Because of the way s.p. Are regulated only 16 % of your income counts as earnings, meaning you need to reach the cenzus with those 16 %. In practice this means you have to earn more than 37.000 € per year or 3100 per month to prove sufficient means.

Costs and how to bring them down

After your s.p. is open you’ll have some fixed costs each month. See what you’ll have to pay each month and how to bring the costs down a little on the link.

After your s.p. is open you’ll need to pay:

social security contributions in the prescribed minimum amount each month. The minimum amount rises every year, currently it is 614,83 €. For “popoldanski s.p.” it is 105,75 €.
4% of your earnings each month (you’ll have to estimate how much you’ll earn in the beginning and for the first few months you’ll pay based on that estimate).
After the end of the year (until March 31st next year) you have to file an income tax declaration at the tax office stating your total income earned through s.p. in the last year.

How to bring the costs of s.p. down:

Each month you’ll have to pay 5 different taxes and social security contributions, which brings banking costs with each transaction. To bring those down and make payments easier you can apply for an eInvoice in your online bank. This way you’ll pay everything in one transaction. The instructions how to set it up are here.
When you open an s.p. accounting firms will offer you to take care of your accounts for a fee and they may charge an additional fee for communicating in English. Usually the accounting firms will only provide a storage for your invoices, while you will still have to issue them yourself and take care of your taxes. Check carefully what they will do for that fee and think if you can do it alone.

“Popoldanski” s.p.

“Popoldanski” s.p. means an “afternoon” s.p., which you can use to earn additional money besides earning from employment. The process of opening the s.p. is the same. The difference is that you pay lower social security contributions (105,75 € per month). That is only possible if you are already fully employed (for 40 hours/week), you cannot have a popoldanski s.p. if you are not fully employed elsewhere. In case of popolandski s.p. you do not need to change your residence permit, so you can just go to the SPOT point and open it (see above).