Taxation of capital gains in 2020

27 February 2020

Along with the package of amendments to the Personal Income Tax Act (Zdoh-2V), which has been in force since 1 January 2020, it is important to point out also the changed rate of income tax on capital gains, depending on the length of the holding period.

Personal income tax on capital gains shall now be paid in the rate of 27,5%. In case of completed five years of holding period it shall be paid at the rate of 20% (so far at the rate of 15%), in case of completed ten years of holding period at the rate of 15% (so far at the rate of 10%) and in case of completed fifteen years of holding period at the rate of 10% (5% so far).

The Legislature implemented the change as one of the measures, which would replace the loss of income due to unburdening of labor income. It is expected that the Zdoh-2V changes will strenghten the competitiveness of the business environment, which is believed to consequently have an impact on sustainable economic growth and increase of Slovenia's global competitiveness. In addition, the Zdoh-2V measures are also expected to provide stable and predictable fiscal revenues.