Set up a HORECA Company in Slovenia

Updated on Thursday 21st March 2019

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The term HORECA represents an acronym which defines businesses registered in the field of hospitality. The hospitality sector is defined by three main terms – hotels, restaurants and cafes. HORECA is a developed field of activity in this country, which employs approximately 4% of the country’s total workforce (Slovenia has a population of 2 million persons).

Due to the fact that the HORECA industry fluctuates based on the touristic seasons, the employment in the sector is represented by a large share of temporary employment contracts. Our team of Slovenian lawyers can offer legal representation when starting a company in the HORECA sector; our attorneys are prepared to assist in any of the steps involved in the registration of a hotel, restaurant or café in this country.

What is the main rule of law for HORECA businesses in Slovenia?

The main rule of law for companies operating in the Slovenian HORECA industry is represented by the Hospitality Act. The Act stipulates that HORECA activities can be developed by both legal entities and natural persons operating as sole traders, as long as they comply with the legal requirements imposed in this sense. The main conditions that have to be fulfilled by accommodation providers have to be the following:

• have the necessary equipment needed for offering hospitality services and the technical conditions related to the premises in which the company develops its activity;
• comply with the minimum requirements imposed in accordance with the type of accommodation categorization;
• the minimum conditions for providing related services, concerning matters such as the safety of the food products served within the premises or the conditions created to ensure the safety of the visitors and company’s staff;
• accommodation units have to display the label for the category in which they are included.

What are the main types of accommodation units in Slovenia?

The accommodation sector in Slovenia is comprised o a wide range of accommodation facilities, addressed to suit the needs of various types of persons. Slovenia has hotels, motels, guest houses, camping sites, apartments designed to be rented for holiday purposes (or houses built for the same purpose), farms providing accommodation and marinas.

As we presented above, an accommodation unit in Slovenia is legally required to display the category in which it is included, as this is important for the prices the unit can charge, but also for the level of services it needs to provide, in accordance with the legal requirements imposed for the respective category. This requirement is not necessary in case of low cost accommodation units, such as youth hostels, mountain huts and similar units.

What should one consider when opening a Slovenian restaurant?

In order to open a restaurant in Slovenia, the investors should first make sure that the unit respect the definition prescribed by the Slovenian law. Under the local understanding, a restaurant defines a place where food is prepared and served to clients, who can also benefit from various types of entertainment programs. At the same time, the unit is entitled to serve various types of drinks, including alcoholic beverages.

Are there any requirements for foreign investors in Slovenia?

Foreign businessmen can easily start a company in Slovenia. However, as a foreign businessman investing in a local economic sector, additional requirements can be applied, besides the ones concerning the registration of a business. Thus, as a foreign entrepreneur, it can be required to invest at least EUR 50,000 in the company’s fixed assets in a period of six months since the company was registered here; our team of lawyers in Slovenia can provide more information concerning the investment legislation available here.

Also, a foreign businessman has to create at least one job in the company in a period of six months following the registration; he or she may also be required to obtain a monthly revenue of minimum EUR 10,000 for at least half a year. However, the investor has to comply with one of these conditions and not all of them at the same time.

Are there any reduced taxes for Slovenian HORECA businesses?

Yes, businessmen opening a HORECA company as a hotel can benefit from a lower taxation system. This can be applied for the value added tax (VAT) which, in Slovenia, is imposed at the standard rate of 22%. However, when opening a hotel, the VAT charged for the accommodation services is applied at a reduced rate of 9.5%. Investors are invited to contact our law firm in Slovenia for further information on the taxes applied to HORECA businesses.