Slovenia became a full member of the European Union on 1 May 2004 and joined NATO on 29 March 2004.

At the moment, Slovenia's GDP amounts to some 76% of the EU average, whilst the economic growth is expected to be around 3.6% annually over the next decade. Slovenia's gross domestic product per person in 2003 amounted to 70% and 77% respectively of the average in the EU before and after enlargement.

The bank count fell from 25 at 31 December 1999 to 19 at 30 June 2004. Over the same period, the number of savings banks plunged from 6 to 2. The state-owned controlling stake remains in two banks, while the number of banks controlled by foreign owners was 6 at 30 June 2004.

Both residents and non-residents may open accounts in Slovene tolars and in foreign currencies, though reporting on foreign currency transactions is obligatory.

Central bank: Bank of Slovenia

Currency: Slovene tolar (SIT)

Slovenia has concluded several agreements on avoidance of double taxation, which are taken account of in the direct taxation on non-residents.

Interest (except interest on national securities, on government debt and payable to the government or central bank), dividends and royalties payable to non-residents are taxed at 25%.

Corporate income is taxed at 25%. Deductions from the taxable base are allowed for investments into equipment and into employment of specified categories of persons. For tax purposes, the comparable uncontrolled price method and an interest rate set by the finance minister are applied to transactions between related parties. Thin capitalisation issue: interest payable between related parties is not deductible in the amount paid on the excess loan, which is defined as the difference between four times the creditor’s loan over its share in the debtor’s capital.

All international payments, transactions between residents and non-residents, and sales/purchases of foreign currency shall be reported to the central bank.

The Slovene inter-bank payment system comprises two domestic payment systems: SIBPS (the real-time gross settlement system) and Giro Clearing (multilateral net settlement system). Both are owned and operated by the Bank of Slovenia.

SIBPS has been in place since April 1998 and serves for the settlement of large-value and urgent inter-bank and customer payments in real time. Payments are settled via settlement accounts held by participants of the system with the Bank of Slovenia.

Giro Clearing was introduced in October 1998 and is a multilateral net payment system. It represents the second pillar of the new domestic payment infrastructure. Net positions arising from the clearing cycles are settled via SIBPS, this requiring every participant in the Giro Clearing to be a SIBPS participant as well.

Giro Clearing processes credit payments up to the amount set by the Bank of Slovenia. Currently, inter-bank/customer payments of SIT 2 million (EUR 8,900) and over shall be settled via SIBPS. The main reason for this threshold is to reduce risks present in the net settlement systems.

In the future, the threshold might be modified based on risk analyses and policy decisions.