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OECD recommends Slovenia lower wage taxes, increase property taxes to boost investment
The OECD has advised Slovenia to lower wage taxes and increase property taxes to boost investment and economic efficiency. The report also calls for strengthening pension savings and reconsidering mandatory winter bonuses. These recommendations aim to make the tax system more growth-friendly and address long-term challenges from an aging population.
Quick Facts
Who
OECD
What
recommended lowering wage taxes
When
published on 2026-06-18
Where
Slovenia
- recommended lowering wage taxes
- recommended increasing property taxes
- recommended strengthening pension savings
- recommended reconsidering mandatory winter bonuses
- presented the Economic Survey of Slovenia
In its latest Economic Survey of Slovenia, the Organisation for Economic Co-operation and Development (OECD) has recommended that the government reduce taxes on wages while increasing property taxes, a move it says could stimulate capital investment. The report also urges Slovenia to reconsider mandatory Christmas bonuses, referred to locally as ‘winter bonuses’, and to strengthen pension savings.
Isabell Koske, an OECD official, presented the findings, stating that raising the property tax could encourage productive investment. The organization believes that a combination of lower wage taxes and higher property taxes would have a positive impact on the economy by boosting employment and investment, while also enhancing long-term savings.
According to the OECD, Slovenia’s current tax system remains heavily skewed toward labor, which can discourage job creation and economic growth. The report advises shifting the tax burden toward less growth-harmful sources, such as property and consumption taxes. This would make the tax system more efficient and support fiscal sustainability.
The OECD also highlighted that Slovenia’s banks are accumulating deposits rather than lending, which is constraining economic expansion. The report suggests that lower wage taxes combined with higher property taxes could help redirect savings into investment. The recommendations are part of the OECD’s regular economic reviews, which assess the economic performance and policies of member countries.
Slovenia’s economy has grown steadily, but the OECD cautions that an aging population and low productivity growth pose long-term challenges. The proposed reforms aim to address these issues by encouraging work, investment, and saving. The final decision on implementing these recommendations rests with the Slovenian government.
Why This Matters
Slovenia's current tax system heavily taxes labor, discouraging job creation and economic growth. The OECD's recommended shift toward property and consumption taxes could make the economy more dynamic. For investors, lower labor costs and redirected savings could unlock capital for business expansion. Policymakers and businesses in other OECD countries should watch this as a potential model for growth-friendly tax reform.
Timeline & Sources
Jun 18, 2026
WireOECD published the Economic Survey of Slovenia and presented recommendations