Table of contents
The social economy at a glance
Copy link to The social economy at a glance|
Recognition |
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|---|---|
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National definition |
The social economy is defined as an economy, consisting of entities which are not established solely for the purpose of making a profit, but operate for the benefit of their members, users or wider communities and produce commercial or non-commercial products and services (Social Entrepreneurship Act, 2011). |
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Legal forms and entities of social economy |
It consists of social enterprises, co-operatives, companies for people with disabilities, employment centres and non-governmental organisations (associations, institutes, institutions or foundations). |
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Social economy data overview |
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Number of entities |
26 978 |
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Of which social enterprises |
6 211 |
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People employed |
14 686 |
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Turnover (EUR million) |
1 732 |
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Involvement with any social economy organisation as a volunteer in the past five years (% of people interviewed) |
24 |
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Number of Memberships |
818 067 |
Note: The data presented in this table derive from the OECD country factsheets and the European Commission DG GROW studies. Variations in scope, methodology and most recent available years may lead to differences in the headline figures across countries and with other sources.
Source: Data for Slovenia relates to 2021 (CIRIEC; Euricse; European Innovation Council and SMEs Executive Agency (European Commission); Spatial Foresight, 2024[1]) (OECD, 2023[2]), except data on the involvement with any social economy organisation as a volunteer relating to 2020-2025 (European Commission, 2025[3]).
Institutional arrangements across levels of government
Copy link to Institutional arrangements across levels of governmentIn Slovenia, social economy principles are defined by the 2011 Social Entrepreneurship Act. Other acts also structure the social economy ecosystem, namely the 2018 Act on Non-Government Organisations, the 2025 Workers’ Ownership’s Co-operative Act, the 2006 Act on Associations and the 2004 Act on Work Rehabilitation and Employment of People with Disabilities.
National arrangements
Copy link to National arrangementsInstitutions
The Ministry of Economy, Tourism and Sport has jurisdiction over the social economy policy based on the Social Entrepreneurship Act. The Ministry has a dedicated unit on the social economy. The jurisdiction can be shared with other ministries based on different legal forms. Social economy policy is supported by the Ministry of Labour, Family, Social Affairs and Equal Opportunities for companies for persons with disabilities and employment centres, the Ministry of Agriculture, Forestry and Food for co-operatives and the Ministry of Public Administration for NGOs. In addition, other public bodies such as the Employment Service of Slovenia, the Slovenian Enterprise Fund and the Slovenian Export and Development Bank (SID banka) are active in developing favourable contexts for social economy entities.
Competence
In 2011, the Social Entrepreneurship Act (later amended in 2018) was introduced as the key legislative instrument in the country. The Act defines social economy principles and sets the conditions for the registration of social enterprises, creating a legal status, administered by the Ministry of Economy, Tourism and Sport (Ministry of Economy, Tourism and Sport, 2025[4]).
Social enterprises are required to submit annual reports and reporting audits to the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES) (OECD, 2022[5]).
The Ministry of Economy, Tourism, and Sports is responsible for developing strategies and financing instruments for the social economy. Other ministries and agencies can be responsible for social economy entities depending on their legal forms, such as district courts for co-operatives, institutions and companies; local administrative units for associations; and designated ministries for foundations. Public procurement falls under the jurisdiction of the Ministry of Public Administration.
The definition and conditions for obtaining the status of a non-governmental organisation in the public interest are laid down in the Non-Governmental Organisations Act (2018) (Republic of Slovenia, 2018[6]). Non-governmental organisations can also be granted the status of a non-governmental organisation in the public interest in the field of social entrepreneurship development by the Ministry of the Economy, Tourism and Sport but the main activities of NGOs are overseen by the Ministry of Public Administration.
The Strategy for the Development of the Social Economy 2022-2032 currently outlines national priorities, while a new strategy for 2025-2035 is being prepared under the Social Entrepreneurship Act – expected to replace the former once adopted (Republic of Slovenia, 2025[7]). These include raising awareness, improving education and training, and access to finance for social enterprises. The strategic objectives aim to increase the employment capacity of social economy entities and their contribution to national GDP, aligning Slovenia with the European Union average (Government of Slovenia, 2022[8]).
The Ministry of Labour, Family, Social Affairs and Equal Opportunities supports the social economy indirectly through its work in inclusive labour policies and employment schemes. These activities are supported by the Ministry of Agriculture, Forestry and Food, which oversees the activities of agricultural co-operatives, which are a major component of the co-operative sector.
Several national agencies and independent bodies provide funding for social economy entities. For example, after the COVID-19 crisis, the Slovenian Export and Development Bank (SID banka), through its financial intermediaries (Primorska hranilnica Vipava and the Slovenian Enterprise Fund) provided micro-loans ranging from EUR 5 000 to EUR 25 000 to cover fixed assets costs for social economy entities and traditional business (SID Bank, 2020[9]).
The Ministry of Solidarity-Based Future established in 2023 following the 2022 parliamentary elections, seeks to address long-term care, housing policy and promote economic democracy. It contributes to activities of the social economy through “responsible economic democracy; employee involvement in ownership, management and profit-sharing of companies, as well as the organisation in co-operatives or the implementation of alternative models of workplace democracy”. In October 2025, the National Assembly adopted the Workers’ Ownership’s Co-operative Act, introducing a new legal form designed to enable employees, via co-operatives, to acquire shares in their enterprise and participate in governance (Republic of Slovenia, 2025[10]).
Subnational arrangements
Copy link to Subnational arrangementsInstitutions
Slovenia is a unitary state and does not have a federal structure. 12 statistical regions in the country are mainly for development and statistics purposes with no administrative function (European Committee of the Regions, n.d.[11]).
Competence
While the regions do not have administrative functions, the state can transfer funds to regions for specific duties under state competence. There is no dedicated social economy competence at the regional level.
Municipal arrangements
Copy link to Municipal arrangementsInstitutions
The Social Entrepreneurship Act gives jurisdiction to municipalities on the social economy. They can develop local strategies and provide financial and non-financial resources to social economy entities. Some larger cities, such as Ljubljana and Maribor, actively engage in promoting social entrepreneurship through dedicated university initiatives.
Competence
At local level, as indicated in the Social Entrepreneurship Act (2018), municipalities play a role in supporting social enterprise development. They are expected to integrate social enterprise-related projects into local development programmes, establish concrete incentives and resources that support social enterprises, activate untapped local resources (land, real estate and equipment) to help social enterprises develop and provide financial support for local employment programmes run by social enterprises.
However, with a few exceptions, municipalities do not play an active role in the practical application of these support measures. Activities in larger cities are currently focused on university campuses. Several faculties from different Slovenian universities offer courses and programmes on social enterprises or related topics including University of Ljubljana and the Faculty for Applied Business and Social Studies, Maribor (European Commission, Kolarič and Rakar, 2019[12]).
Co-operation mechanisms
Copy link to Co-operation mechanismsThe Council for Social Economy functions as the stakeholder body to co-ordinate social economy policies.
Across multiple public authorities and/or levels of government
Following the adoption of the Social Entrepreneurship Act in 2011, the Council for Social Entrepreneurship was created to co-ordinate policies in this field and to develop and oversee the Strategy for Social Entrepreneurship Development 2013–2016. This Council included representatives from relevant ministries, social enterprises, and other social partner(s) and expert(s). The 2018 revision of the Act restructured this body into the Council of the Social Economy, expanding its membership to include a broader range of stakeholders (OECD, 2023[2]).
In 2019, the government established by decree the Council for Social Economy. The decree was amended in 2023 and 2024 (Republic of Slovenia, 2019[13]). The president and chair of the council is the Minister of Economy, Tourism and Sport. The council includes a wide variety of stakeholders. Specifically, 20 members: Ten representatives of ministries and government departments, six representatives of social economy entities, one representative of representative associations of local communities, two representatives of social partners, and one representative of professional institutions in the field of social economy (Republic of Slovenia, 2025[7]).
With social economy representatives
There are no established networks that connect social enterprises. Stakeholders such as the Association of the Social Economy of Slovenia (ASES) act as the main national umbrella organisation for social enterprises.
There are umbrella organisations for other social economy entities. The Centre for Non-Governmental Organisations of Slovenia (CNVOS) acts as an information centre, advocacy network, national training and advise centre, the national advisory centre and promotor of NGO activities across the country (CNVOS, n.d.[14]). The Co-operative Union of Slovenia (Zadružna zveze Slovenije) provides similar support for co-operatives (Cooperative Union of Slovenia, 2023[15]). Other active organisations include the Centre for Alternative and Autonomous Production (CAAP, n.d.[16]) – a non-governmental organisation promoting social economy and co-operative initiatives, or the Alliance of Companies Employing Persons with Disabilities (ZIPS) – a network representing companies employing persons with disabilities in Slovenia’s social economy (Zavod invalidskih podjetij Slovenije, n.d.[17]).
Table 1. Overview of institutional arrangements in Slovenia
Copy link to Table 1. Overview of institutional arrangements in Slovenia|
Governance level |
Institution |
Policy mandate type |
Example |
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National |
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Municipal |
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Co-operation |
The Council for Social Economy The Centre for Non-Governmental Organisations of Slovenia (CNVOS) The Co-operative Union of Slovenia Representative organisations and networks such as CNVOS, Fundacija PRIZMA, ZIPS, CAAP, Središče Rotunda, Impact Hub Ljubljana |
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Note: An OECD survey on institutional arrangements circulated in 2024 with national and regional social economy representatives contributed to the findings of this country note. See (University of Ljubljana, n.d.[18]) for the example of the Faculty of Social Work at the University of Ljubljana.
Business development support
Copy link to Business development supportNational business support
Copy link to National business supportStrategies, plans and legal frameworks
Slovenia has already incorporated social economy development into its broader national strategic planning. The Slovenian Development Strategy 2030 provides a long-term vision for fostering social economy enterprises by ensuring policy alignment across different government bodies and ministries (Government of the Republic of Slovenia, 2017[19]) (Government Office for Development and European Cohesion Policy of the Republic of Slovenia, 2018[20]). Meanwhile, the Cohesion Policy Programme (2021-27) outlines a strategic approach to fostering sustainable development, enhancing competitiveness and promoting social inclusion. The programme emphasises the fundamental role of the social economy in improving employment opportunities for young people, the unemployed, and disadvantaged groups. It also highlights the importance of social innovation in swiftly and efficiently responding to rapid social and economic changes, as well as in fostering the growth and development of enterprises (Ministry of Cohesion and Regional Development, n.d.[21]).
Support from the public sector
Slovenia leverages the EU Structural and Investment Funds to support social economy projects. In November 2024, the Ministry of Economy, Tourism and Sport prepared a public call for the establishment of a national advocacy organisation for the social economy sector under the Cohesion Policy Programme (2021-27), which was co-ordinated by the Ministry of Cohesion and Regional Development as the Managing Authority. The Ministry of Economy, Tourism and Sport aims to support 157 micro, small, and medium-sized social enterprises through the project, providing social economy organisations with structured representation in policy discussions (Republic of Slovenia, 2024[22]). Additionally, the Ministry launched a call for proposals early 2025 to co-finance projects that either develop or scale up existing products and services aligned with the Slovenian Development Strategy 2030, as well as to support social enterprise start-ups, targeting co-operatives, social economy and social entrepreneurship (Evropska Sredstva, 2025[23]).
Beyond specialised instruments, Slovenia’s mainstream business support is often accessible to social economy entities. For example, social enterprises are explicitly included as a target group in the SPOT call, and since 2023 SPOT is required to include them in all of its activities and meet targets set by the Ministry on the number of social enterprises reached through its support services. Through SPOT, social entrepreneurs can obtain information and advice on registering and managing a business (Republic of Slovenia, n.d.[24]). Similarly, they can benefit from programmes run by SPIRIT Slovenia, which is a public agency for entrepreneurship and investments that provides mentorship and training for start-ups and small to medium-sized enterprises (Slovenia Business, n.d.[25]). Social economy entities are also eligible for SME financing instruments, such as the Slovene Enterprise Fund (SEF), a public national fund that provides financial support including seed capital and venture capital (Slovene Enterprise Fund, n.d.[26]) (European Commission: Directorate-General for Employment, Social Affairs and Inclusion, Zinka Kolarič and Tatjana Rakar, 2019[27]).
Support from the private sector
A variety of private actors complement the public support system at the national level. Although Slovenia does not yet have a national federation uniting social economy organisations, there are umbrella organisations that bring together several sectoral entities, such as the Co-operative Union of Slovenia, the Slovenian Association of Companies for People with Disabilities (ZIPS) and the Centre for Non-Governmental Organisations (CNVOS). The Co-operative Union of Slovenia represents and advises co-operatives, especially in the agricultural sector. ZIPS is a voluntary organisation federating enterprises that employ individuals with disabilities, playing a crucial role in advocating for the rights and interests of employees with disabilities, as well as providing training activities, legal advisory services, among other activities. CNVOS is a national platform uniting over 1 600 associations and foundations, which provides information, training and advocacy for civil society organisations (CNVOS, n.d.[28]).
Although few in number, incubators and hubs are becoming important actors in the business support ecosystem. For instance, the Poligon Creative Centre is Slovenia’s first creative hub dedicated to empowering self-employed individuals, creative industries, and social entrepreneurs. It provides a collaborative co-working environment that supports both profit and non-profit projects (Poligon Creative Center, n.d.[29]). The international Social Impact Hub also has a presence in Slovenia, with an office in Ljubljana and plans to expand to Istria (Impact Hub, n.d.[30]). The hub offers a range of programmes designed to support social entrepreneurs, including the Social Impact Award – an annual competition co-organised with the Slovenian Youth Agency – designed to empower young individuals under 30 who aspire to drive positive social and environmental change through entrepreneurial projects (SocioLab, 2024[31]).
Private initiatives are also developing alternative financing schemes for social economy entities. For example, Fund 2740 specifically finances social entrepreneurship and social innovation. Established in 2012 as Sklad 05 (Fund 05), its initial focus was on enabling citizens to allocate a portion of their income tax to public benefit purposes. Today, Fund 2740 provides social enterprises with grants, bridge loans and micro-credits (Fund 2470, n.d.[32]). In 2023, the Slovenian SID Bank signed a EUR 42 million InvestEU-backed guarantee agreement with the European Investment Fund to support innovation, digitalisation and sustainable investment. This launched two lending programmes – “SID GREEN” (for environmentally sustainable projects) and “SID DIGITAL” (for innovation and digitalisation) – which offer SMEs, including social enterprises, loans on very favourable terms (long maturities, lower collateral and interest) to finance green, inclusive or innovative activities (European Investment Fund, 2023[33]). These new programmes complement SID Bank’s existing support for social economy actors.
Subnational business support
Copy link to Subnational business supportSupport from the public sector
At the subnational level, public support for the social economy is delivered by municipal governments and regional agencies in co-ordination with national programmes. Municipalities often support social economy entities through the provision of premises or land (typically rent-free or at symbolic rental rates) to help them establish and grow their activities (European Commission: Directorate-General for Employment, Social Affairs and Inclusion, Zinka Kolarič and Tatjana Rakar, 2019[27]). For example, the Ljubljana Municipality offers co-working spaces for social entrepreneurs at reduced costs, fostering the development of innovative social business models.
Regional Development Agencies (RDAs) support the social economy ecosystem in close collaboration with local stakeholders. The RDA of Northern Primorska Ltd. Nova Gorica, representing several municipalities, leads Poni Goriška – Enterprising Above Challenges Project (2023-27), which provides aspiring entrepreneurs with full-time employment during training, along with mentorship, networking opportunities and diverse workshops (RRA Severne Primorske, n.d.[34]). Meanwhile, the RDA of Savinjska, in partnership with local actors, launched BODI SOC under the Ministry’s public call for strengthening the support environment for social enterprises. BODI SOC is an online platform offering free training, consultancy and networking opportunities (BODI SOC, n.d.[35]). RDAs also facilitate access to EU funds at the regional level, such as assisting the preparation and implementation of projects financed by the EU Funds, many of which include social economy components (Marot, 2024[36]).
Support from the private sector
Private organisations often serve as resource centres, providing training and capacity-building support to social economy entities at local level. For example, Association CAAP, a Maribor-based non-governmental organisation, offers training, research, development, advocacy and consulting services particularly to co-operatives. It is also a member of the Council for the Social Economy, promoted by the Slovenian government (CAAP, n.d.[16]). Similarly, NGO PiNA, based in Koper, specialises in developing training modules, with experience in co-ordinating international projects (PiNA, n.d.[37]).
Local hubs and incubators also play a significant role in fostering the social economy ecosystem. A notable example is SocioLab, which is a lasting ecosystem that supports social economy initiatives in the Podravje region. SocioLab serves as a collaborative platform between support organisations, social enterprises, public institutions and private companies to create favourable conditions for social entrepreneurship and broader social innovation (Sociolab, n.d.[38]). Meanwhile, Zavod za kreativni razvoj Posavja (KNOF) is a social enterprise based in Krško which operates a Cirucular Lab that includes co-working spaces for collaborative projects (KNOF, n.d.[39]).
Foundations boost the social economy across Slovenia. For instance, the Prizma Foundation is a private non-profit organisation committed to enhancing employment opportunities and fostering social innovation. Its main activities include lifelong career orientation, strategic human resources development and social economy and social innovation support, such as its Social Economy Transition Skills (SETS) project which aims to develop, test and disseminate training programmes to equip social economy organisations.
Organisations not exclusively focused on social entrepreneurship can contribute to launching and scaling projects that address social challenges. One example is Tovarna Podjemov (Venture Factory), the business incubator of the University of Maribor. It supports the entrepreneurial efforts of students, researchers, professors, and other individuals by offering mentorship, training, co-working spaces, and access to funding to help start-ups grow and scale their operations (Venture Factory, n.d.[40]). While best known for initiatives such as Start:up Slovenia, which primarily targets high-growth start-ups, Venture Factory also contributes to the broader entrepreneurial ecosystem, including support for ventures aligned with social economy goals (SRC Bistra Ptuj, n.d.[41]).
Taxation
Copy link to TaxationEligibility for preferential tax treatment
Copy link to Eligibility for preferential tax treatmentDefinition of public interest
In Slovenia, the status of “non-governmental organisation in the public interest” is defined under the Non-Governmental Organisations Act (ZNOrg), Official Gazette RS, No. 21/18 (Republic of Slovenia, 2018[6]). According to Articles 2 and 6, a private legal entity may obtain this status if it is non-profit, non-commercial, and carries out activities serving the general public in the fields of culture, education, healthcare, family policy, protection of human rights, the environment and animals, sports, defence, economic development, agriculture, forestry, food, among other areas (European Commission, 2023[42]).
Economic activities
Social economy entities may conduct economic activities provided these are aligned with their social mission. Entities include:
Social enterprises, as per the Social Entrepreneurship Act (ZSocP) (Republic of Slovenia, 2011[43]), which must reinvest at least 75% of profits into their mission and are prohibited from distributing profits.
Co-operatives, NGOs, Foundations, and Private Institutes, which may undertake commercial activities if it supports their non-profit objectives. Unrelated activities may jeopardise their status and access to tax exemptions. Legal sources include the ZNOrg, ZSocP, and relevant sectoral laws (e.g. Co-operatives Act, Institutes Act, Associations Act).
Tax treatment of social economy entities
Copy link to Tax treatment of social economy entitiesPreferential business income tax treatment
Copy link to Preferential business income tax treatment|
Business tax exemption or a reduced rate for social economy entities |
Description |
|---|---|
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✓Yes, with limitations |
According to Article 9 of the Corporate Income Tax Act (ZDDPO-2), Official Gazette RS, No. 117/06 and subsequent amendments, legal persons pursuing non-profit purposes (e.g. cultural, educational, humanitarian, social, religious, or sports) are exempt from corporate income tax on income derived from these activities. Conditions for exemption include:
According to the Corporate Income Tax Act (ZDDPO-2, Official Gazette RS, No. 177/06 with amendments, Article 9), grants, subsidies, and donations received by social economy entities that have public benefit status and are used for non-profit or mission-related purposes are not subject to corporate income tax. In addition, donations that meet legal requirements may be deducted from the donor’s taxable base, further supporting the financial viability of such organisations. Social enterprises benefit from the corporate income tax exemption if their income is mission-related. Commercial income unrelated to the mission is subject to the general corporate tax rate. Co-operatives, if registered as social enterprises and operating in the public interest, may access the same exemptions. Otherwise, they are subject to standard tax treatment for business activities. |
Other tax measures for the activities of the organisation
Copy link to Other tax measures for the activities of the organisationTax measures for supporting social economy entities
Copy link to Tax measures for supporting social economy entitiesIndividual donors
Copy link to Individual donors|
Tax incentives for individual donors |
Description |
|---|---|
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✓ Yes |
Under Article 66 of the Personal Income Tax Act (ZDoh-2, Official Gazette RS, No. 117/06 and amendments), individuals may deduct up to 0.5% of their taxable income for donations made to public-benefit organisations. Donors may divide this amount across up to five organisations. Additionally, a percentage allocation scheme allows individuals to direct 0.3% of income tax to selected organisations. |
Source: (Republic of Slovenia, 2006[47])
Corporate donors
Copy link to Corporate donors|
Tax incentives for corporate donors |
Description |
|---|---|
|
✓ Yes |
Corporate donors can deduct up to 0.5% of their taxable income for donations to public-benefit organisations. An additional 0.2% is deductible if the donation is directed to cultural or disaster relief purposes. Eligible recipients must be non-profit entities pursuing specific public-interest goals, as defined in the ZDDPO-2, Article 59. |
Source: (Republic of Slovenia, 2006[44])
Reporting and transparency
Copy link to Reporting and transparencyAll social economy entities must comply with financial reporting standards, appropriate to their legal form (Republic of Slovenia, 2011[43]):
Associations must maintain basic accounting records; public-interest associations must submit annual reports to the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES).
Foundations and private institutes must keep double-entry bookkeeping and submit financial statements annually.
Social enterprises, in addition to general obligations, must submit reports to the Ministry of Labour, Family, Social Affairs and Equal Opportunities detailing mission-related activities and use of profits (under Article 23 of the Social Entrepreneurship Act).
Co-operatives must comply with the Companies Act for reporting if engaged in economic activities.
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Notes
Copy link to Notes← 1. According to the Value Added Tax Act (ZDDV-1), social economy entities may benefit from VAT exemptions (Republic of Slovenia, 2006[45]). VAT exemptions apply to activities considered to be in the public interest, regardless of the entity’s legal form, provided they meet certain conditions. These activities include educational services, social care services for vulnerable populations, and cultural, religious, sporting, or health-related non-profit services.
← 2. Certain social economy entities, such as employment centres and companies for persons with disabilities, are exempt from paying social security contributions for specific categories of employees. These exemptions aim to promote labour market inclusion for vulnerable groups, including persons with disabilities, long-term unemployed, former convicts and other marginalised populations.
← 3. Social economy entities recognised as public-benefit organisations are exempt from gift and inheritance taxes on property and funds received, provided these are used exclusively for non-profit purposes such as humanitarian, charitable or educational work, and health, scientific, cultural, ecological, or religious activities (Republic of Slovenia, 2006[46]). The exemption applies to both donations and legacies and covers movable property under EUR 5 000 as well.