Since Version 1.1 subversion can deal with symlinks (see Does Subversion support symlinks?). There are only a few remarks in the manual Versioned Properties – svn:special and ‘svn add’ command.

Actually all handling of the symbolic link is up to the client. Cause in creation of symlinks the used paths do matter and subversion stores the link target in simple text file with the appropriate relative or absolute path you should choose the way you create your symlinks with care.

Example – Creating a symlink in your working copy:

$ mkdir A
$ ln -s A link
$ svn add --force .
A         A
A         link
$ svn commit -m "link there"

the contents of the link file in svn:
link A

Example – change symlink target

$ svn del --force link
$ svn commit -m "no link"
$ mkdir B
$ ln -s B link
$ svn add --force .
$ svn commit -m "link changed to B"

the contents of the link file in svn:
link B