Several categories of buyers have a right to purchase real estate in Slovenia without any obstacles:
- European Union citizens;
- The citizens of Iceland, Liechtenstein, and Norway;
- US citizens (based on the Treaty on Trade and Navigation).
Citizens of other countries must meet several conditions to purchase real estate in Slovenia:
- Swiss citizens need a valid Permit C or permanent settlement permit;
- European Union candidate citizens need to get permission from the Ministry of Justice.
Other foreign buyers can only purchase real estate if they have a registered business or citizenship via marriage, provided the condition of reciprocity is met.
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What is the process of buying property in Slovenia?
Whether you are looking for commercial premises or consider apartments and houses in Slovenia, the main stages of the real estate purchase procedure stay the same.
Step 1. Choose and reserve an object
A licensed specialist makes a selection of relevant offers of property in Slovenia. After the inspection, the agent negotiates with the owner and agrees on the price.
The parties draw up and sign a preliminary contract, and the buyer pays a deposit of 10% of the transaction amount.
Step 2. Opening of a legal entity in Slovenia
Before concluding a contract of sale, some foreign buyers must register a company. Such a business must be in full ownership of a foreign buyer.
A foreigner must provide a valid passport, a copy of the TIN from the country of residence, and a certificate of no criminal record.
The opening period of the company takes from three to ten working days.
Step 3. Conclusion of the purchase and sale agreement
If there were no problems at the previous stages, the buyer and the seller sign a sale contract. Usually, a lawyer or a notary prepares it, but only a notary can certify it.
To purchase real estate, the buyer must provide:
- the statutory documents of the legal entity (only those foreigners who must own a business);
- an individual tax number;
- details of the current account of a legal entity in any bank in Slovenia;
- confirmation of the legal source of funds (certificate from the place of work, notarized donation or inheritance, contract of sale of real estate as a seller, etc.).
The guarantor of the contract is a notary and a real estate agency.
Step 4. Payment of the transaction
When the contract is signed, the buyer transfers the remaining amount – 90%.
The seller pays the ownership transfer tax in the size of 2% of the transaction.
The buyer pays the fee to a real estate agent about 2-3% of the transaction within a week after the transaction.
Step 5. Registration of ownership
After the notary has registered the contract and submitted the documents to the local Land Register, the buyer becomes a property owner. The procedure for entering into the Land Register can take up to 90 days. The service fee is €500.
What are the taxes for buying property in Slovenia?
The seller pays the tax on the property sale, but the buyer can also take this duty by an agreement.
- If it is a secondary market property, the tax is 2%.
- If the property is new and has been built less than 2 years ago, the seller pays VAT.
- If the property is planned for permanent residence, a reduced VAT rate is applied – 9.5%, for the other types – 22.0%.
What does a sale contract contain in Slovenia?
The contract must include items about the current state of the property, purchase price, payment terms, terms of implementation or its termination, and obligations of the parties. It also requires a point with permission to enter the property rights of the new owner in the land register.
The contract is concluded in Slovenian. Slovenian legislation also requires the translation of the contract of sale and other relevant documents into the language spoken by the buyer.
Why is needed real estate due diligence in Slovenia?
The object you want to buy must be checked in the Slovenian Land Registry for the absence of liens, encumbrances, unpaid taxes, etc.
What are the regulations for foreigners purchasing Slovenian properties?
A foreigner, as the owner of a company, needs to keep accounting records, submit an annual balance sheet and pay taxes on the company – income tax, VAT, etc.
A foreigner who becomes a tax resident of Slovenia must also notify about his worldwide income. If they are not a resident of Slovenia, taxation is formed based on the agreement between the countries.
- Before choosing a buying property in Slovenia, check the Slovenian regulations on the property rights for foreigners from your country.
- If you need to open a company to buy real estate in Slovenia, carefully check all required documents and hire a real estate agent to help.
- Buyers don’t pay real estate taxes for purchasing a property.
- The notary and translator are mandatory participants in the transaction.
- The guarantors of the contract are a notary and a real estate agency.