BUYING A PROPERTY

After Slovenia became a member of the European Union, citizens of EU were given the right to freely buy properties in Slovenia without encountering any restrictions. However, there are special procedures to follow when buying agricultural land, for example.

LAW OF RECIPROCITY APPLIES IN SLOVENIA

Since February 2013, foreigners were able to buy properties in Slovenia on a reciprocal basis, following the reciprocity principle verified by the Ministry of Justice, based on the Law of Reciprocity. A non-EU citizen who wants to buy a property in Slovenia needs to apply for the establishment of reciprocity to the Ministry of Justice, with a series of documents. Some of the most important documents are the following: a notarized copy of the passport, a statement of the purpose of purchasing the respective property and a document that contains details of the property, issued by the Surveying and Mapping Authority In addition, an administrative fee is charged.

HOW TO BUY A PROPERTY IN SLOVENIA

The first step one must take in order to buy a property in Slovenia is to obtain a TAX number and an EMSO number from the local authority where the property is based. It usually takes approximately three days. The second step is to hire a real estate agent. Even if the buyer has decided on what property to buy, it is advisable to use the services of a real estate company or of a real estate agent. In Slovenia the status of the real estate agents is regulated by the law, they must be licensed and registered so you can rest assure that the services are delivered in a professional manner.

HIRING A REAL ESTATE AGENT IN SLOVENIA, A MANDATORY PROCEDURE

Once a real estate agent has been hired, the agent will be in charge of contacting the seller and present the buyer’s offer. At the moment when the offer is accepted by the buyer, the next step is to draft the sale-purchase contract. it is important to know that there is a 10 percentage deposit that needs to be created upon signing. Title search in Slovenia When buying a property, it will also be necessary to perform a title search. As the Land Registry has a modernized system and the Slovenian due diligence is performed rapidly, this step can take up to two working days. It can be made directly by the buyer or with the real estate agent’s help. However, the buyer has to translate all the documents in order to avoid future problems.

THE FINAL STEP IS MADE BY THE SLOVENIAN REAL ESTATE AGENT

The final step of buying a property in Slovenia lies in the attributions of the real estate agent that needs to prepare a copy of the land registry entry, a community confirmation proving that no communal rights have been claimed against the property and an official evaluation in order to correctly pay the taxes. After all the documents have been gathered, the buyer needs to make the final payment to the seller. The whole procedure of buying a property in Slovenia can take between 95 days and 124 days.

WHAT DOES A PROPERTY CONTRACT CONTAINS IN SLOVENIA?

As mentioned earlier, the sale of a property in Slovenia has to be concluded through a sale contract. It must contain a set of compulsory information, such as:

• details regarding the seller and information concerning the real estate property;
• the value that must be paid on the respective property;
• the method through which the buyer will pay the amount mentioned in the contract;
• information concerning any mortgages related to the property available for sale.

WHAT ARE THE MAIN TYPES OF TAXES WHEN BUYING A SLOVENIAN PROPERTY?

The procedure of purchasing a property in Slovenia includes a set of taxes, which have to be paid both by the seller and the buyer. One of the most important tax is the transfer tax, imposed at a fixed rate of 2% on the value of the transaction. This type of tax is paid only by the person selling the property. However, when discussing on the payment of the value added tax (VAT), another type of tax applicable to the sale of a property, both the seller and buyer will be liable; the tax is imposed at the standard rate of 22%. Another type of tax is the registration fee, for which both the seller and buyer are liable. The registration fee is imposed on a progressive base and it can vary between 0.01% and 0.50% from the value of the property. The buyer is responsible for the payment of the notary fees, applied at a value ranging from 0.01% to 0.40% from the value of the transaction.

WHAT ARE THE AGENCY COSTS WHEN BUYING A SLOVENIAN PROPERTY?

As mentioned above, it is necessary to appoint a real estate agent, who must also be paid for his or her services. In Slovenia, the real estate agent’s fees vary between 2% - 4%. If you need more details about how to buy a property, you may address to our firm in Slovenia. In a collaboration with a law firm and the notary, we will explain you all the legal procedures of buying a Slovenian property. In addition, we can also offer assitance if you plan on opening a company in Slovenia.

WHAT ARE THE REGULATIONS FOR FOREIGNERS PURCHASING SLOVENIAN PROPERTIES?

In order to purchase a property in Slovenia, foreigners must provide the same types of documents and conclude all the procedures that are involved in the process itself. However, the right of purchasing a property in Slovenia is also influenced by the nationality of the foreigners, who must respect additional requirements based on this matter. :

• Persons who are citizens of the European Union (EU) may purchase properties in Slovenia following the same regulations that are available for Slovenian citizens;
• in the case of foreigners from Norway, Liechtenstein and Iceland, the purchase procedure is done in accordance with the stipulations of the European Economic Area Agreement, which means that they will benefit from no restrictions regarding this legal matter;
• the citizens of the United States of America can also purchase properties here without restrictions, as prescribed by the provisions of the Treaty on Trade and Navigation;
• in the situation of those who are citizens of countries that are candidates for becoming members of the EU, they must request for permission to purchase properties in Slovenia from the Ministry of Justice;
• citizens of countries that are not included in any of the above categories may purchase a Slovenian property if they have started a business here, if they are married to a Slovenian citizen or if they have obtained a property through inheritance (however, even in this case, the reciprocity principle has to apply)
• Foreigners who establish companies in Slovenia therefore can buy a house/apartment or even land in Slovenia without limitation.