Karanovic & Partners
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Slovenian citizens and citizens of EU, OECD, EFTA member countries can own real estate in Slovenia without any restrictions. Citizens of EU candidate countries (Albania, Macedonia, Montenegro, Serbia) can own real estate after obtaining confirmation on reciprocity (Slovenian citizens can obtain ownership over real estate in other country under the same or similar conditions, under which citizen of that other country can obtain ownership in Slovenia). Citizens of all other countries can obtain ownership over real estate only on the basis of inheritance. There are no restrictions for holding shares in property owning companies.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no special legal restrictions on lending for the purchase of real estate for foreign companies. However, banks may reject the loan if foreigners are restricted from acquiring the ownership over the real estate. Clients from countries, listed on a list of high risk countries under the Slovenian AML law, may be subject to special procedures by banks. After individual assessment the bank may reject the financing.
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
Real estate transfer tax of 2% of purchase price is payable, if VAT does not apply.
VAT at the rate of 22% is payable in the acquisition of real estate which is occupied or used for less than 2 years (under certain conditions VAT in the amount of 9.5% can apply), construction land, and undeveloped land or old real estate between VAT taxpayer.
Court fees for registration of ownership depend on the amount of the purchase price (min. EUR 5 EUR for purchase price under EUR 20,000 and max. EUR 5,000 for purchase price higher than EUR 60 million).
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner)?
Owner is obliged to pay wealth tax in the amount of up to 1.5% of real estate value, which cannot be passed to another person. If owner or his family members reside in the real estate which does not exceed 160m2, such tax is not payable.
Fee for the use of construction land (where the building is located or is yet to be constructed) must be paid by owner or tenant. The amount of fee is determined by each municipality, and amounts from EUR 50 up to several hundred EUR per year.
Owners of the forests must pay certain fee.
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so what are they?
There are no special tax breaks or other incentives for foreigners to buy real estate.
How is the ownership of Real Estate evidenced in your jurisdiction?
Ownership of the real estate is evidenced in the land registry, which is managed by the Slovenian Supreme Court. Land registry is publicly available. The ownership of the real estate is acquired when the owner is registered in the land register.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No, there is no possibility to hide the identity of the owners. If the owner is a company, company name, business seat and registration number can be seen from the land registry excerpt for each real estate, together with information on the real estate and ownership share. If the owner is individual, only name, surname and address are stated, while individual’s personal number is hidden.