Introduction - Purchase & Living cost - Buying guide
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Introduction

The process for purchasing property is straight forward, simplified greatly when Slovenia joined the EU. The costs in purchasing are relatively low with the main property tax levied on the seller. Most costs are also subject to VAT (20%).

Buying Guide

Who can buy

On the basis of Article 68 of the Constitution of the Republic of Slovenia anyone can buy in Slovenia if his or her home country has a reciprocal agreement with the Republic of Slovenia.

 

Please check the website from Uprava for additional information: http://tinyurl.com/opj7l

Property Search

Search through our properties for sale and then contact Aquavista to arrange a viewing trip to view the properties of your choice.

 

We will help you in arranging your flights and will arrange transfers to and from Brnik airport and accommodation. Costs are typically €65 for transfers and €20-€25 per night for hotel accommodation in a good quality hotel in Postojna.

 

On the viewing trip our partner will show you around the areas of your choice and properties that you desire. When you find your ideal property we will guide you through every step of the purchasing procedure.

• Our partner will help you negotiate a price with the seller
• Once agreed you will need to apply for an EMSO number (a registry number for tax) and apply for a land search (usually taking less than a week)
• Payment is in € (EUROS) and can be conducted from your UK bank. Aquavista can recommend UK currency transfer agencies.
• Although a mortgage is not currently available to foreign purchasers of Slovenian property, Aquavista is currently working with a UK International Mortgage Broker and it is expected to have mortgages available by February 2006.
• A translator will translate all the documents including the contract into English (typically €200)
• A notary will conduct the property transaction when you will sign the contract and the property will become legally yours.
• You will need to open a Slovenian bank account in order to pay bills and yearly taxes.

Purchase Costs

Costs in purchasing a property in Slovenia

• Notary Costs
• 2% Agency Commission
• Land register costs
• Costs in obtaining tax and register number
• Translator 190 Euros

Annual living costs

Yearly Costs for owning a property in Slovenia

• Annual Property Tax - varies depending on size of property. A 500sq m property is typically €50-€100 per year.
• Water = 1 Euro/m3 (Guide)
• Electricity = 0.1 €/kWh (Guide)
• Heating - 2 bed apartment = 60 €/month (Guide)
• Public Utility Costs (apartment communal charges) = 20 €/month (Guide)

Other Information

Residency

Citizens of the EU Member States are not required to hold a visa for the entry into the Republic of Slovenia. Also, they are not required to hold a residence permit during the first three months following their entry into the Republic of Slovenia; however, after the initial three months, they are obliged to apply for a residence permit with an Administrative Unit.

 

The application for a temporary residence permit is submitted to the diplomatic-consular representative of the Republic of Slovenia abroad or to the competent authority in the Republic of Slovenia if the law so provides. The application for a permanent residence permit is submitted to the administrative unit in the area of residence of the alien.

 

The application for residence must be accompanied by proof of fulfilment of the following conditions. The alien must have a valid passport, whose expiry date exceeds by at least three months the intended period of stay in the Republic of Slovenia, an appropriate health insurance and sufficient means of subsistence during their stay in the country or must have subsistence otherwise guaranteed.

 

In order to be granted a temporary residence permit, aliens must also fulfil one of the purposes stipulated by law, for which they wish to stay in the Republic of Slovenia. Such legally stipulated purposes are:

• Employment or work
• Family reunification
• Studies, education, specialization or expert training and acquisition of practical skills, cooperation or participation in programmes for international volunteers exchanges and other programmes which do not fall under the system of formal education.
• Other reasons justified by law, international acts or international principles and customs.
• Slovenian descent up to the third lineage of genealogy

Useful website with extra information from the Slovenian Government: http://tinyurl.com/ltosq

Work Permits

Following the accession to the EU (i.e., as of 1 May 2004), a free movement of workers between the new Member States is in force. In addition, a free movement of workers was established between the Republic of Slovenia, Great Britain, Ireland and Sweden because these countries are not implementing the transitional period in this area. The workers from these countries are deemed equal to national workers when employing and seeking employment, respectively. This means that in the event of employment, the workers from these countries do not need work permits; however, employers employing such workers must register the employment of the EU workers.

• All property is freehold in Slovenia
• All our clients are introduced to an independent solicitor who can act on your behalf.
• All rental income is subject to Slovenian tax
• UK and Slovenia have a double taxation agreement
• New property is sold with a non-refundable 10% deposit with payment terms as agreed with the builder.
• Property sold may be subject to capital gains tax:

In certain circumstances, the generally applicable flat tax rate of 20% might be reduced for capital gains depending on the length of time the asset was owned before its disposition. In accordance with Article 126a, the tax rate on capital gains is reduced at the end of each five-year period of asset ownership, so that the tax rate amounts to:

• 15% for five years from the date the asset is acquired.
• 10% for 10 years from the date the asset is acquired.
• 5% for 15 years from the date the asset is acquired; and
• 0% for 20 or more years from the date the asset is acquired.

 

please seek taxation advise from an international accountant.

 

To view previously asked questions on purchasing property in Slovenia, or to ask your own question click here

 

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