Since Slovenia joined the EU the property market is free of legal restrictions for the EU citizens. Due to this free movement of capital within the EU, British Citizens have equal rights to Slovene Citizens and therefore no longer require confirmation on reciprocity.
With the purchase of all property we recommend consultation with a local lawyer. A list of English-speaking lawyers is available on our embassy's website. You can sign power of attorney to your Lawyer to act on your behalf and to complete the transaction.
If you choose to buy a property, you will need to do the following:
- Submit a notarised copy of your passport
- Make an application for EMŠO (Slovene ID number)
- Obtain a Slovenian tax number from the district where the property was bought.
- Location and Land Registry and Searches, which usually only take about 2 days and are issued by the relevant branch of the Surveying and Mapping Authority (Geodetska Uprava) of the Republic of Slovenia.
Additional costs to purchasing property may include:
- Legal Costs: usually you will be asked to pay a 10% deposit to secure the property, as a part of the preliminary contract. Other costs may include careful checking of contracts by an independent legal adviser.
- Translation of documents (usually by a certified translator): including the contracts, details from the Land Registry, any management contracts and all insurance policies. If necessary, a court-appointed translator may need to be present at the completion of transactions.
- Charges related to opening a bank account in Slovenia for any transactions, currency transfers and standing orders, such as, utilities management charges, etc.
- Insurance: building and content insurance can be obtained at Slovenian insurance firms with policies in English. Note that policies are usually adequate for those who have bought a property for personal use only. If you plan to let your property (or part of your property), please consult the section below on the rules and regulations of Renting Your Property in Slovenia.
You may be liable to certain taxes in Slovenia when you buy, own or sell your property. Taxes for ownership of the property vary from region to region and may include, for example, tourist tax for non-residents and a local community tax. The VAT charges depend on the purpose of the property i.e. whether for private or commercial use (e.g.Hotel, rentals). Tax may also be payable when selling your property, depending on whether it is your main property and how long you have owned it.
To find out the tourist tax rate, you need to contact the local municipality. The tourist tax is based on a points system and therefore varies from region to region. The value (price) of points is determined and regulated for each region by the government once a year. The tax is calculated by multiplying the number of points by the value. Tourist tax includes a fee for overnight accommodation, as well as, certain services and facilities not charged for individually. Those liable for tourist tax are the Slovene citizens and foreigners using the service of overnight accommodation outside their permanent residence i.e. tourists, however, certain persons are exempt from paying tourist tax. Private and public corporations, self-employed individuals, individuals renting rooms and farmers, who receive tourists for overnight accommodation, must charge and collect the tourist tax with the payment of services. The tax collected is forwarded to the local municipality's bank account by a certain date each month, with a monthly report stating the number of services and the total tourist tax collected. For detailed information see section 19 and 20 of the Stimulation and Development of Tourism Act (Uradni list RS, st. 2/2004).
Community tax is charged for services and objects such as the use of public areas for organising exhibitions, advertising, parking, camping and other usage stated in section 9 of the Financing of Community Act (Uradni list RS, st. 123/06). Permission must be obtained from the local authorities for performing the listed services. The Community tax is also based on points system and differs from one region to another. The value of points is fixed once a year in January. Those liable for community tax are corporate bodies, self-employed independent contractors and individuals performing the activities or using the objects for which the tax has been fixed. Community tax is paid once a year to the Inland Revenue responsible for assessing, collecting, enforcing and supervising the community tax. Certain cultural, sport and humanitarian events and those organised in the interest of the public by associations based in the local community, as well as political campaigns, are exempt from the tax. Non payment of due community tax can result in sanctions and penalties.
Renting Your Property: room and apartment rental for tourist purposes
Renting of rooms and apartments for tourist purposes in Slovenia is classed as a business activity which, according to the Slovene legislation, can only be performed with appropriate registration. Individuals (room-renter), independent contractors or business companies can perform this type of activity.
Under the regulations specified in the Catering Act 93/2007, any such activity must be registered in the Slovenian Business Register. Room-rentals include persons who offer guest accommodation in owned or rented apartment or a holiday home. The granting of the permit for this type of activity depends on certain minimum technical standards that have to be ensured regarding rooms and equipment.
Registration can be made by email using the Slovene e-VEM system (for residents) www.evem.gov.si or by post to AJPES (Agency of Republic of Slovenia for Public Legal records and Related Services), which has officially joined the European Business register. Further information can be obtained from any e-VEM points located at all administrative units, branches of AJPES and tax offices. EU citizens who have registered their activity do not need a work permit, however, performing activity without registration is considered a violation of Prevention of Illegal Work and Employment Act (12/2007).
Tax Office Registration
Individuals resident, living or working in Slovenia should also register at the Tax Office, even when conducting an activity thorough their business registered in the United Kingdom. Contact between the Slovene Tax office and the UK tax authorities avoids the payment of dual taxation, according to the European tax legislation.
In the event of renting activity as described, and irrespective of the above tax duty reciprocity, individuals or companies performing the activity in Slovenia must pay the tourist tax.
Guests to be reported at the Police Station
All guests occupying rented property must be registered at the local Police Station. The owner of the rented property should forward to the police information regarding their temporary address, duration of stay and a copy of their ID. This is necessary for any future cases relating to damages or compensation.
If you are letting the property, you are advised to check carefully that your building and content insurance policy covers your liability to tenants.
Author: British Embassy Ljubljana (www.ukinslovenia.fco.gov.uk/en/)