Foreign individuals can buy a property in Slovenia without any restrictions. If a foreign national wants to set up a company in Slovenia and needs to purchase land, there are special conditions to be met in order to do this. The principle of reciprocity governs all property transactions in Slovenia.
Our experts in company formation in Slovenia can give you extensive details about the procedure for buying a property in this country.
How to buy a property in Slovenia
On the basis of the Law on Reciprocity, the Ministry of Justice requires an application for the establishment of reciprocity whenever a foreign national wants to buy a property in Slovenia. This application should contain the following documents:
• A notarized copy of your passport;
• A declaration of the purpose of acquiring property (main residence, company registration address);
• A document with relevant details about the property issued by the Surveying and Mapping Authority;
• The receipt of the administrative fee.
Before buying a property in Slovenia, a tax number and EMSO number (social security number) should be obtained from the local authority where the property is located. This usually takes around three working days to complete. It is highly recommendable to hire a real estate agent when acquiring a property in Slovenia. He/she contacts the seller on your behalf and establishes all the details of the transactions: draws the buying/selling contract, translates it and conducts the title search of the property. After the contract is signed, the real estate agent prepares a new copy of the land registry entry, the community confirmation that no rights are claimed against the property and the evaluation of the payment of taxes. Our company registration agents in Slovenia can help you with the entire process of buying a property.
Property transaction costs in Slovenia
The transaction costs of buying a property in Slovenia include the notary fees, the lawyers` fees, the real estate agent`s fees, the taxes and registration fees. We provide you with a list of fees you must take into consideration when looking for a property in Slovenia:
• Registration fees: the payment you must make at the Land Registry and the translation costs. The Land Registry fee represents 0.50% of the property value. The Property Act in Slovenia requires a court translation to ensure the full understanding of the selling contract to the client;
• Notary fees – they are calculated based on the property value and a 20% VAT is added. Each party pays their own notary fees;
• Real estate agent – these fees are regulated by the law and cannot exceed 4% from the property`s price, plus 20% VAT. The buyer and seller usually share the real estate fees;
• Transfer tax – when second-hand properties are bought in Slovenia, a real estate transfer tax of 2% from the property`s value is paid. Otherwise, the VAT is levied.
If you are interested in buying a property and further open a company in Slovenia, please feel free to contact our specialists in company registration.