FAQ about buying and renting real estate in Slovenia

Snowy mountain peaks, alpine meadows, clear waters of rivers, dense forests, waterfalls, karst caves and waves of the Adriatic Sea - these are the natural wealth of Slovenia.Today Slovenia is a popular place for permanent residence and business relocation.

Indeed, today it is a stable and prosperous country, with a dynamic economy, clear and understandable "rules of the game", a friendly investment climate and a lack of bureaucracy.

EU citizens can purchase real estate in Slovenia on a general basis. The purchase of real estate by non-EU foreigners in Slovenia is prohibited. They can buy real estate by registering it as a legal entity - a Slovenian company.

Foreign non-EU citizens can become owners of real estate in Slovenia only after registering a company in the country. The most popular form of legal entity is a limited liability company (družba z omejeno odgovornostjo - d.o.o.), in which a foreigner becomes a director or co-founder.

*according to the analytical portal Numbeo.com

• Price per square meter in the center of Ljubljana 4,450 €
• Price per square meter in residential areas of Ljubljana 3,399 €

Rental rates:

• One bedroom apartment in the center 681 €
• One bedroom apartment outside the city center 566 €
• Three bedroom apartment in the center 1,295 €
• Three bedroom apartment outside the city center 1,003 €

Statistics confirm the liquidity of investments in real estate in Slovenia: the country is in the top 5 European countries in terms of growth in residential real estate prices, according to Eurostat's House price index over the past 10 years.

When buying property in Slovenia, the buyer usually has to pay the following taxes and fees:

• Value Added Tax (VAT) - only for new buildings. Currently, the VAT rate in Slovenia is 22% and is charged on the sale price of the property.
• Real Estate Tax - This tax is levied annually and depends on the value of the property. The real estate tax rate can vary from 0.15% to 0.5% of the property value per year.
• Registration fee - a fee is charged for registering a real estate purchase transaction in the Land Register. The registration fee rate depends on the value of the property and can be up to 0.5% of the value of the property.
• Real Estate Transfer Tax - This tax is levied on the transfer of ownership of real estate. The real estate transfer tax rate depends on the value of the property and can be up to 2%.

Usually, the buyer and seller share the payment of taxes and fees associated with the sale of real estate, but this depends on the terms of the contract between them.

The tax on income from real estate rental for individuals is 25%. Capital gains tax - 19%.

Slovenia offers a choice of three options for obtaining a residence permit.

IMPORTANT: Slovenian law does not allow foreigners who are not EU citizens to buy local real estate as individuals. NON-EU citizens can become owners of objects in Slovenia only as legal entities, that is, having previously registered a company in the country and acquiring an object for it.

In addition to purchasing real estate, an alternative way to obtain residency in Slovenia is through investing in the country's economy via the investment immigration program. The most popular form for investors is a limited liability company (družba z omejeno odgovornostjo - d.o.o.). The requirement cannot be bypassed.

A large investment (from 1 million euros) in a development, industrial or infrastructure facility. In this case, it is important that the object is socially significant and important for the local community, the city or Slovenia as a whole.

The Bank is reviewing the business plan and will be ready to provide partial financing as well. Of course, the object / project must be ready for implementation and have all the necessary approvals and permits.

Purchase of any operating business (hotel, logistics facility, shopping center, etc.) with an estimated value of at least 1 million euros.

The investment object must also be socially significant and important for the Slovenia as a whole. The bank is reviewing the business plan and will also be ready to provide financing up to 50% of the business value.

Business relocation to Slovenia. Relocation includes the sale of equipment in Russia, the purchase or transportation to Slovenia, the relocation of personnel or the entire family of the owner. The bank will review the business plan and, based on its evaluation, will make a decision to open an account.

Decided to buy property in Slovenia?

Contact us info@mercuryestate.com and we will select investment-attractive properties for your budget and wishes: both for personal residence and for the purpose of rental business. We also provide comprehensive turnkey services for obtaining a residence permit in Slovenia and business relocation.