Slovenia’s progressive government encourages foreign investment.
The economy is among the EU 27’s best (growth was 4.1 per cent in 2008 – 5th highest in the EU), the country adopted the euro as its currency on 1 January 2007, and foreign direct investment (FDI) is strong. Round trip buying/selling costs are modest too – around 7 per cent. The only fly in the ointment is a high tax rate of 25 per cent for foreigners on rental income. Oh, and an undersupply of new properties isn’t helping many investors to get into the market to drive it along.
Slowing economic growth and rising interest rates – plus strong capital house price increases over the past five years – indicates there’s not much left to be squeezed out of this market at present. Looking for positives, you’re unlikely to lose your shirt, either.
Rental yields are around the 4-5.5 per cent gross mark in the capital, Ljubljana. Tax, at a flat rate of 25 per cent on income for non-resident foreigners, leaves the net yield modest. Overall, not bad but not great, and you won’t be able to retire on this investment.
To see if the figures stack up for your investment plan, look at the weekly rental prices on holiday lettings websites: http://holidaylettings.co.uk/ and http://www.ownersdirect.co.uk
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Amanda Lamb is on her travels finding you the ideal location for your new house
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