Country Guides Country Guides: Slovenia

Date Published:

02/06/2008

Purchase Process

Since Slovenia joined the EU in 2004, restrictions on foreigners owning property have been lifted.

Having chosen a property you wish to purchase, a local-English speaking solicitor appointed by you will negotiate on purchase price with the seller. Once agreed, he will carry out land registry searches and apply for an EMSO number – a requirement for homeowners in Slovenia – on your behalf.

He will then have translated all documents including the contract, the details from the Land Registry, any management contracts and all insurance policies. Thereafter, as long as you are happy to proceed, contracts will be exchanged and you will become the property’s legal owner.

Always engage the services of an independent English-speaking solicitor. See the Law Society website at www.lawsociety.org.uk for a list of international solicitors.

Purchase Costs

Based on a buying a £100,000 new property you should budget 4 per cent and expect to pay the following:

VAT

When selling a newly constructed or renovated residential apartment or building, 8.5 per cent VAT is levied on the property, otherwise 20 per cent VAT is charged. Be sure to check whether it’s included in the purchase price.

Exit Costs

Capital gains tax is taxed at a flat rate of 20 per cent, which is reduced to 15 per cent after five years’ ownership; 10 per cent after 10 years; 5 per cent after 15 and nil after 20 years’ ownership.

Mortgage Status

The Austrian bank, Volksbank, offers foreign buyers 70 per cent LTV mortgages (subject to status), which is secured on the property bought in Slovenia.