Acquisition of Ownership of Real Propert
Foreign legal entities established in Slovenia benefit from a national treatment regime with regard to the acquisition and ownership of real estate. Foreign companies incorporated or founded in Slovenia have the same purchase rights and rights to the use of land and natural resources as those enjoyed by Slovenian enterprises, regardless of the amount of foreign-owned share capital.
Businesses not incorporated or founded in Slovenia have the same rights if they have subsidiaries/enterprises based in the EU and all transactions are justified by the primary activity of the business.
Ownership of real estate
Most land in Slovenia is privately owned and can freely be sold and purchased.
Citizens of European Union member states may purchase real estate on the territory of Slovenia with no restrictions.
It applies the same for the citizens of OECD countries or EFTA member states (Australia, Canada, Iceland, Chile, Israel, Japan, Liechtenstein, Mexico, Norway, New Zealand, Switzerland, Turkey, South Korea and the USA).
Special conditions apply for the citizens of Albania, Macedonia, Montenegro and Serbia, who can acquire property rights to immovable property if reciprocity exists. Reciprocity is established in accordance with the Reciprocity Act.
Since Slovenia has no law governing the acquisition of the title to real property, other foreign nationals cannot obtain the title to real property located within the territory of the Republic of Slovenia.
We recommend to the citizens i.e. legal persons from other countries registering a company in the Republic of Slovenia. A company established by a foreign national will be a legal person of the Slovenian law; hence it will be entitled to acquiring real property without any restrictions.
The share capital required for the incorporation of a public limited company (d.o.o.) is 7,500 euros, but the foreign investor from third countries has to prove investment in Slovenia in the amount of at least 30,000 euros for company start-up. However, citizens of third countries may also acquire a real property on the basis of the right of leasehold (superficies or the right of a superficiarius). Such a right (leasehold) may be acquired for the period of up to 99 years. Such a lease or tenancy is not restricted or limited whatsoever.
Real estate administrative procedures
PRIVATE REAL ESTATE
Basic steps when purchasing real estate (specific cases excluded):
1. Identification of legal status of the real estate (ownership, mortgage, building and operating permit);
3. Contract (the object, the amount and the procedure of payment, mortgage, the registration clause ...);
4. Payment of deposit;
5. Payment of taxes (Real Estate Transfer Tax - 2% of the property price; new commercial real estate – 22% VAT);
6. Certification of seller’s signature by a notary public;
7. Submission of proposal to Land Registry.
Purchase of land requires some specific knowledge regarding the national legislation, therefore the involvement of an expert is advised.
PUBLIC REAL ESTATE
The most common procedure used is public auction, followed by public tender and under certain conditions also direct contract. Law on physical assets of the state, regions and municipalities provides principles of conduct, procedures and acts regulating the disposal of real estates.
Public auction is a public procedure in which the real estate is sold or rented to the highest bidder, who agrees to certain pre-set conditions. The auction is conducted 15-60 day after its publication. The publication must include basic information on the real estate and the implementation of the auction.
Public tender is performed by sending out a call for proposals to a specific or unspecified group of persons. Tender documentations specifies the form and the conditions under which the bids should be submitted and gives basic information on the real estate. The real estate is sold or rented to the bidder who offered the highest price.
In exceptional cases the real estate owned by public entities can be sold or rented based on the direct contracts (in case of smaller shares of ownership, lower value of the real estate, if other contractual party is a public law institution,...). Intention to contract must also be published.