Buying a property in Slovenia

WHAT

If you’re not a Slovenian citizen, special conditions exist when you want to buy a property in Slovenia.

WHO

If you are a foreigner, you have the right to own real estate in Slovenia under certain conditions. In case of real estate inheritance, you as a foreign citizen have the same inheritable rights as Slovenian citizens if you meet condition of reciprocity principle. Regarding other ways to obtain real property right (e.g. based on a contract), foreigners in Slovenia (foreign citizens and legal entities with registered seat of a company in a foreign country) can be classified in the following groups:

1. Foreigners who do not need a decision on determination of reciprocity (real property right can be obtained under the same conditions as Slovenian citizens):

• Citizens and legal entities with registered seat of a company in EU member countries
• Citizens and legal entities with registered seat of a company in OECD member countries
• Citizens legal entities with registered seat of a company in EFTA member countries
• Person with status of a Slovenian without Slovenian citizenship.

When obtaining real property right, you do not need a decision on determination of reciprocity if you are a foreign lawful inheritor and foreign contestable inheritor who could also be an inheritor according to lawful inheritance.

In now started procedures to enter real property right accounts, you do not need a decision if you are a citizen of former SFRY republics who met all the conditions to enter the account before 31 December 1990 (but the registration was not realized or the procedure of entering the land register has not yet started).

1. Foreigners who need positive decision on determination of reciprocity to obtain real property right:

• Citizens and legal entities with registered seat of a company in the EU candidate countries (Republic of Macedonia, Republic of Serbia, Montenegro, Republic of Albania).

If you are a citizen of EU candidate country or a legal entity with registered seat of a company in such country who wants to obtain a decision on determination of reciprocity, you must submit an application to the Ministry of Justice. More information about the procedure of determination of reciprocity as well as specimen of the application form for determination of reciprocity are available on the website of Ministry of Justice in the following link (available only in Slovene): http://www.mp.gov.si/si/delovna_podrocja/direktorat_za_civilno_pravo/sektor_za_civilno_zakonodajo/pridobivanje_lastninske_pravice_tujcev_na_nepremicninah_v_republiki_sloveniji/

1. Foreigners who cannot obtain real property right or who can obtain it only based on inheritance:

• citizens and legal entities with registered seat of a company in all other countries, which do not fit in one of the previously stated groups (among others Bosnia and Herzegovina, People’s Republic of China, Russian Federation, Ukraine).

HOW

Before purchasing property in Slovenia, the buyer should obtain:

• a Slovenian tax number and
• EMŠO number (comparable to a social security number) from the local authority where the property is located.

The procedure takes about three days.
It is advisable to use a licensed and registered real estate agent. Your agent will then contact the seller and present your offer. If accepted, the agent will arrange for a contract to be procured and translated. Usually, a 10% deposit is paid upon signing.
A title search is then conducted. The Land Registry in Slovenia employs a modernized system and performing due diligence can be easy, and takes just two working days. Whether you decide to do this personally or have your agent do it for you, make sure that all the documents get translated to avoid any pitfalls.
For the final process, the agent must prepare a new copy of the land registry entry, community confirmation that no communal rights are being claimed against the property, and an official evaluation for proper payment of taxes. When all this is in order, the buyer has to settle the remaining balance with the seller.

WHERE

Ministry of Justice, Župančičeva 3, 1000 Ljubljana, T: +386 1 369 5342, E: gp.mp(at)gov.si, http://www.mp.gov.si/en/