The most frequently registered activity that foreigners register for their business in Slovenia is connected to buying and renting real estate. Purchase of property in Slovenia is very popular as it offers various possibilities for business. But do you know how the process of property purchase looks like in Slovenia? We have assessed the necessary steps.
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Purchase of property in Slovenia – can foreigners buy property?
Many clients turn to us with the question if they can buy property in Slovenia. If you register an LTD company in Slovenia, you can definitely buy property in Slovenia. In this case your company will own the property. If you are an EU citizen or belong to OECD countries, you can also buy property as the natural person. But as most non-EU countries do not fall under OECD countries, the majority of non-Eu citizens can only purchase property in Slovenia by opening a limited liability with 7500€ share capital.
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Steps of property purchase in Slovenia – insight into the land register
The first step that you need to take to purchase a property is to check the data and condition of the property in the land register. It is always best to leave such matters with experienced legal advisors in the country, of which company DATA has many. This way, we will be able to check if the property may be encumbered with a mortgage; whether the seller who sells the property is also the actual owner of the property, etc.
To obtain a land registry extract, we will need identification information about the property. On the e-Prostor portal, we will be able to obtain the number of the cadastral municipality and the number of the plot or building, which we will need for the insight into the land register. In addition, we will also be able to obtain information on the value of the property according to the Surveying and Mapping Authority.
Purchase of real estate – the relevant purchase agreement
Once you have all the necessary information and have agreed with the seller on the price and other details of the sale, the purchase of the property can continue. At this point you would need to conclude a sales contract.
It is best to leave the preparation of the contract to a legal expert. They will include all the necessary provisions in the contract, so that the transaction will be safe for both parties, both the buyer and the seller.
The sales contract for the purchase of real estate must contain at least:
- information about the buyer and seller,
- real estate identification data,
- the amount and method of payment of the purchase price,
- any mortgages and other encumbrances encumbered by the property and
- land registry permit of the seller, on the basis of which the buyer will be registered as the owner in the land registry.
Before signing the sales contract for the purchase of real estate, the seller is obliged to acquaint the buyer with information on the energy efficiency of the building. To this end, they must hand over an energy certificate.
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Real estate transfer tax
Buying a property is a paid legal transaction. If the subject of the purchase is a new building, value added tax (VAT) will be charged on the sale, otherwise the tax will be assessed in accordance with the provisions of the Real Estate Sales Tax Act. This stipulates that the sale of real estate is subject to a 2% real estate transfer tax. The person liable to pay the tax is the seller of the real estate. The basis for assessing the tax is the selling price of the real estate.
Notarization of the signature
After the payment of tax liabilities, it is necessary to provide notarization of the signature of the seller of the real estate. As the contract usually also contains a land registry permit, the verification of the seller’s signature is a condition for the buyer to be able to obtain the registration of ownership in the land register. If the land registry permit is a separate document and is not part of the contract, it is necessary to certify the signature on the land registry permit.
Entry in the land register
The buyer of the property becomes its actual owner only at the moment when he will be registered as the owner in the land register. The procedure of entry in the land register can be carried out through a selected notary, who certifies the signature on the purchase contract or land registry permit, or in person at the competent court.
Are you planning to start your business in Slovenia? Contact DATA for full support!
If you have additional questions about business in Slovenia, do not hesitate to contact DATA d.o.o. for support! Send us an email to firstname.lastname@example.org. You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.