Are you considering buying property in Slovenia? Most foreign entrepreneurs cannot buy property as natural persons and hence have to start a business in Slovenia to in order to buy and rent out real estate. This year the Strategical Council for Debureaucratization has proposed new taxation when it comes to real estate in Slovenia. If accepted, we can expect lower taxes in Slovenia!
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Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on [email protected]
Data d.o.o. has been offering support to foreign citizens with their business in Slovenia. In addition to company registration services, we also provide professional accounting services. We also have specialized legal advisors that support business owners with every aspect of business Slovenian legislation and can also help you understand more on arrivals to Slovenia during the epidemic. Also, you can follow us on Facebook.
Current taxation system of real estate in Slovenia
In Slovenia, we have two types of taxation when it comes to real estate:
- income tax on income from capital – you pay this if you sell real estate where you have not previously registered permanent residence for at least 3 years,
- taxation when renting out real estate.
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Novelties about taxation when selling real estate
Income tax on income from capital in Slovenia is 27,5%. The Strategic Council for Debureaucratization is now proposing new taxation. If the government accepts this proposal, it will decrease taxes. The maximum level of taxation would be reduced to 25 % (maybe even 20 %). In addition, a proposal has emerged that income tax on capital income would no longer be paid after 15 years (now this limit is at 20 years).
Lower taxes on renting real estate
This proposal also promises lower taxes in the area of rents. Last year, 25% taxation and 10% standardized expenses applied here. From 1 January 2020, these figures increased. Rents are taxed at 27.5% and standardized expenses are 15%. The Strategic Council made 2 proposals:
- standardized expenses would go from 15% to 30% and the income tax rate would be reduced back to 25%,
- standardized expenses would be abolished and a 15% tax on rental income would arise.
If these changes take effect, entrepreneurs renting real estate can expect lower taxes and higher earnings!
Are you considering opening a company in Slovenia and buying real estate? Apply also for our free webinar on this topic here:
Buying property in Slovenia as a non-EU citizen? Open a company first!
As most non-EU citizens, cannot buy property as natural persons, there is a good solution if you want to buy real estate here. You can open a limited liability company in Slovenia and that company can buy real estate, which you can rent out. It can be both commercial and residential real estate. Experts at DATA company can support you in every step of the way.
Are you an EU citizens and want to find out what your options are for residence in Slovenia? Apply for our free webinar on this topic:
Contact DATA for full support with your business in Slovenia!
If you have additional questions about company registration and business immigration to Slovenia, do not hesitate to contact DATA d.o.o. for support! Send us an email to [email protected] You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.