Slovenia real estate taxes: renting real estate will also become more lucrative in 2022!
Do you plan to do business in Europe and also rent real estate? Renting real estate for long term means that the owner has to pay taxes. After 1st January 2022, the income from renting real estate will also get two changes. The normalized expenses will decrease from 15% to 10%. Also, the tax rate will drastically decrease from 27,5% to 15%. There will also be an additional change where the person or company renting the property make a choice about Slovenia real estate taxes. He or she can decide to include it in the calculation of income tax or also pay the tax only at one time.
Long-term or short-term rent
Who do the Slovenia real estate taxes affect the most? The natural persons who are also owners of the property can decide to rent the property for short-term or long-term. The main differences are:
- short term rent – registering the activity if it is for tourist purposes (as a private person renting property or also as a sole trader or LTD company),
- long term rent – making the decision if you will provide the services as a natural person or also as a sole trader or LTD company.
Depending on the choice above it also depends how the Slovenia real estate taxes will be calculated. If you plan to rent it out through the company you would need to abide by the same tax conditions as all companies. But if you also plan to rent it out as a natural person, you would need to follow the tax conditions we will present today.
Slovenia real estate taxes: renting a property
The new conditions will become valid in 2022. Below we have prepared a calculation so that you can compare the taxation now and how it will be next year. In order to lower the tax base, you need to follow the normalized expenses. But you can also decide to do it another way. You can use the actual expenses of the upkeep of the real estate in case you are the one paying it. You need to also submit reports on the real estate rent in Slovenia to the Slovenian tax office. They can then assess what amount of Slovenia real estate tax you have to pay.
Comparison for taxation (renting: natural person)
|Slovenia real estate tax in 2021||in EUR||Slovenia real estate tax in 2022||in EUR|
|Income/gross rent||3.000||Income/gross rent||3.000|
|Normalized expenses 15%||450||Normalized expenses 10%||300|
|Tax base||2.550||Tax base||2.700|
|Slovenia real estate tax 27,5%||701||Slovenia real estate tax 15%||405|
|Net rent||2.299||Net rent||2.595|
In addition to the normalized expenses and the Slovenia real estate tax there is also news about the taxation of natural persons. If they rent out real estate, they can also decide if they want to include their income in their yearly personal income tax calculation. This way it is not taxed all at once. Our legal experts can help you to understand which option would be more suitable for you. Also, find out if you can purchase property in Slovenia as an individual. Otherwise you can open a company in Slovenia.