Foreigners who start a business in Slovenia often invest in property. They buy either residential or commercial property. When purchasing the property, they often ask about the tax on property and related expenses.
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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. Additionally, our tax advisors can help you with the estimation on the tax on property which you can expect for your particular case. Also, you can follow us on Facebook.
Current tax on property in Slovenia
In Slovenia, there is no actual tax on property. However, there are some other taxes that relate to purchase and rent of real estate. In Slovenia.
Currently, you would have to pay tax on property in the following manner:
- 2% property transfer tax when buying used real estate,
- 9,5% VAT when buying new residential 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 (9,5% VAT for short-term rentals; no VAT for long-term rentals to natural persons).
Are you considering opening a company in Slovenia and buying real estate? Apply also for our free webinar on this topic here:
Proposed novelties regarding tax on property in Slovenia
The changes that the Strategic Council for Debureaucratization proposed relates mostly to the income tax from selling property. Currently it is at 27,5% but the proposal suggest that the maximum level of taxation would be reduced to 25%, or even 20%. In addition, they proposed not to pay capital income tax after 15 years, where now the limit is 20 years. They also proposed lower tax on property when it comes to renting, which will increase the income of those who rent our real estate.
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Looking to buy property in Slovenia? Open a company first!
The majority of non-EU citizens do not have the right to buy real estate as natural persons. But they have the possibility to open a LTD company with 7500€ share capital and they buy property through the company. This enables them to also rent out the property as their company’s business activity. If you decide for this option, you have the support of experts at DATA every step of the way. Also, our tax experts can explain all information for tax on property for your specific case.
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.