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The Details of Real Estate Deals in Slovenia

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What regions should you check out to buy real estate? Why is it necessary to open a company in the country and can this requirement be avoided? Is it necessary for intermediaries to participate in the transaction? What expenses are waiting for the buyer? Read more about the rights and obligations of foreigners in the article Prian.info.

Slovenia is a small, but a very colorful country. There is an industrial area, a small seaside area, lake and mountain areas, and a center with spa-resorts.

The most popular region for real estate buyers is Central Slovenia. It is the cultural, political and economic center where the capital city of Ljubljana is located. This region offers a variety of investment properties in and around the city. The cost of residential properties in the capital and in the suburbs may differ significantly. Prices for housing in Ljubljana start from €2,000 per square meter.

The area in which the demand also exceeds the supply is Primorska. The second most popular region of Slovenia includes a small coastal area (about 47 km), which has significant restrictions on development. The prices here are also high. The vast majority of apartments cost at least €200,000, a townhouse or small house start from €350,000 and a villa from €500,000.

The district of Gorenjska is clear mountain air in the vicinity of the luxurious lakes. It is also good for those who are attracted to the winter ski resorts such as Bovec, Bled, Kranjska Gora. The cost per square meter of housing starts from €1,700.

Lake Bled, Slovenia
Lake Bled, Slovenia

The Podravska region, located in the North-Eastern part of the country, is remarkable for its cultural monuments and its nature: it is here that the famous healing springs are located. The region is part of the historical region of Lower Styria, centered on Slovenia's second largest city Maribor. It is located near the Austrian border. The journey to Vienna takes only three hours. The cost of apartments in Maribor starts from €75,000, and for houses from €120,000.

Not that you now more about different regions, let’s discuss how to buy property in the country. Regardless of what property type you choose to purchase, the main stages of the real estate purchase procedure in Slovenia are be the same.

Step 1. Selecting and Booking Real Estate

As soon as the contract with the real estate agency is concluded, the agent makes a selection of relevant offers. After viewing and selecting the desired property, the agent conducts negotiations with the owner of the property and agrees on the final cost.

If this price suits both parties, they sign a preliminary contract, and the buyer makes a deposit. Usually, it is in the amount of 10% of the transaction amount. Funds are transferred from the account of the buyer's firm to the seller's account or to the account of a notary or a lawyer.

The deposit is a guarantee of intentions for both the seller and the buyer. If the contract is not executed due to the seller's fault, the deposit is returned to the buyer in full. If it is the buyer's fault, the deposit is not returned. The seller and the buyer agree between each other on the period of time in which the full payment must be made.

Next, the property is checked in the Slovenian Land Registry for reliability to make sure that there are no liens or encumbrances on the property, confirm the payment of taxes, and so on. The seller can settle any technical problems, if the agreement is reached.

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Step 2. Opening a Legal Entity in Slovenia

Non-EU citizens can buy real estate only for a legal entity. Therefore, before entering into a purchase and sale agreement, you must register a company. The firm must be fully owned by a foreigner.

The procedure for opening a company is as follows:

  1. Select a name, a legal address and a type of activity of the company.
  2. Visit the Registration Chamber or the notary for registration.
  3. Open an account in a local bank, deposit the authorized capital (the minimum amount is €7,500), sign a contract to open a permanent account in the name of the company.
  4. Get a foreigner's tax number.
  5. Register the company in court within two days.
  6. Sing agreements on accounting.
  7. For registration present a valid passport, a copy of the TIN issued in the country of residence, a certificate of no criminal record.

The opening period of the company takes from three to ten business days.

The cost of registering the company is about €1,500 - 2,000, including the cost of notary services and translators. The authorized capital of the company must be at least €7,500, and these funds can be further used for the purchase of real estate.

By the way, many agencies take over the registration of a legal entity in Slovenia and include the cost of processing documents in the amount of the transaction commission.

Please note! The EU, US and OECD country citizens do not need to open a company to buy real estate and must follow the same rules with Slovenian citizens

Also read: How to Buy Property Abroad. Universal Tips

Step 3. Concluding the Purchase and Sale Agreement

If there were no problems at the previous stages, the buyer and seller sign the purchase and sale agreement. It is often drawn up by a lawyer or a notary, but must be certified only by a notary.

To purchase real estate, the buyer must submit:

  • statutory documents of your legal entity, which will be used to purchase real estate;
  • individual tax number;
  • a bank account details of a legal entity in any bank in Slovenia;
  • documents confirming the legal source of origin of funds (the certificate of employment, a notarized donation or inheritance, contracts of sale of real estate as a seller, etc.).

The contract must include clauses about the current state of the property, the purchase price, payment terms, terms of implementation of the contract or its termination, and the obligations of the parties. You also need a clause of a contract with permission to enter the property rights of the new owner in the land register.

The contract is concluded in the Slovenian language. At the same time, Slovenian law also requires the translation of the contract of sale and other relevant documents into the language spoken by the buyer. This is done so that all parties understand the content of the documents. Translations are made only by licensed court translators.

A notary and a real estate agency are the guarantors of the contract.

Maribor, Slovenia
Maribor, Slovenia

Step 4. Making a Payment

When the contract is signed and all the seller's obligations under it are fulfilled, the buyer transfers the remaining amount of 90%.

The payment option is discussed beforehand. This can be done from the account of the legal entity or by depositing funds with a lawyer or real estate agency.

Some companies practice paying the purchase price to the notary's escrow account. The essence of this scheme is as follows. After the seller has certified the contract of sale, they leave it for storage with a notary. In turn, the notary transfers the payment for real estate to the seller's account and submits documents to the Land register for re-registration of property rights in favor of the buyer. The right of ownership is registered in the Land Register only on the basis of the contract of sale. The re-registration procedure takes about three months from the date of application.

Thus, the seller is guaranteed to receive money, and the buyer is assured that after the payment they become the new owner.

When making a transaction, you must pay a tax on the transfer of ownership of the property. It is 2% of the transaction amount. This tax must be paid by the seller, but the buyer can reimburse the amount by agreement. You do not need to pay tax on the sale of real estate, if a new building is purchased, in this cans VAT is charged.

Within a week after the transaction is completed, the buyer pays for the services of the real estate agency in the amount of 2-3% of the transaction.

Also read: The Guide to Real Estate Deals in Croatia

Stage 5. Becoming the New Owner

After the notary has registered the contract and submitted the documents to the local land register, the buyer or a legal entity immediately becomes the owner of the property. The procedure for entering into the Land Register can take up to 90 days.

A fee of €500 must be paid for registration of the right.

Photos: pixabay.com

Quoting conditions of Prian.info materials

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