What are the costs incurred by a non–EU resident investor in Slovenia? How much does it cost to maintain the company that the property is purchased for? How much will you have to spend on taxes and utilities? You can find answers to these and many other questions about real estate in Slovenia in our article.
In order for a non-EU foreign citizen to become the owner of real estate in Slovenia, they need to open a legal entity and purchase a property for it.
The most popular form is a limited liability company (družba z omejeno odgovornostjo – d.o.o.). The company should carry out its activities in reality, not fictitiously. And this is especially important, if the investor plans to get a Slovenian residence permit in the future.
Therefore, a non-EU resident foreign investor is responsible for all expenses on the territory of Slovenia as a legal entity.
Monthly expenses for the maintenance of the company include:
1. Accounting records from €100-150. The balance is issued once per a calendar year. The deadline for preparing and submitting the balance sheet is March 31, following the reporting year.
2. Income or corporate tax. The amount depends on the chosen tax scheme:
The classic scheme is equal to 20%, and its calculation for the last reporting period is based on the delivery of the annual balance sheet. Local rules also provide for an advance payment of income tax. In fact, this is a preliminary monthly or quarterly tax. It is charged based on the current year's profit, but is calculated based on the previous year's profit. The tax service compensates the company for the difference after submitting the balance and in case of overpayment.
A simplified tax system that pays 4% of the company's turnover (the entire balance on the company's account is cleared profit). But in the first year, the company's turnover must be up to €50,000, after that, if there is one employee, the company is allowed to have a turnover of up to €100,000.
3. Taxes on wages, if the residence permit is issued. The basis for calculating deductions is the gross salary. In the employment contract the salary before taxes is always specified. The net salary is an amount that is credited to the employee's bank account after all deductions.
From January 1, 2020, the official minimum wage (gross salary) in Slovenia is €940.58 per month. And at the minimum wage, deductions for tax residents will amount to about €300.
The net salary is paid to the current account of the employed CEO with a residence permit. At the same time, the minimum net salary must exceed €800 to extend the residence permit. If the investor's residence permit is extended with their spouse and children who are dependent on the investor, the net salary increases.
4. Maintaining a bank account – €20 per month.
Ljubljana, Slovenia
Tax on the Use of Land Under a Building
Currently, Slovenia does not have real estate taxes. But there is land, which means it is present in all real estate. The tax rate for the use of land under a building (nadomestilo za uporabo stavbnega zemljišča) directly depends on the value of the land, its purpose and location.
The tax is paid once a year and calculated individually for each property, depending on its area and location.
The Slovenian tax system also includes VAT payments for the sale of real estate by legal entities (see below).
Slovenian landscape
Utilities
All residential real estate in Slovenia has its own energy efficiency class. According to this indicator, all buildings are divided by heat consumption into categories from A to G, where the most energy-efficient buildings are considered class "A". This knowledge is equipped with individual meters and cost efficient consumption systems. By the way, electricity, water, gas, and heating are calculated based on meter readings in Slovenia.
Compared to other European countries, utility bills in Slovenia are relatively high. At the same time, they are much higher during winter. This is due to additional heating costs.
The heating season in Slovenia usually lasts from October to April. But officially, it starts when the temperature drops below 12 degrees for three days at 21:00, and ends when it is higher. In Slovenia, there are several options for for heating. The most economical and common option is natural gas (€0.30–0.50 per cu.m), the most expensive is fuel oil (€1-1.2 per 1 liter).
In many apartments in Slovenia, you can adjust the room temperature, thereby reducing utility costs.
There are a number of providers in Slovenia that offer telephone, satellite TV and Internet services. The main Internet service providers are Telekom Slovenije (under the SiOL brand), United Group (Telemach and Total TV), Telekom Austria Group (A1 Slovenija) and T-2. The price depends on the number of services included in the package.
Prices for utilities vary in Slovenia depending on the region. The highest will be in Ljubljana and on the coast line.
On average, monthly expenses for utilities in a studio apartment located in the center of Ljubljana range from €150 in summer to €200 in winter. The average cost of a two-room apartment for a family of three is €200-250 in summer and €300-350 in winter.
Please note!
Foreign non–EU citizens who bought real estate for a legal entity they opened and rent it out do not pay utilities. Therefore, all bills are paid by tenants.
In the case of a commercial property, all utility costs are covered by the tenant directly to the management company.
Example of Calculating Utility Services
The amount of expenses for a two-room apartment in the center of Ljubljana
Service
Average cost per month, €
The total bill for the maintenance of the building
50 (old apartment buildings)
100 (new buildings or small apartment houses)
Electricity
20-25
Water supply
12
Heating, hot water, gas
20 (in summer), 200 (in winter)
Internet, TV, phone line
30-40
Garbage disposal
5-10
TV and radio outlet
13
Management Companies
All residential apartment buildings in Slovenia have their own management company. It deals with all the problems of the house and the surrounding area: cleaning, repairing, gardening.
Usually, the first six months the functions of the management company in new buildings are performed by the developer. After this period, the condo board has the right to change the management company.
Residents receive an invoice for the services of the management company every month in the amount of €50 to €100, depending on the amount of work carried out in the bulding.
If you want to invest in real estate in Sloveniat, then it is quite possible to implement it in the country. You can earn 3-4. 5% per annum before deducting costs. Short-term rentals with proper management can bring a little more. Retail properties allow you to earn 5-7% per year, office buildings – 4-6%.
You can contact a real estate agency for assistance in renting out and selecting a suitable property. They will help you to conclude a contract with those who want to rent it, file a tax return and solve other issues.
Experts advise you to sign a lease agreement with a notary in order to avoid unpleasant incidents.
As for taxes on rental income, you must submit a declaration of monthly income for the previous year every year before January 15 of the current year. A recalculation is made on the basis of this declaration and the amount that the landlord must pay is displayed. The tax is paid once per year.
The tax on rental housing for a legal entity owned by a foreigner is in fact a profit tax. It is 20% and is calculated from the company's net profit.
I will sell an office on the main street of the capital. There is an opportunity to buy a company (2014 registration) on which the object is registered (additional 10,000 euros).
You can apply in Russia by confirming the legality of the transaction at the Slovenian Embassy in Moscow.
You can pay in rubles in Russia.
Contact phone: +7950...
Private person
100 000 €
Shop in Maribor, Slovenia
29 sq.m4.9% per year
In the second largest city in Slovenia - Maribor, a shopping center with an anchor tenant - a food retailer TUS, a pavilion of the largest telecommunications operator in Slovenia is offered for sale.
All the contracts were renewed in 2019 and signed for 15 years
The shopping center is located in the single shopping area of the Pobrezje...
FUTURE REAL ESTATE
287 000 €
Shop in Medvode, Slovenia
89 sq.m4% per year
Business on sale
A room in a shopping center with a tenant of Mladinska Knjiga with an area of 89 m2 is offered for sale. An indefinite contract has been concluded with the tenant - the first 5 years without the possibility of renouncing the lease, then the term of refusal is 12 months. The premises are located on the ground floor of a shopping center...
FUTURE REAL ESTATE
313 000 €
Shop in Medvode, Slovenia
97 sq.m4% per year
Business on sale
A room in a shopping center with a tenant Optika Clarus with an area of 97 m2 is offered for sale.
The tenant - OPTIKA CLARUS - is one of the leading companies in the field of trade in glasses and optical devices in Slovenia. There is a wide range of corrective and sunglasses, sports and children's models from well-known brands.
An...
FUTURE REAL ESTATE
550 000 €
Office in Maribor, Slovenia
367 sq.m5% per year
Business on sale
In the center of Maribor, we offer for sale an office with tenant - LON Bank.
The office is located on the first floor, in an accessible and transit location.
The lease agreement with the tenant has already been signed for 10 years.
LON was founded in 1992 and has headquarters in Kranj. Kranj is the fourth most populated city in Slovenia...
FUTURE REAL ESTATE
595 000 €
Hotel in Slovenia
392 sq.m
HOTEL / HOLIDAY HOME / TRAIL CENTER
Tourist facility in the strategic center of the tourist village of Robidishte (17 km from Kobarid) with adjacent parking, large garden and plot, as well as a garden facility for communication with sanitary infrastructure. An idyllic location next to the Nadizsa bathing river, two cycling centers, the Soča...
GALINVEST
700 000 €
Shop in Slovenska Bistrica, Slovenia
344 sq.m6.6% per year
Business on sale
The shopping centre is strategically located at one of the main entrances to Slovenska Bistrica. There is a Lidl supermarket nearby, which creates a constant customer flow.
The shopping centre was built in 2008, in 2018 the building was completely renovated and the space for tenants was extended.
All utilities and property taxes are paid by...
FUTURE REAL ESTATE
920 000 €
Hotel in Lenart, Slovenia
798 sq.m
HOTEL SHIKER
A small two-story hotel with 10 rooms, with a plot of land. The hotel has been operating for 10 years. The basic room is designed to offer guests rooms for a short, relaxing break and solitude with nature. Thanks to its location, it is suitable for all types of guests and further development in various industries.
Convenient...
GALINVEST
1 100 000 €
Cafe, restaurant in Izola, Slovenia
403 sq.m
Restaurant with sea views on the Adriatic coast.
Restaurant with all necessary equipment and its own terrace in Marina Izola, with a total area of 402.7 m2 and a plot of land of 62.5 m2. The building was built in 2004. The premises have permission for construction and operation. Complies with all established legal standards. Possibility of...
GALINVEST
1 350 000 €
Shop in Maribor, Slovenia
520 sq.m6% per year
Business on sale
Commercial space with tenant Pepco, with whom a 5-year contract was signed in 2018 and has already been extended for the next 5 years.
In the immediate vicinity there are busy transport routes providing a constant influx of buyers. Also, next to the shopping center there is a large outdoor parking.
Adjacent to the store are chains such as...
FUTURE REAL ESTATE
1 580 000 €
Commercial property in Slovenia
2185 sq.m
Industrial facility in north-eastern Slovenia.
Industrial facility with commercial premises on development land. in the industrial zone of the municipality of Khoce-Slivnitsa. The object is an assembly structure (hala) built in 2008. The area of the object is 2158 m2, the area of the land plot is 4236 m2.
Year of construction: 2008 -...
GALINVEST
1 625 000 €
Investment project in Smarje pri Jelsah, Slovenia
1450 sq.m5% per year
Credit 2-3%Business on sale
We offer for sale a multi-tenant shopping center in Šmarje pri Jelšah, located in central Slovenia.
The main anchor tenant is a supermarket TUŠ kea, also presents a clothing store NKD, a cell phone operator store Telemach. Offices, an ATM and advertising space are leased in the building of the center.
The leases were...
FUTURE REAL ESTATE
1 660 000 €
Commercial property in Kocevje, Slovenia
1261 sq.m
Rental trading area. Yield 7%.
Completely updated in 2017 a separate building in one of the cities of the Central Slovenia of the district value with a population of more than 7,000 people, known for its industrial enterprises.
Open parking for shop visitors.
The main tenants are international (European) non-food networks. Lease contract for...
GALINVEST
1 660 000 €
Shop in Kocevje, Slovenia
1261 sq.m7% per year
Business on sale
A retail space with German non-food retailers KiK, Tedi and bakery is offered for sale, a lease agreement has already been concluded.
Also in the neighboring shopping center there are[nbsp]another anchor tenants - SPAR, EUROSPIN
The project is located next to a shopping center with a retailer Lidl, which, together with the land, is in its...
FUTURE REAL ESTATE
1 745 000 €
Commercial property in Domzale, Slovenia
1048 sq.m
Commercial real estate in an elite suburb of Ljubljana. YIELD!
Spacious office space for commercial activities on the ground floor of a shopping center.
A well-equipped commercial premises with an area of 1048 m2 in an exclusive location - the Breza (McDonald's) Domzale shopping center.
The Breza shopping center has free parking for customers,...
GALINVEST
1 750 000 €
Commercial property in Sevnica, Slovenia
3214 sq.m
Warehouse - refrigerator in the central part of Slovenia.
"Refrigeration" building in a location accessible by trucks. The building is a precast concrete hall constructed in two periods; 1983 and 1989, which occupies one floor. In the northwestern part, above the technical rooms, there is a smaller office space. It is completed with gable...
GALINVEST
2 100 000 €
Shop in Ptuj, Slovenia
1186 sq.m5% per year
Located in a vibrant commercial area, TUŠ grocery store is a landmark of convenience. A new lease agreement was signed in 2023 for 11 years, underlining the store's commitment to serving its customers for the immediate future. In addition to the well-established TUŠ grocery store, this bustling hub also includes a compact space...
FUTURE REAL ESTATE
2 150 000 €
Office in Ljubljana, Slovenia
1024 sq.m
Commercial real estate in the center of Ljubljana. YIELD 8%!
Office space is suitable for all property investors who are looking for both suitable returns, which can be further increased by increasing rents, and the potential for growth in property values. The space is unique and a good starting point for a variety of renovations, from an...
GALINVEST
2 500 000 €
Investment project in Logatec, Slovenia
1656 sq.m6% per year
Logatec is located 25 kilometres southwest of the capital city of Ljubljana. Ljubljana-Koper passes through the town, and the motorway to the same direction passes nearby. Other roads lead to Idrija, Kranj and Postojna.
Logatec is a 35-minute drive from Ljubljana.
PROPERTY DESCRIPTION:
Premises are offered for sale in a shopping centre...
FUTURE REAL ESTATE
2 750 000 €
Commercial property in Ptuj, Slovenia
1329 sq.m
Regional shopping center. Rented. YIELD 7%!
A shopping center with an excellent location and good traffic. A new modern building was built in 2007, but already in 2022-2023. completely updated.
Commercial real estate is leased. "Anchor" tenants are industrial goods chains. Lease agreements for 5+5 years or more. Utility costs are paid by the...
Slovenia is a developed country with a high standard of living. The local economy is stable, medicine is the high level, the environment is favorable and the quality of food is good. Prices for food, clothing, entertainment and real estate are affordable here. Therefore, the average salary (after all mandatory deductions) of €1,173 per month is enough to live on.
According to the Eurostat, Slovenia ranks 14th among the 22 EU member states with a statutory minimum wage. In Slovenia, it is equal to €940.58 per month. The highest figure is registered in Luxembourg – €2,142, and the lowest in Bulgaria – €312.
Spar, Lidl and Hofer are among the major international store chains in the country. The local chain of stores is represented by Merkator. Prices for products in these networks vary, as well as the brands represented there. The average price of bread in the capital is €1.20–1.50 per loaf, milk – €0.80–1.0 per liter, potatoes – €0.50–0.70 per kg. Street markets are a good alternative to grocery stores. Products there are somewhat more expensive, but this is compensated by excellent quality.
As for the average bill in a cafe in Ljubljana, pizza and pasta will cost approximately €7, and fast food – €4-6.
Locals regularly spend their leisure time on weekends in countryside, and you can find them in dance studios and fitness centers on weekdays.
Piran, Slovenia
Real Estate Sale
Slovenian real estate is in demand. At the same time, this demand outstrips the supply, which keeps average prices at a high level. In 2019, the number of real estate transactions increased by 20%, sales volume increased by almost 60% compared to 2015. Such big numbers made 2019 a record year for Slovenia.
The results of the first half of 2020 also show that the market is popular among investors. Sales are growing. Buyers are very interested in one -, two - and three-bedroom apartments, especially in the secondary market.
What taxes are imposed on the seller?
First of all, it is worth noting that the key tax that an entrepreneur faces when doing business in Slovenia is value added tax (VAT). Under Slovenian law, you can become a VAT payer on a voluntary or mandatory basis. In the second case, this happens if the annual turnover exceeds €50,000.
VAT is charged at the rate of 22%. However, a reduced rate of 9.5% may be applied for residential properties belonging to the social security system, intended for permanent residence of individuals, as well as those under construction or reconstruction.
When selling new buildings or secondary real estate, the law obliges sellers to pay VAT on the property sold. Therefore, legal entities sell new buildings, as well as other real estate that they own, including VAT (they add it to the total sale price). In this case, the buyer pays the cost of the property + VAT (the seller pays this part to the state).
But the seller as a legal entity does not always have to pay VAT . There is an option in which they pay the tax rate on the sale of real estate 2% of the contract price. Sales tax is paid, if the property was bought and sold without VAT. If the property has the VAT rate included, there is no 2% tax.
The editors thank Tatiana Mkrtychyan from GALINVEST and Victoria Savchenko from Future Real Estate for their help in preparing the material.
