Slovenia ranks among the top 15 countries with the best ecology in the world, about 60% of the country’s territory is covered with forests. According to Global Peace Index and World Risk Index, Slovenia is one of the safest and most peaceful countries with a high life quality. The country’s location is perfect for traveling. From the capital of Slovenia, Ljubljana, you can reach Venice in 2.5 hours and Vienna in 3.5 hours. But you won’t be eager to leave, because here you can go skiing, visit thermal springs and swim in the Adriatic Sea. The World Alpine Skiing Championships are held right here, in the Slovenian Alps.
The country is perfect for buying real estate for rent or personal use. The purchase is usually formalized by a notary, who draws up the necessary contract and provides data from the land registry. Citizens with residence permits and permanent residence can register real estate only as a legal entity.
Sites to find accommodation in Slovenia
Main taxes on real estate transactions
Tax on the real estate purchase:
- On secondary real estate or real estate that was introduced more than two years ago — 2% of the contract price.
- On residential properties that were occupied less than two years ago — VAT.
- On permanent residence properties — reduced VAT rate of 9.5%.
- On other real estate rented out less than two years ago — VAT 22%.
Usually VAT is paid by the seller and counted as part of the total sale price. If the legal entity to which the property is registered pays VAT, a tax deduction can be made.
Income tax from the sale of real estate
If the sale’s price is higher than the purchase’s price, then the tax is paid on the resulting difference:
- 20% - for the first five years from the purchase.
- 5% - for each subsequent five years of the property ownership.
If you sell the property 20 years after the purchase, the tax is not paid.
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