Article 33 of the Constitution of the Republic of Slovenia says that everyone has the right to private property. In Slovenia, real estate and other rights in rem can be bought and owned by any person or business that is fully legal. Companies, associations, and other groups with legal standing, as well as local and regional government units and the Republic of Slovenia, are all examples of legal “persons”. Article 68 of the URS says that foreigners can own real estate if they meet the requirements of a law or treaty that has been ratified by the Parliament. But since Slovenia joined the European Community, citizens of the European Community can now buy property rights in Slovenia if they meet the same legal requirements as Slovenian citizens. Based on EU agreements, people from Norway, Lichtenstein, and Iceland can own property in Slovenia under the same rules as Slovenians and EU citizens.
Ownership
The most exclusive right a person or legal entity can have over a piece of property is to own it. The right of ownership is a property right (right in rem) on a certain object that gives the owner the right to own, use, and get rid of the object. In Slovenia, there are the following types of ownership:
Co-ownership
Co-ownership of real estate is when two or more people own an object that is not split up, and each owner’s share is calculated as a part of the whole object. Co-ownership can be set up either through an agreement or by law. Each co-owner is free to do what they want with their share. But if the thing co-owned is real estate, other co-owners have a legal right to take it first. If there is a conflict between a statutory pre-emption right and a contractual pre-emption right, the statutory right will win.
Joint ownership
The definition of “joint ownership” is ownership of an undivided item where the shares of the joint owners are not known. In this case, the property title can only be changed with the agreement of all people who own it. The same goes for how the property is used. Any co-owners or joint owners can ask for a property division at any time, as long as it’s not a bad time. A single apartment or office can be the subject of an exclusive ownership right under Slovenian land law. Each owner of a single land unit must also be a co-owner of the building’s common areas and parts, as well as the land around the building, in order for the single land unit to be used. The land register has a separate record for each piece of real estate. Condominium owners must hire a property manager and set up an obligatory reserve fund if their building is split into eight or more single land units and they own two or more. The owners can sell their single units and their shares of the common parts and areas without any restrictions. The right to sole ownership of a single piece of land cannot be sold separately from the right to share ownership of common areas and parts.
The most important things about registering and notarizing real estate
At the Land Registry, all property rights and some obligations (such as a pre-emption right, a lease, a ban on selling or encumbering the land, etc.) are recorded. Registering property rights (rights in rem) is only possible. The Land Registry is made up of two parts: I the main book, which has information about the property, the people who have rights to it, and any encumbrances on it, and (ii) a collection of documents, which includes the original documents that were used to register the property. The data in the main book can be looked at by anyone, but the documents can only be looked at if someone can prove they have a legitimate interest.
The most important requirements for registering are:
- A contract on which the transferor’s signature has been certified by a notary public.
- If someone buys a house and has to pay real property transaction tax or value-added tax.
- A certificate showing that the tax has been paid.
Taxes and costs
The real estate transfer tax (RETT) and the value-added tax are the main taxes on purchases (VAT). VAT of 22% is charged on the sale of new buildings (within two years of their first use) and land for building. If the transaction is between two VAT payers and certain administrative requirements are met, VAT can be charged on a service that would normally be exempt from VAT. For apartments, homes, and other buildings meant to be lived in permanently, a lower VAT rate of 9.5% is available. In the end, the seller is responsible for tax claims.
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