Dr. Filomena

Property at Terme 3000 spa resort for sale at GBD Real Estate Ltd.

Who can buy real estate in Slovenia? Perhaps the obvious answer to that question would be: anyone who can afford it. Which, to some extent is true. However, while Slovenian citizens only have the financial aspects of the purchase to consider, most foreigners do face some more formal restrictions.

Main source: Slovenian Ministry of Justice website

EU nationals
Slovenia had to change its Constitution in the part pertaining to real estate ownership by foreigners (Article 68) in order to be able to join the European Union. With the signing of the accession agreement in 2004, European Union citizens obtaioned the right to purchase real estate in the Republic of Slovenia under the same conditions as its citizens, which means they no longer have to lodge applications for the determination of reciprocity previously required under the special so-called »Spanish Compromise«.

EEA
Pursuant to Article 40 of the Agreement on the European Economic Area, citizens of Iceland, Liechtenstein and Norway can also purchase real estate in Slovenia without any restrictions specific to foreign nationals.

USA
Due to the ‘most-favoured-nation’ status under the Treaty on Trade and Navigation concluded between Serbia and the United States of America in 1881, US citizens can purchase real estate in the Republic of Slovenia under the most favourable conditions for any foreigners doing same in Slovenia. Consequently, US citizens can purchase Slovenian properties under the rules that no longer call for mandatory determination of reciprocity by the Ministry of Justice.

Switzerland
The Protocol concluded between Switzerland and the EU in 2006 includes a chapter on real estate ownership by three categories of Swiss nationals: (1) Swiss citizens with a right to live in and to a permanent residence in a member of the EU; (2) Swiss citizens with the right to live in an EU member but no permanent residence there who need real estate for business purposes (includes right to purchase touristic accommodation facilities) and (3) Swiss citizens living near the borders, employed in an EU member bordering on Switzerland who need the property for business purposes or as temporary residence (includes touristic accommodation facilities). Swiss citizens can therefore purchase real estate in Slovenia provided that they have the right to live in and to a permanent residence in the Republic of Slovenia or that they at least have the right to live in the country (without permanent residence) and need the property for business purposes (including touristic accommodation facilities).

EU Candidate Countries
As of 2006, natural and legal persons in EU candidate countries and candidate countries can obtain ownership of real estate under the condition of substantive reciprocity, which means that Slovenia recognises certain rights of foreigners only on the condition that the foreigner’s country recognises those same rights for citizens of Slovenia. Existence of reciprocity is established by the Ministry of Justice. Incidentally, the Ministry is obliged to respond within 90 days of receipt of a complete application.

Other Countries
Citizens of countries not listed among the exceptions above can acquire real estate in Slovenia only as inheritance if the condition of reciprocity is fulfilled. In other words, if a Slovenian citizen can inherit real estate in a third country, a citizen of such country can inherit real estate in Slovenia. This right is based on Article 6 of the Inheritance Act in combination with Article 68 of the Constitution.

You may be asking… what if I come from one of the “other countries”, but I fell in love with Slovenia and wish to purchase a property here. I further believe this is a great place to invest into. Is there a way for me to buy?

Where there is a will, there is a way, right. You might fall in love with a Slovenian and move here, which should settle this particular problem although it might create a few new ones. On the other hand, you might want to look into registering a company in Slovenia and have said company purchase the real estate you are interested in. Namely, even a 100% foreign-owned company can purchase real estate in Slovenia provided that it is entered in the Slovenian registry of companies.

YIPPIE, I can buy a property in Slovenia! Ok, what’s next?
Now, unless you’re rather well off (in which case, let’s go for a cup of coffee next time you’re in Ljubljana) and have liquid assets at your disposal, you may be looking for a way to finance your new dream home, holiday home or investment property. In that case, grab yourself a cup of home-made coffee and come back to dr. Fil’s virtual couch for the next post in this series. We’ll look at the types of financing available in Slovenia along with the approximate ranges of interst rates.

Article 68 of the Constitution of the Republic of Slovenia
(Property Rights of Aliens)
Aliens may acquire ownership rights to real estate under conditions provided by law.
Aliens may not acquire title to land except by inheritance, under the condition of reciprocity.
(amended in 1997, Official Gazette of the Republic of Slovenia No. 42/97)
Aliens may acquire ownership rights to real estate under conditions provided by law or if so provided by a treaty ratified by the National Assembly, under the condition of reciprocity.
Such law and treaty from the preceding paragraph shall be adopted by the National Assembly by a two-thirds majority vote of all deputies.
(amended in 2003, Official Gazette of the Republic of Slovenia No. 24/03)
Aliens may acquire ownership rights to real estate under conditions provided by law or a treaty ratified by the National Assembly.