Guide to Property Taxes in Slovenia
Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 25% | 25% | 25% |
A resident is required to pay PIT on all income, whether earned within Slovenia or abroad (worldwide taxation principle).
A non-resident is required to pay PIT only on income earned within Slovenia.
Personal Income Tax
| Taxable Income, € | Tax Rate |
| Up to €8,755 | 16% |
| From €8,755 to €25,750 | 26% on the band over €1,400.80 |
| From €25,750 to €51,500 | 33% on the band over €5,819.50 |
| From €51,500 to €74,160 | 39% on the band over €14,317 |
| Above to €74,160 | 50% on the band over €23,154.40 |
| Source: Global Property Guide, PWC | |
Nonresident Corporate Tax
For corporations, rental income is treated as part of business income and is subject to the standard corporate income tax rate in Slovenia, which is currently 19%. Corporations can deduct actual costs incurred in generating income, including maintenance, repairs, and management expenses.
Withholding tax may also apply to payments made to non-residents at the rate of 22%, which can be reduced under double taxation treaties.
Rental Income as Business Activity
Nonresident foreigners have the option to treat their rental income as business income. To do so, they must register as a sole trader with the Agency of the Republic of Slovenia for Public Legal Records and Related Services.
For such cases, taxable income is calculated by subtracting actual income-generating expenses, such as maintenance and repair costs and management fees (with supporting documents), from the gross rental income.
Capital Gains Tax
Capital gains realized from the sale of property in Slovenia are taxed at varying rates depending on the duration the property was held:
| Holding Period | Tax Rate | |
| Up to 5 years | 25% | |
| 5 to 10 years | 20% | |
| 10 to 15 years | 15% | |
| Over 15 years | 0% | |
| Source: Global Property Guide, PWC, Deloitte | ||
Capital gains on immovable property acquired before January 1, 2002, are exempt from capital gains tax. Moreover, capital gains on a property used as the owner’s permanent residence for at least three years prior to its sale are also exempt from taxation.
Buying and Selling Taxes/Costs
| Transaction Costs | ||
| Who Pays? | ||
| Property Transfer Tax | 2.00% | buyer |
| Notary Fees | 0.01% - 0.40% | buyer |
| Real Estate Agent Fee | 1.00% - 2.00% 1.00% - 2.00% |
buyer seller |
| Costs Paid by Buyer | 3.01% - 4.40% | |
| Costs Paid by Seller | 1.00% - 2.00% | |
| Roundtrip Transaction Costs: | 4.01% - 6.40% | |
| Source: Global Property Guide, PWC, Deloitte | ||
Property Holding Tax
Property tax in Slovenia is imposed on real estate owners based on the property's assessed value. This tax is levied at progressive rates and is determined by local municipalities. The typical rate for residential properties varies from 0.10% to 1.00%, depending on the location and type of property.