Guide to Property Taxes in Slovenia

Nonresident foreigners are taxed at a flat rate of 15% on rental income sourced in Slovenia. They can deduct up to 10% of the gross rental income as allowable expenses. Married couples file their taxes individually.

Residents from EU member states who submit their income tax returns in Slovenia may be eligible for certain allowances.

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 15%, 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?
Notary Fees 0.01% - 0.40% buyer
Registration Fee 0.01% - 0.50% buyer
Transfer Tax 2.00% buyer
Real Estate Agent Fee 1.00% - 2.00%
1.00% - 2.00%
buyer
seller
Costs Paid by Buyer 3.02% - 4.90%  
Costs Paid by Seller 1.00% - 2.00%
Buying and Selling Costs in Total: 4.02% - 6.90%
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 0.1% to 0.5%, depending on the location and type of property.

  • The tax rate for residential properties ranges from 0.10% to 1.50%.
  • The tax rate for properties used for rest and recreation ranges from 0.20% to 1.50%.
  • The tax rate for business premises ranges from 0.15% to 1.25%, increasing by 50% for vacant business premises.