ACQUISITION OF REAL ESTATE BY FOREIGN NATIONALS
ACQUISITION OF OWNERSHIP OF REAL ESTATE BY FOREIGN NATIONALS IN THE REPUBLIC OF SLOVENIA
On the basis of Article 68 of the Constitution of the Republic of Slovenia, foreign nationals can acquire ownership of real estate in the Republic of Slovenia, under the conditions provided by law or international treaty ratified by the National Assembly.
1. LAWS THAT ALLOW FOREIGN NATIONALS TO ACQUIRE OWNERSHIP OF REAL ESTATE IN THE REPUBLIC OF SLOVENIA ARE THE FOLLOWING:
INHERITANCE ACT
The Inheritance Act states in Article 6 that with respect to inheritance of real estate foreign nationals in the Republic of Slovenia have equal inheritance rights as citizens of the Republic of Slovenia, on condition of the principle of reciprocity.
With regard to this, the Reciprocity Act (Official Gazette of RS, no. 9/99 - ZUVza) stipulates in Article 4 that reciprocity as a condition for acquiring ownership of immovable property, through inheritance in intestate succession and testate succession when the heir is a foreign national who would be heir also after the intestate succession, is presumed until evidence to the contrary. However, when it is necessary to establish reciprocity in the probate proceedings due to inheritance of property, the court terminates the probate process. Reciprocity is observed by the Ministry of Justice in the manner and according to the procedure laid down in the Reciprocity Act.
LAW ON THE CONDITIONS FOR OBTAINING OWNERSHIP RIGHTS BY NATURAL AND LEGAL PERSONS FROM THE EU CANDIDATE STATES
The act concerning the conditions for the acquisition of property rights of natural and legal persons of the EU candidate countries stipulates in Article 4 that a natural or legal person of the candidate countries as well as the candidate countries can acquire ownership right, provided that there is reciprocity. Reciprocity is determined in accordance with the Reciprocity Act (hereinafter as RA).
The condition of material reciprocity is ascertained by the Ministry of Justice with a decision issued in the manner and according to the procedure, governed by the RA, separately for each property which is entered in the Land Registry. According to the first paragraph of Article 7 of the RA, reciprocity is ascertained if a Slovenian citizen or legal person established in the Republic of Slovenia may acquire ownership rights to real estate in the country of foreign national's origin, under
the same or similar conditions under which foreign nationals may acquire ownership rights to real estate in the Republic of Slovenia, and if the fulfilment of these conditions is not significantly more difficult for a citizen of the Republic of Slovenia or legal person established in the Republic of Slovenia than that required for foreign nationals according to the legal system of the Republic of Slovenia (material reciprocity).
On the basis of this Act, the Ministry conducts a procedure for ascertaining reciprocity in cases when a citizen or legal person established in one of the following EU candidate countries: Republic of Macedonia, Montenegro, Republic of Serbia, or the Republic of Albania wishes to acquire ownership to real estate in Slovenia.
A list of all candidate countries for EU membership can be found at the following link: http://ec.europa.eu/enlargement/countries/check-current-status/index_en.htm
Explanation concerning the status of Bosnia and Herzegovina:
The Stabilisation and Association Agreement between the EU and Bosnia and Herzegovina entered into force on 1st June 2015, and represents one of the preceding phases by which a potential candidate country prepares for obtaining the status of candidate country for EU membership and does therefore not automatically signify the acquisition of the status of a EU candidate country for that country (in the specific case for Bosnia and Herzegovina). The status of candidate for EU membership is granted by the EU Council on the basis of recommendations of the European Commission.
Given the fact that the Act on the conditions for the acquisition of property rights of natural and legal persons of the candidate countries for membership in the European Union attaches legal rights to the status of candidate country for EU membership, which has not yet been obtained by Bosnia and Herzegovina, it is still considered that citizens and legal entities established in Bosnia and Herzegovina cannot acquire ownership to real property in the territory of the Republic of Slovenia. The only exception is the acquisition of ownership of property by inheritance, subject to reciprocity.
ACT REGULATING RELATIONS BETWEEN THE REPUBLIC OF SLOVENIA AND SLOVENES ABROAD
Article 66 of the Act Regulating Relations between the Republic of Slovenia and Slovenes Abroad states that a person with the status of Slovenian without citizenship is guaranteed the right to acquire ownership to real property in the Republic of Slovenia under the same conditions that apply to citizens of the Republic of Slovenia.
As stipulated in Article 59 of the Act Regulating Relations between the Republic of Slovenia and Slovenes Abroad, the status of Slovenian without citizenship may be acquired by individuals who:
- are of Slovenian descent (Slovenian origin);
- are active in organizations of Slovenians outside Slovenia or are actively connected with the Republic of Slovenia;
- are not members of associations, political parties and other organizations which are contrary to international law, constitutional and legal rights of Slovenians in neighbouring countries, or work actively against the constitutional system of the Republic of Slovenia;
- have not been withdrawn Slovenian citizenship under the provisions of the law governing citizenship of the Republic of Slovenia.
2. ACQUIRING OWNERSHIP RIGHTS ON REAL ESTATE IN THE REPUBLIC OF SLOVENIA ON THE BASIS OF INTERNATIONAL TREATIES:
CITIZENS OF COUNTRIES WHICH WERE A PART OF THE FORMER REPUBLIC OF YUGOSLAVIA AND LEGAL PERSONS ESTABLISHED IN THESE COUNTRIES
On the basis of the Constitutional Court decision Up-591/10-15 of 2nd December 2010, the Ministry of Justice gives the following information:
In cases when all the conditions for registration of ownership to real property in the Land Registry had been fulfilled for citizens of the former Yugoslav republics and legal entities established in these countries before 31st December 1990 (but entry was not realized and the process of land registration was not started), in the proceedings initiated for entry of ownership in the land register now there is no need to enclose the decision on the identification of
reciprocity, in accordance with the Agreement on succession issues (Official Gazette. l. RS - MP, no. 20/02), which applies to all signatory countries - all the countries of the former Yugoslavia and which entered into force on 2nd June 2004.
Notwithstanding the preceding paragraph, the following condition should be met: at the beginning of the process of entry of ownership in the Land Registry, the client must submit a supporting document (usually a sales contract), which identifies a valid legal transaction - with a valid land registry permission after the then regulations.
It follows from the foregoing that the property which had been obtained by a valid legal transaction before 31st December 1990 shall not be subject to the procedure of determining reciprocity, since the legal basis for the acquisition of property rights in these properties incurred prior to that date.
EU
On the basis of Article 3a of the Constitution of the Republic of Slovenia and the Law on Ratification of the Treaty between the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden, the United Kingdom of Great
Britain and Northern Ireland (Member States of the European Union) and the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic, concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the
Republic of Malta, the Republic of Slovenia and the Slovak Republic to the European Union with the Final Act (MPPEU) (Official Gazette of RS - MP, no. 3/04); by which it acceded to the European Union, the treaties on which the European Union is founded entered into force in the Republic of Slovenia. The Republic of Slovenia has not taken any exceptions and transitional periods on the free movement of capital in real estate, therefore, from the date of Slovenia's accession to the European
Union, nationals of Member States of the European Union are able to acquire real estate in the territory of the Republic of Slovenia on the basis of all legal principles, under the same conditions as the citizens of the Republic of Slovenia. Therefore, to obtain ownership of real property in the Republic of Slovenia, citizens of European Union Member States do not require administrative decision establishing reciprocity.
The same conditions as mentioned in the first paragraph are be valid from 1st January 2007 for the citizens of Republic of Bulgaria and Republic of Romania in compliance with the Law on Ratification of the Treaty between the Kingdom of Belgium, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Republic of Cyprus, the Republic of
Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic, the Republic of Finland , the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland (Member States of the European Union) and the Republic of Bulgaria and Romania concerning the accession of Bulgaria and
Romania to the European Union with the Final Act (Official Gazette. l. RS - MP, no. 4/06).
On the basis of the Law on Ratification of the Treaty between the Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the Netherlands,
the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland (Member States of the European Union) and the Republic of Croatia concerning the accession of Croatia to the European Union with the Final Act (MPEUHR) (Ur. l. RS - MP, no. 7/13), citizens of the Republic of Croatia and legal entities established in this
country are equated with Slovenian citizens in acquiring ownership to real property (including farmland) in the territory of the Republic of Slovenia from 1st July 2013 onwards and therefore do not require administrative decision establishing reciprocity in the acquisition of ownership to real property in the Republic of Slovenia.
All EU Member States are listed on the following link: http://europa.eu/about-eu/countries/member-countries/index_sl.htm
EGP
On the basis of Article 40 of the Agreement on the European Economic Area (Official Gazette. L. RS - MP, no. 9/05), there are no restrictions to the movement of capital belonging to persons resident in the EC Member States or EFTA States and no discrimination based on nationality or place of residence of the parties or the place of the capital invested. Consequently, citizens and legal entities of the Republic of Iceland, the Principality of Liechtenstein and Norway may therefore acquire real estate in Slovenia without any specific limitations which would apply only to foreigners, and thus do not require administrative decision establishing reciprocity to obtain ownership to real property in the Republic of Slovenia.
All Member States of the EC (now EU - After 1st December 2009 when the Lisbon Treaty entered into force and the European Union replaced the European Community (EC), which had existed since 1958, and assumed all its rights and obligations) are listed on the following link: http://europa.eu/about-eu/countries/member-countries/index_sl.htm
EFTA Member States are listed on the following link: http://www.efta.int/about-efta/the-efta-states
OECD
For citizens and legal persons of the Member States of the OECD it is possible to obtain ownership rights to real estate on the territory of the Republic of Slovenia on the basis of the Law on Ratification of the Convention on the Organisation for Economic Cooperation and Development and the supplementary Protocols no. 1 and 2 of the Convention (Official Gazette. L. RS - MP, no. 10/10) and the Law on Ratification of the Agreement on the conditions of accession of the Republic of Slovenia to
the Convention on the Organisation for Economic Cooperation and Development (Official Gazette. L. RS - MP, no. 10/10) from the date of Slovenia's accession to the Convention on the Organisation for economic cooperation and development (OECD), that is from 21st July 2010.
OECD member countries that are not EU Member States are: Australia, Canada, Iceland, Chile, Israel, Japan, Mexico, Norway, New Zealand, Switzerland, Turkey, South Korea and the United States. Citizens and legal entities of these countries may acquire ownership to real property in the territory of the Republic of Slovenia under the same conditions as nationals of EU Member States, i.e. under the same conditions as nationals of the Republic of Slovenia.
All OECD countries are listed on the following link: http://www.oecd.org/about/membersandpartners/list-oecd-member-countries.htm
3. OTHER COUNTRIES
Laws that would allow foreign nationals - citizens of other countries to acquire ownership to real estate in Slovenia, with the exception of the aforementioned Act of Succession, have not been taken and no international treaty that would allow citizens of other countries to acquire ownership to real estate has been ratified. In view of the fact that a legal basis for the acquisition of property rights by citizens of other countries in the Republic of Slovenia could potentially be found in some European Union agreements with other countries, which also refers to real estate sales, we ask the Ministry of Economic Development and Technology for information on the possible existence thereof in each such case. Upon receipt of their reply, we implement the procedure of establishing reciprocity if necessary.
The same applies to legal persons who are established in these countries.
4. PROCEDURE OF ASSESSING RECIPROCITY AS A CONDITION FOR THE ACQUISITION OF OWNERSHIP TO REAL ESTATE BY FOREIGN NATIONALS IN THE REPUBLIC OF SLOVENIA
The procedure is initiated at the request of a foreign national who wishes to acquire ownership to real estate in Slovenia. A foreign national who does not live in the Republic of Slovenia is obliged to appoint a representative in the Republic of Slovenia, in accordance with the General Administrative Procedure Act (Official Gazette RS, no. 24/06 - official consolidated text, 105/06 - ZUS-1, 126/07, 65/08, 10/08 and 82/13).
Under Article 8 of the Reciprocity Act, the application for the determination of reciprocity be accompanied by:
• personal data of the foreign national (in the form of official documents in original or certified copy - passport or identity card);
• proof of nationality (in the form of official documents in original or certified copy - passport or other certificate); in the case of a foreign national having multiple nationalities permanent residence must be given or where the foreign national had last residence before obtaining a permanent residence permit in the Republic of Slovenia;
• land registry extract for the property of the proceedings;
• acquirer's legal interest (document by which client presents at least one of the conditions for the acquisition of property rights under the law or international treaty – e.g. a draft sales contract, contract itself);
• a statement stating for what purpose the property is obtained (e.g. residence, secondary residence, the occupation);
• a document with information about the property, issued by the competent department of the Surveying and Mapping Authority of the Republic of Slovenia in accordance with the Instructions to fulfil the document with information about real estate in the process of establishing reciprocity (Official Gazette of RS, no. 24/99), which must not be older than 45 days from the date of publication.
In accordance with the first paragraph of Article 5 of the Law on Administrative Fees (Official Gazette of RS, no. 106/10 - official consolidated text; hereinafter: ZUT), an administrative fee in the sum of € 22.66 under headings 1 and 3 of ZUT must be paid upon submitting the application. In accordance with the first paragraph of Article 8 of the Law on Administrative Fees, administrative fee can be paid in the following two ways:
• in person – at the reception office at the headquarters of the Ministry (client provides proof of payment to the Ministry)
or
• by payment order - paid into account: 01100-1000315637; reference SI 11 20303-7111002-2014, Ministry of Justice, Župančičeva 3, 1000 Ljubljana (client provides proof of payment to the Ministry).
If upon receipt of the application (when such obligations arise) fee is not paid or not paid in the prescribed amount, the ministry sends a payment order to the applicant, by which he/she is ordered to pay fees within 15 days.
On the basis of a complete application, the Ministry of Justice obtains information from its current records or at the request to the country of the applicant, about how the legal system of the foreign national's country of origin arranges the acquisition of property rights for the citizen of the Republic of Slovenia on the same type or similar property, located in identical or similar area. The existence of reciprocity is ascertained by decision by the Ministry within 90 days of receipt of the complete application. After 30 days (from the date the decision was served on the party or its assignee) and when the body receives a confirmation of the administrative court that no administrative dispute (which takes approximately further 10 days), the body confirms the decision by issuing a certificate of finality of the decision. Thus equipped decision constitutes an authentic document on the basis of which right of ownership in the Land Register can be entered for a specific property. Such final decision must accompany the proposal for registration of property rights to real estate in the Land Registry.