Taxation of property in Slovenia

In Slovenia, there is no tax payable solely on the basis of ownership of real estate. However, there is a real estate transfer tax, the payment of which is regulated by the ZDPN-2 law. As the name suggests, the tax is only levied on the transfer of ownership of the property.
The payers of the tax are the owners of the real estate who transfer it, usually the sellers (Art. 5 ZDPN-2).
The object of taxation with this tax is the transfer of real estate (Art. 3 ZDPN-2), including the transfer of:

• in the order of exchange (in this case, both parties are tax payers);
• in a financial lease (in this case, the tax payer is the lessor).

The obligation to pay tax arises at the time of the conclusion of the relevant contract (Art. 7 ZDPN-2).
In a number of cases, the transfer of real estate is not subject to taxation, in particular (Art. 10 ZDPN-2):

• transfer of real estate during the distribution of assets in the procedures for the liquidation of a legal entity;
• transfer of real estate as an investment when creating or contributing to the authorized capital of a legal entity;
• transfer of immovable property during the division of property between spouses.

Procedure for declaring and paying tax
The taxpayer must submit a declaration within 15 days after the occurrence of the tax liability to the tax authority in whose territory the immovable property is located. Documents on the basis of which ownership rights are transferred must be attached to the declaration (Art. 11 ZDPN-2). Strict liability is provided for violation of the deadline for submitting the declaration (Art. 18 ZDPN-2):

• from €1,000 to €50,000 for entrepreneurs and the self-employed;
• from €200 to €4,100 for responsible persons representing entrepreneurs and the self-employed;
• from €100 to €1,200 for other individuals.

After that, the tax authority makes a decision on the tax assessment within 30 days after receiving the declaration. With some methods of processing a transaction, the decision of the tax authority is issued in the form of a seal on the contract or other title documents (Art. 13 ZDPN-2).
The tax on the received decision must be paid within 30 days from the date of its delivery (Art. 12 ZDPN-2).

Tax calculation

The tax is calculated based on the sale price of the property. If the price is more than 20% lower than the total market value established on the basis of the real estate mass valuation law, then the tax base is determined as 80% of such market value. In this case, the taxpayer has the right to demand that the tax be recalculated on the basis of the individual market value, that is, on the basis of an assessment carried out at his own expense (Art. 8 ZDPN-2).

As a general rule, the taxpayer does not need to calculate the tax, it will be calculated by the tax authority (Art. 9 ZDPN-2).

The tax rate is 2%.

See the page on taxation of income from the sale of real estate in Slovenia for the payment of real estate value added tax.

Slovenia has a separate inheritance and gift tax, which is regulated by the Law ZDDD.

Tax payers are persons who have received property by inheritance or as a gift (art. 3 ZDDD).

The object of taxation with this tax is the receipt from an individual or legal entity of the following types of property (Art. 2 ZDDD):

• real estate;
• movable property (including securities and money) whose value exceeds €5,000 (for 12 months from one person);
• property and other property rights.

In some cases, tax relief is provided, in particular (Art. 9 ZDDD):

• heirs of the 1st line of inheritance or donee, equated to the heir of the 1st line of inheritance;
• temporary or lifetime right to use real estate.

It is important to note that the heirs of the 1st stage are children and spouses (art. 11 of the ZD law).

Procedure for declaring and paying tax

As a general rule, the taxpayer, within 15 days after receiving the gift, must submit a declaration to the tax authority where he is registered with the tax authorities, and in case of receiving real estate (including movable property) - to the tax authority at the location of the real estate. In the case of a donation of only movable property, if the recipient is not registered with the tax authorities in Slovenia, then a declaration must be submitted to the tax authority at the location of the donor. The declaration must indicate the value of the property received (art. 13 ZDDD).

In the case of inheritance of property, as a general rule, information is received by the tax authorities from the court, which approves the inheritance procedure. This is the tax authority at the location of real estate (including when inheriting simultaneous movable and immovable property), at the place of registration of the heir (if any in Slovenia), or at the place of registration of the deceased.

For violation of the deadline for filing a declaration, strict liability is provided from €210 to €1200 (Art. 22 ZDDD).

After that, the tax authority makes a decision on the assessment of tax within 30 days after receiving the declaration or decision on the order of inheritance (Art. 16 ZDDD).

Tax calculation

The tax is calculated based on the market price of the property received, deducting debts, expenses and encumbrances associated with the property received (art. 5, 23 ZDDD). At the same time, the value of movable property is reduced by €5,000. Money in another currency is converted at the rate of the European Central Bank.

In addition, household items (furniture, household appliances and appliances and other household equipment, bedding, etc.) are not included in the tax base, unless such items are of great value (art. 5 ZDDD).

The tax rate is progressive and depends on the degree of kinship. For example, for heirs of the 2nd stage, the tax rates are as follows (Art. 8 ZDDD):

• at a cost of up to €10 thousand - 5%;
• at a cost of €10,000 to €50,000 - €500 + 6% of the cost over €10,000;
• at a cost from €50 thousand to €100 thousand - €2900 + 7% of the cost over €50 thousand;
• at a cost from €100 thousand to €200 thousand - €6400 + 8% of the cost over €100 thousand;
• at a cost of €200,000 to €300,000 - €14,400 + 10% of the cost over €200,000;
• at a cost of €300,000 to €400,000 - €24,400 + 12% of the cost over €300,000;
• with a cost of more than €400 thousand - €36,400 + 14% of the cost of more than €400 thousand.

A separate progressive scale is established for 3rd stage heirs and other recipients of inheritance, gifts.

In Slovenia, there is no tax payable solely on the basis of vehicle ownership. However, there is a tax that is subject to Law ZDMV-1. The law provides for the payment of tax once for each car in the event of:

• car registration for the first time in Slovenia;
• import (import) of a car into Slovenia;
• re-equipment of a car that is subject to registration in Slovenia.

In the case of registration of a new car, the car dealership pays the tax, and if the car is manufactured in Slovenia, the manufacturer (art. 24 ZDMV-1). If the buyer of the car is entitled to a tax exemption or benefit, then upon his application, the tax can be refunded (see below).
When a car is imported into Slovenia, the vehicle tax is calculated by the customs authority and paid as an import duty (art. 27 ZDMV-1).
The law distinguishes different categories of cars according to criteria such as fuel type, CO² emissions, engine power and EURO standard. For each category, the procedure for calculating the tax base is established, as well as a separate progressive taxation scale (art. 8-15 ZDMV-1). Note that for electric vehicles the rate is 0. If the car has at least 8 seats (including the driver), then the tax is reduced by 30%.

Procedure for declaring and paying tax
As a general rule, it is not required to calculate and declare tax.

Tax calculation
As a general rule, it is not required to calculate the tax. However, benefits and features of tax calculation may apply, in particular:

• tax is not charged on one car with 4 or more seats (except for the driver's seat) with a power of up to 150 kW inclusive (204 hp) and purchased by a large family (with 3 or more children under the age of 18). Such a benefit is provided when buying a car no more than once every three years by one of the parents in the family and until the children reach the age of 18 (art. 18 ZDMV-1). In this case, if the car is sold before the expiration of 3 years from the date of purchase, it will be necessary to pay tax as a percentage in proportion to the age of the car (see below);
• for the purpose of calculating tax when selling a car to a large family, as well as for calculating tax when importing used cars, the tax is paid in proportion to the age of the car according to the following scale (art. 16 ZDMV-1):

- up to a year - 91%;

- more than 1 year - 83%;

- more than 2 years - 76%;

- more than 3 years - 70%;

- more than 4 years - 64%;

- more than 5 years - 58%;

- more than 6 years - 53%;

- more than 7 years - 48%;

- more than 8 years - 43%;

- more than 9 years - 38%;

- more than 10 years - 33%.

• if the owner of the car converts it in such a way that the amount of tax becomes less than or equal to zero, then there is also the right to a refund (para. 2 art. 28 ZDMV-1);
• if the car is exported to another country after registration in Slovenia, then part of the tax paid is refundable (clause 7, article 28 ZDMV-1). The refundable amount is calculated as 10% of the previously paid tax for each year of car use in Slovenia. And if the car was used in Slovenia for no more than 30 days and is exported to another EU country, then the owner of the car is subject to a refund of 100% of the previously paid tax.

In order to receive a refund of the amount of tax (its part), it is necessary to submit an appropriate application in electronic form through the information system within 3 months after the grounds for the refund arise.

To pay tax on income from the sale of a car, see the page on taxation of income from the sale of movable property in Slovenia.