The right to obtain and own real estate is a complex and politically sensitive matter in most countries. Consequently many sovereign states, Slovenia included put in place limitations on real estate purchases by foreigners. A person interested in pursuing a real estate purchase should therefore consult a real estate lawyer in Slovenia to review their options.

The principal of limitation of foreigners’ rights regarding real estate transactions in Slovenia is a constitutional one. Art. 68 of the Slovenian Constitution explicitly states that foreigners may acquire ownership rights to real estate (only) under conditions provided by law (a legislative act in Slovenia) or a treaty ratified by the (Slovenian) National Assembly. This is to be understood as meaning that in all other circumstances, such a real estate transaction is not permitted (or valid) under Slovenian law. Having a permanent residence or temporary residence in Slovenia (or a permanent residence permit or temporary residence permit in Slovenia) does not provide a meaningful difference in this regard.

As with all rules, there are significant exceptions to this general principle.

Most notably, citizens of other EU countries (at the time of publication of this article: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain and Sweden) may obtain rights (including ownership) on real estate in Slovenia under the same conditions as Slovene citizens. This is a consequence of the principle of free movement of capital within the EU, as enacted by Art. 63 to 66 of the Treaty on the Functioning of the European Union (TFEU).

Another international basis (The European Economic Area (EEA) Agreement) allows for a similar exception to EFTA member-states: Iceland, Liechtenstein and Norway.

Finally, citizens of any member state of the The Organization for Economic Co-operation and Development (OECD), even if not member-states of the EU or EFTA hold the same rights regarding buying real estate in Slovenia. Those are (at the time of this article, other than countries already mentioned above): Australia, Canada, Chile, Colombia, Costa Rica, Israel, Japan, Korea, Mexico, New Zealand, Turkey, Switzerland, the United Kingdom and the United States.

Other international treaties and the Slovenian legislature may enact additional exceptions for citizens of other countries.

A specific Slovenian legislative act (the “ZPPLPKEU“) extends an (albeit limited) exception to states that hold candidate-status for admittance to the EU. Their citizens may acquire ownership on real estate in Slovenia under the condition of reciprocity, meaning that Slovenian citizens must be entitled to to do the same in those countries. At present EU candidate countries include: Albania, Moldova, the Republic of North Macedonia, Montenegro, Serbia, Turkey and Ukraine (Turkey being an OECD member and thus having a separate legal basis already).

For citizens of all other countries, the acquirement of real estate ownership in Slovenia is limited only to successions (inheritances) and only where the aforementioned condition of reciprocity is fulfilled (as enacted in the Slovenian Inheritance Act (ZD)).

While not strictly a method of acquiring ownership on real estate, it is worth noting that it is allowed in Slovenia for foreigners of any country (fulfilling other conditions) to establish a company in Slovenia and be appointed as directors of that company. While the shareholder or director in question may not own real estate, their company (as a Slovenian company) has that right.

To summarise, a good real estate attorney in Slovenia will be able to provide invaluable assistance in determining the legal framework for a foreign citizen seeking to invest in real estate in Slovenia or to relocate to Slovenia and establish a residence in Ljubljana or any other part of Slovenia. Depending on their client’s citizenship, the real estate lawyer in Slovenia will be able to direct their client towards a suitable real estate and/or corporate solution.