Being Aware Of The Buying Property In Slovenia Legal Considerations
While purchasing a home in Slovenia is a fairly straightforward process, the buying property in Slovenia legal considerations are often different here than in other places in the world. For example, buyers are required to obtain both a tax number and an EMSO number before purchase, and they will be required to make a deposit of 10% of the purchase price in order to secure the property they wish to buy. The good news, however, is that many real estate agents can assist with the documentation needed for the purchase of property, and most transactions are completed in less than a month.
Making an offer on the perfect property in Slovenia is the first step to making the purchase of your dreams, although there are legal considerations that must be taken into account before the purchase can be made. Once the offer is accepted, the legal steps that must be followed are:
- Obtain a tax number. All property buyers are required to have a tax number, as this will be entered into the Slovenian tax records. If working through a real estate agent, however, the agency will usually handle submitting the tax number application.
- Obtain an EMSO number. This is a registered ID number similar to the Social Security numbers used in the US, and they are assigned at birth to Slovenian nationals. Foreign buyers, however, will have to apply for this number before the purchase of a property is allowed. Most real estate agents will also handle the application for the EMSO number.
- Make a 10% deposit. Purchasing a property requires a search of through the Land Registry to ensure the home is legally built and up-to-date on taxes, and a deposit is required to secure a property while the search is processed. One benefit for the buyers is that should the seller back out before the transaction is complete, the deposit is not only returned to the buyer, but it is also doubled. Once the search is complete, the Land Registry will stamp the documentation, and the transaction is complete.
These steps are not the end of the legal considerations that must be taken into account, however, as there are some other points of note that buyers should be aware of before making a purchase. These include:
- Mortgages are only offered on 50%-70% of the home value, which means a larger down payment is often required.
- Real estate agency fees will need to be paid by the buyer, which are usually set at 4% of the home selling price
- Translation fees may be extra, as documentation is often written in only the Slovenian language. A certified translator is often hired to translate contracts and other documentation, and buyers may be responsible for paying the translation costs.
- Surveys are not required when property is purchased. However, it is recommended for buyers to have their selected property surveyed regardless to ensure that they know exactly what they are buying, although the buyers are responsible for the costs.
- Insurance is required for the property after purchase, although it is relatively inexpensive, and many companies are familiar with working with foreign buyers.
- Exchange rates can affect the purchase price. Exchanging currency at a local bank to conduct the purchase may actually amount to buyers paying more for their property than if they opted to used a alternate currency exchange facility. Asking for a recommendation from the real estate agency may be a good idea, as they can often direct buyers to the least-expensive currency exchange outlet.
Purchasing a home in Slovenia is generally a straightforward process for both local nationals and foreign buyers. However, there are legal considerations that must be taken into account before the purchase can go through, including the obtaining of both a tax number and a registered EMSO number. Requirements concerning the loan value and fees are also important to understand, and buyers may be responsible for more fees than they would expect in their home country. Real estate agents can assist buyers will all of the buying property in Slovenia legal considerations, however, which can make the purchase of any property in this country easy and hassle-free.