Euros to Pounds : Slovenia
If you are looking for an up and coming investment, where a little
risk will be
well rewarded, then Slovenia may be the answer for you, as your
euros to pounds will go much further when it comes
to buying a property. Slovenia is one of those countries which many
people have heard of, but few know where it is , despite the fact that
it sits in the middle of Europe and joined the EU on the 1st May 2004
with the Euro as its currency.
The country is almost landlocked, but for a tiny coastline on the Adriatic, and has four principle neighbours, Italy, Austria, Hungary and Croatia. With its mountainous terrain and proximity to the Alps, it offers some of the best skiing in Europe, at a fraction of the price of some of the more high profile resorts.
Euros to Pounds : Buying in Slovenia
Now
the first thing I must say, is that buying a property here is not for the
feint hearted, as this is really an opportunity for buyers who are able
to fund the purchase with cash, as there are currently no companies (
that I know of ) offering overseas mortgages in Slovenia at present.
However, since it's entry to the EU, the country has seen a huge
increase in both tourism and also overseas investors. This has just
started to fuel significant increases in property values, even in the
last 4 years and with this have come the financial services. Indeed in recent
months lenders have begun to offer mortgages in Slovenia up to 70% of
the property value.
Prior to joining in 2004, there was a complicated process to be followed which required permission from the Ministry of Justice, before EU citizens could obtain the legal rights to own a property. These restrictions have since been removed, and the process is now much more straightforward. However, one caveat remains under Article 37 of the Accession Treaty, and it is this - for a period of up to 7 years, the Slovenian authorities have the right to re-apply the restrictions on purchases by non-nationals. So in other words, within the treaty they have the option to re-introduce the process that would require overseas buyers to obtain permission from the Ministry. Please bear this in mind when you are buying!
Euros to Pounds : The Buying Process
Now, having said all that, it's not all bad news as you will see in a moment. The process is actually very quick, and you may wonder why it is possible for things to happen so quickly here, and so slowly in other parts of Europe. If you are looking for a property here, I would suggest one of the many ski resorts as an ideal place to start. The Slovenians are fanatical skiers, so the resorts are well equipped and easy to access. Have a look at the Mariborsko Pohorje resort which is at 1350 metres and has 64 km of linked pistes suitable for skiers of all levels. Alternatively try Kravec with skiing from 1450m to 2000m so you are guaranteed snow. This is one of the best equipped ski areas in the country with ski ( alpine and telemark) and snowboard schools as well as a variety of piste and off-piste skiing.
The tourist board and Government are actively encouraging inwards investment both as a visitor and as a place to live and work, so now might be a good time to visit. If you would like further information please have a look at the Slovenia tourist board web site
- First find a good local lawyer who is used to dealing with property transactions. Make sure they speak both languages as many of the documents will need to be translated before your complete on your purchase. If you can find one by personal recommendation, so much the better.
- Having found your property, ask your lawyer to submit an offer in euros.
- If the offer is accepted you must make an application for an EMSO number.
- At this stage a 10% deposit will be required to secure the property
- Your lawyer will apply for an EMSO and tax number - these are ID numbers that you will need in order to open bank accounts etc and normally only take a few days to arrange.
- Once the offer is accepted your lawyer will conduct land searches. Land registry in Slovenia is one of the wonders of the modern world and are usually completed in 2-3 days!!!!!
- All documents including the contract, the details from the Land Registry, any management contracts and all insurance policies must be translated into your home language before exchange of contracts.
- If all the documents are in order, you can go ahead and sign the contracts.
- Final completion normally takes around 7 days
Euros to Pounds : Fees & Costs
- The buyer has to pay a 4% commission, plus ATV which is the equivalent of VAT, to the agent. This is often split between the buyer and seller, so should in theory only be 2%. AVT or VAT is 20%
- Notary fees or lawyers fees will normally be around 1% of the purchase price
- Ongoing property taxes are very low at the moment - a three bed house will cost around 60 euros per year!
Euros to Pounds : Taxes
- CGT is currently between 5% and 20% for individuals
- Income tax varies between 16% and 50%
Euros to Pounds : Useful Facts
- 54% of households in Slovenia have Internet access, compared to 56% in the UK - so internet access is not a problem.
- The Lipizzaner horse originated in Slovenia in 1580
- Slovenia's 8000 beekeepers produce 2,000 tonnes of honey a year!
OK - I think that's about it on Slovenia - a great place for a holiday, and with property prices increasing at 10% per annum your euros to pounds investment should do well and give you a wonderful place to ski in the winter and walk in the mountains in the summer - finally its back to the sun as we take a look at Croatia.