THE BUYING PROCESS

Anyone living within the EU can buy property in Slovenia, although currently you can’t get a mortgage in the country. The process is safe and secure, with an organised land registry system making ownership rights clear. As always, though, professional, independent legal advice should be sought.

Stage 1: Restrictions on foreign buyers

Before Slovenia joined the EU, foreigners trying to buy a property had to go through a long and complicated process, requiring them to obtain permission from the Ministry of Justice prior to purchase – this could take as long as five months.

Thanks to EU membership, this arduous process has been eradicated, meaning the real estate market is free of legal restrictions for EU citizens. However, one caveat remains; for up to seven years after accession, should they choose to, Slovenia may enforce Article 37 of the Accession Treaty, allowing them to reapply restrictions on purchases by non-nationals.

You will be required to get an EMSO (identity) and tax number in order to purchase a Slovenian property. This can be organised by your estate agent and should cost no more than £10.

Stage 2: Financing your purchase

Slovenia is really only for those who are able to finance their own purchase. At present there are no UK firms offering mortgages in the country, and so you’re probably looking at re-mortgaging your UK home in order to raise the necessary finances.

Stage 3: The survey

Unlike many Eastern European agents, estate agents in Slovenia do carry out a basic survey on all properties except newly-built ones that come with guarantees. However, if you are looking to buy an older property, it is probably best to have an additional, more detailed survey conducted. The Royal Institute of Chartered Surveyors (RICS – www.rics.org) can recommend a surveyor, or you can ask for a recommendation from a professional you trust.

Stage 4: The contract

Once you’ve found a property that suits your requirements, your lawyer needs to make an offer in euros and get confirmation as to how much the initial deposit will be and when this should be paid – it’s normally 10% of the valuation price and is paid two weeks after the initial request for the property to be removed from the market. Be aware that in Slovenia, the lawyer normally represents both the buyer and seller. Of course, you can chose to get an independent lawyer to represent you.

If the offer is accepted then your lawyer needs to perform background checks at the land registry office land searches, which can generally be provided within two days. Once this and the survey have taken place, your lawyer will then draw up the initial contract, outlining all conditions of sale – payment schedules, repairs and so on – and once signed, the deposit will need to be paid. The sale is then binding.

Now you can talk to your bank in the UK about a money transfer, which has become increasingly simple since Slovenia adopted the euro. You should also ensure that you get all the documents connected with the sale – including details from the land registry, any management contracts and all insurance policies – translated into English, as it is mandatory in Slovenian law for an official translation of the documents to be present when the contract is signed.

Finally, once you and your lawyer are satisfied with all the details, you can begin completion of the sale by signing the contract in both languages in the presence of a notary, and making arrangements for the deeds to be updated at the land registry, naming you as the legal owner.

Generally, the whole buying transaction usually takes between eight and ten weeks, although in the case of agricultural property, it can take longer.

Stage 4: Additional costs

Before you make an offer to the seller, you need to take into account the extra costs you will be faced with at the end of the purchasing process, such as estate agents’ fees, furnishings and equipment.

Estate agents’ fees are paid by both the buyer and the seller and are generally 2% of the valuation each, making it a total of 4%. VAT is payable on the sale, but this is a fixed percentage of the agent’s fee. For older properties it works out as 2.4% (agents’ fee at 2% plus 0.4% VAT).

Legal fees vary. If the agent did most of the legal work in conjunction with the notary then the fees will be around €250. If the lawyer did the majority of the work then this will rise to around €600. Translation fees will be around €100, while to enter the property in the land register, you will be faced with a fee to the government of €8, with the agent charging about €83 for carrying out the paperwork on your behalf.