Here are some of the best properties you will be able to buy at auctions on the Croatian coast.

An older house in the center of Split will be available for sale by the end of July. You will be able to compete for two more houses with a swimming pool in Istria. Another holiday house near the sea will be for available sale in Pelegrin near Umag. There will also be apartments in the town of Korčula, Umag and Novigrad.

Most of the properties will be sold at an online auction of the Croatian Financial Agency (Fina). One property is for sale in Slovenian bankruptcy proceedings.

Two houses with pool in Istria

Two holiday homes in the Juršići settlement will be sold for the first time at the online auction of the Croatian Fina in June. The houses, with numbers 106 and 107, are located about 17 kilometers or 20 minutes drive from Pula.

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Holiday house close to the sea in Umag

The house is located in Pelegrin near Umag and and presents a marginal terraced house with a net floor area of ​​54 square meters, standing on 165 square meters of land. The house is about 80 meters from the sea and the beach.

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Three bedroom apartment in Novigrad

The apartment is located in a multi-apartment building in Novigrad, one and a half kilometers from the city center. The total area of ​​the apartment is 131.3 square meters and consists of three bedrooms, hallway, living room, kitchen and bathroom.

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Apartment in Umag

The apartment is located on the first floor of a multi-apartment block on the outskirts of the center of Umag. The net floor area of ​​the apartment is 74.9 square meters and consists of a hallway, kitchen, dining room, bathroom, two bedrooms and two lodges. The building is about 500 meters from the sea.

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Old house in the center of Split

The house presents an old stone business and residential building. It is located just over 200 meters from the main promenade of Split and primarily by the sea at the address Tomića Stine 9. The house was built in 1750 and is not fully completed.

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Apartment on Korčula

The apartment is on the ground floor of the house, which is about 500 meters from the old town. It consists of three bedrooms, living room, hallway, bathroom, kitchen and pantry. The area has 79.9 square meters, and it also has a share of terrace and balcony. It lies in the fourth row of houses, a good hundred meters from the sea.

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Source: Finance

The post Real Estate Auctions – CROATIA first appeared on Biseri Soče.

Usually, towards the end of the description of the real estate, advertisements on real estate portals – such as Nepremičnine.net – often state that the buyer of the real estate must undertake to pay real estate transfer tax. At first glance, these brings him additional costs, but in practice this is not the case. The service subscriber, for the purposes of this article we will assume the service subscriber is the seller, still pays 4% of the cost of the contract value of the real estate transaction, and the buyer 2% (but we have to keep in mind that their cost is not exactly the same as before, since on those 4% commission fee you additionally have to pay VAT, and on the 2% real estate transfer tax you do not have to pay VAT).

The real estate transaction is accompanied by three costs, which together amount to 6% of the contractual value of the transaction. Real estate companies charge a real estate commission, which is by law limited to 4% of the contract value. Additionally, 2% real estate transfer tax must be paid to the state.

The change took place in 2019

Amendments to the Real Estate Brokerage Act came into force in July 2019.

In the Act adopted in 2006, the second paragraph of Article 5 of this Act originally read as follows: “A real estate company may charge a brokerage fee only to a client on the basis of a real estate brokerage contract. If it is agreed between the parties to the sale, lease, rental or other contract for a particular real estate that the brokerage fee is to be paid by both parties, the amount referred to in the preceding paragraph shall be divided. “

By amending this Act, the last sentence of this paragraph has been deleted. Therefore, the sole owner of the brokerage fee is the client who has entered into a brokerage contract with the real estate company.

The amount of the brokerage fee is also determined in Article 5 of the Real Estate Brokerage Act: “The maximum allowed brokerage fee may not exceed four percent of the contract price in the case of buying or selling the same property,” unless the value of the property is less than ten thousand euros.

The old practice was as follows:

The seller of the real estate paid the state a 2% sales tax on the property, and another 2% commission to the real estate agency. The buyer only paid 2% commission to the real estate agency.

After the change:

Now, the composition of payments is different. The seller pays all 4% to the real estate agency for commission, and the buyer pays 2% real estate transfer tax to the state.

Two new solutions

Before the amendment of the Real Estate Brokerage Act, the buyer and seller generally agreed to share the brokerage costs (real estate agency commission). Now, things are arranged differently and there are 2 options:

1.) The first option is for the seller to assume a 4% payment for the brokerage.

2.) The second option is that the buyer and seller agree that the buyer will reimburse the seller 2% of the brokerage fee through the real estate company, with the seller paying a 2% real estate transfer tax.

Both are undisputable after the verification of documents.

Real Estate Transfer Tax

According to the Real Estate Sales Tax Act, the person liable to pay this tax is the seller of the real estate. However, if the buyer under the contract assumes the obligation to pay real estate transfer tax, he/she may be in the position of a client in the process of assessing real estate sales tax.

The Financial Administration of the Republic of Slovenia leaves the possibility of agreeing on this payment to buyers and sellers. If this tax is not paid, the taxpayer is called upon to pay it, which in most cases is the seller.

Brokerage fee

Even though, according to the law, the real estate company can only charge the client for the turnover fee, the buyer and the seller can split the payment of the 4% commission.

Sharing of brokerage costs is a matter of agreement between the client and a third party. As we said, for the purposes of this article, our client is the seller and the third party is the buyer of the property.

The client and the third party can agree on the payment or sharing of brokerage costs, with the third party (in our case, the buyer) paying part of this commission to the client (in our case, the seller), who is the client of the brokerage service. However, a real estate company may not charge a third party (the buyer) for these services. However, this payment can be recovered by the customer (the seller) in agreement with a third party (the buyer).

Source: Finance

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According to the proposal, the tax base would be the value of the property after the mass valuation of real estate, which would be reduced by an amount corresponding to the value of 120 square meters of usable living space, but only if the owner or his immediate family members live there permanently. Owners of apartments with a usable area of less than 120 square meters, intended for their residence, would not pay tax. In the case of passing the tax on tenants, the owners are expected to be fined from 2,000 to 20,000 euros.

In the bill, tax rates are different. For buildings, which also include apartments, they are expected to range from 0.1 to 1.5%. For apartments intended for rent, they are expected to increase by 50%, and for apartments that are neither rented out nor used by the owner, by 150%. Tax rates for leisure and recreation facilities are expected to range from 0.2 to 4.5%, and for business premises from 0.15 to 3.3%. For business premises not used by the owner or rented out for business purposes, tax rates would be increased by 50%.

However, the following should be exempt from taxation:

• agricultural farm buildings,
• business premises used by the owner to carry out activities,
• residential buildings of agricultural taxpayers who are themselves or their family members pension and disability insured on the basis of agricultural income,
• buildings declared a cultural or historical monument and
• buildings that may not be used for objective reasons.

Opinion of the Chamber of Real Estate (Zbornica za poslovanje z nepremičninami)

Levica, which submitted the bill, estimates that 175,000 flats are empty in Slovenia, despite the lack of 30,000 public rental flats. In addition, according to real estate agents, 30% of all real estate purchases in Slovenia are related to real estate investments. This is allegedly due to inadequate housing policy and incorrect real estate taxation. It is important to note that property taxes in Slovenia collect only 1.8% of all tax revenues, meanwhile in other OECD countries than number is three times higher.

The director of the Chamber of Real Estate, Boštjan Udovič, says that the new law cannot solve the problems mentioned by Levica. According to him, the purpose of the proposal is more political marketing than the serious purpose of regulating real estate taxation, as the profession did not participate in the drafting of the law. In addition, inequality in Slovenia is not such as to justify such high differences in the level of taxation. The tax revenue would be small even if the law was passed, as there are very few owners with a larger number of flats, and the planned progressive taxation would lead to a dispersion of ownership, as larger owners would transfer property to family members. Nevertheless, the Chamber agrees that the current taxation of real estate in Slovenia is too low, which has been also pointed out by the OECD.

Source: Finance

The post Dilemmas about higher taxation of empty and large real estate in Slovenia first appeared on Biseri Soče.

Even though metaverse real estate is a concept mind-boggling to most people, many are already buying up land that doesn’t even exist in the real world. Some of those are professional real estate agents, celebrities, and early speculators.

According to Meta Metrics Solutions, real estate sales in the metaverse surpassed $500 million in 2021 and could double in 2022.

Why and where should you buy virtual real estate?

First, imagine you’re offering a product or service that can be delivered worldwide. In such case a metaverse can connect you with customers and consumers looking for a more engaging method to communicate with your brand. Meaning, purchasing virtual land in areas where there is a lot of virtual engagement might put your business in front of hundreds if not millions of additional visitors. We can compare that to shops that are located in most populated areas and therefore, get more customers. And second, when consumers prefer a more engaging method to communicate with businesses, major companies will start investing more in building the metaverse and less into other forms of communication.
Another way to think about it is like purchasing a domain name or having a good social media profile. If email was our home in Web 1, and social profiles—like a Facebook or Instagram page—were the Web 2 home bases for each of us, then personal property in the form of virtual real estate may be the Web 3 version. The difference is that this time, in Web 3, the property is intended to be something that you, the user, can build yourself. For brands, it could mean something much more interactive and active than their current digital presences. For individuals, it could mean earning income by playing games or selling products.

How to protect it?

Protection that makes the most sense now, is NFT. NFTs are, in a highly simplified way, digital certificates that can guarantee you own something. They’re one-of-a-kind. Because of this, NFTs have the potential to become an avenue to keeping our real estate data reliable and safe while allowing us to transfer digital assets anywhere in the world safely.

Bottom line

Even though there are already numerous metaverses today, most of them have little consumer confidence in terms of potential growth. But the truth is, tech giants such as Microsoft and Facebook, now Meta, are investing billions of dollars in developing their virtual worlds.

Source: Forbes, CNBC

The post Investing in virtual real estate first appeared on Biseri Soče.

Here’s an overview of how real estate investments can increase in value and provide good cash flow.

CASH FLOW FROM RENTAL INCOME

The right and well managed rental property can provide a steady income stream in the form of rent. Similar to a stock that pays dividends. Rental property returns also typically exceed dividend yields.

Even though prices of real estate fall from time to time and the market becomes slower, people who own residential investment property, in most cases, lease it for a longer period of time, without experiencing corresponding decreases in rent.

INCREASES IN VALUE DUE TO APPRECIATION

Even though we can’t predict what real estate trends will be, historically, real estate has shown to be a great source of profit due to the overall increase in investment property value over time.

ADDING VALUE TO YOUR INVESTMENT PROPERTY

In case you choose to liquidate your property, you should consider improving it first. That way you will probably earn more profit. You can increase its value with upgrades to the appearance and functionality. For example, installing energy efficient appliances and windows, adding a bathroom, and remodelling a room can all lead to value increase. As trends and styles change, keeping the property interesting to renters can help you retain its value.

WHILE RENTING OUT YOUR PROPERTY, INFLATION IS YOUR FRIEND

While your fixed mortgage payment will remain constant, inflation will affect home construction costs as well as rents with driving them up. Population growth also creates housing demand and drives up rental prices when supply cannot keep pace.

MAKING USE OF EQUITY

The equity in your investment property will increase as you pay down your mortgage. Though equity is usually determined when you sell a property, some real estate investors take out equity loans when interest rates and loan terms are favorable and use those funds for other real estate investment projects.

FIND THE RIGHT PROPERTY

The more expensive the home, the higher your running costs will be. Some experts recommend starting with a $ 150,000 to $ 200,000 house in a developing neighborhood. In addition, experts advise you to never buy the most beautiful house for sale in the block – and the same for the worst house in the block.

Most important, be realistic in your expectations. As with any investment, rental property isn’t going to produce a large monthly paycheck right away, and picking the wrong property could be a catastrophic mistake. Still, rental properties can be a lucrative way to invest in real estate. For your first rental property, consider working with an experienced agent or partner.

Source: thebalancesmallbusiness, millionacres

The post HOW REAL ESTATE INVESTMENTS RETURN PROFITS first appeared on Biseri Soče.

You might think you can save a lot of money by not paying commission, but in reality, you will miss out on a real estate agent’s market knowledge, contacts and help with the process. You have to remember that an agent will dedicate more time and effort into selling your home since that is his job. Not only for-sale-by-owner properties tend to sell for a lower price overall but also, hiring real estate agent is key to a more successful and less stressful home sale.

WAITING TO SELL

The current state of the market is perfect for selling your property. Prices are high due to extremely high demand, and they will probably stay stagnant or even slightly decrease in the next months.

PRICING TOO HIGH

You need to stay realistic about the value of your property. Selling your home can be quite emotional, which means – you will probably overprice it. Chances are you will eventually have to lower the number, but the peak period of activity that a new listing experiences is already gone. That’s why it is also important to have a real estate agent who will stay honest about what your home will sell for, based on the recent sales of similar homes in the area.

REFUSING TO MAKE CHANGES

Selling your house “as is” won’t yield the highest possible sale price. Homebuyers expect move-in ready conditions and want to see a neutral canvas that allows them to picture themselves living in the home. Neutralizing will make sure the potential buyer doesn’t think of the people currently living there. Another important thing is to remove the clutter, personal photos, personal design and so on. You should also think about major repairs. It might seem that cracks in the foundation or a new roof are extremely expensive fixes but, in reality, replacing the roof before listing your home can be cheaper than the cost a buyer would subtract from an offer.

HIDING PROBLEMS

That brings us to next potential mistake. If there are problems with the property you can’t afford to repair before putting it on the market, you must be honest about them. You are even legally required to do so. Even if the mistakes aren’t visible to the naked eye, you could be facing a lawsuit later in the process.

BEING UNAVAILABLE

You should be available 24/7 for calls and viewings while selling your property. When your property is on the market, that should be your priority. This is another point, where we can see, why hiring a real estate agent is beneficial. While you still have to do your work and are occupied with your family, he or she will be available at all times and will give a potential buyer all the attention he or she needs.

BEING UNWILLING TO NEGOTIATE

If you’ve received an offer for your house that isn’t quite what you’d hoped it would be, expect to negotiate. While you’ll naturally feel your asking price is more than fair, the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits.

LETTING YOUR EMOTIONS GET THE BEST OF YOU

You should look at it as a business deal. Of course, having some emotional attachment to your property is normal, but you shouldn’t look at every low offer as a personal affront. It could be a start that can be either negotiated or declined. Furthermore, plans to renovate your property are not an insult to your taste, but a difference in preferences.

To conclude, the right professional help, a proper price and some renovation can make selling of your property much easier.

Source: U.S.News

The post 8 MISTAKES TO AVOID WHEN SELLING YOUR PROPERTY first appeared on Biseri Soče.

APARTMENT IN ROGLA FOR 57.000 EUR

The apartment is located in the immediate vicinity of the ski resort or toboggan run Zlodejevo. The building consists of three houses, each with six apartments. The apartment for sale measures 21 square meters and the starting price is 57,000 EUR. The property will be sold by the Municipality of Celje on 17 of February.

TWO BEDROOM APARTMENT FOR 123.000 EUR – ZUPANČIČEVA JAMA

The District Court in Ljubljana is selling a two-room apartment on the fourth floor of a multi-apartment block on Štihova ulica in Ljubljana to an e-auction. The apartment measures 56.5 square meters and consists of a living room, bedroom, kitchen, hallway and bathroom with toilet. The design of the apartment is modern, and architecturally and functionally the apartment belongs to a higher quality class. The apartment will be sold at an estimated value of EUR 123.000 on 18 February.

THREE BEDROOM APARTMENT FOR 117.000 EUR – LJUBLJANA

A three-room apartment in Moste neighborhood of Ljubljana is located at Brodarjev trg 3 along Zaloška cesta. The apartment measures 77.5 m2 and the usable area is 69.9 m2. It is located on the sixth floor of a block with an elevator, built in 1982. The floor is partly ceramic, partly laminate. The windows are wooden with double thermopane glazing and external blinds. Exit to the balcony is from the living room. In the bathroom, the ceramics are laid to the ceiling, according to the appraisal. Parking for residents is in front of the building. The value of the apartment at the first auction is equal to the starting price, which is 117.080 euros. The online auction will take place on February 23 at 9 p.m.

APARTMENT IN PORTOROŽ

In one of the personal bankruptcies, an apartment in Portorož, located in the immediate vicinity of the Admiral casino will be available for sale. The apartment measures 61.3 m2 and has a net usable area of ​​33.6 m2 (the rest is a balcony and a terrace). The apartment is located on the first floor of a building built in 2006. In the first sale, it will be for sale for 148.000 EUR, and the price also includes a parking space. Bankruptcy trustee Matjaž Polenčič is collecting binding offers until 14 February.

APARTMENT FOR 60.000 EUR – BOHINJSKA BISTRICA

The apartment will be for sale in the enforcement proceedings of one of the natural persons. It is located on the ground floor of a multi-apartment building, located at Jelovška cesta 10 along the road to Soriška planina (in the immediate vicinity of the Kobla ski resort) and was built in 2001. The apartment also has a basement. The roof of the building was renovated in 2008, the facade in 2010, the windows in the apartment in 2001 and the front door in 2005. The apartment measures 43.5 m2 and will be sold below the estimated value of EUR 80.700 for EUR 60.000. The auction will take place on March 2.

APARTMENT HOUSE FOR 170.000 – MEDULIN

The business-residential building in the settlement of Medulin near Pula is located in the fourth row from the sea, in an area where real estate for short-term rent is well rented. It consists of a business space dedicated to catering, and on the first and second floor there are rooms and apartments for rent to tourists. The house was built in 2000 and needs partial renovation, as it has not been in use for a long time. It stands on 754 square meters of land, on which access is arranged from the north and south. Parking is possible in front of the building. The appraiser adds that the demand for building land in Medulin is increasing and more and more buyers are looking for space to build holiday houses for rent. The house was estimated at 243 thousand euros, and at the first auction, which will take place on February 22, it will be sold for more than 170 thousand euros (1.28 million Croatian kuna). The auction is scheduled for February 22, and the last day to pay the deposit is February 11.

INVESTMENT LAND FOR 1.7 MILLION EUROS – DOMŽALE

DUTB has announced an electronic auction for the sale of undeveloped building land of 11,150 square meters in Domžale. According to the adopted municipal spatial plan, it is possible to build one- and two-dwelling buildings, and part of the land is intended for roads and green areas. The land is not communally equipped. The starting price is set at 1.7 million euros, the buyer will have to pay another 22% VAT. The e-auction will take place on March 2, and the deadline for applications is February 28.

Source: Finance

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Although the European Central Bank (ECB) – unlike the US Fed – has not yet announced an increase in interest rates, EURIBOR, the average interest rate at which a group of selected European banks lend money to each other, is already rising. If it continues to rise, sooner or later loans will start to rise in price, which we have become accustomed to in recent years as being “practically free” – this does not mean that they will be as expensive as they were a decade and a half ago, but they will be more expensive than they have been in recent years. The first, say sources from banks, will be housing loans, which have been by far the hottest banking product since last spring.

What is happening at the interbank market?

The three-month EURIBOR has risen by 0.06 percentage points since mid-December, when it reached a historic low (-0.605), reaching a one-year average of -0.55 percent. This is the highest since last December, but it is still noticeable below the levels before the start of the pandemic, which brought an even more relaxed monetary policy, when the three-month EURIBOR danced around -0.40 percent. It is similar with the six-month EURIBOR.

According to analysts, EURIBOR will rise in the future, but growth in goods is expected. On average, they expect it to be -0.27 percent in the second quarter of 2024.

Derivative financial instruments in the banking markets are also an eloquent indicator of expectations of future interest rate movements. Interest rate swaps for the three-month EURIBOR for the next ten years are concluded at higher values ​​than we were used to last year, when such contracts were in a negative area for a good part of the year. The swap deals, which indicate the fixed interest rate at which banking market participants are willing to lend money at no extra charge for the next ten years, were close to 0.4 percent at the end of last week, the highest since May 2019.

Or to put it another way, before the pandemic, when central bank interest rates were higher than they are today, banking market participants did not expect as high interest rates for a decade as they expect today. Even though this is a multi-year peak, the data still shows that low interest rates are expected in the markets over the next ten years.

Bankers unofficially: fixed housing loans will be more expensive. In fact, they already are.

Housing loans are a hit with Slovenian borrowers, growing more than all other types of loans. The latest data – by the end of November last year – shows that year-on-year growth in housing loans was 8.6 percent, while year-on-year growth in loans to companies was 4.7 percent. By the end of November, companies had taken out only 33 million euros more loans than households, according to statistics. This is also shown by real estate prices, which rose sharply last year.

Currently, bankers say there is no season for home loans, the situation has calmed down a bit. This is completely normal – buyers of real estate calm down during winter – and it happens every year. They also note that the maturities of new loans are increasing due to rising real estate prices. Bankers say there are almost no more those under 20 years, since the annuities would be too high.

With the extension of the maturity of loans, these have become a bit more “expensive”, as those with a maturity of over 20 years are more interest-bearing. “Shorter” bank loans today “have no” interest rates even at a fixed interest rate of 1.5% – but we also know of several cases with a fixed interest rate of 1.35%. Various people have been taking out variable rate loans lately.

Bankers expect that demand will increase again in March. And until then – if they continue to grow in the debt markets (recall, the required yield on German bonds was in positive territory at the end of January for the first time since 2019, and similarly a week later the required yield on Slovenian bonds was highest after June 2020) and interbank market – you can expect loans to be more expensive. But not with all banks and not immediately. As with the introduction of levies, for example, smaller banks will wait for the big banks to “jump”. A source from one of these says that they are already talking about the fact that loans with a maturity of over 20 years with a fixed interest rate are likely to rise in price in March.

Bankers officially? They currently still have special offers.

It seems that Slovenian banks are still eager to grant housing loans at the moment – with high liquidity of banks (the Slovenian banking system had – at the end of November last year – in a central bank account and sight deposits with banks for 10, 84 billion of only cash) . Thus, several banks have special campaigns for housing loans, or are planning to do so soon:

• NLB is still planning a special campaign for the younger population, more precisely the plans have not yet been revealed.

• NKBM will not charge approval costs for housing loans until 31 March.

• SKB bank started yesterday, February 1st: with a variable interest rate, they will offer the same interest rate (1.30 percent + EURIBOR) regardless of the maturity, if the loan is secured by a mortgage. They did not say what the minimum fixed interest rate will be, only that it will be higher.

• In January, Unicredit lowered the interest rate on all maturities of secured housing loans by 0.1 to 0.2 basis points, and the offer is valid until canceled: loans up to 10 years bear interest at 1.6 percent, up to 20 years at 1.9 percent. For 30 years, 2.4 percent.

• Gorenjska banka is still planning a campaign, but they did not disclose it, but mentioned that in February they will introduce an “eco housing loan” at more favorable interest rates than the regular offer of a classic housing loan, but did not specify the conditions and offer.

Source: Finance

The post Last chance for record-breaking cheap home loans? first appeared on Biseri Soče.

Factors such as the growing amount of funds in bank accounts and favorable bank loans suggest that the growing trend could continue. Those who do not want to bet on it and the property they intend to sell on the market today will feel high demand and for a good price – as real estate agents say, they are often positively surprised by the price in deals – sell the property relatively quickly.

You can find a buyer for the apartment in a week

How much interest is there in real estate? Apartments in Ljubljana with a properly set price can be sold in a week. In two or three days after the ad, 15 or 20 views are already announced.

Otherwise, we do not know how long the loans will be so favorable and how long the economic situation will be such that the surplus of customers will be so large. Prices will certainly stabilize once, and a buyer who can afford an apartment for 200,000 euros will certainly not spend 250,000 euros on it tomorrow.

Many people who buy a new property want to keep and rent out the previous one. The positive side of this, of course, is the additional guaranteed income, but on the other hand, in this case we have to maintain both properties that are aging. If we know how to spend or invest money properly, today seems to be the right time to sell.

In the sales process, it is very important to set a reasonable price. Many sellers are tempted to insist on high prices on the basis of recommendations from acquaintances. Such overpriced real estate does not trigger a good response from buyers. Those sellers who would like to ‘test’ the market first do themselves more harm than good. Potential buyers have a well-studied market, and if someone overdoes the price, they remember it. Therefore, later, when the seller lowers the price of the property to a more reasonable level, there is no such response as it would otherwise be.

How expensive apartments are currently sold is also surprising for real estate agents, as more and more apartments are being sold for one to five thousand euros over their first estimates.

What are the tax liabilities of the seller?

In the event of the sale of his property, the owner of the property is liable to pay real estate transfer tax. In addition, in certain cases he also becomes liable for personal income tax on capital gains, which is paid only if the real estate was acquired after 1.1.2002.

The owner of the property will therefore become liable to pay as many as two taxes upon its sale. The taxpayer will file a tax return for the assessment of both taxes with the tax office in whose territory the property for sale is located.

REAL ESTATE TRANSFER TAX

The payer of the real estate transfer tax is, as a rule, the seller of the real estate. The tax can also be paid by the buyer of the real estate, when the parties so agree in the purchase contract itself.

Real estate transfer tax is paid at the rate of 2% of real estate turnover and of the establishment and transfer or lease of a building right for a fee. Real estate transfer tax is considered as the revenue of the municipality where the real estate is located and is paid to the transitional tax sub-account of the municipality.

INCOME TAX ON CAPITAL GAINS

The alienation of real estate, which mainly includes the sale, gift, exchange, etc., acquired after 1.1.2002 is subject to personal income tax, regardless of whether the real estate was sold in an altered or unaltered state. Taxpayers must file a return for the assessment of personal income tax on capital gains in the alienation of real estate acquired after 1.1.2002 if they are:

• residents of Slovenia when the real estate is located in the territory of Slovenia,

• residents of Slovenia when the real estate is located abroad,

• non-residents of Slovenia, when the real estate is located in the territory of Slovenia.

The return must be submitted within 15 days of alienation, at the financial office where the property is located.

The tax base for the assessment of personal income tax on capital gains is the difference between the value of capital at the time of alienation and the value of capital at the time of acquisition. The tax rate is set at 27.5% and decreases with each completed five years of real estate ownership. After five years, the tax rate will be 20%, after ten 15%, after fifteen 10%, and after twenty years of ownership, this tax will no longer have to be paid.

Legislation regarding the obligation to pay personal income tax on capital gains also provides for an exception where the seller of real estate, despite meeting other conditions, will not have to pay this tax. This exception is the sale of an apartment or residential house (with a maximum of two flats with land) by an individual who had a permanent residence there, had actually resided there for the last three years before the sale and owned the property. Such an individual will therefore be liable only for the payment of real estate transfer tax, but not for income tax on capital gains.

Source: Finance, Mladi podjetnik

The post WHY NOW IS THE BEST TIME TO SELL YOUR PROPERTY AND WHAT ARE YOUR TAX OBLIGATIONS AS A SELLER first appeared on Biseri Soče.

The residential real estate market started to heat up three years ago, and last year, in 2021, and upcoming year 2022, we are witnessing a real euphoria in the housing market. Apartments, new and old, are going on the market like hot cakes, prices are rising.

Last week, the Statistical Office of the Republic of Slovenia announced that residential real estate prices rose by 2.8 percent on a quarterly basis in the third quarter of this year. At the annual level, they increased by 12.9 percent, which is the largest annual increase in prices so far. That prices rose the most in new housing in a year, was also confirmed by SURS, which calculated almost 18% growth.

PRICE PER SQM

Last year’s average price per square meter of new construction was around 3,500 euros, but in 2021, the bar has moved well above four thousand and that doesn’t include parking prices. The most expensive apartments are being built in Schellenburg Palace, where the average price of an apartment is allegedly one million euros.

That demand for newly built housing is extremely high is also shown by the fact that most major housing projects in Ljubljana are already “sold-out” and investors in some residential neighborhoods have confirmed that the sale is going great and according to their plans.

ADDED VALUE TAX

When buying a new apartment, the buyer must also pay value added tax. For apartments with less than 120 square meters of usable area, a reduced tax rate of 9.5% is paid for apartments, and for apartments with 120 or more square meters of usable area, a higher rate of 22% is paid.

Most companies that develop or sell housing give out prices excluding value added tax. Please note that before buying, you need to check the usable area and get information from the seller at what rate the apartment is taxed. This is also important because of the associated parking spaces, which are charged separately. Parking lots are charged the same tax rate as the corresponding apartment. If the apartment is taxed at 9.5% VAT, parking spaces are taxed in the same way, but if it is taxed at 22% VAT, parking spaces are taxed at this rate.

KVARTET

• Location: Ljubljana, Šiška
• Number of apartments: 221
• Number of available apartments: 28
• Price per sqm (including VAT): 4.350 EUR

Foto: CORWIN

SPEKTRA

• Location: Ljubljana, Šiška
• Number of apartments: 208
• Number of available units: 105
• Price per sqm (including VAT and parking space): 4.050 EUR

Foto: Spektra Invest

ŠMARTINSKA PLOŠČAD I

• Location: Nove Jarše
• Number of apartments: 157
• Number of available units: 7

Foto: Kostak GIP

SCHELLENBURG VILLA & PALAIS

• Location: Ljubljana center
• Number of apartments: 125
• Number of available units: 84
• Price per sqm with parking space: from 5.000 to 8.000 EUR + VAT

Foto: REITENBURG

ŠUMI

• Location: Ljubljana center
• Number of apartments: 96
• Number of available apartments: 4
• Average price per sqm: around 6.000 + VAT
• Price per parking space: 35.000 + VAT

Foto: Šumijev kvart

DEVANA PARK II

• Location: Hradeckega cesta
• Number of apartments: 95
• Number of available apartments: 95 (the sale will start when the investor obtains the general terms and conditions of sale)
• Price per sqm: estimated price 4.200 EUR + VAT

Foto: Genius loci

VSO BARJANKA

• Location: Barjanska cesta
• Number of apartments: 19
• Number of available apartments: 5
• Price per sqm (including VAT): around 4.800 EUR
• Price per parking space: 15.000 EUR

Foto: Novogradnje Ljubljana

BELLEVUE LIVING

• Location: Ljubljana, Šiška
• Number of apartments: 70
• Available units:
• -2 bedroom apartments are sold out
• -one 3-bedroom apartment with 88 sqm is still available
• -6 units with 177 to 240 sqm are still available at prices from 840.000 to 1.100.000 EUR

Foto: Bellevue Living

RB ELLIPSE

• Location: the outskirts of the Ljubljana city center
• Number of apartments: 64
• Number of available apartments: 2
• Price per sqm: around 3.900 EUR + VAT
• Price per parking space: around 15.000 EUR + VAT

Foto: Sadar+Vuga

Other bigger housing projects are also Koseško okno (Koseze, 94 apartments), Masarykova (Ljubljana center, 81 apartments) and Celovška (Šiška, 60 apartments), but all the apartments have already been sold.

Source: Finance

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