Advantages of obtaining a property in Slovenia
Slovenia has a GDP per capita of 26,000 EUR, making it one of the wealthiest countries in the region. Additionally, holders of Slovenian passports have visa-free access to over 180 countries.
Residence permits on the grounds of owning real estate
A person can obtain a residence permit by investing 7,500 EUR in a company, which is then used to purchase a property worth 50,000 EUR. Once the company has invested in the property, the person can apply for a residence permit. The total investment required for this pathway is 60,000 EUR. It is important to note that specific requirements and regulations may vary depending on the country in question.
Residence permits on the grounds of company formation
It is important to clarify that the information provided is not entirely accurate. In general, in order to apply for a residence permit on the basis of business investment and setting up a company, the applicant needs to invest a certain amount of capital in the company, which varies depending on the country. The amount mentioned, 7,500 EUR, may apply to a specific country, but it is not a general rule.
Additionally, it is not common or necessary for the applicant to get hired by their own company in order to apply for a residence permit. The main requirement is usually to demonstrate that the investment made will have a positive impact on the country's economy, and that the applicant has the necessary skills and experience to run the business.
It is important to thoroughly research the specific requirements and procedures for obtaining a residence permit through business investment and setting up a company in the country of interest.
Taxes & Rental Income Tax
Slovenia has a relatively heavy tax burden compared to some other countries, with a corporate income tax rate of 19% and a personal income tax rate of 15%. In addition, the sales tax rate in Slovenia is 20%, and social security taxes can be as high as 38%. Rental income is also taxed in Slovenia, with the option to choose between paying 10% of gross income or 15% of net income. It is important to note that taxpayers can deduct certain costs associated with rental income for tax purposes.
Also, to add some more details on rental income tax in Slovenia, it's worth noting that the tax rate depends on the type of property and the length of the rental period. For short-term rentals (less than 30 days), the tax rate is 25% of the gross rental income, while for long-term rentals (30 days or more), the tax rate can be either 10% of the gross rental income or 15% of the net rental income.
In addition, it's possible to deduct certain expenses related to the rental property, such as repairs and maintenance, property management fees, and insurance premiums. The tax authorities may require proof of these expenses, so it's important to keep proper records.
Other residence types in Slovenia
In addition to the business investment and ownership of real estate, there are other types of residence permits available in Slovenia, including:
Employment: Non-EU citizens can obtain a residence permit for the purpose of employment in Slovenia. The employer must provide a job offer, and the employee must meet certain qualifications and language requirements.
Studies: Students from outside the EU can obtain a residence permit for the purpose of studying in Slovenia. They must provide proof of enrollment in a recognized educational institution and have sufficient financial means to support themselves during their studies.
Family relationships: Non-EU citizens can obtain a residence permit based on family reunification with a Slovenian citizen or a foreigner who is already a resident in Slovenia.
Other purposes: Residence permits are also available for other purposes, such as medical treatment, scientific research, and humanitarian reasons.
It's worth noting that the requirements and application procedures for each type of residence permit may vary.
Which residence permits offer a path to permanent residency and citizenship?
Several types of residence permits in Slovenia offer a path to permanent residency and citizenship.
Restrictions & Challenges
It is important to note that obtaining Slovenian citizenship may require up to 10 years of residency in the country, which is a significant commitment. Additionally, Slovenia's taxation system may not be very welcoming to foreign residents, as taxes can be quite high. The process of obtaining a residency permit can take around 6-9 months and may require specific property qualifications. Those seeking a residency permit will also need to spend 6 months in Slovenia, though they may be able to fulfill this requirement while within the broader Schengen zone. Residency permits are available to families, and all required documents must be apostilled. However, it is worth noting that English may not be widely spoken in Slovenia, so language barriers may present a challenge. Worldwide income may also be subject to taxation, and double citizenship is not currently allowed.