Who is obligated to file a property transfer tax declaration?

The taxpayer for the property transfer tax is the seller of the property, who is obligated to file the property transfer tax declaration.

If the seller and buyer have agreed in the sales contract for the property that the buyer pays the property transfer tax, the buyer is obliged to file the property transfer tax declaration. However, the seller remains the taxpayer and is responsible for payment to the state. In this case, both the buyer and the seller have a position in the process.

When selling ideal shares of a property, each seller is separately liable for paying tax for their co-ownership share.

The form for the property transfer tax declaration, along with instructions, can be found on the financial administration website:
https://edavki.durs.si/EdavkiPortal/openportal/CommonPages/Opdynp/PageD....

Who is liable for paying property transfer tax when acquiring property rights?

In the case of acquiring property rights based on possession, the acquirer, i.e., the recipient, and not the disposer, as in the case of a sale, is liable for the tax.

In a property exchange, i.e., in an exchange contract, each participant in the exchange is liable for the value of the property they dispose of, since from a tax law perspective, it is considered two sales.

Does failure to file a property transfer tax declaration have any consequences?

The taxpayer must file the declaration within 15 days after the tax obligation arises at the financial office, in the area where the property is located. The tax obligation arises with the conclusion of the contract that is the basis for the transfer of the property or with the legal validity of the court decision.

The failure to fulfill the obligation of timely reporting is a tax violation, for which a fine is prescribed. However, the taxpayer can avoid this and is not responsible for the violation if they self-report and at the same time pay the tax with late interest.

Within what deadline do I have to submit the declaration for the assessment of real estate transfer tax?

The taxpayer must submit the declaration within 15 days of the tax liability arising.

The tax liability arises when the sales contract for the real estate is concluded or when there is a legally binding court decision (e.g., in cases of adverse possession).

If obtaining permission from a state authority or other legal act (e.g., approval of the transaction by the administrative unit for the sale of agricultural land) is required for the transfer of the real estate, the tax liability arises when the permission is served to the taxpayer or when the legal act becomes legally binding, even if the contract was concluded earlier.

Which documents need to be attached to the declaration for the assessment of real estate transfer tax?

The taxpayer must attach documents to the application for the tax declaration on the prescribed form that serve as the basis for the transfer of ownership of the real estate. This includes one copy of the original sales contract and a copy of the contract.

The financial authority will stamp the original contract, which will be returned to the party, to confirm the payment of tax, while a copy will be retained.

To which tax office should I submit the declaration for the assessment of real estate transfer tax?

The declaration with the assessment of the real estate transfer tax must be submitted to the tax office within whose jurisdiction the real estate is located.

Does the financial authority consider the agreed value of the real estate as the tax base?

The tax base for the assessment is the sale price of the real estate. The sale price of the real estate includes any payment (in cash, in kind, in services, in the assumption of debts of the previous owner, etc.) received or to be received by the seller from the buyer for the transfer of the real estate.

If the sale price does not correspond to the price that could be achieved on the open market, the tax base is determined as the value of the real estate established in the assessment procedure. Until the assessment procedure is finally concluded (final assessment decision), the taxpayer has the right to request that the estimated individual market value of the real estate be considered as the tax base, but they are obliged to pay the costs of the real estate appraisal.

This means that in the process of assessing the real estate transfer tax, the tax authority will, ex officio, determine whether the contractual value of the real estate corresponds to the market value. If it is determined that it does not correspond, the tax authority will ex officio determine the market value and use it as the tax base.

In this regard, it is also necessary to consider the decision of the Constitutional Court of the Republic of Slovenia No. U-I-168/15-9 dated March 23, 2016, according to which the generalized market value of the real estate determined based on the law governing mass appraisal of real estate (GURS) is no longer considered as the tax base.

Is it possible to get a tax refund in the case of divorce or annulment of a property sale agreement?

If the contracting parties mutually dissolve the property sale agreement or if it is annulled due to the withdrawal of one party before the transfer of ownership rights to the buyer, the taxpayer has the right to request the cancellation of the decision on property transfer tax assessment and the refund of the paid tax by the government.

In this case, the taxpayer or tax payer is entitled to the refund of the principal amount of the tax paid, but not the interest.

How is property transfer tax assessed in the case of a sale at a public auction?

Property transfer tax liability also arises in the case of a property sale at a public auction.

For example, when the court sells the debtor's property at a public auction in an enforcement proceeding, the debtor or owner is not obliged to file a tax assessment declaration. The tax authority initiates the process of property transfer tax assessment ex officio upon receiving notification from the court about the sale (domicile order).

How is the transfer of ownership rights to a property taxed in the division of jointly owned property, such as the division of marital property after divorce?

The taxation depends on whether the co-owners separate or divide the jointly owned property physically or civilly.

In the case of a physical division, for example:

• in the case of parceling, where one property is divided into two new properties proportionate to the co-owners' shares, or
• in the division of multiple jointly owned properties where each co-owner receives a separate property corresponding in value to their share,

 

such division is exempt from tax as it constitutes an in-kind division based on the co-owners' shares.

If the co-owners divide the property in such a way that one retains the entire property and pays the other co-owner in cash, a taxable event occurs with property transfer tax. Under the Property Transfer Tax Act, property transfer tax is also payable on the transfer of ownership rights in the division of jointly owned property, specifically on the portion of the property that exceeds the individual co-owner's share and was received in exchange.

The same applies if the co-owners divide multiple properties in such a way that one co-owner receives more properties than their share entitles them to and pays the other co-owner the difference.

If the co-owners sell the property to a third party, each of them is liable to pay property transfer tax for the sold co-owner's share.

What happens if a co-owner receives more than their share in the physical division of a property and does not compensate the other co-owner for the "excess"?

If a co-owner, in the physical division, does not compensate the other co-owner for the difference or excess value and receives it free of charge, it is considered a gift.

If the co-owner (whether a natural person or a private legal entity) receives a free part that exceeds their share, it creates an obligation to pay gift tax under the Inheritance and Gift Tax Act.

However, an exception applies in this case. A co-owner who receives the excess and is in a first-degree blood relationship with the other co-owner is exempt from paying gift tax (e.g., son from father or between spouses).

Is there a tax liability for the payment of capital gains tax in the division of co-owned property?

In both of the above-mentioned cases where excess occurs, there would also be conditions for determining capital gains tax liability for natural persons as taxpayers, both in the case of selling the share through a sale or in the case of non-compensated transfer, i.e., a gift.

For consultation and meetings regarding representation in tax proceedings, please contact attorney Jurij Kutnjak during business hours at telephone number 00 386/2/25-23-780 or email info@odvetnik-kutnjak.si.

Legal Notice:

The content of the articles is designed and intended for critical reflection and does not represent a legal opinion, legal advice, or recommendation from attorney Jurij Kutnjak or his law office.

Answers to questions, and other content on this page, are simplified for better understanding and, despite efforts, may contain errors, therefore the attorney does not guarantee their correctness or completeness. They should only serve as a starting point for a more detailed examination of a particular issue.

The articles do not replace specific legal advice and do not constitute a legal basis for a mandate relationship. Before making any decisions and before any action, always consult with a lawyer or another legal professional.

Attorney Jurij Kutnjak does not assume responsibility for decisions or legal consequences of actions taken based on the articles on this page. The liability for damages and any other responsibility of attorney Jurij Kutnjak or his law office is excluded.

Note:

Expressions in the text used in the masculine gender are used neutrally and refer to persons of all genders.

The original content of the web pages is prepared in the Slovenian language. The content of the web pages in English and German is prepared in translation from the Slovenian text, does not represent a certified translation, and only serves for comparative study of a particular legal issue.