When a Slovenian citizen sells a property located abroad or when a foreigner sells a property located in Slovenia, the sale is linked to international elements and the question is, which country's law applies to the contractual relationship? These rules are governed by the provisions of international private law.

According to the general rule, it is usually necessary to apply the law of the country where the property is located. If the sale or legal transaction is also connected with the law of another or possibly several countries, the law of this country or these countries must also be taken into account when concluding the transaction (e.g., the law of the seller's country of citizenship in relation to his business capacity, representation, etc.).

This applies to the legal rules of the sale itself (conclusion of the sales contract, sales process, registration in the appropriate register or land book, etc.), as well as to tax law issues.

For example, when a Slovenian citizen sells a property in Croatia, the sales process is similar to the sales process of a property in Slovenia, but with a few important differences. Similar to the Slovenian regulation, the contract must be concluded in writing, the seller's signature on the contract or land book permit must be certified, and registration of the buyer in the land book is necessary to acquire ownership. However, unlike the Slovenian regulation, under Croatian law, the buyer is liable for the payment of real estate transfer tax and not the seller as in Slovenia. The tax rate is also different (3% and not 2% as in Slovenia). The seller, who is a resident of Slovenia, is obliged to pay capital gains tax in Slovenia.

When selling or buying a property abroad, it is advisable to seek legal assistance from both a real estate lawyer in the country where the property is located and a lawyer from the country to which the party belongs (e.g., whose citizen it is, the law of the country in which it resides, etc.). To avoid unnecessary legal complications when selling or buying a property with an international element, contact attorney Jurij Kutnjak from Slovenia, who will find the most suitable solution for you.

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.