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 13. October, 2025

Category: News 2025

Tax on Residential Real Estate

Tuesday, 04 February 2025 by Nika_Skorjanc_2019
News

As Slovenia faces challenges in the housing market, such as a gray rental market, lack of transparency, and an excessive number of vacant apartments, the government has proposed the introduction of a tax on residential real estate. The goal is to encourage the rational use and rental of properties. The tax would apply to all real estate, except for properties where the owner actually resides. A tax incentive has been proposed for rental properties, which would reduce the tax liability by 25% of the declared rental income.

On December 23, 2024, the government approved the draft for the introduction of this tax, along with measures to reduce the tax burden on labor. A 1.45% tax rate is being proposed, with the tax base being the generalized market value of the property according to the Geodetic Administration. The revenue from this tax would go into the state budget. Additionally, the proposal includes the abolition of the property tax and the use of funds collected from the tax on residential real estate to alleviate taxation on the middle class and encourage employment. This measure would involve the introduction of personal allowances for income from employment and changes to the income tax scale, which would relieve the middle and upper classes.

The aim of these proposals is to improve Slovenia’s competitiveness and adjust the tax structure. These proposals were subject to public consultation, which ended on January 25, 2025. In this context, the Ministry of Finance received 521 comments, suggestions, and observations, which will be considered. Afterward, further discussions will be held with the Strategic Tax Council, and consultations with external experts will take place before final decisions are made.

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Disturbance of possession

Tuesday, 14 January 2025 by Nika_Skorjanc_2019
News

Possession refers to the actual control over an object, which does not necessarily tell us who owns the object or who has the right to possess it – it only tells us who currently has physical control over the object. Control can be direct, when the object is directly in our possession, or indirect, when possession is exercised through another person. Often, the owner of an object is also its possessor, but this is not always the case. Therefore, we distinguish between ownership possession, when the owner has the object in possession and non-ownership possession, such as in the case of a tenant who possesses an object over which they have no ownership rights.

Possession is a relationship of physical control over an object, which meets the following criteria: external visibility, permanence, exclusivity and accessibility to the possessor. Possession ceases when the external appearance of control over the object ends.

A possessor can claim protection of possession in two ways – self-help and judicial protection (filing a lawsuit). The possessor has the right to self-help against anyone who unjustly disturbs or deprives them of their possession. However, the condition is that the danger is imminent, self-help must be immediate and necessary, and the manner of self-help must fit the circumstances of the danger – for example, when we catch a thief trying to steal our bicycle and prevent him from doing so.

Both direct and indirect possessors have the right to judicial protection of possession. In possession protection proceedings, only possession is relevant, so questions of ownership are not dealt with in possession disputes.

Judicial Protection of Possession

The court, in a lawsuit for disturbance of possession, provides legal protection to the possessor for both the disturbance and the deprivation of possession. It is not relevant whether the possessor had the right to possess the object or whether they were acting in good faith. The court grants protection based on the last state of possession and the disturbance that occurred. Even a possessor who acquired possession by force, secretly, or by abuse of trust has the right to protect possession, except in exceptional cases (e.g., a thief has possession protection against third parties, but cannot claim it directly against the previous possessor who caught them stealing). A possessor is not entitled to legal protection if the disturbance or deprivation of possession is based on the law.

A possession lawsuit can be filed by any last peaceful possessor who has been the victim of disturbing behavior, against the person disturbing the possession or an indirect disturber – someone who orders, approves, or benefits from the disturbing action.

In the court procedure, the plaintiff must prove: that they had possession of the object before the disturbance, that their possession was indeed disturbed, that the defendant was the one who interfered with the possession, and that the defendant’s actions were unlawful. Whether possession was disturbed is decided by the court in each case individually. Even a minor change in the state of possession does not necessarily mean disturbance or deprivation of possession. The interference must be such that it either prevents or significantly hinders the exercise of possession.

The process begins by filing a lawsuit with the competent District Court. The deadline for filing the lawsuit is 30 days from the day the possessor learned of the disturbance and the perpetrator or 1 year from the day the disturbance occurred. The deadline for a response to the lawsuit is 8 days.

The goal of the possession lawsuit is to restore the previous state of possession – it is preventive protection, as we aim to prevent future disturbing actions. In the lawsuit for disturbance of possession, the court will deal with two main issues: the last state of possession and the disturbing action, but it will not decide on the right to possess, the legal basis, the fairness or unfairness of possession, or any compensation claims. To pursue these claims, another procedure must be initiated, such as a lawsuit to determine ownership rights, a lawsuit for the return of property based on ownership rights, a compensation lawsuit, etc.

The defendant can oppose the lawsuit only with arguments related to the actual state of possession. At the end of the procedure, the court will issue an order prohibiting the defendant from further disturbing the possession or requiring the return of the deprived possession and other measures necessary to prevent further disturbance.

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