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.
