SLOVENIA Law and Practice Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
6.7 Payment of VAT Generally, VAT is not payable on rent. However, in accordance with the Value Added Tax Act, the parties to the lease agreement may under certain terms opt into the VAT system, thereby enabling the deduction of input VAT. 6.8 Costs Payable by a Tenant at the Start of a Lease Although not mandatory under the law, the par - ties to the lease agreement commonly agree that the tenant will pay a security deposit to the land - lord, which is usually determined in the amount of a few monthly rents. For commercial leases, security deposits are sometimes replaced with the procurement of a bank guarantee by the ten - ant to the landlord as security for fulfilment of the tenant’s obligations under the lease agreement. In certain cases, the landlord and the tenant will agree to split the fit-out costs (sometimes against a rent-free period, and sometimes not). 6.9 Payment of Maintenance and Repair In accordance with the Obligations Code, the costs of maintenance and repair (also) of com - mon areas are the burden of the landlord. How - ever, commercial lease agreements commonly shift the costs of maintenance of common areas used by several tenants, such as parking lots and gardens, to the tenants, and divide the costs proportionally between them. 6.10 Payment of Utilities and Telecommunications The utilities and telecommunications costs aris - ing solely from the business operations of the tenant are typically borne by the tenant, even if invoiced to the landlord. The utilities and tel - ecommunications costs related to the common services and infrastructure are typically allocated proportionally to each tenant.
Frequency of Rent Payments Rent is mainly paid on a monthly basis. Different frequencies of rent payments are uncommon. Coronavirus Pandemic Issues Newer post-pandemic commercial lease agree - ments commonly contain specific clauses relat - ing to the pandemic. Lease agreements that contain force majeure clauses either explic - itly include the COVID-19 pandemic as a force majeure event or expressly exclude it, with the latter being more common. 6.5 Rent Variation In the case of fixed-term leases for a shorter period of time, the rent payable will normally remain the same for the entire duration of the lease term, with the rent being increased, if so agreed between the parties, alongside the pro - longation of the lease term. Conversely, fixed- term leases concluded for longer periods of time commonly include rent variation systems, such as rent indexation, graduated rent or rent linked to turnover. It is expected that in the new inflation-influenced reality, even the short- to mid-term leases will contain indexation clauses. 6.6 Determination of New Rent On one hand, if the rent is to be changed or increased, the determination of new rent is usu - ally regulated by the lease agreement itself. In the case of rent indexation, the rent will be adjusted according to the changes in the chosen index. For graduated rent, the rent will be raised gradually by a specified amount after a certain period of time. For rent linked to turnover, the rent will be adjusted according to the tenant’s turnover. On the other hand, if the determination of the new rent is not regulated, the new rent is usually negotiated in view of the average market rent applicable to the type of real estate.
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