SLOVENIA Law and Practice Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
2.8 Permitted Uses of Real Estate Under Zoning or Planning Law The permitted use of real estate is determined by the state and local authorities under the spatial planning regulations. Permitted use of a specific land plot can be most reliably ascertained by obtaining so-called location information from the competent local authority. This is specific zoning information, issued by a local author - ity, which specifies permitted uses, restrictions, pre-emption rights, special protection regimes, applicable zoning regulations and other spatial implementation conditions, all linked to a spe - cific piece of property. Permitted use can also be ascertained through online public spatial data information systems. Conclusion of specif - ic development agreements with relevant public authorities is possible to a limited extent (see 4.6 Agreements With Local or Governmental Authorities ). 2.9 Condemnation, Expropriation or Compulsory Purchase In accordance with the Spatial Management Act, owners may be expropriated on the condition that expropriation is essential to attain public benefit, and that the public benefit pursued is in proportion with the interference with private property. Owners need to be awarded damages or compensated in kind with a real estate of same type and quality. Before the expropriation procedure commenc - es, the expropriation beneficiary must make an offer to the owner to purchase the real estate. If the sale and purchase cannot be agreed, the expropriation beneficiary may submit a request for expropriation to commence the expropriation procedure. The expropriation procedure is con - ducted by the administrative unit that decides on the expropriation and the compensation.
Besides the above-mentioned generally appli - cable provisions of the Spatial Management Act on expropriation, the provisions of specific leg - islation concerning expropriation, such as the Investment Promotion Act and the Water Act, may be applicable in particular cases. 2.10 Taxes Applicable to a Transaction Asset deal transactions are subject to (i) the real estate transaction tax (RETT) or (ii) VAT. If the transaction is not subject to VAT, RETT amount - ing to 2% of the value of the real estate is to be paid by the seller. Payment of RETT may con - tractually be shifted to the buyer. Differently, for sale of real estate owned by a taxable person identified for VAT purposes, VAT amounting to either 22% or 9.5% is applied instead of RETT in cases enumerated by the law or by choice of the parties (see 8.1 VAT and Sales Tax ). Both asset deal transactions and share deal transactions may be subject to corporate income tax (CIT) if the seller is a legal entity, or income tax on capital gains if the seller is a natural person. As regards CIT, any profit (or loss) from the deal counts towards the total profit of the legal entity. The general corporate income tax rate is set at 19%, but notwithstanding this – in accordance with the specific Law on Reconstruction, Devel - opment and Provision of Financial Resources, adopted to tackle the 2023 floods – the CIT is payable at a rate of 22% for the years 2024, 2025, 2026, 2027 and 2028. As regards income tax on capital gains, natural persons are taxed based on capital gains and the capital holding period. The tax rate, which first amounts to 25% of the difference between the value of the capital at the time of disposal and the value of the capi - tal at the time of acquisition, decreases over the years of ownership – ie, it amounts to 20% after five years of ownership and 15% after ten years
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