Friday, 10th October 2025

Slovenia Introduces Property Tax

New property tax aims to boost rental supply and reduce rental prices, with a focus on long-term leases over short-term tourist lets

Slovenia’s government is taking a bold step with its innovative draft law, which imposes a 1.45% property tax on the market value of residential properties owned by individuals and corporations. This tax, notably excluding an owner’s primary residence, specifically targets secondary homes and undeveloped land. The main goal is to effectively tackle the ongoing shortages and soaring prices in the rental market.

Notably, rental income generated from secondary properties will be included in the tax calculation, which will help lessen its financial impact. However, short-term tourist rentals will not qualify for this relief, ensuring that the focus remains on addressing the housing challenges faced by residents.

The government’s strategy is twofold: to incentivize property owners to offer long-term leases and to increase the supply of rental housing, thereby alleviating the financial burden on tenants. The anticipated €600 million in tax revenue will be counterbalanced by reductions in labor taxes, resulting in higher net wages and stimulating broader economic growth.

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