Inheritance of Real Estate in Slovenia: Everything You Need to Know

Inheritance of real estate in Slovenia is an important topic for anyone thinking about long-term wealth planning or dealing with inheritance. The inheritance process is mainly regulated by the Family Code and the Inheritance Act, with significant tax aspects governed by the Inheritance and Gift Tax Act. In this article, we will explain in detail how the inheritance process works, who the legal heirs are, what taxes apply, and how debts and burdens on real estate are inherited.

Who are the legal heirs?

Slovenian legislation defines inheritance according to the legal order of succession:

First order of succession:
This includes the deceased’s children and spouse or common-law partner. They share the inheritance equally, with the spouse having the right to inherit the same share as each child.
Second order of succession:
If there are no descendants, the deceased’s parents and their descendants (siblings and their descendants) inherit.
Third order of succession:
If neither parents nor their descendants exist, grandparents and their descendants inherit. Important: If there is a will, it generally prevails over legal inheritance, unless it interferes with the compulsory portions due to legal heirs (e.g., children are always entitled to a compulsory portion).

The process of inheriting real estate

The process begins with the convening of a probate hearing at the competent district court, usually at the initiative of a notary who leads the process.

Steps:

Notification of death and initiation of probate procedure.
2. Invitation to heirs for the hearing.
3. Determination of heirs and the value of the estate (including real estate).
4. Judicial decision on inheritance – decree of inheritance.
5. Registration of ownership change in the land registry.

Tip
If you are the heir to real estate, it is crucial to propose registration in the land registry after the inheritance decree becomes final. Without this, you are not officially registered as the owner!

Taxes on inheritance of real estate

Heirs of the first order of succession (children, grandchildren, spouse) are exempt from inheritance tax in Slovenia. Heirs from the second or third order must pay a tax calculated based on the value of the inherited real estate and the order of succession. The tax rate is progressive and depends on the value of the inherited real estate. Example: • If a grandchild inherits real estate, there is no tax. • If a brother or sister inherits real estate, the tax is paid based on the estimated value.

Inheritance of debts and burdens

When inheriting real estate, it is important to know that burdens (e.g., mortgages, easements) and the deceased’s debts are also inherited. Heirs are responsible for the deceased’s debts but only up to the value of the inherited assets. If the debts exceed the value of the estate, the heirs’ personal property is not at risk. Recommendation: If there is a risk that debts exceed the estate value, the heir can request a list of assets or, in certain cases, refuse the inheritance.

Special aspects: Inheritance by will

The deceased can specify in a will who will inherit the real estate. However, the law stipulates that certain heirs are entitled to a compulsory portion, which the will cannot override. Example: • If the deceased leaves all real estate to a friend in a will, the children still have the right to demand their compulsory portion. The will must be written and signed by the testator, otherwise, it is invalid.

Inheritance of real estate in Slovenia is relatively transparent but still a complex process. It is recommended to consult an expert in a timely manner, especially if there are disputes among heirs or burdens on the real estate. A properly managed estate can prevent lengthy proceedings and unpleasant surprises in the future.