Topics Covered Hide
- 1 Slovenia citizenship by investment versus residence by investment
- 2 Benefits of the Slovenia citizenship by investment program
- 3 Disadvantages of the Slovenia residence by investment program
- 4 Gaining the Slovenian residence and citizenship as an entrepreneur
- 5 Becoming a resident in Slovenia with real estate investments
- 6 Requirements for the Slovenia citizenship by investment
- 7 Frequently asked questions
- 8 Conclusion
Slovenia has never been among the economically attractive countries of Europe, but things have changed over the past few decades. When you think about the country, you inevitably associate it with Eastern Europe and the exposure to the Russian influence.
The truth is – for many years, Slovenia was actually under the eastern shade in terms of politics. However, these days, Slovenia is a solid choice of investment and an excellent opportunity for foreigners. It is part of the European Union, and it feels as advanced as its western neighbors.
With these thoughts in mind, more and more people turn to Slovenia for citizenship – or at least residence. In fact, the Slovenian service is even better than what you can find in other countries – besides, the passport is among the most powerful ones in the world.
Slovenia excels from some points of view and fails in others. For instance, property is cheaper in Romania or Hungary, but the quality is higher. Safety is great and makes this country an excellent option for digital nomads.
Now, what should you know about the Slovenia citizenship by investment program?
citizenship-by-investment-versus-residence-by-investment" data-toc="1" >Slovenia citizenship by investment versus residence by investment
While most people use these terms interchangeably, the truth is there are some differences. One of them gives you slightly more rights than the other – citizenship. As a citizen, you are part of the respective country. As a resident, you can live there.
Furthermore, you cannot have a passport with a residence – be it temporary or permanent. When it comes to Slovenia, for instance, you will not be able to travel visa-free to more than 180 countries as a resident – you need to become a citizen.
Now, despite finding all sorts of guides on Slovenia citizenship by investment, the truth is there is no such program. Indeed, the authorities have considered something similar, but simply put, you cannot buy citizenship in Slovenia.
On the other hand, you can get the residence. There are more types of residence, and naturalization will, eventually, lead to citizenship. One type of residence, in particular, stands out because it can be permanent – you do not want to deal with authorities every now and then for renewal.
While you cannot buy citizenship, you can buy your way into it by making an investment. It does not mean that other countries in the EU provide such programs, though. The EU is quite tight when it comes to selling citizenship – instead, what you can do is get the residence and benefit from naturalization.
Now, before digging deeper, you might be able to get Slovenia citizenship by investment under certain circumstances. You will most likely have to invest more than €1M, employ locals and change the economy of an area.
This is not official citizenship by investment program, but it sounds like one. It is given by merit.
Benefits of the Slovenia citizenship by investment program
Just like any other country out there, Slovenian residence comes with some benefits. Just like in most other cases, the goal is to reach citizenship, yet different entrepreneurs have different goals – some will do just as well with the residence.
Being part of the EU is the best part of Slovenian citizenship. You basically enter the European community and can benefit from visa-free travel throughout it, not to mention a bunch of other countries. Furthermore, Slovenia is also part of the Schengen area – no borders.
Now, the Slovenian passport is one of the most powerful ones in the world. It sounds hard to believe because plenty of people cannot even locate the country on the map – it is not the best economy out there, and it does not have a strong military.
But somehow, Slovenia has managed to build its way up. Once you become a citizen, you will be able to travel to over 180 countries with no visa requirements. There are around 30 countries that may require a visa upfront – lots of countries in Africa, China and Russia.
The standard of living will not disappoint either. While not ranked among the most powerful economies in the world, Slovenia has a high standard of living and people are generally happy. It can easily compete against the best economies in Europe.
Now, when it comes to the government, Slovenia is extremely stable. It is one of the few countries – along with Croatia – that have managed to grow fairly fast after Yugoslavia broke apart. There is no political conflict at all.
The country is small and mostly mountainous. In theory, based on what you can see in Europe, the smaller a country is, the better its economy becomes – obviously, with some exceptions as well. However, Slovenia is not among them.
Talking about the government, authorities have realized that getting foreign investment is the way forward. Therefore, Slovenia is one of the few countries in Europe that show loyalty to foreign investors. The government knows foreign money can push the country forward.
As for living there, you will find a stable economy, a very low level of unemployment compared to other countries in the area, great infrastructure, modern facilities and low crime. In other words, this explains why so many foreigners choose Slovenia.
Disadvantages of the Slovenia residence by investment program
Now, moving to Slovenia is not as easy as it might be to move to other countries with such programs – especially those not located in Europe. Just like everywhere else, local laws say the emigration to Slovenia must be justified. You need a good reason to do it.
Most entrepreneurs do it for business purposes. However, other reasons can include work or perhaps professional training – even going to a local university will get you the residence. Family reunification is also a common reason.
While you can find lots of people who speak decent English in Slovenia, the truth is you may find the language barrier a problem. Locals speak Slovenian – a Slavic language that may feel a bit difficult to learn for a foreigner.
As for the actual investment, it is important to know that while you can get residency without too much hassle, the actual citizenship is quite time-consuming. If most countries require about five years for naturalization, Slovenia requires over 15 years.
While not necessarily a disadvantage, most people will associate Slovenia with a poor economy. Since the country is not as famous as its neighbors, prejudices and misconceptions might represent an advantage for you.
More importantly, Slovenia is not the type of country that allows dual citizenship. In other words, you will need to give up on your current citizenship. Unless you come from a poorly rated country with a weak passport, it may not necessarily be an option – luckily, there are a few loopholes.
Gaining the Slovenian residence and citizenship as an entrepreneur
Becoming a resident is fairly simple – what makes it difficult is gaining Slovenia citizenship by investment. But before getting there, you need to focus on the residence first. Any entrepreneur can seek residence by coming up with a local business.
The initial capital investment is relatively low, and the requirement will not exceed €7,500. However, plain business registration is not enough. You need to actually engage into doing business if you want long term results.
For example, the first six months come with certain requirements – you must spend €50,000 or more in fixed assets. There is no rush because you have six months to meet this requirement. Income requirements are not to be overlooked either.
You need a turnover of €10,000 or more for six months or more.
Being self-employed or starting a classic one-man company is not enough because there are also employment requirements. You need to employ an EU citizen for six months or more – ideally, a Slovenian, but this is not a general rule.
You must file monthly withholding tax returns for half a year, so the authorities can see what you are doing and whether or not you are actually succeeding in your venture. There should be no outstanding tax liabilities either. Plus, you must keep an eye on the work permit quota.
Now, this type of business investment can go in two directions. You can register an already existing company – basically, you are moving your business operations from a different country to Slovenia. There are less requirements then.
However, most entrepreneurs choose to register a new company from scratch. There are a few extra requirements in this case, and they target the banking aspect. Where are you going to pay the initial share capital? You need a temporary bank account. This is the first step in the process.
The bank will give you a certificate that proves your deposit. This piece of paper is required to open the actual company, throughout the registration process. The bank account is temporary until the company is registered – then, it becomes permanent.
Now, what kind of business do you want to open?
There are more possibilities in Slovenia, and each of them comes with different rules and requirements. While you can study everything yourself, it might be easier to rely on specialized service. Here are your options:
- Individual entrepreneur – SP
- Limited liability company – DOO
- Unlimited liability company – DNO
- Joint stock company – DD
- Limited liability partnership – KD
- Limited liability joint stock partnership – KDD
- Partner company
- Private business
- Social company
- Limited liability company – LLC
- Subsidiary company
- Branch or representative office
You can stay in Slovenia as a tourist until you get the residence. It is normally given for a full year, which should be enough to determine whether or not your business is successful. The whole process will require a few months. Once the year is over, the good news is you can renew this permit.
Now, spend five years with the temporary residence permit by renewing it, and you will be able to apply for the permanent residence. This is the second step in the process. You will need ten years under permanent residence to be able to apply for citizenship.
Obviously, there will be some tests and exams – you will need to speak the language as well.
In terms of tax optimization, you can avoid tax residence in Slovenia if you spend less than 183 days there. You cannot just get out of the country to avoid tax – instead, your business should require traveling around Europe.
As the business grows, you may end up paying 19% in corporate tax – quite common in Europe.
Becoming a resident in Slovenia with real estate investments
Unless you have a proper business spirit and you believe you can succeed in a foreign country without even speaking the language, real estate investments might be better. Indeed, if you do decide to live in Slovenia, you will need a place to live anyway.
But even if you do not, you can make money by renting the place out or simply swapping properties based on market fluctuations. All in all, a real estate investment will give you residence, which will naturally lead to citizenship.
Apart from the actual property, you will also have to cover all the extra property taxes.
It is important to know that citizens from certain countries are not allowed to buy real estate in Slovenia whatsoever. Citizens of Russia, China and Ukraine can still come over or invest, but not in real estate – they will need to go the business path.
Another interesting fact is the lack of requirements. Exactly – most countries you go to for residence or citizenship by investment will have some minimum requirements. You cannot buy a studio for €15,000 in a dead town with no future. Instead, you are more likely to be asked for €300,000 or even double.
Slovenia is different – no one cares how much money you are willing to spend on real estate. If you find a decent property for €30,000, go for it. If you want to live in a fancy one and spend over €200,000, no one will bother you.
Another difference between Slovenia and other countries is the fact that Slovenia will not require you to spend a specific number of days in the country. Other countries will usually ask for six months, but Slovenia has no requirements.
With all these, it might be a good idea to spend more time in the country when it comes to renewing the residence permit. After all, if you barely spend a few days per year in Slovenia, why would the authorities renew the permit?
When it comes to time frames, this real investment path will give you a residence permit for a year. You can renew it and go up to five years. Then, you can apply for permanent residence, which will give you citizenship after another 10 years.
Authorities will most likely check how much time you have spent in Slovenia before renewing the residence permit, hence the necessity to hang around and spend time there. Once you get citizenship, no one cares anymore.
Requirements for the Slovenia citizenship by investment
Apart from the financial profile, future plans and goals in terms of Slovenian residence and citizenship, there are a bunch of other requirements you need to consider before even starting your application – small details could lead to failure.
Health insurance is a must. Now, there are more types of health insurance policies out there. It is up to you to determine which one is more suitable for your needs. As a minimum requirement, the policy should cover emergency healthcare services in the country.
Obviously, you will need a valid passport – the only type of international form of identification. The passport expiration date must exceed the staying period in Slovenia by three months or more. If it does not, you should renew it before starting the application.
Now, nobody wants to welcome criminals in their country, and Slovenia makes no exception either. You must bring a certificate from the police in your own country. The clearance must be translated to Slovenian, but it also requires verification.
Get this police clearance as you start the application, as it should not be older than three months.
When it comes to your income or financial status, the Slovenian government does not want you to get there, run out of money and rely on benefits. Instead, you must prove that you have some sort of income matching the minimum income in Slovenia.
In 2021, the minimum income in Slovenia was about €1,024. In 2022, it has been set to around €1,074. The minimum income is determined by the government on a yearly basis according to the Slovenian economy.
Finally, your residence permit will also include your picture, so you must provide it. You should also provide two fingerprints, whether you reach a Slovenian consulate or a diplomatic mission in another country.
Based on your purpose in Slovenia, other requirements may apply.
Frequently asked questions
Slovenia citizenship by investment could still be confusing for some.
How long can an EU citizen stay in Slovenia without applying for residence?
Normally, a citizen can stay in Slovenia for 90 days in a period of 180 days. However, this time frame is calculated over all the Schengen states and not just Slovenia – the citizen’s country of nationality is not considered.
Which type of business is better when pushing for residence by business investment?
Compared to other countries in Europe, Slovenia offers a wide variety of business entities for those interested in opening one. Each type of business has specific requirements and applies to particular business plans, so it pays off reaching a consultant when not sure.
How much money should I invest to be granted citizenship by merit?
This type of citizenship is mostly aimed at high-net-worth individuals who can change the economic landscape of the country or an area. You would most likely need to invest more than €1M, change an industry and employ locals.
This type of investment is mostly aimed at large corporations or companies.
What is the easiest way to keep my current nationality?
Dual citizenship is permitted in Slovenia, but heavily restricted. Basically, if you become a Slovenian citizen by naturalization, you will have to give up on your current citizenship. Other options are accepted, so each of them can be a loophole.
Conclusion
As a short final conclusion, there are definitely some good options when interested in Slovenia citizenship by investment, which obviously starts with a residence permit. Most commonly, people choose to invest in real estate.
Business entrepreneurs may choose the business registration path, while the massive company investment is not very common. Apart from this option, the other solutions are inexpensive and come with moderate requirements.
Furthermore, you will have the possibility to enjoy a stable, peaceful and safe country. You will love the Alps, the access to the Adriatic Sea, modern infrastructure and lots of cultural places. From many points of view, Slovenia is similar to Switzerland in terms of beauty and views.
The citizenship will give you access to the whole of Europe and many other countries, yet the residence is quite powerful too. Now, the country is great overall, but it does not excel at anything in particular, so it is not perfect.
Tax optimization will not give you any major savings. The cost of living is not the lowest in Europe, and gaining citizenship by naturalization will take over a decade. The process is quite simple and straightforward, though.
With these thoughts in mind, Slovenia is a good choice if you want to travel, expand your business to other countries or just reside in a stable country with a decent economy.
