How to get Slovenian Citizenship by Investment?

Who does not like to settle in a place where nature is stunning, the work environment is peaceful, the economy is stable, and the quality of life is high?

Many nations have all of the above attributes. Slovenia (Ljubljana, its capital) is a beautiful country in Central Europe, known for its stunning landscapes, rich culture, and welcoming people. In this article, we will explore the topic of Slovenian citizenship by investment.

This article contains insights from our knowledge experts at KBP and Adriala. As industry leaders, KBP and Adriala bring unparalleled experience and perspective to the topic covered in this article.

Slovenian Citizenship by Investment – Is It Possible?

In recent decades, an increasing number of states have introduced citizenship by investment programs or related residence by investment programs. These initiatives grant residency and sometimes citizenship to foreigners who are willing to make significant investments in the host country's economy or contribute to its budget and public funds. The decision to allow investment or donation as a basis for obtaining nationality in a state is generally considered a legitimate option under both international and EU law. It reflects the national autonomy of these states in matters of nationality, granting them considerable discretion in selecting the criteria for individuals to attain their citizenship.

Nevertheless, citizenship by investment as such, is not possible in Slovenia. Slovenia lacks a clearly delineated program that would allow foreign investors to explore their options. Instead, it outlines specific requirements that a foreigner's contribution must fulfil to demonstrate a national interest in the country. This determination is once again reliant on the subjective assessment of the ministry or directorate responsible for evaluating the state's interest in granting Slovenian citizenship to an individual.

Pursuant to the Citizenship of the Republic of Slovenia Act, the citizenship of the Republic of Slovenia is acquired:

• by descent,
• by birth within the territory of the Republic of Slovenia,
• by naturalization, which is by being accepted into citizenship based on an application,
• by international agreement.

Naturalization

In the Republic of Slovenia, there are two ways to acquire citizenship through naturalization, namely the regular and extraordinary methods of acquisition. The Constitution of the Republic of Slovenia stipulates that citizenship is regulated by law. The current law governing this area is the Citizenship of the Republic of Slovenia Act (ZDRS).

The conditions for acquiring citizenship through regular naturalization for an individual are outlined in Article 10, paragraph 1 of the ZDRS and are as follows:

• The person must be at least 18 years old.
• They must have renounced their previous citizenship or demonstrate that they will acquire renunciation if accepted into Slovenian citizenship.
• They must have actually lived in Slovenia for 10 years, including continuously for the last 5 years prior to submitting the application, and have a valid residence permit.
• They must have sufficient funds to provide for themselves and any dependents, ensuring material and social security.
• They must have proficiency in the Slovenian language for everyday communication, evidenced by a certificate of successfully passing an examination in Slovenian language proficiency at the basic level.
• They must not have been sentenced to an unconditional prison term longer than three months or have been given a conditional sentence longer than one year.
• They must not have been issued an expulsion order from Slovenia.
• Their acceptance into Slovenian citizenship must not pose a threat to public order, security, or defence of the state.
• They must have settled their tax obligations.
• They must swear allegiance to the free democratic constitutional order, as established in the Constitution of the Republic of Slovenia.

Through naturalization, a person of legal age can acquire citizenship of the Republic of Slovenia if it benefits the country for scientific, economic, cultural, national, or similar reasons, provided that they have actually lived in Slovenia continuously for at least one year before submitting the application, hold a valid residence permit, and meet the requirements outlined in points 4, 6, 8, 9, and 10 of the first paragraph of Article 10 of this law.

Extraordinary Naturalization

Exceptionally, in accordance with the second paragraph of Article 13 of the Citizenship of the Republic of Slovenia Act, a person may acquire citizenship through extraordinary naturalization even if they do not meet the requirement of continuous residence one year prior to submitting the application and do not have a valid residence permit, provided that their exceptional contribution to the development of the Republic of Slovenia and to enhancing its international reputation or recognition is considered.

As previously mentioned, a foreigner seeking citizenship through extraordinary naturalization in Slovenia must reside in the country with a purpose that aligns with the national interest. According to the Regulation on Criteria for Determining National Interest in Citizenship Admission of the Republic of Slovenia, outlined in Article 13 of the Citizenship Act of the Republic of Slovenia (referred to as the Regulation), the national interest must be demonstrated in at least one area, such as economy, science, culture, sports, education, finance, etc., or one/an individual must contribute to enhancing Slovenia's international reputation or recognition (Article 2, paragraph 1 of the Regulation).

The ministry responsible for providing an opinion depends on the area in which the individual demonstrates the state's interest. For instance, the Ministry of Economic Development and Technology (MGRT) assesses the state's economic interest, while the Ministry of Finance evaluates financial interest and so forth, with each ministry overseeing its respective domain. These ministries are obligated to adhere to legally defined criteria when evaluating the interest, as specified in the Regulation.

If all the conditions for acquiring citizenship through extraordinary naturalization are met, then after one year of continuous residence in Slovenia, with a valid residence permit, a foreigner can apply for citizenship, and the relevant ministry then decides on the demonstrated interest. To initiate this process, individuals submit an application to either the administrative unit, the diplomatic-consular representation of the Republic of Slovenia abroad, or directly to the Ministry of the Interior.

The application, completed on a designated form in Slovenian, must be accompanied by all required documents or evidence, along with a curriculum vitae and proof of identity. Upon receipt, the Ministry of the Interior forwards the application to the appropriate ministry for evaluation. Based on the submitted materials, this ministry issues either a favourable or unfavourable opinion. If the opinion is positive, the Ministry of the Interior proceeds to grant citizenship to the applicant.

Criteria for Demonstrating the Economic Interest of the Republic of Slovenia

In the first paragraph of Article 6 of the Regulation, criteria are listed, of which a foreigner must meet at least one to demonstrate the economic interest of the country. The criteria are as follows:

• Potential increase in business connections between the Slovenian economy and foreign countries,
• Increase and promote the competitiveness of the Slovenian economy in international markets,
• Possibility of introducing technological innovations in production,
• Transfer of globally prospective or established productions to Slovenia,
• Promotion of joint presence in international markets,
• Possibility of creating a larger number of high-skilled jobs,
• Increase in employment through new programs,
• Potential introduction of new technologies, knowledge, and capital in Slovenia,
• Promotion and introduction of environmentally friendly production methods,
• Opportunities for establishing and developing micro, small, or medium-sized enterprises with a high level of innovation,
• Possibility of expanding and opening new markets for Slovenian products or
• Promotion of exports, rationalization of procurement resources, and attracting foreign direct investment.

In the second paragraph of Article 6 of the Regulation, additional criteria are also listed, which are required when submitting an application for citizenship through extraordinary naturalization based on economic interest. Specifically, the individual must attach at least three recommendations from economic companies, institutes, chambers of commerce, trade organizations, or similar institutions with which they collaborate.

The Ministry overseeing the economy, when evaluating the presence of an economic interest, follows the outlined criteria and also considers the Guidelines for Fulfilling Criteria outlined in the Ministry of Economy's working domain (No. 213-1/2010-5 dated April 9, 2010) (hereinafter referred to as the: Guidelines).

Article 3 of the Guidelines furnishes detailed definitions of the evidence necessary for each criterion. To synopsize the requisite evidence for the initial two criteria, which pertain to the potential expansion of business ties between the Slovenian economy and foreign nations, as well as the enhancement and advocacy of the Slovenian economy's competitiveness in global markets: Under the first criterion, it is deemed sufficient evidence if the applicant furnishes at least three statements from Slovenian economic entities delineating various foreign contacts established through the applicant's direct efforts. Concerning the second criterion, an economic analysis substantiating this criterion is considered suitable evidence.

Moreover, the required evidence for the remaining criteria is similarly validated.

Benefits of Obtaining Slovenian Citizenship

Slovenian citizenship several benefits to foreign investors, including:

Access to the EU: Slovenia's membership in the European Union grants Slovenian citizens the privileges of EU membership, such as freedom of movement within the EU, opportunities in the EU job market, and the right to reside and work in any EU member state. It is almost equal to getting European citizenship.

High quality of life: Slovenia is recognized for its exceptional standard of living, offering outstanding, cost-effective healthcare, education, and social services. The country also boasts breathtaking natural scenery, including the Julian Alps and the Adriatic Sea.

Stable economy: Slovenia has a robust and expanding economy with a low unemployment rate and a favourable business environment. The nation is home to numerous thriving enterprises, including pharmaceutical companies, automotive manufacturers, real estate firms, and technology firms.

Low tax rate: Slovenia has a relatively low tax rate compared to other European countries, making it an attractive destination for business investors.

Conclusion

Slovenian citizenship by investment is a process that allows foreign investors to obtain a permanent residence permit by making a significant investment in the country. While the citizenship procedures are not straightforward, they offer several benefits to business investors, including access to the EU, a high quality of life, a stable economy, and low taxes. If you are interested in becoming a Slovenian expatriate, it is essential to consult with a qualified immigration lawyer who helps clients through the process. The period is generally 1-4 months.

Note: Special thanks to our knowledge partners at KBP and Adriala for their contributions to this article. Their expertise and insights have enriched our content and provided readers with valuable information to enhance their understanding of Slovenian citizenship by investment.

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