The concept of expropriation is already fundamentally regulated by the Constitution of the Republic of Slovenia in Article 69, which stipulates that “The right of ownership over immovable property may be taken away or restricted for the public benefit against compensation in nature or against compensation under conditions determined by law.”

The law that regulates the procedure in more detail is the Spatial Management Act (hereinafter: ZUreP-3), which defines in detail the expropriation conditions, including court protection and compensation (or replacement property), in Articles 202-225.

Expropriation procedure:

It follows from the case-law of the Constitutional Court of the Republic of Slovenia that an interference with the right to property is possible regardless of the provisions on expropriation, but all the conditions for an interference with a constitutional right must be fulfilled. Expropriation is only allowed in individual cases, which requires a case-by-case procedure. Expropriation cannot be granted by a general act, such as a law or local self-government act.

The ZUreP-3 provides that the right of ownership of immovable property may be withdrawn only in return for compensation or reimbursement in nature, or limited by the right to use it for a certain period of time and encumbered by a temporary or permanent easement. Expropriation is only permissible in the public interest if it is strictly necessary for the achievement of the public interest and proportionate to the interference with private property. At the same time, the law provides that expropriation is not permissible if the country or a self-governing local community has other suitable immovable property that can achieve the same purpose as the expropriation.

The expropriation procedure involves a proportionality assessment to determine whether the potential interference with the right to property is justified in the public interest. In each specific case, a specific assessment is also carried out. The right to property may be withdrawn or limited only to the extent strictly necessary to achieve the public interest.

Stages of the expropriation procedure:

Establishing the public interest involves verifying the existence of a publicly beneficial purpose for a specific immovable property, which must be derived from the substantive provisions of the law. Article 204 of the ZUreP-3 sets out some examples of public benefit.

The expropriating beneficiary must first offer to conclude a contract with the expropriating party. If negotiations fail, the state or local authority can apply for expropriation. The administrative unit then adopts a decision to initiate expropriation procedures.

Within three months of the decision becoming final, the expropriating party and the person liable for the expropriation must agree on the amount of compensation. If no agreement is reached, either party may bring an appeal for damages before a court of competent jurisdiction.