Commercial Lease Termination Options in Slovenia

If your commercial lease in Slovenia was signed after 19 June 2021, you can end it in four main ways: by giving notice under the period written in the contract, by agreeing an exit with the other party, by terminating immediately for a serious breach, or by letting a fixed term run out. What decides which route is open to you is mostly the contract itself, because the statutory default is thin. Leases signed before that date still follow older, much stricter rules.

This guide is written for business tenants and landlords of offices, shops, warehouses and hospitality premises. It is general information, not legal advice. Before you send any termination notice, have a Slovenian lawyer read the contract.

TL;DR

• For leases concluded after 19 June 2021, the Obligations Code (OZ) applies, not the old ZPSPP. No court is needed to terminate, and there is no mandatory one-year notice.
• If the contract, a specific law and local custom are silent, the default notice period is only 8 days. Write a realistic period into every lease.
• Immediate termination is possible only for defined reasons, such as misuse of the premises or serious neglect. Unpaid rent is the classic case.
• A fixed-term lease can quietly become indefinite if the tenant stays on and the landlord does not object in time.
• Check the date your lease was signed first. Everything else depends on it.

Table of Contents

• Which rules apply: the 19 June 2021 dividing line
• Option 1: Ordinary notice
• Option 2: Termination by mutual agreement
• Option 3: Immediate termination for cause
• Option 4: Letting a fixed term expire, and the renewal trap
• Subleasing and assignment as an exit
• What the 2021 change means for contract drafting
• Our perspective: plan the exit before you sign
• When to involve a lawyer and an agent
• How HOOF can help
• FAQ
• Sources

Which rules apply: the 19 June 2021 dividing line

For decades, commercial leases in Slovenia were governed by the Business Buildings and Business Premises Act (ZPSPP). That changed when the amendment to the Housing Act (SZ-1E) entered into force. According to PwC's legal team in Slovenia, the ZPSPP ceased to be in force on 19 June 2021, and new commercial leases fall under general contract law.

In practice you have two worlds:

The first row of that table is the one people get wrong. A legal commentary by the Neffat law firm describes the most common pitfall as assuming legacy ZPSPP protections still apply to newer contracts. They do not. The firm's separate note on lease termination adds that for older indefinite leases the one-year minimum was mandatory, so a shorter period in the contract would have been invalid.

So before anything else, find the signature date on your lease. If it is before 19 June 2021 and nothing has been re-signed since, you are in the old regime and should get legal advice before you act. The rest of this guide covers the newer regime, which is where almost every lease signed today sits.

Option 1: Ordinary notice

Ordinary notice is the route for a lease that has no end date. Under the OZ there is no judicial procedure and no statutory minimum period. The Wolf Theiss analysis of the reform notes that the statutory period under article 616 is eight days unless the parties agreed otherwise, where the old law required 12 months. The same analysis confirms a simple termination notice is enough.

Two details matter here.

The 8 days is a fallback, not a recommendation. It applies only when the contract, a special law and local custom all say nothing. Neffat's commentary on the post-2021 rules also points to a limit: a contract may not be terminated at an inappropriate time. The code does not define that phrase for you, which is exactly why your lease should.

Parties can agree any period. A tenant who has invested in a fit-out will want six or twelve months. A landlord who needs flexibility may prefer three. Both sides are free to choose, and whatever you write will bind you.

How to give notice properly

1. Read the notice clause: the period, the required form (registered mail, email with confirmation, hand delivery) and the address for notices.
2. Check whether the period runs from sending or from receipt, and whether it must end at a month end.
3. Put the notice in writing even if the contract does not demand it. You want proof of date and content.
4. State the lease (parties, premises, date of signing), your intent to terminate, and the date the lease will end.
5. Keep proof of delivery.
6. Agree a handover date and prepare a written handover record.

HOOF's own guide to commercial lease agreements follows the same logic for breach cases: a formal written notice stating the reason and the end date, then a handover of the premises with a written protocol at the end.

Option 2: Termination by mutual agreement

The cleanest exit is one both sides sign. It lets you settle everything in one document: the end date, the condition in which the premises are returned, the fate of the deposit or guarantee, outstanding rent and utilities, and fit-out that stays or goes.

A few practical points:

• Put it in writing. Slovenian courts have accepted that a lease can end by agreement through conduct, not only by a signed paper. A Higher Court in Ljubljana judgment (I Cpg 388/2022) refers to settled case law that a lease can end by implied agreement if the landlord does not expressly state it has not ended. Do not rely on that. If the tenant leaves and the landlord says nothing, you invite a dispute about who owed what and until when.
• Trade something. A tenant who wants out early might offer a termination fee, a replacement tenant, or restoration of the space. A landlord might waive the remaining notice period in return for prompt handover.
• Settle the money in the same document. Rent up to the handover date, service charges, repairs and the return of any security belong in one clause, with a release of further claims.

A replacement tenant is often the strongest bargaining chip. A landlord who can re-let quickly loses little, and a tenant who finds the new occupant can often negotiate a clean exit. This is a place where an agent who knows the local market earns the fee.

Option 3: Immediate termination for cause

The OZ lets a landlord end a lease without any notice period in defined situations. According to Wolf Theiss, these include a tenant who uses the premises contrary to the contract or their purpose, and a tenant who fails to maintain them so that significant damage to the landlord may result (article 601). The same source notes that a tenant may terminate immediately if the premises pose a health risk, something the old law did not address.

Non-payment is the commonest trigger in real life. The commentary by Dida Volk on tax-fin-lex notes that under both the old and the new regime unpaid rent is a ground for termination or withdrawal, although the exact thresholds differ between them.

Do it in the right order

Immediate termination is the option most likely to be contested, so approach it like a paper trail:

1. Document the breach: photos, payment statements, correspondence.
2. Send a written warning that names the breach and sets a deadline to fix it, unless the contract says no warning is needed.
3. If it is not remedied, send a written termination that cites the clause or code article and the date the lease ends.
4. Arrange handover with a written record.

If the tenant refuses to leave, you will need to go to court. The OZ framework does not give the landlord a simple route to force a tenant out. Neffat notes that the former ZPSPP mechanism by which a court could issue an eviction order on the landlord's request was abolished for new leases. Speak to a lawyer before you change locks or cut services, as doing so yourself can create liability.

Option 4: Letting a fixed term expire, and the renewal trap

A fixed-term lease ends when the term ends, with no notice required. This is the safest and most predictable exit, but it hides a trap.

According to the PwC analysis, under the OZ a definite-term lease can renew automatically if the tenant keeps using the premises after expiry and the landlord does not object. The result is an indefinite-term lease. Landlords must therefore object promptly once the term ends. Tenants, for their part, should not assume that staying on a few months while negotiating is harmless.

What to do:

• Landlords: diarize the expiry date six months ahead. If you do not want the tenant to stay, send a written objection immediately after expiry, or better, a written reminder before it.
• Tenants: if you want to stay, negotiate a new term or extension in writing before expiry. If you plan to leave, return the keys on the last day and document the handover.
• Both: write an explicit clause in the contract that excludes tacit renewal, or sets its terms.

Subleasing and assignment as an exit

Sometimes a tenant does not need to end the lease; they need to stop carrying it. PwC notes that under the OZ default, subleasing is allowed unless the contract excludes it, and the tenant may not sublet where it would cause the landlord damage. For a landlord who wants control over who occupies the building, that default is risky. For a tenant whose business has shrunk, it can be a lifeline.

If you are a tenant, read the clause on subletting before you plan an exit that depends on it. If you are a landlord, decide whether you want subleasing to be possible, and say so in the contract in plain words. Subleasing leaves the original tenant responsible to the landlord, so it is no substitute for a proper release when you want to leave entirely.

What the 2021 change means for contract drafting

The reform increased freedom and removed the safety net. PwC's experts stress that parties can no longer lean on detailed mandatory ZPSPP protections to fill gaps. Their warning is that the apparent simplicity of the new rules can hide risk, for example when subleasing is not clearly excluded or when the "inappropriate time" for termination is left undefined.

A lease written with termination in mind should include:

• Notice period for each party, with separate periods if the balance of power requires it.
• Method of delivery and the address for notices.
• Fixed term and early exit, including whether either party may leave before the term ends and at what cost.
• Defined breaches that justify immediate termination, and any cure period.
• Subleasing and assignment rules.
• Renewal: whether the lease may renew tacitly, and if so, on what terms.
• Handover: condition of the premises, restoration obligations, treatment of fit-out and the deposit.
• Fit-out compensation: the tenant's right, if any, to compensation for investments that increased the value of the premises. A reader should check the relevant legal text with a lawyer, as the rules here differ by lease generation.

For more on clauses that matter at signing, see our guide on what to look for when leasing commercial space. If your premises are changing purpose, change of use can also affect the lease. And for the tax side of rent and any exit payments, read our piece on VAT on commercial leases in Slovenia.

Our perspective: plan the exit before you sign

In our experience across offices, shops, warehouses and hospitality premises, disputes at the end of a lease are rarely about the law. They are about expectations that nobody wrote down. A landlord assumed the tenant would give six months. The tenant assumed it could leave when the business slowed. Neither put it in the contract, and the eight-day default applied.

We approach every mandate with the exit in mind. For a landlord, that means a term and a notice period that protect the income and give time to re-let. For a tenant, it means an exit that fits a business plan which may change, and a clear handover process so the deposit comes back. We prefer to negotiate these points when goodwill is high, at the start, rather than at the end when it is not.

Two habits save the most money. First, keep a calendar of every lease date: expiry, notice windows, indexation dates, objection deadlines. Second, treat the handover as a project: inspect together, photograph everything, sign a record. And when a lease has gone wrong, an early conversation, ideally with a replacement tenant in sight, almost always beats a formal notice.

— Maruša

When to involve a lawyer and an agent

A lawyer is the right person for the legal question: is this breach serious enough for immediate termination, does the old regime apply to this lease, how do we draft the notice. Our article on whether you need a real estate lawyer in Slovenia explains what to bring to that meeting.

An agent is the right person for the commercial question: who could take over the premises, what rent is realistic now, and how to time the exit so the space does not sit empty. A property manager keeps the paper trail tidy for the landlord side, from notices to handover records.

How HOOF can help

If you are a landlord facing a lease end, we can represent you in finding the next tenant, valuing the space and running the handover, through our landlord representation and leasing service and commercial property management. If you are a tenant who needs to relocate or downsize, we help you search for and negotiate new premises. Browse current commercial spaces for rent, or contact us through our main page and tell us your lease end date.

FAQ

Can a commercial tenant in Slovenia leave a fixed-term lease early?

Only if the contract allows it, or the landlord agrees, or a legal ground for termination exists, such as the premises endangering health. Otherwise you remain liable for the rent to the end of the term. The practical solutions are a negotiated exit, a replacement tenant, or subleasing where the contract permits.

How long is the notice period for a commercial lease?

For leases signed after 19 June 2021, it is whatever the contract says. If the contract, law and local custom set nothing, the OZ default is eight days. For older leases, the one-year minimum of the ZPSPP still applies.

Does a court have to approve the termination?

Not for leases under the Obligations Code. A notice delivered to the other party is sufficient. A court becomes involved only if there is a dispute, for example if the tenant disputes the termination or refuses to hand back the premises.

What happens if the tenant stays after a fixed term ends?

If the landlord does not object, the lease can convert into an indefinite-term lease, according to PwC. A landlord who wants the tenant out should object in writing promptly after expiry.

Should a termination notice be in writing?

The law no longer requires a commercial lease itself to be written, but a written notice is the only sensible way to prove its date and content. Follow the delivery method in your contract exactly.

Sources

• PwC Slovenia: Legislative changes in the field of leasing business premises
• Neffat: Poslovni prostori, spremembe v ureditvi najemnih razmerij
• Neffat: Najem poslovnih prostorov, odpoved najemne pogodbe
• Wolf Theiss: Legislative changes in Slovenia impact the future lease agreements for business premises
• Dida Volk: Najemna razmerja za poslovne prostore (tax-fin-lex)
• Higher Court in Ljubljana, judgment I Cpg 388/2022 (PISRS)

Recommended

• VAT on Commercial Leases in Slovenia: Exempt or Taxed?
• Commercial Property Management in Slovenia