Slovakia
STEPS
Check Eligibility
Determine the Budget
Find a Property
View the Property
Make an Offer
Complete Legal Formalities
Register the Property
Move In
- Non-Residents: Foreigners can buy property in Slovakia, but non-EU nationals are required to obtain approval from the Ministry of Agriculture and Rural Development to purchase land. EU nationals can buy property in Slovakia on the same terms as Slovak citizens.
- Financing: Non-residents may face more difficulty obtaining financing from Slovak banks. However, if a non-resident can secure a mortgage, the terms may vary and typically require a larger down payment.
- Budgeting: Consider the cost of the property, as well as additional costs like taxes, registration fees, notary fees, and any maintenance or utility fees.
- Mortgage: Slovak banks can offer mortgages to non-residents, but they generally require a down payment of 30% to 40% of the property's value.
- Online Search: Property listings are available on websites like Nehnutelnosti.sk, Reality.sk, and Bezrealitky.sk. You can filter by location, price, size, and other factors.
- Real Estate Agents: Consider using a local real estate agent (realitná kancelária) who can assist with the property search, negotiations, and legal processes.
- Inspections: It is advisable to arrange a property inspection to assess the condition of the property, checking for any structural or maintenance issues.
- Visiting the Property: If you are unable to visit in person, you can arrange for a representative to visit the property on your behalf or request a virtual tour.
- Bidding: Once you find the right property, you can make an offer. In Slovakia, it is common to negotiate the price with the seller.
- Contract: If the offer is accepted, you will sign a preliminary agreement (predbežná zmluva) and pay a deposit, typically 10% of the purchase price.
- Notary Role: The transaction requires notarization by a notary public (notár), who will verify the authenticity of the documents and prepare the final purchase agreement.
- Taxes and Fees: You will be required to pay property transfer tax, which is typically 3% of the purchase price. There may also be notary fees and registration costs.
- Land Registry: Once the sale is completed, the property must be registered with the Slovak Land Registry (Katastrálny úrad). This ensures the property is legally yours.
- Insurance: Property insurance (poistenie nehnuteľnosti) is recommended to protect the property against risks like fire, theft, or damage.
- Once the property is registered and all formalities are completed, you can move into your new home in Slovakia.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: While the process is straightforward, it is a good idea to hire a lawyer with experience in Slovak property law to help you navigate the legal and contractual aspects of the purchase.
- Taxes and Fees: Be prepared to pay property taxes, notary fees, and registration fees, which are typically a percentage of the property's value.
ADDITIONAL NOTICES
- Notary Role: A notary is required to authenticate the property transaction in Slovakia. They prepare and certify the legal documents involved in the sale.
- Mortgage Financing: Non-residents may face stricter conditions when applying for a mortgage. Slovak banks may require a higher down payment, generally 30% to 40% of the property value.
- Land Purchase Restrictions: Non-EU nationals may not purchase land without permission from the Ministry of Agriculture and Rural Development. However, they can purchase properties without restrictions in urban areas.
In Slovakia, real estate taxes are regulated by the central government and local municipalities. The key types of taxes related to real estate in Slovakia include:
Property Ownership Tax
Real Estate Tax (Daň z nehnuteľností): Real estate tax in Slovakia is imposed at the municipal level and applies to both residential and commercial properties.
- The tax is calculated based on the size, location, and type of the property (residential, commercial, or land).
- For residential properties, the tax rate typically ranges from €0.33 to €0.66 per square meter, depending on the municipality.
- For non-residential properties, the rate can be higher, with a range of €0.66 to €3.33 per square meter.
- The property tax is paid annually, and the responsibility lies with the property owner.
Real Estate Transfer Tax
The real estate transfer tax is applied when ownership of a property is transferred, such as during a sale or inheritance.
- The real estate transfer tax rate is 4% of the property's sale price or the market value, whichever is higher.
- Exemptions may apply in cases of transferring property within the immediate family or in the case of inheritances.
Capital Gains Tax on Real Estate
Capital gains tax is applicable when a property is sold at a profit, but exemptions may apply under certain conditions.
- The capital gains tax rate is 19% on the profit made from the sale of the property (the difference between the sale price and purchase price).
- If the property has been owned for more than 5 years, the sale is typically exempt from capital gains tax, provided it was used as the owner’s primary residence during this period.
- If the property is sold within 5 years of purchase, capital gains tax will apply.
Inheritance and Gift Tax
Slovakia abolished inheritance and gift tax in 2004. However, capital gains tax may apply when the inherited or gifted property is sold.
- There is no inheritance or gift tax in Slovakia; however, if the inherited or gifted property is later sold, capital gains tax may apply on the profit made from the sale.
Municipal Tax
In addition to the national property tax, some municipalities in Slovakia may impose additional local taxes or fees for the use of public infrastructure or services, such as waste disposal or road maintenance.
Income Tax on Rental Income
If rental income is generated from real estate, it is subject to both national and municipal income taxes.
- Rental income is subject to personal income tax at a rate of 19% or 25% depending on the income level (the standard rate is 19% for most individuals, but it can increase to 25% for higher income levels).
- Property owners can deduct related expenses, such as property maintenance, management fees, and depreciation, from their rental income.
Note: Tax rates and regulations can vary by municipality, and exemptions or reductions may apply based on specific circumstances. It is recommended to check with local authorities or consult a tax professional for the most up-to-date information.
- Official
- Slovak Republic
- CIOC
- SVK
- Subregion
- Central Europe
- Borders
- AUTCZEHUNPOLUKR
- Capital
- Bratislava
- Area
- 49 037 km²
- Population
- 5 459 000
- Timezones
-
UTC+01:00
- Phone
- +421
- Currencies
-
Euro (EUR €)