Property taxes in Slovakia

The Slovak measured life attracts many, especially now, at an unstable time, which has come to almost the whole world. In this country, from where you can easily and quickly get to other countries, everyday life is calm and comfortable, while almost everyone can provide themselves with a good standard of living, since in Slovakia prices are still relatively low, not only for housing, but also for everyday expenses. But at the same time, the local growth rates of real estate prices are among the top 3 world leaders. Therefore, it is not surprising that there is a high demand for the purchase of local apartments and houses among foreigners.

Taxes on the purchase of real estate

A lot of people are attracted to Slovakia by the fact that when buying real estate in this country you do not have to pay tax. This is the responsibility of the seller only under certain conditions.

Taxes on the sale of real estate

The owner pays the tax on the sale of housing only if he has owned the property for less than five years. Slovaks, if they are going to sell a house or an apartment, try not to rush – here it is customary to postpone the transaction for the same five-year period in order not to pay tax. It is calculated based on the difference in the sale prices and the initial purchase of real estate. Since the value of real estate is steadily increasing, this difference is always increasing and can be 30% 100% more than the purchase price was.

For example, if an apartment was bought in the past for 100 000 euros, and sold in the present for 150 000 euros, then the tax base will be an amount of 50 000 euros.   

The amount of tax on the sale of real estate is established by the Law on Income Taxes 595/2003 Collection of Laws. If the tax base does not exceed 37,163.36 euros, the tax will be 19%. If it is higher, then you will have to pay 25%. Thus, with the above price difference of 50 000 euros, the tax will amount to 12 500 euros.

Taxes on property ownership

The buyer of the property will have tax obligations for the next year after the purchase. By January 31, he is obliged to submit a declaration for real estate to the specialized department of the mayor's office (in Slovakia, the mayor's office is called the magistrate) of his city. For the first time, the tax return must be taken to the tax authorities personally or sent by registered mail. Up to 3 months, the magistrate will send a notification with information about the amount of tax and the bank account to which the tax needs to be paid. In the following years, information about the tax will be sent in April-May to the email address of the property owner.

The annual property tax in Slovakia is small and amounts to 30-40 euros for an apartment of up to 60 sq.m. In the case of a larger housing size, for example, about 100 sq.m, the expenses will amount to 70-100 euros annually. It is also worth noting that the total amount of tax is determined by the total area of residential and non-residential premises (garage, storage room). In addition, each region sets the tax amount depending on local conditions.

Despite the annual increase in prices in Slovakia, the property tax in this country is one of the lowest in the European Union, so the question of its increase is often raised here, but so far everything remains the same at the legislative level.

As for the costs of utilities, when the seller and the buyer sign a protocol on the delivery and acceptance of housing, it indicates the numbers of the apartment meters (electricity, gas, cold and hot water) and their indicators. Thus, until the day of delivery and acceptance of the apartment, the old owners pay for utilities, from the next day the new ones are already paying. On average, the monthly cost of housing and communal services will be about 150 euros.

Also, homeowners in Slovakia often resort to insurance services. The cost of such services for a medium-sized apartment for 1 year is about 100 euros.

Taxes on donation and inheritance of real estate

When donating and inheriting an immovable object, the tax is calculated according to a similar principle that was described in the case of the sale of housing. The day of the acquisition of real estate in the property is the one when the cadastral record was made in the ownership documents of the data of the heir or recipient of the gift. The value of real estate in this case is determined by an expert opinion.

Slovaks have been trying not to sell real estate received as a gift or by inheritance for five years in order to avoid unnecessary expenses, as well as to avoid misunderstandings with the tax authorities.    

Thank you for your help in preparing the material:

Oleg Kazankov, Director of the company Slovak Real Com s.r.o