Country Guides Country Guide: Slovakia

Date Published:

02/06/2008

Foreigners are permitted to buy property in Slovakia with no restrictions.

Purchase fees and taxes are relatively inexpensive because real estate transfer tax, the equivalent of stamp duty in the UK, was abolished in 2005. Fees you should expect to pay include:

Legal fees (and notary) on purchase- approx. £300.

Land registration fee- approx. £300.

Registration with tax authorities, plus local annual tax returns- approx. £100

Nominal annual property tax- approx. £30 per apartment per annum

A lawyer will undertake the above on your behalf for a set fee. Should you choose to rent out a property you buy, expect an annual property management fee of approximately £200. You will also have to pay tax in Slovakia at a flat rate of 19% should you let a property. Slovakia has a double tax treaty with the UK so you won't have to pay twice.

You will need to be aware that real estate transactions are subject to 19% VAT for transfers made within five years after the official completion of the construction. After this period the transfer can be exempt. Transfer of land is also subject to 19% VAT. Renting of real estate is generally exempt from VAT. However, in certain circumstances the landlord can opt to charge 19% VAT on the lease.

In time, should you come to sell a property in Slovakia, there is no specific capital gains tax. 19% income tax is payable on profits realised on the sale of real estate unless the property is held for over five years, in which case any profit is exempt from tax.