A Guide to Buying Property in Slovakia

Can a foreign citizen buy in Slovakia?
Yes, as opposed to most of the other new EU member states, Slovakia lifted all restrictions on property acquisition on 1 May 2004 (only exception is purchase of forest and agricultural land). All foreign nationals can acquire real estate or land in Slovakia directly, without having to set up a company and have a local legal signatory.

One of the key benefits of purchasing properties off plan is that costs associated with purchasing a property can be kept to a minimum. Should you wish we can recommend independent Slovak lawyers specialising in real estate.

Can I obtain finance in Slovakia?
Mortgage financing: the maximum maturity for non-residents is 20years,drawing is possible upon pledge registration (standard drawing) and maximum mortgage is 70% from price or valuation of the property.

Property acquisition by Foreigners
There is no stamp duty payable in Slovakia. It is not necessary as a foreign national to set up a company to purchase property within Slovakia. Slovakia is part of the European Union and their property ownership laws have converged with the rest of the EU and are therefore highly transparent.

Extra Costs on purchase price
There is necessary to add to the costs on buying a property (real estate) the charge of the land registry for registering the ownership of new owner which is 8,000 SKK for speeder procedure (registration within 14 days) or 2,000 SKK for regular procedure (there is not given certain term of registration), and then just the notary expenses of verifying the signatures.

There could be extra expenses for solicitor services, official translation into Slovak language when some legal documents are in foreign language and are supposed to be used in the proceedings on the land registry and extra expenses for apostille when necessary documents are signed and verified by foreign notary public. So we can say that except of purchase price we can count with above mentioned expenses.

Tax Liabilities

Capital Gains Tax (CGT) - 0% (if apartment owned for two years)
The standard rate of capital gains tax in Slovakia is 19% although there are a number of exemptions for property. The following are exempt from capital gains tax:

  • Sale of a residential apartment that has been held for at least 2 years
  • Sale of other private real estate that has been held for at least 5 years

VAT - 19%
VAT is applied to all newly constructed properties in Slovakia at the standard rate of 19%. The VAT, however as in the UK, is nearly always included in the advertised price and where it is not it will be clearly indicated.

Stamp Duty - 0%
Stamp duty was abolished in Slovakia on January 1st 2005.

Income Tax - 19% flat rate
Slovakia has a flat income tax rate of 19% and there is a personal allowance (0%) of approximately £2000. You will also be able to minimise your tax bill by deducting expenses associated with the property from your income. Deductibles available include depreciation, loan interest, real estate taxes, repairs and maintenance etc. Or, you can deduct a flat 25% in respect of expenses.

Contracts and Agreements

  • When buying an apartment that is just going to be built or it's at the start of the building process then it's usual to sign a Contract for Work and a Contract detailing the future contract on the transfer of flat ownership.
  • If the apartment is to due to be completed soon or if it is finished then it is possible to sign directly the purchase agreement.
  • Also, when purchasing an apartment an agreement detailing the performance of administration should be signed.
  • If the purchaser is interested in using a lawyer in Slovakia to handle the process, i.e. entering the rights of the purchaser into the land registry etc. then a power of attorney can be signed to the lawyer