Taxation in Slovakia
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.
Investment and Property News
Slovakia will be ready for introducing the Euro as planned in 2009
Rapid and healthy economic growth based on the successful development of the private sector means that the Slovak economy doesn't need additional impetus from public finances in the near future. On the contrary, the public finance deficit should be reduced, reads a Preliminary Report on the Public Administration Budget for 2007-09, presented by Finance Minister Ivan Miklos on Monday. The proposed public administration budget for the next two years and the expected development of the Slovak economy means that Slovakia will be able to fulfil all Maastricht criteria in 2007, and will be ready for introducing the euro as planned in 2009, the report claims.
Wizzair to launch flights from Bratislava in 2007
Low cost airline Wizzair will launch flights to 13 destinations from the Bratislava Milan Rastislav Stefanik Airport starting in the spring of 2007, Slovak media reported.
From spring, Wizz will offer new routes from Bratislava to Cork (Ireland), Dortmund, Eindhoven, Liverpool, Malmo and Stockholm, as well as a number of destinations already served by other carriers such as Athens, Barcelona, Brussels, London, Paris and Rome.
Spring season 2007 will cover three flights a week to Paris, four flights a week to Brusells and Rome and six flights a week to London.
The Bratislava Airport is presently a hub to the lowcost airline SkyEurope and is also served by Easyjet and Ryanair, as well as a number of full-service carriers. The Airport is in the process of being sold by the Slovak government to a consortium led by the Airport in the nighbouring Vienna.