• Real estate transfer tax has been completely abolished since January 1 2005.
• 19% income tax is applicable on profits earned by the sale of real estate. Apart from this there is no specific capital gains tax.
• 19% VAT is applicable for real estate transactions made within 5 years after the official completion of the construction. After this period no VAT is applicable. Transfer of land is also subject to 19% VAT.
• Generally VAT is not applicable for renting of real estate. But in some cases the leaser can decide to charge 19 % VAT on the lease.
• A real estate tax on individuals and companies owning real estate and land is levied in Slovakia. The tax liability depends on the area in square meters, the number of floors, the nature and purpose of the building and its geographical location.
• Rental income is taxed as ordinary income and is subject to the standard tax rate of 19%. Interest on loans provided to finance real estate, expenses and property related cost like management fees and insurance can be deducted from the taxable rental income.
• Real estate is subject to tax depreciation on an annual basis with the exception of land, which cannot be depreciated. Buildings are depreciated over 20 years using either a straight line or reducing balance method of tax depreciation. In other words although the property value keeps increasing, the owner can depreciate the entire cost of the building for tax purposes and end up paying much less tax. Tax losses can be carried forward for a period of 5 years.

· All individual and corporate income is taxed at a flat rate of 19%.

· Inheritance and gift tax and taxation of dividends have been abolished.

· Slovakia has signed double tax treaties with most countries.

Photo of Bratislava at Night by Silvery ©2010

Slovakia is bordered by Austria, The Czech Republic, Poland, Hungary and Ukraine. The Carpathian Mountains cross the northern area of the country and the renowned High Tatras Mountains are an excellent skiing destination. The Danube River flows through Slovakia connecting it with Budapest and Vienna. Along with glorious mountain terrains, Slovakia also has fertile lowland areas in the southwest and many forested areas which have interesting wild life animals, especially bears and wolves.

The fee isn’t the only criteria while selecting an estate agent. A good estate agent provides you with great service, keeps you informed throughout the process and negotiates the best deal for you.

Also check with your estate agent if he is going to do any marketing for you. Marketing through estate agents in Slovakia can earn you huge benefits.

• The estate agent advises the investor about the local market conditions and provides with an accurate market price of the property.
• The estate agents can advertise properties for sale to local, national and even international markets in an effort to ensure that the property is seen by as many buyers as possible.
• Estate agents have specialist and trained staff and operate for extended hours throughout the week and weekends.
• Estate agents can erect a “For Sale” board to raise awareness of a particular property.
• Estate agents brilliantly market properties online by using floor plans, brochures, virtual tours and other marketing tools.
• An estate agent also helps the clients to access several important services like financial advice, conveyance and other home moving products and help.

The most popular choice of foreign investors is new homes. The developers have gone to great extents in the past few years to create new homes that are energy efficient and have fantastic modern designs and excellent construction quality. Slovakia’s top developers offer thousands of new homes for sale.