Slovakia Tax Update
The owners who rent a property in Slovakia are required to pay taxes on the rental income they earn, along with a legal duty of registration and announcement. This simply means that the owner has to register with the tax office and inform them about any change on the rental contract. Foreign owners pay “deduction tax”, in which the tax is deducted directly from the tenant paying the rent. This tax is applicable on rental income exceeding €500 annually. The landlords even had to pay health insurance tax on rental income, which was same as paid by self employed Slovaks with rental income of more than €500 annually. This obligation was abolished on May 1, 2011.
