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Buying Property In Slovakia FAQ

March 9, 2009Article by Ray Withers

Slovakia is an upcoming target for property investors as a thriving Eurozone economy and government investment in tourism drive up property prices. For buyers thinking about buying there, here’s a quick guide to buying property in Slovakia

Can foreigners buy Slovakian property?

Yes. Foreigners can buy with no restrictions

What purchase costs should I expect to pay on top of the asking price?

The costs of an Slovakian property investment are relatively cheap as the country’s equivalent of stamp duty, real estate transfer tax, was abolished in 2005. Other fees are not particularly expensive:

* Legal fees – about £300.
* Land registration – about £300.
* Registration with tax authorities and completing annual tax returns- about £100
* Property tax- about £30 per apartment per year

What’s the cost of a managing agent if I let my property?

This depends whether you are letting a resort property as a holiday let or a buy-to-let accommodation.
Buy-to-let management costs are about £200 a year plus tax at 19% on rental profits. Slovakia and the UK have a double taxation treaty, so if you show HM Customs and Excise your Slovakian tax certificate, you don’t pay income twice.
Management costs at resorts vary.

I’ve heard that VAT is paid on new properties, is that right?

Slovakia property sold within five years after construction is subject to VAT at 19%.

Will I pay capital gains tax if I sell my Slovakian property?

If you are a UK resident, you will have to pay 18% capital gains tax on any profits you make from the sale. In the first five years of ownership, you may also be liable for Slovakian income tax and after that the transfer is generally tax-exempt. Always take professional advice from a tax advisor in the country where you live and the country where you are selling property before going ahead with any transaction.

What sort of property is available in Slovakia?

Apartments were popular in the capital, Bratislava, but an oversupply and the credit crunch has hit prices.
Typical resort property Silver Resort, High Tatras, Slovakia , comprises apartments and villas priced from £63,500 for a studio flat to £400,00 for a four-bed villa. Properties on the resort are available from international property consultants Property Frontiers with an optional 5-6% annual rent guarantee. The Tatras Mountains straddle the Slovakia and Polish border and are a UNESCO world heritage site. As well as being an area of outstanding natural beauty, the resorts of the High Tatras have a wealth of attractions to offer tourists year-round including skiing, hiking, spa centres and golf courses.

How easy is it to travel to Slovakia?

The capital has road, rail and air links with most major European cities. The Tatras are a four-hour train ride from Bratislava. Some budget airlines are flying directly in to a local airport only 20 minutes from the resort.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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