Tatragolf Mountain Resort For Sale in Slovakia

Slovakia Taxes and Legal

Slovakia has adopted a single flat rate taxation system of 19% VAT which is included the property prices we quote. On purchasing property there is no equivalent of the UK's stamp duty and there is no capital gains tax on residential properties after 5 years of ownership any rental income is also capital gains tax-free. When purchasing property, buyers must account for further 3-5% of the purchase price to cover legal and notary costs.

Rental income from Slovak locals on long term agreements can return up to 5%pa, on your investment, however with increased numbers of visitors from Germany, Switzerland, Austria, France and now Britain, rental income from holiday lets has become a more favourable option.

Winter lets will attract most interest with the skiing season beginning in early December going through to late April. Summer rentals we anticipate will improve over the next few years with the increase in tourist visitors with privately owned rental properties soon forming the bulk of what is available. Traditionally British skiers are accustomed to holidays in ski lodges throughout the Alps skiing regions and with rental rates in the High Tatras expected to increase steadily over the next few years, investment income from renting your property offers enhanced financial security.

All construction work must conform to regulations as laid down in Slovak law. In addition to this Slovakia’s entry to the EU in May 2004 ensures all building work must be of a standard equal to the minimum requirements set by the European Union. When architectural plans are drawn a civil engineer is engaged to oversee the building project, both these persons must be registered as qualified to undertake such work. All building project contracts are governed by state law and as such offer increased security for the buyer. All contracts entered into are governed by Slovak and European law and must be enacted through a qualified advocate (lawyer). 

Property Agents and Developers in Slovakia must abide by strict laws laid down by the government in terms of banking and handling clients’ money. They must by law have each transaction passed using earmarked bank accounts before releasing funds to building contractors.

Throughout the early nineties most Slovakians became owner-occupiers, buying their homes from the state at subsidized rates. In 1999 the pro investment government came to power and transformed the economy into a dynamic economic powerhouse. 2003 saw the introduction of the first mortgages opening up the possibility of home ownership to a younger market. A whole new financial industry has evolved to meet the growing demand; new products are regularly becoming available. In 2005 the banks had provided a total £1.05billion. Interest rates have fallen from 6% to around 3% in the last two years, this has added to an increased demand for property. Consequently the effect upon the resale and new build market has been to force up prices considerably.