Typical Taxes and Fees
When buying or selling a house in Slovakia, you will incur several taxes and fees. These may include:
- Real estate transfer tax: This tax is levied on the transfer of ownership and is calculated as a percentage of the property’s value. The rate is currently 2%.
- Notary fees: These fees are paid to the notary who handles the transaction. They usually amount to around 1% of the property’s value.
- Real estate agent fees: If you use a real estate agent to sell or buy a property, you will need to pay their fees, which usually amount to around 2% to 3% of the property’s value.
In Slovakia, property tax is levied on the value of the property. The tax rate ranges from 0.1% to 1.5%, depending on the location and type of property.
Capital Gains Tax (CGT)
If you sell a property in Slovakia, you may be subject to capital gains tax. The tax rate is currently 21% and is applied to the difference between the sale price and the purchase price.
In Slovakia, inheritance tax is levied on the value of the inherited property. The tax rate depends on the value of the property and the relationship between the deceased and the heir.
If you receive a gift of property in Slovakia, you may be subject to gift tax. The tax rate depends on the value of the property and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Slovakia, you will be subject to tax on the rental income. The tax rate ranges from 19% to 25%, depending on the amount of rental income.
If you buy a house in Slovakia and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest, property tax, and insurance premiums. Additionally, if you are a first-time homebuyer, you may be eligible for a tax credit of up to €1,500 on the real estate transfer tax.