Slovakia » Taxes

Income Tax	VAT	Capital Gains Tax

Income Tax

Income tax in Slovakia is quite low. The profit secured by real estate purchase in Slovakia is taxable by corporate income tax or personal income tax both of which have a flat income tax rate of 19%.  The total tax bill can be reduced by deducting property related expenses like repairs, maintenance, real estate taxes etc. There are also particular personal income tax exemptions for people owning real estate for period of 5 years.

VAT

VAT is not chargeable on land in general.
Transactions with real estate are subject to 19% tax if the transfer is done within the first five years of the official completion of the construction. After this period the transfer of real estate is VAT-free. Transfers of land, except building land, are not subject to VAT.

Capital Gains Tax

Apart from the 19% income tax on the profit of property purchase there is no Capital Gains tax.

Inheritance Tax

There is no inheritance or gift tax as it was abolished in 2004.

Rental Income Tax

Rental income is taxed at 19%, after deductions.

Real estate tax

Companies or individuals owning real estate in Slovakia are liable to pay real estate tax. The tax is applicable according to the area in square meters, the floors location and such factors.

Land transfer tax (transfer tax)

There is no land transfer tax in Slovakia as this was abolished in 2005