As the Slovak economy continues to develop and the Government invests in tourism in a concerted effort to further boost the country's economic situation, it is expected that the property prices will continue their upward trend, thus ensuring that the local property market remains one of the safest and most worthwhile areas to invest in Europe, particularly in the present unstable climate. Please find below answers to some the most frequently asked questions concerning the property market in Slovakia:
Is it possible for foreigners to invest in Slovakian property?
Yes. Foreigners can purchase property in Slovakia with no restrictions.
What purchase costs should I expect to pay on top of the asking price?
Property investment overheads in Slovakia are relatively cheap as real estate transfer tax (stamp duty) was abolished in 2005. Other costs are very reasonable; legal fees and land registration can be expected to cost in the region of £300 each. Registration with tax authorities and completing annual tax returns should cost around £100 and property tax requires an annual tax of around £30 for each apartment.
Where are the best places to invest in Slovakia?
Although Bratislava is probably the fastest-growing sector of the Slovak real-estate market, the property market is experiencing a country-wide boom, meaning that as long as, with our help, you carefully research the location and each individual property, you will find it is possible to invest soundly in many regions throughout the country.
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What is the safest way of investing in property Slovakia?
Whilst there are of course no guarantees of a 100% safe investment in any business, we at At Home Bratislava believe that with careful planning and with our assistance, it is possible to control the many variables that can affect your investment to the extent that you can have great confidence in getting a return on your money, whenever you should choose to sell. As long as you take the time to research the area that you intend to invest and are careful about the type of property you want to buy, then with our help you will be able to invest safely and wisely.
Is it possible to build a 'buy to let' portfolio in Slovakia?
Because the majority (around 70%) of the Slovakian population own their own homes, 'buy-to-let' is considered something of a high-risk strategy as the rental market is relatively small, meaning that supply is likely to outstrip demand. Whilst it is of course possible to profit from this kind of approach, we recommend that investors carefully consider their options before adopting this approach, and perhaps limit themselves to letting only in high-demand areas, such as Bratislava city centre, or focus on office and retail space instead.
I am thinking of investing in a new build or off-plan property, is this the best place to put my money at the moment?
Whilst this kind of investment can be worthwhile, in the last few years the domestic housing sector has tended to provide a much larger return on any investment made, with the value of such properties doubling in a 12-month period from 2007 to 2008. This is because the vast majority of the Slovakian population reside in large concrete blocks of flats, meaning that when renovated and therefore improved, such properties can increase significantly in terms of desirability and therefore cost.
How much money should I invest?
Obviously the most important thing, particularly in the current unstable climate, is not to over-extend oneself, so it would be prudent to invest only within your means. Luckily, the least-expensive property available in Slovakia is relatively cheap, with prices starting at around £7000 or £8000, with renovation costs as little as £2000, meaning that it is possible to invest in the market without risking more than you need to.