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.
Yes. Foreigners can purchase property in Slovakia with no restrictions.
Property investment overheads in Slovakia are relatively cheap as real estate transfer tax was abolished. Other costs are very reasonable; cadaster/ownership registration cost is of 66 EUR for application and/or 200 EUR + 66 EUR, i.e. 266 EUR expedite fee for each application. Registration with tax authorities is free of charge, income tax is 20% from the profit and annual property tax is around i 60 -120 EUR for each property, while non-residential premises tax may be twice higher.
Some additional costs may be involved in case there is a need of legal advice. This is usually charged per hour, with the hourly rate from 70 - 250 EUR/hour.
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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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.
Because the majority (around 70%) of the Slovakian population own their own homes, 'buy-to-let' had been considered something of a high-risk strategy as the rental market was in the past relatively small, meaning that supply outstriped demand. Whilst nowadays it is popular to 'buy to let', i.e. to invest and purchase property/ies and then to profit from the rental.
In any case we recommend that investors carefully consider their options and discuss the investment with At Home specialists.
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This kind of investment proved to be worthwhile in the last decade. The domestic housing sector has tended to provide a much larger return on any investment made, with the value of such properties sometimes doubled in a 12-month period.
This is because the vast majority of the Slovakian population reside in large concrete blocks of flats, that are being renovated. Refurbishment of such properties usually increase the value in terms of desirability and the cost. This progress impacts new properties price raise.
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 in bigger cities at around 60-80.000 EUR, with renovation costs as little as 20.000 EUR, meaning that it is possible to invest in the market without risking more than you need to.