Slovakia

Slovakia Map

PROPERTIES & RESIDENCE

Pros for obtaining a property in Slovakia
There is steady population growth in Slovakia which is a very good indicator for the possible real estate pricing trends. GDP growth has been healthy in recent years, even throughout the pandemics and per capita it is now over 19,000 USD a year. Unemployment rate has gone from 14% in 2013 to 5% in 2019. Inflation is low and the national debt is under full control. Member of the EU, NATO located in central Europe and only 79 km from Vienna. Tourist numbers more than doubled between 2009 and 2019 - tourism has a big growth potential.

Residence permits on the grounds of owning real estate
The only restrictions on foreigners buying properties are agricultural land and forests. Other than that there are no restrictions whether you come from the EU or from outside of the EU. The buy-sell costs are very low. There is a 20% VAT on properties which are up to 5 years old - meaning new developments. For older properties the buy-sell costs are very low. It would be a 2% legal registration fee and the real estate agent - really low compared to other countries. There are no restrictions on foreign buyers in the real estate markets. Prices, even though still reasonable, have been going up by about 15%. Long term rental yield are not very high but very stable; 4-4.5% growth.

Residence permits on the grounds of company formation
An investment of 150,000 EUR into your own or existing company will grant you the residency in Slovakia.

Taxes & Rental income tax
Slovakia does not have any welfare tax; there is no inheritance tax, no local taxes, no property tax. Rental income tax is calculated based on income: from 0-35,000 EUR you pay 19% income tax and above that you would pay 25% income tax. There are various possibilities of deductions such as repairs, charges, utilities, etc. Corporate tax is at the level of 21%, personal income tax is 25% (or 19%), social security tax is at almost 50% (companies pay 35.20% and the employee pays 13.40%). Dual nationality is allowed in most cases of Lee & Bronski's clients who have been born overseas. Yet if the Slovakian citizenship holds another citizenship, then it's the Slovakian citizenship which is the dominant. CGT is 19% - 25%. If you do not use your property for business purposes you will not pat the CGT.

Other residence types in Slovakia
Adoption, naturalization and others, such as student, employment, etc.

Which residence permits offer a path to permanent residency and citizenship?There is a variety of residence permit types leading to acquiring the passport. It guarantees access to the Schengen Zone and Canada; there is a visa free access to 189 countries. Obtaining a passport requires 8 years of permanent residence in Slovakia prior to application (no criminal record or outstanding European arrest warrants or is no subject to deportation). The person applying has to demonstrate knowledge of the Slovakian language and the country. There are grants of citizenship (before the 5 or 8 year requirements) which may be given to individuals, such as getting married to Slovak people. Alternatively, individuals who have "significantly benefited to Slovakia based on economical, technological, scientific, cultural, social or sport matters may be granted citizenship omitting the regular procedures. The government will determine the talent residence on their sole discretion.

Restrictions & Challenges
Yields are not spectacular and home-ownership is covered; it may take a while to find tenants to your apartments. The social security tax is almost 50%. Not knowing the language can knock you off from getting the passport. It takes 5 years of residency and 8 years of permanent residency that you can actually apply for the passport.

LOCATION: Key location in the heart of Europe with great export potential
STABILITY: One of the safest and politically most stable countries in Europe
EUROZONE: A member of the Eurozone since 2009 as one of a few in CEE
QUALIFIED WORKFORCE: Cost–effective, skilled and loyal labour force with excellent multilingual skills
WORLD-CLASS PRODUCTIVITY: The highest labour productivity rate in the region (Eurostat)
INVESTOR-FRIENDLINESS: Continuously improving the competitiveness of the Slovak business environment (World Economic Forum)
INNOVATIVE ECOSYSTEM: The highest share of higher added-value jobs in CEE, ready for new investments into R&D and innovation (OECD)

>Growth And Business Advantages

Slovakia is a strong performer as compared to both Eurozone and emerging economies. However, a high dependence on exports, in particular on automotive shipments, causes above average cyclical fluctuations in growth. Real GDP expanded by an average +3.5% over the past 20 years (above the average of the Central and Eastern European EU member states and equal to the whole Emerging Europe average). As a consequence of the dependence on exports (amounting to almost 100% of GDP), Slovakia's economy was hit harder by the global Covid-19 crisis than others (-5.2% in 2020), despite sizeable economic policy support. Going forward, we expect a broad-based recovery, with annual growth in the range of +4% to +5% in 2021-2022, driven by a rebound in both domestic and external demand. However, sustained or renewed supply-chain disruptions pose downside risks to these forecasts. What are the strongest pillars of Slovakia's industry? Which ones provide the best opportunities for potential investors? Slovakia promotes itself as the largest car producer per capita in the world (202 in 2018) with three carmakers located in western Slovakia (Bratislava, Trnava, and close to Žilina). While the fourth carmaker, the British Jaguar Land Rover, opened its plant near Nitra in 2018, it sees an even bigger space for the development of the network of carmakers’ subcontractors, especially in the east of the country. The second strongest pillar of Slovakia’s industry is the electrotechnical industry with companies in Galanta, Nitra, and Nové Mesto nad Váhom, to mention a few. Other sectors with a tradition in Slovakia are the chemical industry and forestry. IT is a promising sector in Slovakia, where apart from Bratislava, Košice and Žilina also house strong IT clusters. Slovakia has become home to several business service centres too, most of which are currently located in Bratislava with opportunities to spread into other parts of Slovakia. The trend of transitioning the economy towards services is visible by the mushrooming of startups and R&D centres, many of which can utilise EU funds or the state’s investment incentives.

REAL ESTATE TRENDS

The average price of dwellings in the first quarter of 2021 increased by 54 EUR/m2 to the price of 2179 EUR/m2. On a quarter-on-quarter comparison, it is about growth of 2.5%. The annual growth rate fell to the point of 8.6%. According to the National Bank of Slovakia, during last quarter the price of 4-room and 1-room apartments grew faster then 2- and 3-room apartments. The average price of houses and villas increased by 102 EUR/m2 to the level of 1471 EUR/m2. Its quarter growth rate grew by 7.4% and annual growth rate reached 16.4%. The overall annual growth rate in residential real estate prices was contributed by a greater extent of apartments prices growth rate, than growth in prices of house. In the first quarter of 2021, the difference in prices between apartments and houses per m2 was 32.5%, which is less than the average difference in prices for whole year of 2020, which was 35.9%. The average price per m2 for apartments and houses together in Slovakia in the last quarter was around 1825 EUR/m2.

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Statistics

Capital City
Bratislava
Currency
EUR
GDP Growth
4.2%
GDP Per Capita
€17,400
Annual Inflation
1.2%
Unemployment
8%
Avg net salary
€1,125
Avg salary growth
-0.8%
Area (km²)
49000
Border states
PL, HU, AT, CZ, UA
Residence

via Property Acquisition
via Company Formation with €15,000 capital

For Sale
Miniature
€566,500
For Sale
Miniature
€155,000
For Sale
Miniature
€223,000
For Sale
Miniature
€240,000
For Sale
Miniature
€170,000
For Sale
Miniature
€357,000
For Sale
Miniature
€273,000
For Sale
Miniature
€100,000
For Sale
Miniature
€600,000

Greece > Halkidiki > Pallini — Villa 150 m²

Greece > Halkidiki > Pallini
For Sale
Miniature
€610,000
For Sale
Miniature
€430,000
For Sale
Miniature
€211,000
For Sale
Miniature
€72,000
For Sale
Miniature
€195,000
For Sale
Miniature
€200,000
For Sale
Miniature
€499,000
For Sale
Miniature
€610,000
For Sale
Miniature
€127,000
For Sale
Miniature
€169,000
For Sale
Miniature
€550,000
For Sale
Miniature
€114,000
For Sale
Miniature
€305,544
For Sale
Miniature
€296,945
For Sale
Miniature
€235,000
For Sale
Miniature
€496,000
For Sale
Miniature
€410,000
For Sale
Miniature
€61,000
For Sale
Miniature
€302,500
For Sale
Miniature
€261,800
For Sale
Miniature
€700,000
For Sale
Miniature
€284,900
For Sale
Miniature
€260,000
For Sale
Miniature
€577,000
For Sale
Miniature
€134,500
For Sale
Miniature
€247,000
For Sale
Miniature
€671,000
For Sale
Miniature
€410,000
For Sale
Miniature
€127,000
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