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.