How to Buy Property in Slovakia as a Foreigner
Who can buy property in Slovakia?
EU citizens have the same rights as Slovak citizens when it comes to buying real estate or land. Non-EU citizens can also purchase apartments and buildings but there are restrictions on buying agricultural land, forests, or properties of national heritage.
You do not need to live in Slovakia to buy property there, and owning real estate does not automatically grant you residency.
Do the research
Slovakia is a Central European country known for its picturesque landscapes, including mountains, forests, and charming cities. Its capital, Bratislava, is a vibrant city with a rich history and a growing economy. Slovakia boasts a stable political environment, modern infrastructure, and a strong emphasis on economic development.
Investing in Slovakian real estate presents several attractive opportunities. Slovakia has a growing economy with increasing foreign investment, which contributes to a stable and promising real estate market. Property prices in Slovakia are generally lower compared to many Western European countries, offering potential for good returns on investment. The country’s strategic location in Central Europe provides easy access to major European markets, enhancing its appeal for both residential and commercial properties. Additionally, Slovakia’s well-developed infrastructure, including modern transport networks and a supportive business environment, further boosts its attractiveness as an investment destination.
Here are some highly desirable locations for real estate investment:
- Bratislava - As the capital city, Bratislava is a prime location for both residential and commercial real estate. Key areas such as the city center, Old Town, and Petržalka are particularly popular due to their vibrant lifestyle, modern amenities, and accessibility.
- Žilina - Located in northwestern Slovakia, Žilina is favored for its strategic location and growing economy. The city offers a mix of urban conveniences and scenic surroundings, making it a popular choice for both residential and investment properties.
- Košice - As Slovakia's second-largest city, Košice boasts a rich cultural scene and historical charm. Areas like the city center and surrounding districts are sought after for their blend of modern amenities and historic architecture.
- Poprad - Known for its proximity to the High Tatras mountain range, Poprad attracts those interested in both recreational properties and permanent residences. The city is popular among those seeking a balance between nature and urban living.
- Nitra - This historic city in western Slovakia offers a blend of cultural heritage and modern development. Nitra is becoming increasingly popular for residential properties, especially for those seeking a quieter lifestyle with easy access to major urban centers.
Where to find properties online:
Financing
Foreigners can obtain property loans in Slovakia, as the Slovak banking system permits non-residents to apply for financing.
If you are a foreigner with a young family seeking a property loan in Slovakia, you can explore financing options through the "Young Family" program. This program offers favorable conditions for families with dependent children and provides support for purchasing a home.
Due Diligence and Sales Contract
Although due diligence is not legally required in Slovakia, it is strongly recommended for effective risk management. This process involves reviewing legal documents, confirming the property's ownership history, and checking for any outstanding debts or legal issues related to the property. The buyer is responsible for conducting due diligence. As a foreigner, it is advisable to enlist the help of real estate agents, lawyers, or property inspectors to ensure a thorough evaluation of the property.
In Slovakia, the property purchase agreement, known locally as "kúpna zmluva," is a crucial document in real estate transactions. This contract formalizes the terms and conditions for transferring the property from the seller to the buyer and is legally binding.
What are the costs like when purchasing a property in Slovakia?
Transaction Costs |
||
| Who Pays? | ||
| Notary and registration fees | 0.01% - 0.50% (+ 20% VAT) | buyer |
| Legal Fees | 1.00% | buyer |
| Real Estate Agent's Fee | 2.00% - 4.00% | seller |
| Costs paid by buyer | 1.01% - 1.50% | |
| Costs paid by seller | 2.00% - 4.00% | |
| ROUNDTRIP TRANSACTION COSTS | 3.01% - 5.50% | |
| Source: Global Property Guide | ||
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.
Real Estate Agent's Fee:
Real estate agent's commission range from 2.00% to 4.00% with cheaper properties attracting higher fees.
Legal Fee
Legal fees are around 1.00% of the property value.
Notary and Registration Fees
The notary is not required to establish certain real estate rights. However, a notary public or local municipality usually certifies the signatures of transferors in such legal agreements. The cost falls between 0.01% and 0.50%.
VAT:
The standard VAT rate is 20%. The transfer of real estate is VAT-exempt, except for transfers made within five years of the official completion of the construction. Transfers of land, except building land, are not subject to VAT.