1. What procedures does this information concern? What are the benefits of following it thoroughly?

If you are a EU citizen and you have sold a property on the territory of the Slovak Republic, the income from the sale is taxable on the territory of the Slovak Republic, under the double taxation convention with the relevant EU state. Taxation of income from the sale of immovable property on the territory of the Slovak Republic is governed by Act No 595/2003 on income tax (only in Slovak).

2. What should citizens expect – everything about taxation

Taxation of income

The income of a natural person from the sale of immovable property on the territory of the Slovak Republic is subject to personal income tax unless a tax exemption on the income applies.

The tax liability is settled by means of a tax return, if the obligation to file one arises.

Income tax exemption

Income from the sale of immovable property on the territory of the Slovak Republic may be exempt from income tax, if conditions provided by law are met. In particular, a tax exemption depends on the assessment of the period of ownership of immovable property, method of acquisition and its inclusion in (exclusion from) business assets.

Immovable property was not included in business assets

Income from the sale of immovable property is exempt from tax:

• If the sale takes place after the expiry of a 5-year period from the acquisition of ownership of the immovable property;
• if you acquired the immovable property by inheritance in direct succession (such as from parents) and the sale takes place after the expiry of a 5-year period from the acquisition of ownership of the immovable property or co-ownership of the testator(s).

Immovable property was included in business assets

Income from the sale of immovable property is exempt from tax, if it was sold after the expiry of a 5-year period from its exclusion from business assets.

Exempt revenues are not included in the tax return, nor taxed.

Taxation procedure

Taxable income from the sale of immovable property is reduced by tax expenses and the tax base (income minus expenses) is to be reported.

Such reported partial personal income tax base may not be reduced further by any non-taxable portions, i.e. the partial tax base is in full amount subject to personal income tax.

Tax expenditures

Income from the sale of immovable property may be reduced by tax expenses:

• For immovable property acquired by purchase, the documented purchase price paid is treated as expenses.
• For immovable property acquired by inheritance, the price in the decision on inheritance is treated as expenses.
• For immovable property acquired by donation, the price of the immovable property identified in an expert's report at the time of donation, if any income from a hypothetical sale by the donor at the time of the donation was exempt from tax, is treated as expenses. If income from the sale by the donor was not exempt from tax, the purchase price identified on the part of the donor is treated as expenses.
• For property that was included in business assets, the residual price is treated as expenses.
• For immovable property acquired by own construction, documented expenses incurred for the acquisition of the property or its production under one’s own expenses, is treated as expenses.
• Documented costs relating to the technical improvement, repair and maintenance of the property including other expenses associated with the sale of the property.
• Interest on a mortgage or construction loan related to the acquisition of this property.

Tax rate

The personal income tax base in Slovakia is taxed at the income tax rate:

• 19 % of the tax base up to the amount of 176.8 times the applicable subsistence level, which represents the amount of EUR 37 981,94 in 2021,
• 25 % of the tax base over the amount of 176.8 times the applicable subsistence level, which represents the amount of EUR 37 981,94 in 2021.

Tax return

Obligation to file a tax return

You are obliged to file a personal income tax return if the sum of all your taxable income earned on the territory of the Slovak Republic for the year 2021 exceeds the amount of EUR 2 255,72.

If you only earned income from the sale of immovable property in the Slovak Republic, which is exempt from income tax, you are not obliged to file a tax return in the Slovak Republic.

Tax return form

To declare income from the sale of immovable property, use the personal income tax return (only in Slovak) form (type B).

Filing deadline

You are obliged to file a tax return by the end of March after the end of the calendar year in which you received the taxable income from the sale of immovable property.

Where to file a tax return

You can file the tax return in person at any tax office, at its branch, contact point or send it by post to the tax office.

Tax payment

The tax must be paid to the tax administrator’s account number maintained for the taxpayer, as provided by the Tax Office by post.

You are obliged to pay the tax:

• within the deadline for filing the tax return, if you receive the account number within the tax return filing deadline.
• If you do not receive the tax administrator’s account number maintained for the taxpayer within the filing deadline, you are obliged to pay the tax within 8 days from receiving the notification of the tax administrator´s account number.