Purchase Process in Slovakia

Purchase Process in Slovakia

Below is the standard property purchase process in Slovakia, with issues that may affect the purchase:

• The buyer is expected to pay 10% of the purchase price as deposit to secure the property, and to commence the legal processes. At this time, the pre-purchase agreement is signed between the parties.
• The Cadastral Register ("kataster nehnutelnosti") provides details on the property owner and any encumbrances (such as mortgages) that the land may be subject to. All Slovak estate agencies require the seller to provide a Kataster paper that outlines the legal state of the property before selling.
• The Kataster paper cannot be older than three months, to safeguard the buyer from any legal disputes. It is advisable that the buyer requests a copy of this paper before paying the rest of the balance. The title deeds are then transferred to the buyer's name after a period of four weeks.

The cost of a standard property purchase in Slovakia includes the following:

• Slovakia levies a real estate tax on companies and individuals owning land, buildings, flats or apartments, and non-residential premises in residential buildings, such as blocks of flats or apartments.
• In general, the tax liability depends on the area of ground occupied by the real estate in square metres, the number of floors, the nature and purpose of the building and its geographical location.
• Corporate owners of real estate are subject to corporate tax on profits realised on the sale of real estate at the normal corporate income tax rate of 19%.
• There is no specific capital gains tax.
• Real estate transfer tax has been fully abolished for transactions taking place on or after 1 January 2005.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about buying property in Slovakia and the mortgage and tax involved in the purchase process.