Bratislava is naturally first choice for many overseas property investors, and with demand outstripping supply in the city, capital appreciation is high and rental yields are good. Following EU accession, prices are looking to rise even further. Slovakia is slowly emerging as a tax haven for many Europeans – a flat tax of just 19% means that there is increasing interest in moving to the country for tax reasons, and this means that property prices in the country are likely to continue on their upward trend in the near future.

The Buying Process
As of 2004, there are hardly any restrictions on foreign property investors buying property in the country, with the exception of forest and agricultural land. Thanks to EU accession, the buying process is now a fairly simple process although as with any foreign property purchase, it is advisable to hire a local lawyer who can ensure you adhere to all the local laws as well as helping you complete the necessary paperwork correctly, and in a timely manner.

Once you have found a property in Slovakia that you wish to purchase, a contract must be drawn up. This is they signed by the vendor and buyer in front of an authorised notary. At this stage, a deposit will need to be paid – expect to pay around 20-30%. The contract is the sent off to the local Land Registry office so that the property can be signed over in the land book.

Once the property has been signed over, the remainder of the property price must be paid, and all bills settled. Although fees will vary from place to place and transaction to transaction, it is wise to budget around 3% of the property purchase price for taxes and fees. There is no purchase tax on properties in Slovakia.

Mortgages in Slovakia should be fairly easy to come by for foreign investors – although banks will normally only lend up to around 65% of the purchase price. Interest rates are around the 6% mark.

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Slovakia’s accession to the EU in 2004 also gave the country a big boost and helped it to emerge from out of it’s Communist shadow. Bratislava is the hottest place for property investors at the moment, as it is the capital city therefore attracting many tourists, and it has a wealth of culture to explore. Similar to Prague in history and location (both sit on the River Vltava), prices for a one bedroomed apartment start from about £30,000. Rental demand is high, both from local people and from tourists making properties in the Capital an ideal investment.

For slightly cheaper properties, Trnava is recommended – about 20 minutes drive away from Bratislava, the University town has cheap property prices and rental market prices are increasing at about 15% a year, meaning big gains can be made in the short-term as well as the long-term. A two-bedroomed newly built apartment in Trnava will be about £35,000, and with tourists and students in the area, the rental market is particularly buoyant.

Part of the rise of property prices are due to the fact that Slovakia is located fairly centrally in Europe. With a new highway due to be built next year between Bratislava and Vienna meaning only a 30 minute commute, commuters are looking to buy as Slovakian properties are about half the price. Slovakia is also fairly slow at building new properties – only about 1/5th of the estimated amount of properties required are built a year. As demand continues to outstrip the supply, house prices are set to rise even further.

Although the climate is similar to Britain, Slovakia is making it’s mark on the tourist map with plenty to offer including ski resorts, medieval castles and stunning natural landscapes. All in all, if you are looking to buy abroad, Slovakia looks set to be a country where if you choose wisely, you will be set to make excellent returns.

If you like to see a list of properties for sale throughout Slovakia, please click here

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