Buying property in Slovakia

Why it pays to own property in Slovakia

Slovaks are not called our brothers for nothing. Not long ago we were one country and our closeness continues. Czech and Slovak culture is similar and almost every Czech understands the Slovak language. For this reason, it is obvious that, unlike in other countries, integration into Slovak society is very easy for Czechs. So if you are thinking about buying a house in Slovakia, moving to Slovakia and maybe even finding a job here, it should not be a major problem. After all, some Czechs do and many Slovaks go the other way.

Buying a property just for investment purposes or buying a cottage for weekends will not be a problem either. Slovakia is very close to the Czech Republic, so you don’t have to worry about endless commuting (unless you take the D1 motorway). For this reason, commuting to the Czech Republic from your new Slovak home for work is also not reprehensible.

Another significant advantage is Slovak property prices. Slovakia offers a significantly more affordable real estate market compared to the local offer. Prices in Slovakia are considerably lower than in the Czech Republic and, for example, you can buy an apartment in Bratislava for about 2/3 of what you would pay for a comparable apartment in Prague.

However, we must not forget the beautiful nature that Slovakia has to offer. Here you can enjoy the mountains in the form of the Tatras, beautiful forests covering more than a third of the Slovak territory and plenty of national parks.

Last but not least, a big advantage of buying a property in Slovakia is that the rules are the same for Czech citizens as for Slovaks. From a legal point of view, there are no restrictions and you can buy any property without the need for special permits, including forests, agricultural land or listed properties.

Sale of real estate in Slovakia

As in Slovakia, it is best to search for property for sale online. For this you can use specialized portals such as Nehnutelnosti.sk, Reality.sk, Zoznamrealit.sk or Bezrealitky.sk. Various general offer portals and bazaars such as Bazar.sk or Bazoš.sk will also serve you well. You can also try various Facebook groups, such as the Bytes, houses, land group . Sale, buy, rent or Facebook REALITY, buy, sell, rent….

How to buy real estate in Slovakia

Buying a property in Slovakia works pretty much the same way as it does here. First of all, you need to inspect the property thoroughly and get acquainted with all its defects and shortcomings, not only in its physical form but also in the legal one.

Preview of the Slovak Land Register

To do this, you can get an extract from the Slovak Land Registry or the title deed. In it, you will find out all the legal information about the property, such as any foreclosures, easements, liens, etc.

You can obtain this extract at the cadastral office of the municipality where the property is located, at the Office of Geodesy, Cartography and Cadastre of the Slovak Republic or at any branch of the Slovak Post. You will pay EUR 8 for the extract.

Reservation and Purchase Agreement

If you decide to buy the property, you will sign a reservation contract with the owner or real estate agent and pay a reservation fee of 3-5% of the total price of the property. This contract guarantees you that the seller will not offer the property any further, even if he receives a better offer. In turn, it guarantees the seller that you will actually buy the property, and in the event that you do not buy the property, the seller will receive the reservation fee as a penalty for breach of contract.

Once you have secured the financing, you can proceed to sign the actual purchase contract. Its form is regulated by the Slovak Civil Code and sets out its mandatory components. These are:

1. The subject of the contract – i.e. identification of the property;
2. The price of the property and the method of payment;
3. Information about the seller and buyer – name and surname, birth number, date of birth, permanent residence, marital status, citizenship;
4. List of rights and obligations of both parties;
5. Place and date of conclusion of the contract and signatures of both parties.

Proposal for entry into the Slovak Land Register

Signing the purchase contract does not make you the official owner of the property. This is followed by the registration of the ownership rights in the Land Registry. The application for registration of ownership rights must be filed with the competent cadastral office where the property is located. Together with the application, you will also submit the purchase contract. If you are buying an apartment in an apartment building, you must also submit a certificate from the property manager proving that the former owner has settled all his/her debts to the property manager (e.g. that he/she has no energy arrears).

You will pay €66 for the application for registration in the case of the standard 30-day processing time or €266 for the fast-track procedure within 15 days. You can also submit the application online. In this case, you will pay only €33 for the standard deadline and €133 for the accelerated procedure.

How the Land Registry of the Slovak Republic looks and works

As in the Czech Republic, the Slovak cadastre of real estate is a public register containing the geometric determination, inventory and description of real estate and data on rights to it. Its form and function is very similar to the Czech land register.

The Slovak cadastre can be consulted online via the Electronic Cadastre Services Portal. A clear map and a search system for specific properties are available. You can also obtain the title deed online, free of charge. However, such a document is not usable for legal transactions. If you need the statement for legal transactions, you need to have it issued at the cadastral office or any branch of the Slovak Post for a fee of 8 euros.

Mortgage for Slovak property

Getting a mortgage for a property in Slovakia will be more difficult than in the Czech Republic. You will not be able to get a classic Czech mortgage for a property located in Slovakia. You cannot guarantee a property located abroad. So you have two options:

A mortgage with a pledge of another property

You can only take out a Czech mortgage if you own a residential property in the Czech Republic that you can pledge to the bank. You do not have to be the owner of the property, but you must have the owner’s approval to pledge it. Not all banks offer this option. What most banks do offer, however, is the so-called American mortgage, which does not require proof of purpose. However, you must take into account that its conditions are not as favourable as those of a conventional mortgage.

Mortgage from a Slovak bank

A better solution is a mortgage from a Slovak bank. Czechs can take out a mortgage with most banks, regardless of whether they earn their income in the Czech Republic or Slovakia. However, the conditions for obtaining a mortgage are different from those in the Czech Republic – in the case of a Slovak mortgage, the total amount of your repayments must not exceed 60% of your total net monthly income after deducting the minimum subsistence level. The maximum loan ceiling is set at eight times your net income per year. You will get 80-90% of the total price of the property from the bank and have to pay the rest out of your own pocket. A big motivation for a Slovak mortgage could also be that it offers much better interest rates compared to Czech mortgages.