How much is the tax on rental income in Slovakia?
The tax on rental income is 19% – however, there are significant tax incentives available for individuals who provide housing in Slovakia:
CE Invest will prepare full tax return for you in Slovakia
- Deductable amount for rental activity (odpočítateľná položka): currently 894 euros
- Across-the-board tax cut (paušálne výdavky): currently 40%
- Deductable amount for the tax payer (odpočítateľná položka pre daňovníka): currently 4025.70 euros
Net rent and utilities (energies, as they are called in Slovakia) are always combined to form the total rental income of an apartment.
Therefore, if an apartment is rented for say 600 euros/month and energy and common costs are 150 euros/month, the total annual income is (600 + 150) x 12 = 9000 euros. 894 euros may be deducted from this gross sum, which gives us 8106 euros. The 40% tax cut further reduces our tax base to 4863 euros. subtract the fixed amount of 4025.70 euros from this to get the final annual tax base of 837 euros. Income tax is taxed at 19%, so we pay 159 euros tax. This comes out to 1.76% of the gross income of the apartment.
The above calculation indicates that it is possible to arrive at a zero figure for tax in a given year. In this case a Tax Return still has to be submitted.
If your apartment is managed by CE Invest Bratislava, your tax estimate for 2010 will be displayed automatically in the Online Property Management System.
CE Invest will prepare and submit the tax return for you, issue rental invoices, and do the accounting for an annual fee. It is also possible to perform a mock tax audit and calculate unpaid tax in retrospect.
