The tax on rental income is 19% – however, there are significant tax incentives available for individuals who provide housing in Slovakia:

1. Deductable amount for rental activity (odpočítateľná položka): currently 500 euros
2. Across-the-board tax cut (paušálne výdavky): currently 40%
3. Deductable amount for the tax payer (odpočítateľná položka pre daňovníka): currently 3559.30 euros

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.

Please contact our accounting department at: info@ceinvest.sk for more information

The dynamics of Slovakia’s industry continues to slow. While in February the an‐nual growth of industrial production slowed 6.5 percentage points m/m to 10.8%, in March the pace decreased to 6.8%, informed the sta‐tistics office SU. (HN/14)

Construction

In March, construction output grew for the first time this year. Compared to March 2010 it increased 0.5%, informed the SU. In 1Q of 2011 however, construction out‐put dropped 2.5% y/y. (sme.sk)
Trade Foreign trade ended the first quarter of this year with a surplus of €354.6m, 20% higher annually, informed the SU. Exports were up 24% to €13.209bn, and imports grew 24% to €12.854bn.
Last year the trade surplus came to €137.5m. (HN/5)

Trade

Foreign trade ended the first quarter of this year with a surplus of €354.6m, 20% higher annually, informed the SU. Exports were up 24% to €13.209bn, and imports grew 24% to €12.854bn.
Last year the trade surplus came to €137.5m.

Achievements so far include
• Market leading status in prime residential property management in Budapest
• Market leading status in residential property management in Bratislava
• Opening of the first CENTURY 21 real estate agency in Bratislava
• Management of prime residential buildings in the luxury segment in Budapest
• Representation of all of the top A-class office buildings in Budapest

The fusion will benefit our clients in many ways.
• Better customer care with meticulous attention to detail
• Higher level of control through the online property management system
• Further reduction in vacancies through an increased market share
• Successful re-sales through an enlarged contact base
• Less tax to be paid due to rigorous accounting
• Elimination of non-paying tenants through proper screening and preventive measures
• Even more transparency and availability

Offices have moved from Hollo utca (Gozsdu Court, 7th District) to the much more prestigious Vigyazo Ferenc utca, in the 5th District of Budapest, between the Hungarian Academy of Sciences on the Danube River, at Chain Bridge, and the Central European University. There are 17 committed and qualified employees working in the 240m2-office in a beautiful classical listed building, restored to its original splendor.

We are expecting an increase in property prices, especially in Budapest, in the coming years. Today an investor can still purchase a 2-bedroom luxury apartment in a refurbished listed building with 24-hour concierge service in a prime location in the heart of Budapest for €155,000, while the same amount would merely buy a 1-bedroom unit in a new development away from the center in Bratislava. The rental income of the luxury flat in Budapest would be twice that of the 1-bed unit in Bratislava.

Compare

Budapest, 2-bed, prime location, €155,000
Beautifully renovated 67m2 apartment in a monument building in District 5, the government and bank district next to a prime office building and a luxury hotel. Glass-covered courtyard, 24-hour English/Hungarian reception, hand-built dark wood kitchen with thick stone marble work surface, dark wood parquet and limestone flooring, price includes furniture, click for pictures and more…

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Bratislava, 2-bed, new-build, €175,000
A modern 95m2 1st-floor apartment with 2 bathrooms and a balcony. 24-hour security and reception service, kitchen furniture, 3 built-in wardrobes, indoor parking space included. The Octopus Building is an award-winning architectural curiosity with a beautiful green inner courtyard and spectacular colors in the common areas, situated on a main commuter artery, a few tram stops from the city center, click for pictures and more…

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Bratislava, 1-bed, new-build, €148,000
A trendy 64m2 2nd-floor brand new apartment with balcony in the popular Eden Park complex, with a well-tended park, close to Strkovec Lake in the Ruzinov District. There is no reception service. Price does not include kitchen cabinets or parking space, click for pictures and more…

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The new Hungarian government has introduced incentives for property buyers, has created a more attractive business environment for foreign companies and employers in general, and will take on the EU Presidency from January 1. Recent constitutional and monetary legislation has created uncertainty in the international markets, so the outlook for the Hungarian currency is ambiguous. Therefore this is a good time to buy property, however, only in the prime areas of Budapest. For those who have purchased property it is best not to sell, but keep it under good management to maximize revenue. The companies under CE Property Group specialize in the planning and project management of the restoration, interior design, and subsequent rental of high-end properties in Budapest.

Mortgages again aviable in Slovakia

The local banks are again competing for future home owners, who are going to use a mortgage to purchase property.

The regular bank interest rates are between 3.8-5%, however, the Slovak government is offering an interest rate subsidy, which is currently 3%. This means that the regular bank interest rate is lowered by 3% during the period of the first 5 years, which makes the mortgage extremely attractive. Thus the interest rate lowered by the government subsidy is only between 0.8% to 2%. Although the European Central Bank is constantly raising the fixed interest rates, which affects rates in the entire eurozone, including, Slovakia, the rates still remain low in Slovakia – because of the government subsidy. Real estate agencies are already experiencing a rise in the amount of transactions, which are boosted by favorable local mortgages in 2011.

As a result of the balanced economic growth in Slovakia during the boom times, there was no significant real estate bubble created which could be compared to that in Ireland or Spain.

73% of real estate transactions in the country are performed in Bratislava and surrounding localities.

80% of all mortgage contracts are realized in Bratislava.

People living in Bratislava earn 50% more than those living in the countryside by average.

The price of real estate in Bratislava is double that of the countryside.

The number of unsold newly build apartments decreased from 5,000 to 3,000 between 2009 and 2011.

Unemployment rate in Bratislava is 4%. In Slovakia it is over 10%.

Mortgage sales rose by 18% this year.

85% of the Slovak population owns property without any mortgage.

For those who are thinking to sell their Slovak property, it seems to be the right time, if they purchased before the prices went to the peak during the years 2007-2008. Investors who purchased at peak prices are advised to wait until the prices start climbing again. According to industry experts the growth

Source: various speakers at Building Forum conference – April, 2011 Bratislava

Overall the service is excellent and I am very impressed with Michaela and Zuzana. Thank you! Ian J. B. – 2010 England

I am very impressed with ceinvest and hope to continue a happy relationship for a long time to come.Congratulations! Keith K. – 2010 England

Hi Michaela ,
Just a note to say that we got all the Sale money through today and I thought that I would take this opportunity to thank you very much indeed for the excellent Service that you have given me over the years.
We have found you always very helpful and you have given us very wise counsel and advice!

So many thanks again. Take care , Kind Regards , Chris – 2010, Jun