Income Tax on Rental in Slovakia
Although income tax is 19% in Slovakia, the available incentives are so large, that an average apartment owner ends up with paying less than 2% tax on gross rental income. Here is how.
The deadline for submitting the 2009 Tax Return in the Slovak Republic is March 31, 2010. This applies to individuals who own property in Slovakia and receive an income from the rent.
Where should I pay this tax?
This has already been decided. It must be paid in Slovakia.
Double Taxation Treaties are conventions between two countries that aim to eliminate the double taxation of income or gains arising in one territory and paid to residents of another territory. They work by dividing the tax rights each country claims by its domestic laws over the same income and gains. Slovakia signed a Double Taxation Agreement with the United Kingdom, for example, on November 5, 1990, which came into force on December 20, 1991, and was published under Law 89/1992.
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.
Companies are taxed at 19% corporate tax on profits. There is no income tax to be paid on dividends in Slovakia, however such income must be declared in the country of residence, after which income tax is due.
