Highest growth for Real estate taxes in Slovakia since 2013

Towns and villages increase real estate taxes by 2.33 percent on average in 2017.

Illustrative stock photoIllustrative stock photo (Source: Sme)

The year 2017 has brought higher real estate taxes to Slovakia, compared with previous years. They increased by 2.33 percent on average, which is the highest increase since 2013. The Business Alliance of Slovakia (PAS) introduced its analysis of real estate taxes on January 19.

Peter Kremský, executive director of PAS, sees especially that the tax hike in Bratislava is behind the increase, as most Slovak towns did not increase their real estate taxes.

The Slovak capital increased real estate tax on apartments and houses by 30 percent and on agricultural and other constructions by 50 percent but taxes rose especially for commercial spaces in blocks of apartments – in the Old Town they almost tripled and in other boroughs they rose by 160 percent.

But it is the town of Nové Mesto nad Váhom which can boast of the highest increase in real estate taxes when businesses will pay as much as 322 percent more than last year for commercial spaces.

On average, tax rates on commercial spaces for doing business in blocks of apartments increased the most – by as much as 9 percent.

Only three towns increased real estate taxes for premises doing business - Nové Mesto nad Váhom, Martin and Medzev. Nevertheles, the tax remains the lowest in the latter - €666 for real estate 1,000 square metres large and with a plot of 1,500 square metres.

Businesses will pay the highest taxes for premises for doing business in Púchov - as much as €6,449 for the same real estate. In Bratislava’s Old Town it will be roughly €5,000. In remaining boroughs of Bratislava and in Košice it will be roughly €4,100.

But what surprises Kremský the most is that towns suffering from high unemployment are keeping their real estate taxes high.

“These towns, in spite of the high unemployment and lack of interest from investors, surprisingly do not try to draw them in with more favourable tax rates on commercial real estate,” said Kremský as cited by the TASR newswire. He believes that softer taxes might be a tool to lure new investors.

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