Renting real estate in Slovakia brings not only income but also obligations towards the tax office. The good news is that, in connection with the rental, you can claim several expenses, thereby reducing your tax base. The scope and type of applicable expenses depend on whether the real estate is included in business assets or not.
1. If the real estate is not included in business assets
If you rent an apartment or house as a private individual (non-entrepreneur), and the property is not recorded in business assets, you can claim mainly these demonstrable expenses:
- Energy expenses: monthly advance payments as well as annual settlement (electricity, gas, water, heat).
- Real estate management expenses: fees to the apartment building administrator or the owners' association. Internet expenses: if you provide it to the tenant.
- Other common operating expenses: e.g., cleaning of common areas, waste removal.
- Furniture and equipment costs: if their use is agreed upon in the lease agreement.
Expenses must always be supported by documents (invoices, confirmations of payment).
2. If the real estate is included in business assets
In case you have the apartment included in business assets, the possibilities for claiming expenses are broader. Besides the items mentioned above, you can also claim:
- Real estate depreciation: real estate included in business assets is generally depreciated for 40 years; every year you can claim 1/40 of the acquisition price in the tax return, or a proportionate part if the property was not rented for the whole year.
- Repairs and maintenance: e.g., painting, floor repair, replacement of appliances.
- Technical appreciation: more significant modifications that increase the value of the property (window replacement, balcony addition, air conditioning).
- Real estate insurance: insurance premiums for the apartment or house.
- Interest paid on a mortgage.
3. Real estate sale and tax exemption
If the property was included in business assets, the income from its sale is exempt from tax only after five years from its removal from business assets. Therefore, if you plan a sale, the timing of removal from assets is important.
4. Obligation of registration at the tax office
If you rent out real estate on the territory of Slovakia and you are not yet registered at the locally competent tax office due to business or other self-employment activities, you have the obligation to register. The deadline is by the end of the calendar month following the month in which you rented the real estate.
5. Important deadlines
- January 31: deadline for filing the real estate tax return.
- March 31: deadline for filing the personal income tax return (possible extension of the deadline by filing a notification).
Correct application of expenses during rental can significantly reduce your tax liability. The decision on whether to include the property in business assets should be based on an individual assessment – it depends on the length of the planned rental, planned investments in the property, and future plans with its sale. Don't forget the obligation of registration at the tax office and compliance with all statutory deadlines.
If you are not sure which procedure is most advantageous for you, a consultation with a tax advisor will help you avoid mistakes and set up the rental so that it is legally and tax-optimal.
The content of this article is for informational purposes only and in no way replaces professional legal, tax, or accounting advice. The company Dravecký & Partner bears no responsibility for any decisions made based on the information provided herein, nor for any potential damage that might arise from such actions. Before applying any information to your specific situation, we strongly recommend consulting with a qualified expert.
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