 As with many European countries Slovakia has a similar process when it comes to buying a property there. As a new EU member the property market of Slovakia is open to all other citizens of EU. The only restriction Slovakia has imposed is on agricultural and forestry land.
The process of buying is simple. Once you have picked the property you want to purchase and the seller accepted the price, the first thing you have to do is have a deposit of 10% of the purchase price ready as this will secure the property for you and the legal process can begin.
At the time of the deposit there will be a pre-purchase agreement signed by both parties as to make sure the parties understand their rights and obligations. In the case of the buyer changing his mind once he has deposited the 10%, he will be responsible to pay for any expenses incurred so far by the agent. This is taken from the deposit already paid and the rest is returned to the buyer.
If the same happens from the seller's side the seller is responsible for the expenses incurred and the buyer will be refunded his full deposit. The detailed process is as follows:
- The surveyor will complete his report and provide it to the solicitor so he can start preparing the contract.
- Both the report and the contract will be translated for you so you know what you are signing.
- The contract is signed and the money held by the buyer is transferred to the seller and the main part of the process is done.
- The buyer will have to wait for the land registry called Kataster to transfer the ownership, but that takes only 4 weeks.
- The buyer is now a full owner of the property
Fees
Legal fees: vary per portfolio, normally it will be per hour
Stamp fees: not applicable in Slovakia
Agents fees: vary from 2% - 8% depending on portfolio
Mortgage fees approx 1% - 1.5% |
Extra Costs on purchase price
It is necessary to add to the costs on buying a property (real estate) the charge of the land registry for registering the ownership of new owner which is 8,000 SKK for speeder procedure (registration within 14 days) or 2,000 SKK for regular procedure (there is not given certain term of registration), and then just the notary expenses of verifying the signatures.
There could be extra expenses for solicitor services, official translation into Slovak language when some legal documents are in foreign language and are supposed to be used in the proceedings on the land registry and extra expenses for apostille when necessary documents are signed and verified by foreign notary public. So we can say that except of purchase price we can count with above mentioned expenses.
Mortgages
Slovak banks require the following documentation when purchasing Slovak property either as a foreign individual or Slovak national.
- Proof of address
- Passport
- 6 months recent bank statements
- Proof of income (form provided in English)
- Proof of employment abroad (Only full time employment will be considered)
- If you are self-employed you will need to provide at least two years tax returns and accounts, it is also recommended you have a guarantor for the mortgage.
The mortgages are dealt with on an individual basis with the chosen bank. The interest rates vary with the length and the value borrowed. The banks only lend up to the contract price of the property, less deposit paid.
There are also financial services in Ireland that can advise you on finance, contact hrmortgages@eircom.net for advice. |
