Over 7 years ago, I came to Bratislava for a friend's stag party. It was a great party and changed the course of my life. Four months later, I became a Resident of and bought a property in Slovakia.
Bratislava CastleMost people don't know much about Slovakia (Yes, it was Czechoslovakia). It's a country slap bang in the middle of Europe with an interesting history that intertwines with Austria, Hungary, Czechia, Poland and even Ukraine. From a Financial Perspective, Bratislava is the 7th Richest region in Europe [1] and continues to grow rapidly. Slovakia, as a whole, is still behind most of Western Europe, but the long-term projections look more than healthy.
Slovak National GalleryWhy Invest In Slovakia?
As mentioned, Slovakia is a country whose wealth continues to grow. There is a vibrant start-up community, local businesses and plenty of foreign companies looking to get a piece of the pie. More than that, Slovakia has a stable climate, good education, an honest and just legal system, plenty of fresh drinking water and great wine.
Most investors to date have focused on buying apartments in Bratislava – an understandable investment if you imagine that a 100m2 apartment purchased for €111,900 in 2005 would now be worth about €334,200[2]. But while most have focused on Bratislava Apartments, there are huge markets that are completely overlooked such as Parking Spaces, Interesting Tourist Locations, Garages and smaller Commercial Spaces.
Our research shows that these objects have a much higher ROI than traditional investments with the downside or slightly elevated risk during times of financial uncertainty.
The Country
The territory of Slovakia has been settled from the oldest times. In the time of the Migration of Nations, the first Slavs arrived here and established the Great Moravian Empire-the first common state of the Slovak ancestors. After the fall of Great Moravia, the Old Hungarian tribes invaded the territory of Slovakia, and the territory of Slovakia with its inhabitants became part of the Kingdom of Hungary for a long thousand years.
From the perspective of the Slovak nation, the crucial period in their history was the 20th century, when the Slovaks formed their own political programme and created the first democratic country – the Czechoslovak Republic. However, at the end of the Second World War the communist party gradually seized power in the country, and the communist dictatorship was overthrown only through the Velvet Revolution in 1989. The democratic process exposed several problems, which resulted in the break-up of the common state of the Czechs and Slovaks and the establishment of the independent Slovak Republic (1 January 1993).
This small country has a fascinating history that has seen it go through many changes over the course of time. From kingdoms to democracy, socialism and then back to democracy again, this country has experienced a lot in such a short period of time. The history of architecture is full of interesting examples of different era: from grand cathedrals to the functional, minimalistic buildings of socialism. By studying these structures, we can gain a better understanding of the past and how it has shaped the present.
The High TatrasBuying Property in Slovakia
Buying property is Slovakia is very safe and easy, even for a foreign investor but be aware, the market has a very good liquidity. Be prepared to say yes within 24 hours.
Properties can be purchased directly from sellers without a real estate agent or from a number of real estate agents, including Magnolia Properties. If you purchase through a Real Estate agent, they will most likely speak English and process all the documents for the property. The real estate fee is normally paid by the buyer but is already included within the price unless stated otherwise.
Never pay any money until a contract is signed, and if in doubt, contact a lawyer. Most law firms in Slovakia have a good level of English and reasonable prices (€80 - €120 hourly).
Mortgages
Mortgages are normally approved fairly easily for Slovak citizens and residents. For foreign investors, it is probably best to secure financing in your home country. There are a number of international banks here, but don't expect many of them to have English-speaking staff in the branches. If you can get a mortgage, the rates are fairly low and can be fixed for 1–15 years.
A good mortgage advisor can help you navigate the landscape and get the best deal if you choose to take this path.
The Entire Process
Secure Financing – This can be from a local bank, or your home country. Don't look for properties without financing. Once you commit to buying, you will be liable for an cancellation fee.Go for some viewings – Have a good look around your property, if it is an apartment, make sure to ask about monthly costs and ensure the property is up-to-date with all its common bills.Commit to buy – Sign a buying contract and pay a deposit (around €5,000 for a normal apartment)Finalize your financing – if needed and wait for the moving date.Get your keys – on the day of transfer, you will send the money to the seller, get the keys for your apartment and also submit paperwork to the local Cadastre. The property is now yours, but will not be listed officially until the paperwork is completed by the local Cadastre, normally within 2–3 weeks.RentingIt is not normally too difficult to find tenants within Slovakia for a property, but be aware of the tenants rights. For example, if a family moves into your apartment with a child under 18, they are protected under multiple laws even in a situation where rent isn't paid for many months or even years. If you are not in the country and do not speak Slovak, we recommend using a local agency to help.
Legal Disputes and Police
Slovakia is very low in crime and generally a safe place but, as with anywhere in the world, you can end up in a situation where you may need to resolve a legal dispute or report something to the police.
Police stations are located all over the country. Slovakia has a large police force, with many of the younger police speaking English. If you need to report a crime, you can be provided with a translator or find someone to take along with you.
The legal system is fair, but lacks any English-speaking infrastructure. If you have to go to court, and you don't speak the language, hire a lawyer. The courts are busy so expect to wait many months, if not years, for a medium-sized civil case.
Final Notes
All in All, Slovakia is an amazing country with loads to offer and definitely a must-see location. It is often overlooked as a small country or somewhere uninteresting but the friendliness of the locals, the beauty of the country and the great wine, all make this an incredible place to visit.
Ready to Invest in Slovakia? – Give us a call - (+44) 01582 323992
[1] https://kafkadesk.org/2020/03/29/prague-and-bratislava-among-richest-regions-in-the-eu/
[2] https://nbs.sk/en/statistics/selected-macroeconomics-indicators/residential-property-prices/residential-property-prices-by-regions/