Slovakia Rental Income Tax Guide 2026 — Taxed as IIT 19%/25%

Q: Is rental income from foreign property taxable in Slovakia?

Yes, but a foreign tax credit may be available under the applicable DTT.

Q: Can I switch between expense methods each year?

Yes, you may choose the actual or flat-rate method each year as most advantageous.

Rental income from Slovak property is classified as other income and taxed under IIT at the progressive rates of 19% (up to ~EUR 47,000) and 25% (above). Landlords may deduct actual expenses or use a flat-rate expense option of 40% of gross rent. The first EUR 500 of rental income per year is tax-exempt.

Rental income from real estate located in Slovakia is considered other income for IIT purposes. It is added to the taxpayer's total income and taxed at the progressive rates. Landlords have two options for calculating taxable rental income: the actual expenses method or the flat-rate expense method (40% of gross rent with no receipts needed). Mortgage interest, maintenance, property management fees, and depreciation are common deductible expenses under the actual method.

Example: A property generates EUR 12,000 in annual rent with EUR 4,000 in expenses. Actual method: tax on EUR 8,000 at IIT rates. Flat-rate method: tax on EUR 7,200 (12,000 - 4,800). The taxpayer chooses whichever results in lower tax.

Rental Income Taxation

Exemption threshold: First EUR 500 of annual rental income is tax-exempt
Actual expenses method: Deduct all verifiable expenses — mortgage interest, maintenance, insurance, property tax, management fees, utilities, depreciation, and legal fees
Flat-rate method: Deduct 40% of gross rental income as expenses — no receipts required. Available for properties not used for business purposes
Business rental: If renting is systematic and profit-oriented, it may be classified as business income with full deduction rights and social insurance obligations

Allowable Deductions (Actual Method)

Mortgage interest: Interest on loans used to acquire, construct, or renovate the rental property
Insurance premiums: Property and liability insurance costs
Maintenance and repairs: Costs of maintaining the property in rentable condition
Property management fees: Fees paid to a professional property manager or real estate agency
Depreciation: Building depreciation at 2.5% per year (20-year useful life)
Utilities: If paid by the landlord (water, electricity, gas, internet)
Local taxes: Municipal land and buildings tax

FAQs

Is rental income from foreign property taxable in Slovakia?

Yes. As a Slovak tax resident, you are taxed on worldwide income, including rental income from foreign property. A foreign tax credit may be available under the applicable double taxation treaty.

Can I switch between expense methods each year?

Yes. You may choose between the actual expenses method and the flat-rate method each tax year, depending on which is more advantageous for that year. The election is not permanent.

Do I need to register as a landlord?

If you rent out property on a regular basis and derive significant income, you may need to register with the Financial Administration and file annual IIT returns. Occasional rental income below EUR 500 is exempt.

Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Consult a qualified Slovak tax advisor for advice specific to your rental property situation.