Hi, needing a little advice please.... I have two propertys in the slovak republic. The second property I promised to my brother in law (who is slovak) if he built me an extension on the first house. This has now been completed and it is time for me to sign over the 2nd property. Will I have to pay any tax? (I'm not charging anything for the property, just changing the name over to his). Also is their any other hidden costs involved ? Thanks in advance for any help and advice
To be honest - not sure. You will pay cadastre and other registration/notar fees. As for transfer taxes and "gifting" of a property it may depend on both of your tax status ie is this his second home etc. Worth Slovak legal advice I would think. Good luck and let us know the outcome.
Vbland maybe you misunderstood a little. I have not charged my brother in-law for building the extension, I am transfering a house to him as reward for building it. This quote was just info for you to get some back ground. This info would not be used whilst completing the transaction. The relevant authorities would only know I was transfering a house to another family member. They would not ask or need to know why. I hope this makes it a little clearer.
Hi Letmellor, Thanks for you comments. I think your correct I do need to get some legal Slovak advice when I'm next over in SK. The 'gift' you mentioned has now been scraped. Thats how I bought my first house, it was signed over to me with the owner paying 1% as he had given it as a 'gift'. I then payed her in cash! But unless its family or you have closer relation, this can be risky. However this is no longer, and I believe that if you have owned your property for 5 years or more you do not need to pay any tax when you sell it (other than the admin fees you mention ). If you sell it before 5 years you have to pay 19% capital gains tax (same if you are renting it out). Thats the info I've gained buy looking at websites.........
........... though some sites mention bits about forming a company to avoid the tax when you sell. Will get the full picture when I'm next over their myself......but in the mean time if anyone can explain or has any input, its very welcome!
