The filing of a real estate tax return has become a traditional January topic of each year. The HERRYS Legal Department has prepared an article for you, in which you will find useful information for filing a tax return, giving you answers to such questions as to who must file a tax return and when this obligation begins and ends.
Who is required to file a real estate tax return and by when?
A real estate tax return must be filed by a natural or legal person (taxpayer) who has become the owner, manager, tenant, or user of the real estate. Real estate tax encompasses land tax, building tax and tax on apartments and non-residential premises in an apartment building.
What falls within the term “real estate”?
- Land – gardens in allotment areas, gardens by houses, courtyards, building plots, arable land, permanent grassland, forests, vineyards, etc.
- Buildings – house, cottage, garage, small building, e.g. summer kitchen, barn, woodshed, gazebo, etc.
- Apartments – apartments in an apartment building, non-residential spaces (e.g. a garage parking space in the basement of an apartment building, or parts of an apartment for which a change of use has been made and where part or all of the apartment has thus become non-residential space).
If there has been a change in the type or size of the land, the purpose of use of the building, apartment, or non-residential space, or you cease to have ownership, management, rental, or use of a real estate, you are required to file a partial real estate tax return.
Taxpayers whose ownership of real estate as of 1 January 2022 had not changed against the preceding period are not required to file any real estate tax return for 2022.
What constitutes a change?
The most frequent changes necessitating the filing of a tax return are:
- purchase of real estate;
- sale of real estate;
- donation of real estate;
- property acquired through donation;
- inheritance of real estate;
- real estate acquired by auction;
- divorce and subsequent court decision on property settlement – in such cases, the most frequent change concerns the share in jointly owned real estate;
- obtaining a valid building permit, or additional building permit – in this case the type of land changes, e.g. by the issue of a building permit a garden will change to a building plot. For this purpose, a building land is considered to be any land plot whose plot number is indicated in a valid building permit, and this up until a valid use-approval decision has been issued.
In the event that you are planning to make an extension or other building modifications to an existing building that require a building permit, the plot numbers indicated in this permit will not be considered to constitute a building land from the point of view of real estate tax, and a tax return is to be filed only after the use-approval decision has been issued, provided of course that the size or number of floors have changed; - obtaining a valid use-approval decision;
- obtaining a valid permit for changes to the use of a building, for changes to the use of an apartment or part of an apartment (e.g. where you have decided to use one room in a residential house for business and you have changed its use from a residential room to an office space);
- demolition of a building – of course on the basis of a permit to remove the building, where this fact is subsequently recorded in the land register;
- land modifications;
- lease relationship with the Slovak Land Fund;
- long-term lease relationship, which is entered in the land register – this option applies more to businesses, but ordinary people may also encounter it, albeit from the other side. This concerns a long-term lease of land for a period of at least 5 years, and the relationship is entered in the land register. In such case, it is necessary to document this lease relationship, and the tax return is not submitted by the landowner but by the tenant, i.e. the cooperative or farmer, etc.;
- when the size of the land plot has changed due to division, or other important facts affecting the levying of real estate tax have occurred.
What is decisive is the state as at 1.1.2022. So, if any change has occurred in the period between 2 January 2021 and 1 January 2022 (inclusive), you are required to file a tax return no later than 31 January 2022 – with two (important) exceptions,
concerning cases where you acquired real estate by:
1. inheritance;
2. auction.
In these two cases, you must file a tax return within 30 days of the tax obligation arising.
Where and how is the tax return filed?
A real estate tax return is always filed at the competent municipal office in whose land registry area the real estate is located. So, if you live in Košice, and you inherit land in Nitra, you must file the tax return in Nitra. Of course, you don’t have to travel to Nitra to do so.
The real estate tax return can be filed post, in person, or electronically. To make an electronic filing you need to have an electronic ID card, and you can arrange the service on the portal www.esluzbyba.sk.
The tax return must be filed on the prescribed form. The prescribed tax return form also includes instructions on how to fill it out correctly.
The Act on Local Taxes, in Sections 99a and 99b, distinguishes:
- real estate tax return;
- partial real estate tax return.
WHAT is a partial tax return and WHO files a partial tax return?
If the taxpayer has in the past filed a real estate tax return and as at 1.1.2022 becomes the owner of another real estate property; or there is a change to the type or size of the land; a change in the purpose of use of the building, apartment, or non-residential space; or ownership of the taxpayer’s real estate property ends, this person is required to file a partial real estate tax return in the same period (by 31.1.2022). The partial tax return is filed on the same prescribed form. If the sale of a real estate property is made in 2021, the completed form must indicate that it is a partial tax return for termination of the tax obligation.
Where a land, building, apartment, or non-residential space in an apartment building is in the co-ownership of multiple persons, each co-owner is required to file a real estate tax return up to the amount of their co-ownership share. If the co-owners agree, on the basis of an agreement on the appointment of a real estate tax return representative, to entrust one of the co-owners with filing a tax return, the return shall be filed by the representative designated by the co-owners, indicating this fact in the tax return. If a land, building, apartment, or non-residential space in an apartment building is jointly co-owned by spouses, the tax return is to be filed by one of the spouses.
HOW OFTEN is a real estate tax return filed?
It is not necessary to file a real estate tax return every year, but it is filed only if there is some change in the property (whether ownership, e.g. sale/purchase, or for example in the case of a change in the purpose of use of non-residential space). Each year the taxpayer will then automatically receive a payment order from the tax administrator with the calculated amount of the real estate tax that the taxpayer must pay.
The administration of real estate tax is performed by the municipality in whose territory the real estate is located. In Bratislava, the tax return is filed at the City Hall at the Department of Local Taxes & Fees, which is at Blagoevova ulica č. 9 in Petržalka.
WHAT ARE THE RATES for real estate tax in Bratislava?
The taxpayer does not calculate the amount of the real estate tax in the tax return. The taxpayer states in the tax return only the required data, which the tax administrator then works from in calculating the amount of tax according to the relevant tariff. Here you can find real estate tax rates for 2022.
BY WHEN must the levied tax be paid?
The tax is due 15 days from the date on which the decision, delivered from the tax administrator to the taxpayer, becomes final. Real estate tax can also be paid in instalments, but this form of payment must be determined by the tax administrator.
Exemption from the obligation to pay real estate tax for the year 2022
Section 17 of the Act on Local Taxes regulates which properties are exempt from tax, and for which a lower tax can be set. The municipality or city may waive a real estate tax claim, or reduce the amount of the tax for taxpayers who are aged 62 years or more, or for taxpayers who are severely disabled, receive benefits in material need, etc.
