Generally after five years from acquisition of the property, or from its removal from business assets. For property inherited in the direct line or by a spouse, the period starts when the deceased acquired it. Beware of the exception: if you entered into an agreement for a future sale within that period, the exemption does not apply even if the purchase agreement is signed later.
The basic rule
Under Section 9(1)(a) of the Income Tax Act, income from selling property is exempt after five years from its acquisition, or from its removal from business assets if it was included in them.
If you bought an apartment as a private individual and that period has elapsed since registration of ownership, the sale proceeds are not taxed and are not reported in the tax return.
Inheritance is counted differently — in the heir’s favour
For property acquired by inheritance (including successive inheritances) in the direct line or by a spouse, the period under Section 9(1)(b) starts when the deceased demonstrably acquired ownership or co-ownership.
Inheritance in the direct line means inheritance from a direct ancestor or descendant: a parent, child, grandparent or grandchild. The heir therefore also “inherits” the deceased’s ownership period and often qualifies for exemption immediately.
This rule does not apply to inheritance in a collateral line, such as from a sibling, aunt, uncle or cousin, or from an unrelated person. The ordinary regime under paragraph (a) applies, and the period starts only with the heir’s acquisition, meaning the deceased’s death.
If the property belonged to marital community property that has ended, the time it formed part of that property is included in the period (Section 9(3)).
The exception for an agreement for a future sale
The exemption does not apply to income received under an agreement for a future sale of property entered into within that period, even if the actual purchase agreement is signed only after the period has elapsed.
This rule appears in both paragraphs (a) and (b) and is the most common cause of unexpected taxation in practice. The client waits “until the period ends” to sign the purchase agreement, but signed the future agreement earlier and thereby lost the exemption.
We therefore ask about the tax position before a reservation agreement or future agreement is signed, rather than waiting for the purchase agreement. Something can still be done at that stage; afterwards it usually cannot.
When does the “sale” occur?
For assessing the exemption, Section 9(4) makes the date of receipt of the first payment or advance, or the date the transfer agreement is entered into, whichever is earlier, decisive. The tax period in which the buyer acquired ownership is not decisive.
A deposit received before the period expires therefore cannot be remedied by signing later.
For acquisition, by contrast, the ordinary time when ownership arises applies: for a contractual transfer, that is registration in the land registry.
Other exemptions
Regardless of the ownership period, income from selling the following is exempt:
- property returned to an entitled person under restitution legislation, if that person receives the income (Section 9(1)(d));
- assets included in a bankruptcy estate (Section 9(1)(e)).
Compensation received for expropriation of land and buildings in the public interest is also exempt (Section 9(2)(r)).
If you do not qualify for exemption
The proceeds are other income from a transfer of ownership of real estate under Section 8(1)(b). The difference between income and expenses is taxed, and a loss cannot be reported.
Expenses include, in particular, the purchase price demonstrably paid for the property; for inheritance and gifts, the value under Section 25; documented expenditure on capital improvements, repairs and maintenance; and selling expenses. Subject to Section 8(5)(f), point 2, interest on a mortgage used to acquire the property may also be claimed.
If spouses sell property from their marital community property, income and expenses are divided equally unless they agree otherwise (Section 4(8)).
Do not forget local property tax
Exemption of sale proceeds from income tax has nothing to do with local property tax. For an ordinary transfer by purchase agreement, the buyer’s tax liability arises on 1 January of the following year and the return must be filed by 31 January. Acquisition at auction and inheritance are different: liability arises during the year.
Slovakia has no property transfer or acquisition tax, unlike arrangements some clients know from other countries.
Where we address this
We examine the timing of the transfer against this period when preparing the documentation, because it determines whether signing a future agreement is worthwhile at all. We prepare the entire transfer, from the agreement through escrow to registration, under our complete property transfer service.
We are attorneys, not tax advisers. We do not file your tax return, but we flag the impact before anything irreversible is signed.
This answer provides general information on the law as at 9 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
