Have you been planning to buy your own place to live? Slovakian tax bonus on paid mortgage interests could be applied for. According to the last law amendment, the clients can apply for this bonus up to 1200€.If you already applied for mortgage and you are interested in the stare support with the increased mortgage payments, you can refer to our blog article here.
The tax bonus on paid mortgage interests substituted the original state support for the young, valid for signed contracts until 31.12.2017. At this moment, the client could apply for the bonus up to 1200€, however the new conditions are valid only for the contracts signed after 1.1.2024.To get this bonus, you need to fulfill various conditions. Let’s see which they are.
The tax bonus can be applied for only by the tax payer fulfilling the below conditions:1
| mortgage contracts signed until 31.12.2023 | mortgage contracts signed after 01.01.2024 | |
| Tax payer’s income | the average brutto income for the previous calendar year | the average brutto income for the previous calendar year |
| Maximum income of 1 applier | 1,3 multiples of the average nominal income for the previous year | 1,6 multiples of the average nominal income for the previous year |
| Maximum income of 2 appliers | cumulatively, 2,6 multiples of the average nominal income for the previous year | cumulatively, 3,2 multiples of the average nominal income for the previous year |
| Maximal mortgage amount | 50 000 € | no limit |
| Paid mortgage interests limit | max 50% | max 50% |
| Clients age in years on the day of application | 18 – 35 | 18-35 |
| Property | an apartment or a house in Slovakia | an apartment or a house in Slovakia |
| Mortgage purpose | purchase, construction, reconstruction, settlement or their combination | purchase, construction, reconstruction, settlement or their combination |
| Mortgage due date in years | 5-30 | 5 -30 |
| Who can use it? | only applier | only applier |
| How to apply for it? | yearly tax return | yearly tax return |
| Right to the tax bonus | first 5 years after the mortgage contract has been signed | Tax bonus limit |
| Tax bonus limit | max 400 € | max 1200 € |
How does it work?
If the applier fulfills the condition of the age and the mortgage purpose, the bank automatically approves the mortgage with the tax bonus and the main debtor will receive the paid interests confirmation for the previous year. Afterward, the client has the possibility to apply for the tax bonus up to 50% of the paid interests, maximum of 400€ if his mortgage contract was signed until 31.12.2023 and up to maximum of 1200€ if his mortgage contract was signed after 1.1.2024.Attention! The tax payer is obliged to check the condition beforehand. The bank is not obliged to keep up with the client’s situation upon applying. The most common problem is with the insufficient income.
The Financial Administration states, that the tax payer can apply for a tax bonus, if his average monthly income for the previous year, in which he signed the mortgage contract, did not exceed 1,3 multiples of the average monthly income for the previous year, when the mortgage contract was signed.The average monthly income is 1/12 of the sum of all taxed incomes. In case of the mortgage contracts signed after 1.1.2024, it is 1,6 multiples..
In practice, the employee’s average brutto income for the previous calendar year is observed, based on the yearly tax return, type A. Attention, self-employers/freelancers observe their brutto income! The second income, such brutto income from property purchase or capital property income, is automatically calculated.
Conditions for the tax bonus is reviewed only once and is valid for 5 years.
Conditions for clients, who signed their mortgage contract in 2023:
| for 2023 | |
| Tax payer’s income | the average brutto income for the previous calendar year |
| Maximum brutto income of 1 applier | 1 695,2 € |
| Maximum brutto income of 2 appliers | cumulatively 3 390,4€ |
| Maximal mortgage amount | 50 000 € |
| Paid mortgage interests limit | max 50% |
| Clients age in years on the day of application | 18 – 35 |
| Property | an apartment or a house in Slovakia |
| Mortgage purpose | purchase, construction, reconstruction, settlement or their combination |
| Mortgage due date in years | 5-30 |
| Who can use it? | only applier |
| How to apply for it? | yearly tax return |
| Right to the tax bonus | first 5 years after the mortgage contract has been signed |
| Tax bonus limit | max 400 € |
Are some of the conditions unclear? Do not hesitate to contact us!
Your ProFin Experts team! Translated by Barbora Zemko Zuzaniaková
