Once a poor farming country, Slovakia is now undergoing a dramatic transformation and is gradually making a name for itself in the overseas property world, so much so that it has been called ‘the Tatra Tiger’ in homage to Ireland’s economic performance. Traditionally an economic backwater with a small population of around 5.5 million, the country was formerly dependent on agriculture until it joined the EU in 2004. At this time, the government lowered taxes and began a swift process of wooing investors.

Slovakia now boasts no capital gains tax and income tax is a flat rate of 19 %, making it an attractive tax haven.

By 2005, Slovakia had the fastest-growing business environment in the world, thanks in part to its low labour costs, advantageous tax situation and political stability making it one of Europe’s most attractive economies.

Buyers have been lured to the capital, Bratislava, with many buyers opting for off-plan apartments. Investment company Letterstone has been active in the country since 2004  and feel that there is still plenty of growth left in Slovakia.

The company believes that the strongest areas for growth are currently the countries second cities – particularly Kosice, Slovakia ‘eastern capital’. Letterstone are also selling off-plan developments in Banska Bystrica and in the High Tatras. However, Bratislava is still viewed as having the ideal combination of high growth potential with low levels of investment risk. This is the home of Slovakia’s highly skilled and educated workers with higher purchasing power and income levels than the rest of Slovakia. This, plus the presence of foreign companies, still make Bratislava a good choice for the investor in the Slovak market.

Some agents caution that Bratislava has become a difficult market to enter and interest has cooled slightly. They note a switch to the mountainous region of the Tatras. Many multinational have moved their business to Slovakia, including IBM, Peugeot and Whirlpool. This has prompted a demand for top-end rentals from an international workforce.

Away from the capital, new development is slowly starting to appear and golf courses are testament to the county’s reinvention.

The rental market is buoyant in popular tourist areas such as the Tatras. One benefit here is the dual season, thanks to the area’s sheer beauty, as the mountains and rolling countryside attract walkers and climbers in the summer and skiers in the winter months.

Slovakia has very firm controls over building in areas of natural beauty, which are protected. Peregrinelaw will ensure that the developer provides an Environmental Impact Analysis (EIA) in this regard.  It is also important to check that not just the planning permission but the building permit have been issued, as local authorities have the power to decline the building permit at the last minute.

Slovakia follows the cadastral land registration system and PeregrineLaw will ensure that your property is registered by a solicitor in the registry where your property is situated, so as to best protect your interests and to keep your acquisition costs to a minimum.

Should you wish to see which registry your property falls under, check the Land registry site or contact PeregrineLaw http://www.geodesy.gov.sk/english/eng/structure.html

Legal fees should be no more than £950 as there are no significant barriers to entry into this market.