Slovakia: Reduced VAT rate on state-supported rental housing approved by Parliament

5% VAT rate on state-supposed rental housing effective upon enactment

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July 9, 2025

The Parliament approved legislation published by the Slovak Ministry of Transport in April 2025 that included provisions to:

  • Broaden eligibility to include converted non-residential buildings and mixed-use developments
  • Repeal the minimum unit threshold
  • Introduce biometric data processing for identity verification
  • Apply a reduced 5% value added tax (VAT) rate to qualifying units

The provisions became effective upon enactment.


For more information, contact a KPMG tax professional in Slovakia:

Elvira Ungerova | eungerova@kpmg.sk

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