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 

1. source: https://podpora.financnasprava.sk/426707-Daňový-bonus-na-zaplatené-úroky ↩︎