Set Up a Real Estate Agency in Slovakia
Set Up a Real Estate Agency in SlovakiaUpdated on Wednesday 06th May 2020
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During the last few years, the Slovak economy has evolved a lot and thus the country started attracting more and more foreign investors. Starting a business in Slovakia is quite easy, the company registration procedure being quick and simple for both local and foreign entrepreneurs. When it comes to the industries for opening businesses in, tourism, services, manufacturing, and real estate are some of the safest.
Those who want to operate in the real estate industry, for example, have several choices in terms of activities. Foreign investors can set up real estate agencies in Slovakia without any restrictions. Our lawyers in Slovakia explain below the requirements related to opening a real estate agency in this country. We can also assist during the incorporation of a Slovak real estate agency.
Steps in registering a business for real estate activities in Slovakia
Before operating a real estate agency, a businessperson who wants to set up a company in Slovakia must comply with the requirements of the Company Law which provides for the incorporation of a business form.
A real estate agency can be set up as a sole proprietorship or limited liability company, however, the Slovak partnership is also a good solution for foreign entrepreneurs who consider they need a local partner.
No matter the chosen business form, the following steps must be completed when establishing a real estate agency in Slovakia:
- the business owner must first reserve a trade name for the company – the name is reserved with the Companies Register;
- the application forms and other documents relevant to the business registration procedure must be prepared;
- the documents will then be filed with the Trade Register alongside the personal information of the company owner and director;
- the company must register with the tax authorities in Slovakia and obtain tax and VAT numbers;
- the company must have a suitable location in which to complete its activities and hire personnel.
It is important to note that there are no special licenses to obtain when opening a real estate agency in Slovakia. You can rely on our law firm in Slovakia for guidance in preparing all the documents needed when setting up such a business in this country.
Activities to be undertaken by real estate agencies in Slovakia
One of the advantages of starting a real estate business in Slovakia is that it can engage in various activities. Among these are:
- - the sale of real estate – both private homeowners and developers can sell real estate through such agencies;
- - rental of real estate – the agency can intermediate the rental of apartments and houses to those interspersed;
- - the sale and rental of commercial real estate – these activities imply hiring specialized personnel;
- - real estate due diligence – such agencies can perform various checks related to properties on behalf of those interested;
- - real estate development – there are cases in which real estate agencies can also engage in the development of projects.
In the case of Slovak real estate agencies undertaking the development of various projects, construction permits are required.
Our Slovak lawyers can offer more information on the activities which can be completed by real estate agencies.
Obligations of real estate agencies in Slovakia
It is important to note that as intermediaries, Slovak real estate agencies have certain obligations towards its clients. First of all, the transactions must be completed on a contract basis. Each client must receive a contract with the details of the property to rent/buy from the agency.
Slovak real estate agencies are required to inform clients about all the costs associated with the transactions, including their fees.
Our lawyers in Slovakia can advise and help clients draft various types of contracts related to real estate transactions.
Why set up a real estate agency in Slovakia?
During the last few years, the number of foreign citizens and companies relocating to Slovakia has increased a lot which is why the activities of real estate agencies have also taken a good turn. The rental and purchase prices have also increased as a result.
Among the cities in which properties are sought for both sale and lease, Bratislava remains on top of the list, however, other regions such as Kosice, Trnava, and Trencin have registered good results.
In order to increase clients’ confidence, Slovak real estate agencies can enroll with the National Association of Estate Agents.
If you plan on opening a real estate agency and need legal support, please contact our lawyers in Slovakia who can guide through the entire business incorporation procedure.