Many more investors have started to show renewed interest in real estate transactions in the CEE / CIS region outside the core markets of the Czech Republic and Poland since the amalgamation of an overheated market and the 2008 credit crunch made it one of the earlier victims of the global financial crisis.
A combination of rising yields, high vacancies and a lack of financing led to an almost complete stop in speculative development. In some CEE countries major new development projects are now being initiated or restarted. In others, however, including Hungary, Bulgaria, Romania and Ukraine, overall investor activity remains very limited. Some of have these countries have now introduced special incentives to try and encourage real estate investment. This Guide to taxes on real estate in CEE and CIS provides an overview of the tax aspects related to the real estate sector in the following countries:
The short summaries presented highlight the most important tax benefits and burdens connected with operations in the real estate sector. The summaries were prepared based on the situation at 1 January 2011 and focus on the following areas:
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