Revolutionary depreciation of hotels and football stadiums!
Approval of the amendment to the Act
On 28 May 2025, the National Council of the Slovak Republic passed an amendment to Act No. 595/2003 Coll. on Income Tax (hereinafter referred to as the “Amendment Act”), which brings significant changes in the area of depreciation of technical value recovery and repairs of buildings used for accommodation purposes and sport events.
Depreciation of technical value recovery and repairs
Technical value recovery and repairs of selected types of buildings will now be classified in depreciation group 2 with the depreciation period of 6 years and will be depreciated separately from the building or structure.
Affected types of buildings
This change concerns the following technical value recoveries and repairs:
- technical value recovery and repairs carried out on a building used for accommodation and related services (with Building Classification Code 121), if the technical value recovery and repairs account for at least 10 % of the initial price of the building;
- technical value recovery and repairs carried out on a building or structure used for sport purposes (buildings or structures with Building Classification Codes 1265 and 241), if such technical value recovery and repairs account for at least 10 % of the initial price of the building or structure.
Shortened depreciation period for buildings and structures
The amendment to the Act has also introduced a shortened depreciation period for buildings and structures used for accommodation or sport purposes. In this case, the original tax depreciation period can be reduced by up to half of its original duration, i.e. from 40 years to 20 years.
Application of the new rules
The taxpayer can start applying the new depreciation rules for the above-mentioned assets already in the tax year 2025 (if the taxpayer’s deadline for filing the tax declaration is scheduled after 31.12.2025). Already claimed depreciation shall not be adjusted retrospectively.
