Will we go back in time through corporate apartments?

After years of procrastination, the state has decided to give a tax advantage to the construction of corporate rental housing. Companies will be able to depreciate them quickly and will also receive additional tax relief. However, it is questionable whether the support will be enough to get construction off the ground.

In the past, there were corporate apartments in our country, which employees they got to be closer to the factories. In several companies lack employees and housing is a common issue job seekers. Over the last two years, the interest of applicants has increased for work in the vicinity of their residence and corporate apartments could happen an attraction for new employees. After the amendment of the law, the SNS announces that on Slovakia can face more than a thousand in two years corporate apartments.

“If we have a company that has more than 49 employees and wants to invest in real estate, we have attractive conditions for it, which they will certainly appreciate as well employees as well as employers. Such a corporate apartment can be an entrepreneur write off after six years, the area of ​​the apartment will be 100 square meters, the amount of rent is determined by agreement between the employer and the employee. It also has the option of selling after ten years. And what I consider to be Absolutely great news, rent will not be considered income, and therefore will not be taxed, “said Danko, according to TASR.

The President of the Slovak Republic Zuzana Čaputová signed an amendment to the law. “Aim The proposed amendment to the Income Tax Act is the support of labor mobility forces and stimulating a new source from which housing can be financed construction, ie from the sources of the business environment, “the deputy explained SNS Radovan Baláž.

VW welcomes the news

According to the transitional provisions, the proposed method of depreciation of buildings it shall also apply to buildings classified and depreciated by 31 December 2019, this preferential method of depreciation will be used for the first time for tax depreciation period, which begins no earlier than January 1, 2020. Companies after a similar they called for support for years, but demanded significantly stronger relief and support.

“Volkswagen Slovakia is developing activities and looking for an optimal model financing also in the area of ​​private rental housing for co-workers in a standard apartment, ”says a Volkswagen spokeswoman Slovakia Lucia Kovarovič Makayová. They are working on a project in the company, which could move employees from all over Slovakia to the vicinity their factories and offer them accommodation for their families as well.

“We therefore welcome legislative changes that contribute to mobility workforce in Slovakia, “she added. Details of the project, however, still did not reveal, the company employs almost 15 thousand people. For The carmaker offers employees who live more than 150 km from the factory accommodation in five Bratislava hostels, where they are paid part of them monthly rental costs.

“The amount of the contribution depends on the type of hostel, the type of room and the distance from race. Hundreds of employees use this benefit, “says Makayová. They provide a contract for employees who live within a distance of 150 km transport.

In the Duslo Šaľa chemical plant, they offer small flats for their own employees. The apartments are also offered to school graduates who perceive it as benefit, and the company can gain permanent employees in the future.

Žilina Kia makes contributions

The provision of accommodation is perceived by company employees as a benefit to them work if they are not close to the workplace. “If they want to attract companies employees from other regions, accommodation can be an interesting benefit, “ evaluates Maroš Ovčarik, director of the Financial Compass.

Kia Motors Slovakia, which operates in the north of Slovakia, it also provides employees with a mortgage loan allowance of EUR 36 monthly for five years. “We provide our employees with a benefit accommodation allowance of EUR 75 for six months, if any permanent residence at a distance of 100 km and more, “said a company spokesman Kia Motors Slovakia Ján Žgravčák.

“Construction of corporate apartments for our colleagues at present we do not plan, “says Michaela Lehotská from Tesco. The company provides other benefits to its employees. This is, for example, an employee discount on shopping, Christmas bonus or reward for a working anniversary. In the east Slovakia is mainly used by local people.

“The employees of our company are residents of Košice and the surrounding region, therefore, we do not provide accommodation to employees, “Ľubomíra responded Šoltésová from US Steel Košice.

State support for the construction of corporate housing

  • Business companies or cooperatives with more than 49 employees can depreciate rapidly from 1 January 2020 (up to 6 years) residential buildings for their employees
  • Business apartments can have an area up to 100 square meters and after ten years the company will be able to sell them
  • The amount of rent will be determined by agreement between the employer and employees
  • The rent will not be considered as income and it will not tax
  • * * Some existing apartments for police officers may also be supported ** and firefighters

After years of procrastination, the state has decided to give a tax advantage to the construction of corporate rental housing. Companies will be able to depreciate them quickly and will also receive additional tax relief. However, it is questionable whether the support will be enough to get construction off the ground.

In the past, there were corporate apartments in our country, which employees they got to be closer to the factories. In several companies lack employees and housing is a common issue job seekers. Over the last two years, the interest of applicants has increased for work in the vicinity of their residence and corporate apartments could happen an attraction for new employees. After the amendment of the law, the SNS announces that on Slovakia can face more than a thousand in two years corporate apartments.

“If we have a company that has more than 49 employees and wants to invest in real estate, we have attractive conditions for it, which they will certainly appreciate as well employees as well as employers. Such a corporate apartment can be an entrepreneur write off after six years, the area of ​​the apartment will be 100 square meters, the amount of rent is determined by agreement between the employer and the employee. It also has the option of selling after ten years. And what I consider to be Absolutely great news, rent will not be considered income, and therefore will not be taxed, “said Danko, according to TASR.

The President of the Slovak Republic Zuzana Čaputová signed an amendment to the law. “Aim The proposed amendment to the Income Tax Act is the support of labor mobility forces and stimulating a new source from which housing can be financed construction, ie from the sources of the business environment, “the deputy explained SNS Radovan Baláž.

VW welcomes the news

According to the transitional provisions, the proposed method of depreciation of buildings it shall also apply to buildings classified and depreciated by 31 December 2019, this preferential method of depreciation will be used for the first time for tax depreciation period, which begins no earlier than January 1, 2020. Companies after a similar they called for support for years, but demanded significantly stronger relief and support.

“Volkswagen Slovakia is developing activities and looking for an optimal model financing also in the area of ​​private rental housing for co-workers in a standard apartment, ”says a Volkswagen spokeswoman Slovakia Lucia Kovarovič Makayová. They are working on a project in the company, which could move employees from all over Slovakia to the vicinity their factories and offer them accommodation for their families as well.

“We therefore welcome legislative changes that contribute to mobility workforce in Slovakia, “she added. Details of the project, however, still did not reveal, the company employs almost 15 thousand people. For The carmaker offers employees who live more than 150 km from the factory accommodation in five Bratislava hostels, where they are paid part of them monthly rental costs.

“The amount of the contribution depends on the type of hostel, the type of room and the distance from race. Hundreds of employees use this benefit, “says Makayová. They provide a contract for employees who live within a distance of 150 km transport.

In the Duslo Šaľa chemical plant, they offer small flats for their own employees. The apartments are also offered to school graduates who perceive it as benefit, and the company can gain permanent employees in the future.

Žilina Kia makes contributions

The provision of accommodation is perceived by company employees as a benefit to them work if they are not close to the workplace. “If they want to attract companies employees from other regions, accommodation can be an interesting benefit, “ evaluates Maroš Ovčarik, director of the Financial Compass.

Kia Motors Slovakia, which operates in the north of Slovakia, it also provides employees with a mortgage loan allowance of EUR 36 monthly for five years. “We provide our employees with a benefit accommodation allowance of EUR 75 for six months, if any permanent residence at a distance of 100 km and more, “said a company spokesman Kia Motors Slovakia Ján Žgravčák.

“Construction of corporate apartments for our colleagues at present we do not plan, “says Michaela Lehotská from Tesco. The company provides other benefits to its employees. This is, for example, an employee discount on shopping, Christmas bonus or reward for a working anniversary. In the east Slovakia is mainly used by local people.

“The employees of our company are residents of Košice and the surrounding region, therefore, we do not provide accommodation to employees, “Ľubomíra responded Šoltésová from US Steel Košice.

State support for the construction of corporate housing

  • Business companies or cooperatives with more than 49 employees can depreciate rapidly from 1 January 2020 (up to 6 years) residential buildings for their employees
  • Business apartments can have an area up to 100 square meters and after ten years the company will be able to sell them
  • The amount of rent will be determined by agreement between the employer and employees
  • The rent will not be considered as income and it will not tax
  • * * Some existing apartments for police officers may also be supported ** and firefighters