Mortgage interest tax relief helps homebuyers recover part of the interest they pay on a housing loan, but Slovakia and the Czech Republic use very different tools. Slovakia grants a tax bonus — 50 % of the interest paid, up to €1,200 a year — but only to buyers aged 18–35 who meet an income cap. The Czech Republic instead lets any homeowner deduct the interest from the tax base, up to CZK 150,000 a year, with no age or income limit.
How does mortgage interest relief work in each country?
The mechanics differ at the most basic level. Slovakia’s relief, under § 33a of its Income Tax Act, is a credit deducted directly from the tax due; if it exceeds the tax, the difference is refunded. The Czech relief, under § 15 of its Income Tax Act, is a deduction from the tax base, so the real saving equals the interest deducted multiplied by the tax rate.
In practice, a Slovak taxpayer gets back half of the interest in cash, while a Czech taxpayer lowers taxable income and saves the tax rate on top of it. The same interest therefore produces a different benefit depending on which country you are in — and the eligibility rules diverge even more sharply.
Slovakia: a tax bonus for young buyers
Slovakia targets the relief narrowly. The applicant must have been between 18 and 35 years old when applying for the loan, and their average monthly income in the year before signing must not exceed 1.6 times the average wage — roughly €2,592 for loans signed in 2026. The bonus is 50 % of the interest paid, capped at €1,200 a year for contracts signed from 1 January 2024, or €400 for older ones. It can be claimed for only five consecutive years from the start of the loan.
The Czech Republic: a deduction from the tax base
The Czech approach is broader but shallower per crown. There is no age or income limit: any taxpayer repaying a loan for their own permanent housing can deduct the interest. The annual cap is CZK 150,000 for loans taken from 1 January 2021 and CZK 300,000 for older loans, applied per household rather than per person. The benefit lasts for the whole life of the loan, not just five years.
How much do you actually save?
Example: on €2,400 of interest, a qualifying Slovak buyer receives €1,200 back — the full capped bonus. A Czech taxpayer who pays CZK 120,000 in interest deducts that amount and saves 15 % of it, i.e. CZK 18,000. The Slovak relief is more generous in cash terms but open only to a narrow group, while the Czech relief is modest per crown yet available to almost everyone.
Who qualifies — the key differences
The decisive contrasts are age, income and duration. Slovakia restricts the bonus to younger, lower-income buyers and switches it off after five years; the Czech Republic imposes none of these limits. Both countries, however, share one condition: the property must serve the taxpayer’s own permanent housing (or that of close family), not be let out or used for business.
What is new for 2026?
From 2026 the Czech Republic newly allows interest on housing-cooperative loans to be deducted, extending relief to people in cooperative flats for the first time. Slovakia’s main recent change dates to 2024, when the cap rose from €400 to €1,200 and the interest base was no longer limited to a €50,000 loan.
How to claim in each country?
In both countries the starting point is a certificate from the bank stating the interest paid during the year. Employees can ask their employer to apply the relief in the annual tax settlement; everyone else claims it in their personal income tax return. Keep the certificate and the loan agreement in case of an audit — they are the documents that prove the claim.
Repaying a mortgage in Slovakia or the Czech Republic and unsure which relief applies or how to claim it? We will review your loan agreement and bank certificate and prepare the return so you capture the full benefit you are entitled to.
FAQ
Is the Slovak relief the same as the Czech one?
No. Slovakia grants a tax bonus deducted directly from the tax due (50 % of interest, up to €1,200), limited to buyers aged 18–35 who meet an income cap and lasting five years. The Czech Republic allows a deduction from the tax base (up to CZK 150,000), with no age or income limit and for the whole life of the loan.
Can an older or higher-income buyer claim relief?
In the Czech Republic, yes — there is no age or income test. In Slovakia, no: the bonus is reserved for applicants who were 18–35 at the time of the loan application and whose income did not exceed 1.6 times the average wage. Eligibility is fixed at signing and does not change later.
Does the property have to be my own home?
Yes, in both countries. The relief applies only to a loan financing a property used for the taxpayer’s own permanent housing, or that of close family members. Interest on a buy-to-let or business property does not qualify for this relief in either Slovakia or the Czech Republic.