Taxes When Buying and Selling Real Estate in the Czech Republic: What Are Foreigners Obliged to Pay, and What Not?
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In the Czech Republic, the 4% property purchase tax was abolished back in 2020, so currently, there is no tax to pay when buying a property.
When selling, however, there are many nuances.
If you bought the property before 2021 and are selling it before owning it for 5 years, a 15% tax on profit applies.
If you bought the property after January 1, 2021, you have to own it for at least 10 years before selling it to avoid paying tax on the profit.
But there are two exeptions when you can avoid paying this tax:
— if you have lived in the property for at least 2 years
— or if the money from the sale is used to buy another property or for reconstruction.
Both of these rules also apply also to foreigners.
But note: this applies only to sales of residential property.
Owners are also required to pay an annual property tax. It depends on the type and location of the property, but compared to other European countries, it’s very low.
My name is Alexandra, I’m a real estate agent in Prague and I know everything about real estate here.
If you want to buy or sell without losing money on taxes, write to me. I’ll help you handle everything in the most beneficial way.
Alexandra Kurbanova – real estate agent in Prague and suburbs.
Connect with me (Whatsapp, Viber): +420 606 171 876