Property acquisition tax: why it hasn't been cancelled?
Updated: Jun 25, 2020
The tax for acquisition of a property in Czech Republic is currently 4% from the purchase price and since 2016 is paid by the buyer (before was a seller’s responsibility). This amount should be paid additionally to the estate price and the buyer cannot use mortgage money for this expense. Which means when buying a property a buyer should have from 14% to 24% of the property price in “cash”. This fact makes it very hard for many people to purchase their own home.
We should cancel this immoral tax
Hence the Czech Senate has proposed to cancel this “immoral” tax. On 24th September 2019 the Chamber of Deputies has rejected this proposal. Why would they refuse the tax that brings to the state treasury around 14 billion CZK yearly?
Prague will continue the fight
Despite the loss of the fight this time, there are still authorities that will continue the war. Among them is the city of Prague who already announced its intent to return the request to the Chamber of Deputies. The reason being is that it’s in the capital of Czech Republic that common people are affected the most. The tax for the medium size apartment would make the property more expensive by several hundred thousand CZK. A family buying such a property could invest that money to buy a kitchen, go on the long vacation or send a child to study abroad.
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