Mortgage loans for businesses in the Czech Republic
If you consider buying a property in the Czech Republic there are several options how you can do it. Our clients use most frequently the below stated:
1) Buying as a natural person and getting a personal mortgage
This options is the most popular, because the standard (personal) mortgages have the best interest rates and the lowest fees. If your key parameters are an interest rate, low fees and a lower monthly payment then you should definitely consider this option as the first.
2) Buying a property on an existing company
Mostly people from business might prefer buying a property on theirs company (most often s.r.o. or a.s.). There are also tax and accounting consequences which might be beneficial for this option. However, as mentioned above, this type of "business mortgage" has a higher interest rate and fees than a residential mortgages have.
3) Buying a property on newly established company (SPV)
Some of our clients do not have their own (Czech) company and they prefer to establish an SPV (e.g. new s.r.o.) and buy a property in its name. If you buy already an existing company the costs are around CZK 20,000 and you will have manage all the paperwork within a two-hours meeting. This option is ideal if you are in a time crunch.
Of course, there are other options like buying a property on a foreign or offshore company, or a on trust fund.
Anyway, we have experience with all the possible options of purchasing & financing and we would be happy to share it with you so you can choose the best financing for you.