We offen receive questions regarding the tax system in the Czech Republic. Find below the general overview of the taxes that might interest you if you would like to own a property here:
Personal Income Tax (15%) - If you will rent an apartment or house you will be taxed by the personal income tax. The tax base could be decreased by costs of 30% from rental income.
Corporate Income Tax (19%) - In case you will have a corporate mortgage you will pay 19% from the tax base (income minus costs).
Real Estate Tax - The owners of lands, apartments and houses pay a real estate tax every year. The tax is calculated from square metres and it depends mainly on a location of the property. This tax is very low, e.g. for 80m2 apartment in Prague you will pay only c. CZK 1,000 per year.
Real Estate Transfer Tax (4%) - This tax has the main impact on a purchase process. You will pay 4% from a purchase price (or from an evaluation price in some cases) within 3 months after buying the property.
Generally the taxation in the Czech Republic is not so big in comparison to other European Union countries.