Taxes in the Czech Republic related to the real estates

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.