Property buying guide for Czech Republic
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Taxes

Taxes in the Czech Republic

The tax regime in the Czech Republic is more favourable than in most other European countries. In particular, it has one of the lowest income tax rates in the EU.

Transaction and registration taxes

Title deed transfer tax in the Czech Republic is paid by the seller at a rate of 4%. There is 21% VAT charged on the purchase of new property.

Registration fees are 0.01–0.02% of the property’s market value.

Ownership taxes

Annual real estate tax is calculated according to a complex formula: tax rate multiplied by the municipal coefficient (1.0–4.5) and local coefficient (1.0–4.5). The amount payable is €25–50 per annum.

Additional taxes

Capital gains tax is 15%.

Inheritance and gift tax rates depend on the degree of relations and can reach 40%. Transfers between spouses, children, siblings, aunts, uncles, nieces and nephews are exempt.

Income tax is 15%.

Corporate tax is 19%.

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.

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    Property buying guide for Czech Republic
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