Czech Republic — Property: Property Taxes

Why this matters

A relocating person should understand property taxes to accurately budget for ongoing expenses and potential liabilities.

Key facts

• Real estate tax is based on the position on 1 January: land at CZK 0.08 to CZK 9.00 per m2 and buildings at a basic CZK 3.50 to CZK 18 per m2, rising CZK 1.40 per extra above-ground floor.
• A population coefficient of 1.0 to 4.5 (municipalities may raise it to 5) and a local coefficient of 0.5 to 5.0 apply; returns are due by 31 January and tax up to CZK 5,000 is paid by 31 May.
• The real estate acquisition tax was abolished by Act No. 386/2020, so buying property for consideration no longer triggers it.
• Selling a family house or flat is exempt from income tax if the seller lived there at least 2 years; other property is exempt after 10 years, with exceptions when proceeds fund housing needs.

Steps

1. Calculating Property Taxes — The calculation of property taxes is complex and typically involves a combination of factors, including the value of the property, land, and any buildings, as well as any applicable exemptions or deductions. It's recommended to consult with a local tax professional or the relevant municipal authorities for specific guidance.