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Property ownership

The costs of owning a property in the Czech Republic differ depending on the individual property, its location and other individual circumstances. However, as a general guide owners should bear in mind the following:

• Rental income – rental income is considered corporate income and taxed at a flat rate of 24%. Foreigners purchasing through a company can reduce their tax liabilities by deducting interest payments, operational costs and depreciation.
• Personal taxation – non–residents are taxed only on income received from a Czech source. This includes rental income, interest payments and dividends. Foreign nationals who have a permanent home in the Czech Republic, or who spend more than 183 days per calendar year there (not necessarily consecutive), are considered tax residents and taxed on income from all sources.
• Annual property tax – this is usually minimal, and varies depending on the classification of the building. Tax on residential properties is less than that on commercial ones.
• The UK has a double taxation treaty with the Czech Republic; tax is paid in one country or the other, not both.
• Capital gains tax – capital gains are taxable as ordinary income at the flat rate of 24%.
• Inheritance tax – inheritance tax and gift tax are levied anywhere between 1 and 40%, depending on value.
• The long-terms costs of owning an SRO – a Czech limited liability corporation – are threefold:
  • the cost of a registered office rental (‘Sidlo’). This is usually a mail address rather than an actual business location. In the cases of only having an SRO for real estate purposes, the ‘Sidlo’ can be registered at the newly purchased property.
  • annual business accounting – the fees will vary from accountant to accountant but an average annual guideline figure is approximately €300.
  • annual tax filing – this should normally be part of the accountancy fees.

Related items

Documents and Reports

	Czech Republic property investment report (360Kb)
Documents and Reports

Other related pages

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