Real Estate Information

Buying or renting a property, whether as a residence or for commercial uses, requires a thorough knowledge of up-to-date regulations and a perfect overview of the current situation in the Czech Republic and its real estate market trends. Let the erudite experts from Svoboda & Williams, with their long-term experience and vast know-how, guide you through every step and through all aspects pertaining to buying and renting property here. They will also go over all of your options for financing the purchase of your chosen property.

What You Should Know About the Czech Real Estate Market:

Property tax

All real estate in the Czech Republic is subject to an annual nominal property tax. Its amount is determined by the type of property, its area, and location. The tax must be paid by anyone who became a real estate owner in the previous calendar year, for example by purchasing it, receiving it as a gift, or as part of an inheritance. It also applies if the owner has significantly changed the parameters of the property (extensions, conversions, changes to the zoning character of the plot, etc.).

Property acquisition tax

The property acquisition tax was abolished on September 26th, 2020, with retrospective effect from December 1st, 2019.

Income tax

This tax of 15% is levied on the gains from the sale of a property owned by the owner for less than 2 years, if the owner thereof resides in the property. The time test for exemption from this tax, in the event of the sale of investment properties, i.e. those where the owner does not live, is 10 years. For properties acquired before January 1st, 2021, the time test is 5 years. If the funds were used to satisfy one’s own housing needs, the law provides for certain exemptions. Profits from rental properties owned by individuals are also subject to a 15% income tax. In cases where the property is owned by a company and produces a profit, this profit is subject to a 19% tax.

VAT on sales (new builds and recently built residential units)

This tax applies to new buildings and recently constructed residential units. The sale of real estate that is less than 5 years old is subject to VAT of 21% of the purchase price, with the exception of so-called social housing buildings, which are subject to a reduced VAT rate of 12%. Apartments with a total floor area of no more than 120 m² and family houses with a total floor area of no more than 350 m² meet the criteria for social housing buildings.

Only VAT payers are subject to VAT on the sale of real estate.

Services for foreigners living in Prague

Relocation

We tailor our relocation services to the needs of our clients, which commonly include work permit applications, customs clearances, and the like. We introduce newcomers to Prague and everything the city offers, from schools, municipal districts, medical facilities, restaurants, to entertainment centers. We will happily provide any and all other information that will help expats settle into their new home. We can also recommend suitable cleaning services and babysitting agencies. Have a look at the Lifestyle section of svoboda-williams.com and All about housing at feelhome.cz for more details about life in Prague.

Legal services

Svoboda & Williams offers comprehensive legal assistance for our clients provided in cooperation with external law firms. Click on Legal services for more information.

Prague’s municipal districts

Prague has 22 numbered districts. The wider city center is spread out over the districts of Prague 1 and 2, part of Prague 7, and the Vltava embankment section of Smíchov in Prague 5. These are the oldest and most beautiful parts of Prague.

Areas of interest for investors

Prague 1 is a district with an entirely historic character. It straddles both banks of the Vltava River and Malá Strana (Lesser Town), Old Town, the Jewish Quarter, and Prague Castle (Hradčany) are all within its borders as are Charles Bridge and Old Town Square.

Old Town is the historic center of Prague 1. Dedicated monument care in preserving its ancient architecture gives Old Town its unique atmosphere, to which the numerous restaurants, cafés, shops, and cultural and entertainment centers therein also contribute in no small part.

The Josefov Quarter, encircled by Old Town, is a true architectural gem. Its elegant, richly decorated Neo-Classical and Art Nouveau buildings stand side by side, giving a sense of the richness of times past. In Josefov, you will find five of the city’s most famous synagogues, the Old Jewish Cemetery, and Prague's most luxurious street—Pařížská Street.

Malá Strana is located on the left bank of the Vltava River directly below Prague Castle. It is a romantic old quarter with picturesque houses and narrow cobblestone streets that wind upwards towards the castle. Malá Strana has a unique peaceful charm that you are hard pressed to find on the other side of the river.

Hradčany surrounds the Prague Castle complex towering over the Lesser Town. In the past, Hradčany was part of the castle grounds.

Prague 2 has a strong residential character, and in this it differs somewhat from Prague 1. Although quieter, it also bustles with activity. Architecturally, it dates back to the late 19th and early 20th century.

Vinohrady is a residential district directly above the National Museum. Although it is located near Old Town, it is less popular with tourists. Most of the apartment buildings were built in the second half of the 19th century or early 20th century and boast high ceilings, traditional lines, and ornate facades.

New Town was founded in the 14th century by King Charles IV. It is situated on the right bank of the Vltava River, south of the National Theater. New Town lies partly within the territory of Prague 1, but its main section is in Prague 2. The architecture here dates from the late 19th and early 20th century, but unlike Vinohrady, it has a more modern urban character.

Prague 4 is one of the largest urban districts in the southern part of Prague, spanning an area from the lower edge of the city center to the outskirts of Prague. The southern end of Prague 4 consists of many small villages, residential areas, and an open agricultural countryside. Here, you will find several leading wholesalers, shopping malls, and newly built modern office complexes.

Prague 5 begins at the left bank of the Vltava River and occupies the southwestern part of the city. The area is characterized by many detached houses, terraced houses, and apartments in residential buildings. Prague 5 is being rapidly developed, with many new residential and commercial projects emerging here.

The Vltava embankment covers the territories of Prague 1 and 2, and the northern part of Prague 5. It is basically in the city center and offers many beautiful apartments in Neo-Classical and Art Nouveau buildings from the turn of the 19th and 20th centuries, from whose windows and balconies you can enjoy magnificent views of the river and numerous Prague architectural gems.

Prague 6 covers the area from Prague Castle to the northwestern border of the city. It is predominantly a residential area with detached family houses surrounded by gardens. Most of Prague's diplomatic community lives and works in Prague 6.

Prague 7, located by a bend of the Vltava River within easy reach of the city center, is mainly made up of urban apartment buildings. Letná, located between the popular Letenské Sady and Stromovka parks, is one of the city’s most popular residential locations. Currently, a large development is underway in Prague 7, which includes the completely new Bubny-Zatory district being built on a large brownfield site between Letná and Holešovice.

Prague 8 is situated on the right bank of the Vltava River, and occupies the territory to the north and northeast of the city all the way to its outer limits. In addition to residential areas, there is also an agricultural landscape in the northern part. Developers’ attention is mainly focused on Karlín, which has been transformed in recent years into a dynamic modern district where new commercial and residential projects are being built. Modern new buildings are emerging between the neighborhood’s classic urban housing development, creating a delightfully eclectic mix.

Prague 9 is located in the eastern part of the city. Developers are currently focusing on converting the large industrial areas around Kolbenova and Poděbradská streets into residential projects.

Prague 10 includes a section of Vinohrady consisting of elegant apartment houses and majestic villas. Its most interesting and popular part is Vršovice, which offers excellent access to the city center and includes Historicist and Art Nouveau houses, Socialist-era buildings, and modern projects. Vršovice’s main landmark is the unique Functionalist St. Wenceslas Church on Čechovo Square.