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Property
and real estate taxation in the Czech Republic
Real estate tax is charged on an annual
basis depending on the value of the real estate and is calculated
by special evaluation rules which depend on the use of the real
estate, where it is located etc.
In practice, Czech real estate tax is not
a significant burden on the property owner.
For example, the annual tax paid on a
property valued
at Euro 100.000 comes to about Euro 35,00.
Tax on land with building permission is CZK 1 per square meter.
Real estate taxation comprises a tax on land - land tax, and a
tax on structures - building tax.
Real estate tax is generally payable
on an annual basis by the registered owner of the land or buildings,
although in very specific cases the user or the leaseholder is
the payer.
All taxpayers must file tax returns
to their financial authorities by 31st January of the first tax
period (calendar year).
Land tax is imposed on plots of land
entered in the Land Register and is payable by the owner or user.
Tax on land with building permission
is CZK 1 per square meter.
Building tax is calculated according
to the registered ground area of the building:
CZK 1, 5 or 10 per square meter in the case of business premises
and CZK 1,3 or 4 per square meter for residential buildings;
this amount is increased by CZK 0.75 per square meter for each
additional floor.
In built-up areas both land tax and
building tax are multiplied by a coefficient that varies according
to locality, ranging from 0.3 to 4.5 (the highest coefficient
is applicable in Prague).
Real estate transfer tax is charged
at a uniform rate of 5 % of the sale price of a property, or the
usual market price, whichever is higher, and is payable by the
seller (the buyer is a guarantor).
See:
Property sale taxation in the
Czech Republic
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