Home Property in Czech Republic
How to buy a house in Czech Republic?
Here you will find the detailed information about real estate purchasing in Czech Republic:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Czech Republic;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Czech Republic and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
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Prices for real estate in the Czech Republic vary in different regions. Property in the west is particularly cheap. An affordable apartment or house is most likely to be found in Karlovy Vary or Ústecký regions.
For example, a 70 sq. m. apartment in Teplice costs around €12 000. A 55 sq. m. apartment in Karlovy Vary can be purchased for €20 000. Private houses are somewhat more expensive. A moderately-priced cottage with an area of 300 sq. m. in Ústecký region is worth around €50 000.
Luxury sector of Czech real estate market is mostly concentrated in the capital. For instance, a premium apartment in Prague with an area of 360 sq. m. costs approximately €2 000 000. A luxurious 900 sq. m. villa on the outskirts of the capital is worth some €1 300 000. While a real castle with an area of 6000 sq. m. can be purchased for €4 000 000.
Czech real estate market is attractive for investors, particularly with its commercial segment. It is hardly surprising, since the country’s capital offers a wide range of objects for profitable investments. For example, shopping premises with an area of 155 sq. m. in Karlovy Vary are worth €70 000. As a comparison, a 75 sq. m. shop in Prague goes for some €220 000. A 30 sq. m. office in the capital can be purchased for €60 000. Prague also offers a wide variety of hotels, ranging from small to premium. A gorgeous hotel with an area of 1800 sq. m. is worth €20 000 000.
Let’s figure out, how to purchase an apartment in the Czech Republic.
Opening a bank account
All transactions related to Czech property purchase are handled by means of bank transfers. Thus, the first step for a buyer is to open a personal account in a Czech bank. This process takes 30–40 minutes and requires international passport. In order to activate the account, it is necessary to make a minimum deposit of €10.
Signing a preliminary agreement
The procedure of property purchase starts after the object has been selected and its final value has been agreed upon. Property reservation agreement is signed, and buyer makes a deposit from €2000 to 5 % of property value. The agreement includes all terms of property purchase, requisites of both parties, possible failure conditions and relevant liabilities, in case one party violates the terms of this contract.
Another agreement, regulating the procedure of money transfer, should also be signed. According to this document, the whole object value, except for initial payment, is transferred to a special account, opened for this very reason. These funds are transferred to the seller, only after title of ownership is registered in the buyer’s name.
Principal sale and purchase agreement
The next step in Czech real estate acquisition involves signing a principal sale and purchase agreement. This document is signed by both parties and has to be notarized. Principal agreement is executed in Czech language only. However, if requested, it can be submitted to the organization of court interpreters for translation into Russian. The transaction amount should be transferred to the seller’s account on the same day, as principal sale and purchase agreement is executed.
Ownership rights are transferred to the buyer only after the object of property has been registered. For this reason, sale and purchase agreement has to be recorded in the cadastral register. Registration process may take from one week up to several months. A registered principal agreement will have the state seal on its back. According to this document, after a new owner has been recorded in the cadastral register, the remaining transaction amount is transferred to the seller.
After title of ownership has been transferred, a new owner has to renew agreements on the supply of utilities (such as gas, water, electricity, telephone, etc.) to their name. New owner should also take out insurance on real property and register in a local tax office.
Real estate tax in the Czech Republic, as of 2015:
- property sale tax – 3 % (paid by seller);
- investments in Czech real property are taxed by VAT, which is 10–20 % of the object value (liable to payment only for new-built property, depending on housing area);
- Czech apartments with an area under 120 sq. m. and houses under 350 sq. m. are taxed by 10 % VAT;
- for apartments and houses with a larger area, VAT is usually included in the property value.
Additional real estate charges in the Czech Republic:
- registration fee – 0.02 % of the object value;
- notary fee – 1 % of the object value;
- property assessment (covered as agreed by the parties – either by buyer or by seller) – 100–200 Euros, depending on area of purchased property. archived version