On our website you can find both residential and commercial property for sale. We sell apartments, family houses, villas, hotels, apartment blocs, office buildings and chateaux. Czech republic is a stable and prosperous country suitable for investors. Czech central bank is keeping the exchange rate of the crown artificially low with regular interventions. The real value of Czech currency is higher and the interventions are not going to last forever.
Prague residential and commercial property for sale - prices
Prices of real estate in Czechia are significantly growing during the last three years and it seems that the factors causing this development are here to stay for couple more years. Low interest rates, low mortgages and investors looking for safe territory where to increase the value of their assets. Czech crown and thereby its real estate are undervalued.
Prices are growing mainly in Prague, since 2012 they have grown by one third. Average price per square meter of a new flat in Prague is 70 thousand CZK. In previous years it was between 60 and 65 thousand CZK per square meter. There are not many apartments for sale in 45 thousand per sq. meter category.
Price growth applies mainly to new apartments, but second hand flats are growing as well, although at a slower rate. In Prague centre in popular quarter Vinohrady it is possible to buy second hand apartment for 90 thousand CZK per sq. meter. New apartment in the same location would cost nearly 150 thousand per sq. m. Prices of houses and commercial properties are growing as well. Demand is increasing regarding hotels, castles and office buildings.
Prices of construction plots have increased, among other due to newly introduced VAT on construction land. This new tax applies only if the seller is registered for VAT. However, most developers are registered for VAT. Example of price consequences - if an average of 850 sq. m. plot of land for family house sold for 4 - 5 million CZK, in 2016 its price increased by 1 mil. CZK. In regional centres like Ceske Budejovice this increase would be approximately 0.3 mil. CZK.
Taxation of Czech Real Estate
There is a Property Transfer Tax of 4% to be paid by the seller from the sale price of the property. This rule should change soon and the obligation to pay this tax would be switched from the seller to the buyer. Newly constructed residential sales are subject to 15 % VAT, up to certain size. Luxury, newly built properties are subject to 21 % VAT. New commercial properties are also subject to VAT of 21% of the sales price. This year there is a new VAT introduced on construction plots with utility networks, also with the base rate of 21 %.
Still Czech republic is one of the countries with lowest tax burden in the area of real estate. Annual tax on real estate is negligible, there is no inheritance tax among close relatives. Hotels, apartment houses and other commercial properties are often sold via Czech registered companies to avoid paying property transfer tax of 4 %.
Rules governing purchase of Czech real estate by foreigners
There are no limitations for foreigners to purchase Czech property. Foreigner has equal rights as a local citizen. This is not the case in many other countries targeted by investors.