Since Czech Republic
became a member state of the European Union (EU), the process of buying a property
here is much easier for foreign companies
or foreign individuals who are interested in owning an apartment or building here. Although the Czech legislation
stipulated that EU citizens who do not have a residence permit in Czech Republic
are not allowed to own a property
here, the applicable law changed its provisions, allowing EU citizens to purchase a property
without the issuance of a residence permit
. If you are interested in buying a property
here, our Czech law firm
can offer you assistance through this procedure.
Buying property in Czech Republic
According to the legislation applicable in Czech Republic, several categories of individuals are not imposed any restrictions in terms of acquiring a property:
• Czech citizens;
• legal entities which have the headquarters established in Czech Republic;
• foreign individuals owning a residence permit on the territory of the Czech Republic;
• individuals who have applied for asylum in Czech Republic and who were granted with this right.
The legislation stipulated that EU citizens are not allowed to buy a property for seven years after moving to Czech Republic, but the provision has been amended in 2009. As such, European citizens (including persons from Iceland, Norway and Liechtenstein) can request the right to reside in Czech Republic as long as they can prove they have sufficient financial funds to sustain themselves.
In order to apply for the right to reside in Czech Republic, any EU citizen should file the following documents:
• two photos;
• passport/ identity card;
• health insurance certificate.
Procedures for buying a property
It is recommended that, after you have found the property you’d like to live in, to perform due diligence procedures
. The purchase should take place under the supervision of a Czech lawyer
and a real estate agent.
You will have to sign a reservation contract (which shows the interest in buying a certain property) and the contract of deposit, in which you will pay a certain percentage of the price of the property (customarily, the deposit varies between 10% and 30%, as agreed by the seller and the buyer). The purchase process in Czech Republic usually takes a month.
According to the Czech legislation, at the transfer of ownership, the seller will have to pay a real estate acquisition tax (4% of the selling price) and an agent fee (2,5% to 5%), usually paid by the buyer.