Property Taxes in the Czech Republic

From calculating what you owe, to filing your first return, to paying up, a Prague-based accountant offers a basic guide to the process



By Renée LeMoine, BlueQ Wed 7th Feb, 2007 [updated Wed 7th Feb, 2007]

ADVERTISEMENT This is a sponsored article provided by BlueQ, one of Prague TV's trusted partners.

General Information about Property Taxes in the Czech Republic

Property tax returns (daň z nemovitosti) are due January 31st. The Czech Republic doesn't calculate property according to the market value, but rather according to the size of the property. Consequently, property taxes here are very inexpensive in comparison to other countries. The base property tax rates are different depending on the purpose of the property.

You must file a property tax return the first year, and then, once your property tax rates have been established and approved by the financial authorities, you just need to pay the same tax amount each year on or before May 31st if less than 5,000 CZK in taxes are due.

Property taxes are not paid on new apartments until the building has been inspected and approved by the local building inspection authorities (Stavební Úřad) for construction code compliance. The inspectors will issue an inspection approval (Kolaudační Rozhodnutí) verifying this to the tax office. After this, the owner of the property whom is listed in the Czech Republic's Property Registry (Katastralní Úřad) is the party responsible to pay the property taxes.

If an apartment has been remodelled, then another inspection must be conducted. Consequently, new rates are established and another return must be prepared by January 31st the following year.

The property return includes separate estimates for building and land. The base rates for building and land taxes are set by the law, but vary by city. The base rates are 1 CZK per square meter, 4 CZK per square meter for garages, and 0.10 CZK per square meter of land, multiplied by a coefficient of 1.20, then multiplied by the city rate, which is determined by the city's population size. In Prague, the local rate is 5.0.

Therefore, as an example we can preliminarily calculate the property tax due for an 85 square meter apartment in Prague without a garage and land:

(85 square meters x 1.2) x 5.0 = 510 CZK property tax due for one year

However, there are many exceptions and rates can also vary by districts within the city. As you can imagine, the process for understanding these exceptions and knowing the local authority's rates, along with re-calculating the final tax rate is daunting. It is recommended that you get an experienced Czech advisor to accurately calculate the tax rate which must be paid each year, and to prepare your tax return

Tax Payments Process

Property taxes are paid to the tax office in the region where the property is located to a bank account specially set up for this purpose. Taxes can be paid by bank transfer, or in cash at the tax office's cash desk (pokladna).

All other taxes are paid to the tax office (Finanční Úřad) where your company or your EU card (a Czech residency permit for European Union citizens) is legally registered. For each tax due, whether it's corporate tax, road tax or value added tax (VAT), there's a separate bank account, with its own number, into which your monies must be paid. The payments your company makes will be identified by a number (variabilní symbol or VS) matching your company's business license number (IČO). EU card holders must inform the tax office of the tax ID number that they will be using, which is often their passport number.

• For more information on property taxes in the Czech Republic, please contact BlueQ

Article added on Wed 7th Feb, 2007 [last updated Wed 7th Feb, 2007]

COMMENT ON THIS ARTICLE

READ ALL REAL ESTATE ARTICLES MORE REAL ESTATE ARTICLES

2010 Czech Property Forecast by Nathan Brown
An Optimistic Look Ahead
Added on Tue 5th Jan, 2010 (Last updated Tue 5th Jan, 2010)

Investing in Real Estate Investment Funds by Martin Kolmhofer, Lifestyles Magazine®
Lifestyle Magazine
Added on Wed 9th Jul, 2008 (Last updated Wed 9th Jul, 2008)

Property Negotiation in the Czech Republic - Four Critical Points by Nathan Brown
The 'Must Know' Factors
Added on Tue 12th Jun, 2007 (Last updated Tue 12th Jun, 2007)

Czech Property Purchase Process and Timeline by Nathan Brown
How Long Until Handover?
Added on Tue 5th Jun, 2007 (Last updated Tue 5th Jun, 2007)

Browse categories	List your business
Accommodation	Art and Culture
Business	Community Organizations
Dining	Education
Financial Services	Government and Utilities
Health & Wellness	Jobs
Media	Nightlife
Performers	Real Estate
Religion	Relocation
Services	Shopping
Sightseeing & Attractions	Sports & Recreation
Technology	Travel

Prague Real Estate	Search properties
List rental apartments	Home Hunter service
List sale apartments	List your property
List new developments	Property investment
Articles & FAQs	Real Estate Agencies
Partner services	Realtor signup

Post a free ad	Announcements
Education	Family and kids
Flat share	Flats offered
Flats wanted	Items for sale
Items wanted	Jobs offered
Jobs wanted	Lost and found
Miscellaneous	Personal
Ride sharing	Services

Post to Q and A	List all posts
Art & Culture	Business
Czech Language	Education
Expat life	Food & Dining
Health	Jobs
Nightlife	Parents & Kids
Real Estate	Relocation & Visas
Shopping & Services	Site News
Sports & Recreation	Technology
TEFL	Travel
Visitors & Tourism

Property Taxes in the Czech Republic

GOLD LISTINGS