Property taxes in the Czech Republic

Before one decides to purchase property in the Czech Republic, he needs to find out the future expenses. So, what taxes are waiting for investors and owners?

To begin with, the real estate tax is of the group of so-called property taxes. As a whole, property taxes are imposed by a municipal corporation or state on the premise owned by resident or foreigner. In the Czech Republic, the most considerable property taxes are imposed on a variety of kinds of private ownership. For instance, these can be plots of land, apartments, houses and heritage.

One should also draw the attention of the interested to the fact that property taxes are practically every time based on the cost of ownership. Therefore, the real estate tax can`t be called an exclusion. Speaking about how the real estate tax is determined, it`s necessary to remember a particular pattern. In case one`s property is situated in an appealing district by the city centre, one will pay a higher tax, which can seem unreasonable. Notwithstanding the investor shouldn`t be nervous since the real estate tax in the Czech Republic isn’t a destroyer of the budget. Its number commonly hesitates in hundreds of Czech korunas (CZK).

Annual Property Tax in the Czech Republic

Property tax (in Czech, Daň z Nemovitosti) is levied annually. First and foremost, the newly-made owner must be registered with the tax inspectorate at the location of the property. Furthermore, it is of utmost importance to submit a declaration in the year of purchase. Although it should be done until January 31st, the action must be accomplished just once. In the following years, a fiscal itself will set off invoices for payment.

For instance, one should pay approximately € 50 per year for an apartment in Prague (and this is the most high-priced city from the point of view of tax rates) with an area of 60-80 square meters, for a private house the owner will send to the fiscal less than € 100.

Nowadays, paying property tax is required until May 31. If a delay takes place, a penalty will be imposed in the amount of 0.05% of the total for each day. Consequently, one must be aware of that if the payment is done pretty late, penalties may surpass the tax itself.