Real Estate Taxes in Czechia

Nonresidents are liable to tax only on their income from Czech sources. Spouses with at least one child may opt to be taxed jointly under certain conditions. Nonresidents are allowed to avail of tax credits, provided that they earn 90% of their income from Czech sources.

Income Tax

Taxable income is generally an aggregate of all kinds of income, less the allowable expenses. Income is taxed at a progressive rate of 15% - 23%.

Income Tax Rates 2024

Taxable Income (CZK) Tax Rate
Up to CZK 1,582,812 (€64,246) 15%
Over CZK 1,582,812 (€64,246) 23% on all income over CZK 1,582,812
Source: Global Property Guide

Rental Income Tax

Rental income from a non-business property jointly owned by a married couple shall be taxed as income of only one of them. Rental income is taxed as part of a taxpayer’s annual income.

  • Standard deduction of 30% of gross rent in lieu of itemized deduction of actual expenses; maximum of CZK600,000 (€24,354).

Capital Gains Tax

Gains on the sale of property in the Czech Republic are generally included in the computation for the aggregate taxable income and taxed at the standard income tax rate of 15%. Capital gains are generally computed as selling price less acquisition costs.

Capital gains on the sale of non-business property are exempt from tax if the owner has held the property for at least 5 years.

Corporate Taxation

Income Tax

Corporate income and capital gains earned by companies are subject to a flat corporate tax rate of 21%. Income-generating expenses are deductible when calculating taxable income.

Property Buying Costs and Taxes in the Czech Republic

Description Cost Range Who Pays
Property Transfer Tax 0.00% Buyer
Agent Fee Buyer 2.50% - 5.00% Buyer
Agent Fee Seller - Seller
Legal Fees 1.00% (+19% VAT) Buyer
Notary Fees 0.20% Buyer
Roundtrip Cost 3.70% - 6.20%   
Source: Global Property Guide, KPMG

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