Guide to Property Taxes in Czechia

Nonresident individuals are generally subject to Czech income tax only on income derived from Czech sources, including rental income and taxable gains from real estate situated in the Czech Republic. Individuals are taxed separately for income tax purposes. Access by nonresidents to certain personal tax allowances and credits may depend on their residence status, the proportion of their income derived from Czech sources and, in some cases, whether they are resident in an EU or EEA country.

Income Tax

Taxable income is generally subject to progressive personal income tax rates of 15% and 23%. The 15% rate applies up to the statutory annual income threshold, with the 23% rate applying to the portion of the tax base exceeding that threshold. For 2026, the 15% rate applies to taxable income up to CZK 1,762,812 per year (approximately €72,400), while the 23% rate applies only to the portion of taxable income exceeding this threshold.

Rental Income Tax

Rental income earned by a nonresident individual from real estate situated in the Czech Republic is generally subject to personal income tax at rates of 15% and 23%. The 23% rate applies only to the portion of the annual tax base exceeding the applicable statutory threshold.

Taxpayers may generally deduct actual qualifying expenses or elect a standard expense deduction equal to 30% of gross rental income, subject to a maximum deduction of CZK 600,000 per year.

Assuming the 30% standard expense deduction is used, the taxpayer has no other Czech-taxable income and the standard basic taxpayer credit is available, the approximate effective income tax burden is 3.5% of gross rental income at €1,500 per month, 8.7% at €6,000 per month and 11.2% at €12,000 per month.

Capital Gains Tax

Taxable gains from the disposal of Czech real estate are generally included in the individual's income tax base and subject to the applicable personal income tax rates of 15% and, where the relevant threshold is exceeded, 23%. The taxable amount is generally determined after deducting the property's acquisition cost and other qualifying expenses from the disposal proceeds.

Income from the sale of qualifying real estate may be exempt from income tax where the applicable ownership-period test is satisfied. For property acquired on or before 31 December 2020, the general holding period is five years. For property acquired from 1 January 2021, the general holding period is ten years.

Separate exemptions may apply to certain residential property. In particular, income from the sale of a qualifying house or apartment may generally be exempt where the seller had their residence there for at least two years immediately before the sale. Additional exemptions may apply where sale proceeds are used to meet the taxpayer's own housing needs, subject to the applicable conditions and notification requirements.

Corporate Taxation

Corporate income and taxable gains derived by companies are generally subject to Czech corporate income tax at the standard rate of 21%. Qualifying expenses incurred in generating, securing and maintaining taxable income are generally deductible when determining taxable profit.

Property Buying Costs and Taxes in the Czech Republic

Annual Property Tax

Real estate located in the Czech Republic is subject to an annual Real Estate Tax (daň z nemovitých věcí), which applies to taxable land, buildings and individual property units. The tax is generally calculated using statutory rates based on factors such as the type and size of the property rather than as a fixed percentage of its market value.

The final tax liability may be adjusted by coefficients, including local coefficients established by the municipality where the property is located. As a result, the annual property tax payable can vary considerably according to the property's location, size and use. The tax applies to Czech real estate regardless of whether the owner is a Czech resident or nonresident.