Why the Czech Republic?

• Central European location with strong economic growth and EU stability

• Booming tech industry, manufacturing, and services sectors

• Prague is a global city with high tourism, expat appeal, and rental demand

• More affordable than Western European capitals while offering strong modernization

• Increasing popularity in regional cities like Brno and Ostrava

Can Foreigners Buy Property in the Czech Republic?

Yes—non-EU foreigners and EU citizens alike can freely purchase residential and commercial real estate, with no special permit required.

• Property rights are identical to those of Czech nationals

• No restrictions on companies or individuals of any nationality

Residency & Permit Programs 2025

• No Golden Visa tied to real estate investment

• Residents must apply under standard routes: employment visas, business permits, long-term residence with family

• Owning property can support a residency application (proof of accommodation), but is not sufficient on its own

Legal Process of Buying Property

1. Obtain a Czech tax number (DIČ)

2. Open a local bank account

3. Hire a notary or legal advisor to perform due diligence

4. Sign an advance purchase agreement (usually with 10% deposit)

5. Conduct property inspections, survey and title checks

6. Conclude transaction with a deed of sale before a notary

7. Notary registers transfer in the Czech Land Registry

8. Taxes and fees paid either via notary or tax authorities

Taxes & Fees

• Transfer tax: abolished in 2020—no tax on property purchase

• Notary & registration fees: ~1%–2% of purchase price

• Agent fees: Typically 3%–5% of sale price, paid by buyer

• Annual property tax: CZK 2–10 per m² depending on location (~€1–5/m²/year)

• Capital Gains Tax: 0% if property held for ≥5 years; otherwise 15% on profit

• Rental Income Tax: 15% flat rate on gross rental income minus allowable expenses

Mortgage Availability for Foreigners

• Czech banks generally offer mortgages to EU and non-EU buyers with proof of income

• Loan-to-Value (LTV): up to 80% for residents, 60–70% for non-residents

• Interest rates in 2025 range between 3%–5%, depending on profile and loan term

• Stronger conditions and higher down-payment required for non-residents

Is the Czech Republic Right for You?

✅ Ideal for:

• Investors seeking stable EU markets with no purchase tax

• Expats working in Prague or regional Czech companies

• Buy-to-let investors targeting student and professional rentals

• Value-conscious buyers looking for modernization and appreciation potential

❌ Less ideal for:

• Buyers expecting visa rights from property ownership

• Investors seeking ultra-high yields—occasional cooler markets in smaller towns

• Those disinterested in handling Czech-language contracts and bureaucracy

Top Places to Buy in the Czech Republic (2025)

Prague (Districts 1–10, Vinohrady, Žižkov)

• High demand: tourism, expats, strong long-term rental potential

• Central neighborhoods command high prices—but resilience remains strong

Brno (Černá Pole, Veveří)

• Tech and university hub, strong rental demand and affordability

Ostrava

• Emerging industrial centre with low entry costs—ideal for investors on a budget

Plzeň

• City of innovation and engineering; family-friendly and commuting-friendly

Olomouc & Hradec Králové

• Regional university towns with steady rental markets and growth potential

Rental Yield & ROI Overview

Trends in 2025

• Continued influx of international companies boosting regional demand

• Conversion and refurbishment of older apartments to modern standards

• Student and short-let market growth in university cities

• Sustainable building and retrofitting gaining traction under EU incentives

Common Mistakes to Avoid

• Overlooking agent fees—can reach 5% of property value

• Ignoring rental market nuances (expats vs. students vs. locals)

• Failing to verify energy performance certificates and renovation permits

• Assuming residency rights come with ownership

• Skipping detailed transaction review in Czech language

Conclusion

The Czech Republic offers foreign investors stable, tax-efficient opportunities with no purchase tax and a strong rental ecosystem. While yields are modest in Prague, regional cities can deliver better net returns. Property ownership is straightforward—but requires local expertise, language support, and diligence for long-term success.