Legal Restrictions on Foreign Ownership of Property in Czech Republic
According to Czech law, foreign nationals are allowed to purchase property in the Czech Republic without any restrictions. However, there are certain restrictions on the purchase of agricultural land and forested land by foreign nationals. This is to protect the country’s natural resources and to ensure that the land is used for its intended purpose. Additionally, foreign nationals are also subject to the same mortgage and lending requirements as Czech citizens.
Average Property Prices
The average price of property in the Czech Republic varies depending on the location, with prices in Prague being significantly higher than in other regions. For example, the average price of an apartment in Prague is around CZK 90,000 (approximately $4,000) per square meter, while in other regions it is around CZK 50,000 (approximately $2,200) per square meter. Prices also vary depending on the type of property, with detached houses and villas typically being more expensive than apartments or townhouses.
Popular Locations for Buying Property
Prague is currently the most popular location for foreign buyers looking to purchase property in the Czech Republic, thanks to its rich cultural heritage, excellent infrastructure and high standard of living. Other popular locations include Brno, the second-largest city in the Czech Republic and Karlovy Vary, a spa town known for its hot springs.
Upcoming Property Markets
The Czech Republic’s property market has been growing steadily in recent years, and new developments are popping up all over the country. Some of the most promising upcoming areas include Pilsen, a city with a strong industrial tradition, and the region of South Moravia, which is known for its picturesque countryside and excellent wine.
Trends in the Property Market
The Czech Republic’s property market is currently experiencing a period of steady growth, with prices rising steadily in recent years. One of the most significant trends in the market is the increasing popularity of new developments, particularly in Prague and other major cities. Additionally, there is a growing demand for rental properties, which is attracting more and more foreign investors to the market.
Investment in Property
Buying property in the Czech Republic can be a good investment, particularly in light of the country’s growing economy and increasing demand for rental properties. However, it’s important to remember that property prices can be volatile and that there is always a risk of losing money when investing in real estate.
Common Property Types
The most common property types in the Czech Republic include apartments, townhouses, and detached houses. Apartments are particularly popular in cities like Prague, while townhouses and detached houses are more commonly found in the countryside. Additionally, there are also a number of rural properties and land-only options available for purchase. Buying property can be a good investment in Czech Republic, but it’s important to do your research and consider the specific market conditions in the area where you’re considering purchasing property.
Typical House Buying Procedure in the Czech Republic
Surveys and Inspections: Before making an offer on a property, it is recommended to have a building survey and an inspection of the property’s title deeds. This will ensure that the property is structurally sound and that there are no outstanding issues with the title deeds.
Making an Offer: Once you have found a property that you are interested in, you can make an offer to the seller through a real estate agent or directly to the seller. The offer should include the purchase price, the terms of the sale, and any contingencies.
Notary: The next step is to have the purchase contract signed by a notary. The notary will verify the identities of the parties and ensure that the contract is legally binding.
Exchange of Contracts: Once the contract has been signed, the buyer will typically pay a deposit to the seller. The deposit will be held in escrow until the closing date. On the closing date, the balance of the purchase price will be paid and the title deeds will be transferred to the buyer.
Finding a Reputable Lawyer When Buying a Property in the Czech Republic
- Look for a lawyer who is a member of the Czech Bar Association (CBA). The CBA maintains a list of certified lawyers on its website.
- Ask for recommendations from friends, family or real estate agents.
- Look for a lawyer who specializes in real estate transactions.
- Lawyer’s fee can vary depending on the complexity of the transaction, but it is generally around 1-2% of the purchase price.
Pitfalls and Problems
- Buying property in a foreign country can be difficult, so it is important to understand the local laws and regulations.
- It’s important to make sure that the property is not encumbered by any debts or liens.
- Title search should be done by a professional, as it can be difficult to understand the legal language and the details of the property’s title.
Purchasing Property Through a Company in the Czech Republic
- It is possible to purchase property through a company in the Czech Republic, but it is not very common.
- However, it is advisable to consult with a lawyer before buying a property through a company, as there may be additional tax and legal implications.