Home » Czech Republic » Czech Republic – Property Taxes

Czech Republic – Property Taxes

In the Czech Republic, property tax, also known as “real estate tax” is levied on the value of the property and is paid annually to the local municipality. The rate of property tax varies depending on the municipality and the type of property. For example, the property tax rate for residential properties in the city of Prague is 0.4% of the property’s value.

Capital Gains Tax (CGT)

When a property is sold, the capital gains tax (CGT) is levied on the difference between the sale price and the acquisition cost. The CGT rate in Czech Republic is 15% for individuals and 19% for companies. However, there is an exemption for the CGT if the property is the main residence of the seller and has been held for at least two years.

Inheritance Tax

In Czech Republic, inheritance tax is levied on the value of the property inherited. The tax rate varies depending on the relationship between the deceased and the inheritor, with a higher rate for non-relatives. For example, the inheritance tax rate for a child inheriting from a parent is 5%, while the rate for a non-relative inheriting from a deceased is 40%.

Gift Tax

In Czech Republic, gift tax is levied on the value of the property gifted. The tax rate varies depending on the relationship between the giver and the receiver, with a higher rate for non-relatives. For example, the gift tax rate for a parent giving a gift to a child is 5%, while the rate for a non-relative giving a gift is 40%.

Tax on Property Income

In Czech Republic, if a property is rented out, the income generated from the rental is subject to income tax. The tax rate is the same as the individual’s income tax rate. For example, if the individual’s income tax rate is 15%, the rental income tax rate is also 15%.

Tax Advantages in Buying a House in Czech Republic


Get Our Best Articles Every Month!

Get our free moving abroad email course AND our top stories in your inbox every month


Unsubscribe any time. We respect your privacy - read our privacy policy.


Mortgage Interest Deduction

In Czech Republic, mortgage interest paid on a property can be deducted from the individual’s income tax. This can provide significant tax savings for homeowners with mortgages.

Primary Residence Exemption

In Czech Republic, if a property is designated as the primary residence of the owner, the capital gains tax is not levied when the property is sold, as long as the property has been held for at least two years. This can provide significant tax savings for homeowners who sell their primary residence.

Tax Relief for First-Time Homebuyers

In Czech Republic, first-time homebuyers may be eligible for tax relief, such as a reduction in the property transfer tax, which is levied on the sale of a property. This can provide significant savings for first-time homebuyers.

VAT
Czech Republic has a VAT rate of 21% for new constructions or substantial renovations, and 6% for resale properties.

>


Latest Videos

In this short video, we dive into the significant health care updates and changes happening globally in 2024. From Germany's insurance cost adjustments to Cyprus's renewed COVID-19 precautions, we cover the essential news you need to know.  Germany's Health Insurance Update:  Starting in 2024, residents in Germany will see a slight increase in their health insurance costs, with a 0.1% rise to a maximum of 1.7%. This adjustment aims to expand coverage for medical care not currently included in statutory health insurance, such as select dental treatments, IVF, and early cancer screenings.  COVID-19 Measures Reintroduced in Cyprus:  With over 3000 new COVID-19 cases, Cyprus is stepping up its game by reintroducing health measures. Requirements now include proof of a negative COVID-19 test for entry into various facilities, emphasizing the importance of vaccination, especially for the elderly, to combat the evolving virus strains.  Free Health Trials in Trieste, Italy:  Trieste launches an initiative for free health screenings, including echocardiograms and blood tests, focusing on preventive care against non-communicable diseases. This move underscores the city's commitment to improving public health through early detection and prevention.  Spain's New Health Advice App:  Madrid introduces a groundbreaking app offering reliable health advice to counteract the widespread misinformation online. This app, part of the 'Madrid Te Cuida' initiative, will guide users to accurate information, from diet tips to medical queries, ensuring the advice is vetted by health professionals.  Expat Satisfaction with Healthcare in Mexico:  A study reveals that expat retirees in Mexico are largely content with the healthcare quality and costs, with many citing significant savings compared to the United States without compromising on care quality. This insight sheds light on the growing trend of healthcare tourism and relocation for medical reasons.  Stay tuned as we unpack these updates, providing you with the insights and implications of these healthcare changes. Whether it's the impact on your wallet or the quality of care you can expect, we've got you covered in this comprehensive overview of health care in 2024. Don't forget to like, share, and subscribe for more health news around the globe!

In this short video, we dive into the significant health care updates and changes happening globally in 2024. From Germany's insurance cost adjustments to Cyprus's renewed COVID-19 precautions, we cover the essential news you need to know.

Germany's Health Insurance Update:

Starting in 2024, residents in Germany will see a slight increase in their health insurance costs, with a 0.1% rise to a maximum of 1.7%. This adjustment aims to expand coverage for medical care not currently included in statutory health insurance, such as select dental treatments, IVF, and early cancer screenings.

COVID-19 Measures Reintroduced in Cyprus:

With over 3000 new COVID-19 cases, Cyprus is stepping up its game by reintroducing health measures. Requirements now include proof of a negative COVID-19 test for entry into various facilities, emphasizing the importance of vaccination, especially for the elderly, to combat the evolving virus strains.

Free Health Trials in Trieste, Italy:

Trieste launches an initiative for free health screenings, including echocardiograms and blood tests, focusing on preventive care against non-communicable diseases. This move underscores the city's commitment to improving public health through early detection and prevention.

Spain's New Health Advice App:

Madrid introduces a groundbreaking app offering reliable health advice to counteract the widespread misinformation online. This app, part of the 'Madrid Te Cuida' initiative, will guide users to accurate information, from diet tips to medical queries, ensuring the advice is vetted by health professionals.

Expat Satisfaction with Healthcare in Mexico:

A study reveals that expat retirees in Mexico are largely content with the healthcare quality and costs, with many citing significant savings compared to the United States without compromising on care quality. This insight sheds light on the growing trend of healthcare tourism and relocation for medical reasons.

Stay tuned as we unpack these updates, providing you with the insights and implications of these healthcare changes. Whether it's the impact on your wallet or the quality of care you can expect, we've got you covered in this comprehensive overview of health care in 2024. Don't forget to like, share, and subscribe for more health news around the globe!

YouTube Video UCB21b-C4O2aXm7H18_GsXMQ_nC_Fs6gU22U

Expat Focus International Healthcare Update January 2024

Expat Focus 31 January 2024 10:36 am

This error message is only visible to WordPress admins

Important: No API Key Entered.

Many features are not available without adding an API Key. Please go to the YouTube Feed settings page to add an API key after following these instructions.