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Buying Property

Czech Republic - Buying Property

The most common (and easiest) way for a foreigner to legally purchase property is by establishing an SRO in their name. An SRO is a limited liability corporation registered with the Companies Registrar in the Czech Republic. An SRO can also be a useful tool for dealing with taxes and local compliance issues. An SRO designed specifically for purchasing real estate does not require a separate business license.

Documents needed for setting up an SRO:

- Bound copy of all registration documents
- Certificate of incorporation
- Change of registered address
- Change of company name
- Notary fees
- Stamp duties
- Legal representation to Commercial Court
- Memorandum of Association (translated)
- Minutes of General Meeting (translated)
- Any standard translator fees

EU citizens without an SRO may purchase land (excluding agricultural or forest land) after obtaining a residence permit. However, EU (and non-EU) citizens who have set up an SRO are allowed to purchase land regardless of residency.

An individual who is a foreign resident may also own real estate in the Czech Republic in any of the following instances:

- By inheritance
- On purchasing real estate for a diplomatic representation
- Division of real estate on divorce, when one of the partners is a foreign resident
- Exchanging foreign-owned real estate in the Czech Republic with other real estate in the Republic
- Construction of a building when the land is already owned by a foreign resident

Generally speaking, the further away from Prague the cheaper the cost of real estate. Prices in the Czech Republic have been increasing at a steady pace, and are predicted to continue doing so for at least the next six years, until they reach parity with real estate prices in adjacent European countries.

However, it is still possible to purchase property at a significant saving when compared to similar properties in the rest of Europe. It is important to utilize the services of a reputable real estate agency when looking for property.

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