Czech Republic: moving to permanent residence in 2025

The Czech Republic has long established itself as one of the most stable and investment-attractive markets in Europe. Against the backdrop of political predictability, economic growth, and liberal legislation, the question of why to buy real estate abroad here becomes particularly relevant. Unlike countries with high entry barriers, the Czech Republic offers a clear transaction structure and guarantees for foreign investors.

Developed infrastructure, access to European markets, and high rental demand make the Czech market especially interesting for capital investment. Purchasing real estate abroad in this case ceases to be a matter of prestige—it becomes a pragmatic step towards stability and asset growth.

Czech Republic as a strategic choice: why buy real estate abroad in Eastern Europe?

Thanks to its geographical location, the Czech Republic acts as a transit center of Europe. A stable economy, neutral politics, and a high security index create an attractive business environment. This is particularly important in times of global crisis when investors’ attention shifts to markets with minimal risks.

For those considering where to invest in real estate abroad in 2025, the Czech Republic remains one of the key destinations. Here, there is a stable growth in housing and commercial property prices, as well as a steady rental income. In addition, state support for foreign investments and double taxation agreements make investments even more attractive.

Commercial real estate investment: trends and profitability

The commercial segment in the Czech Republic demonstrates stable demand. Retail spaces, office buildings, warehouses, and hotel properties quickly find tenants, especially in Prague, Brno, and Olomouc. Purchasing commercial property in the Czech Republic allows investors to generate income from both rent and resale with value appreciation.

Amid high competition in Western European countries, the Czech market remains accessible and promising. Investors from CIS countries are increasingly questioning why to buy real estate abroad, considering Prague as an alternative to Berlin or Vienna. The commercial sector shows a yield of 5% to 8% annually—figures that exceed the profitability of many European stocks.

Investment forms and legal aspects

One of the factors of attractiveness of the Czech Republic lies in the clear structure of property registration. Foreign citizens can directly own properties without the need to establish legal entities or obtain additional permits. Legislation regulates rent and resale of properties in the owner’s interests, ensuring protection of rights.

Moreover, profitable real estate investments here are not limited to housing—they cover a wide range of properties: from lofts and apartments to business centers and warehouse terminals. Foreign investors increasingly view citizenship through property investment as a long-term goal, especially given the Czech Republic’s openness to qualified expatriates and investors.

Key advantages of the Czech market

Before choosing an investment direction, it is important to consider key arguments in favor of a specific region. The Czech Republic offers several factors that make the real estate market particularly reliable:

• stable macroeconomic situation and predictable profitability;
• high rental demand from students, migrants, and professionals;
• centralized location in the EU and logistical accessibility;
• absence of currency control and flexible tax system;
• high legal security for foreign owners.

Thus, the answer to the question of why to buy real estate abroad takes on a specific investment focus.

Which properties are in demand in 2025?

Foreign buyers’ investment interest in 2025 is shifting towards properties that combine stable income and potential value growth. Primarily, these include:

• residential apartments in historic areas of Prague;
• commercial spaces with long-term leases;
• properties located near universities and business districts;
• new buildings meeting ecological standards;
• properties with potential for resale after reconstruction.

This choice not only helps preserve invested assets but also ensures their growth through market dynamics.

Who is Czech real estate suitable for?

Investing in Czech real estate will be rational for:

• businessmen diversifying asset portfolios;
• those considering obtaining residency through property investment;
• parents providing education in the Czech Republic for their children;
• investors seeking long-term passive income;
• entrepreneurs developing international business in the EU.

For each, the Czech market offers a clear structure, minimal risks, and the potential for profitability growth without additional expenses.

Resale prospects and capital growth

Due to the low initial cost of properties and stable demand, property resale in the Czech Republic remains a sought-after investment instrument. This is particularly relevant for properties acquired before completion of construction or in areas undergoing active reconstruction. Value appreciation reaches 15-20% within the first three years after purchase, exceeding the average profitability of most stocks and banking instruments.

Thus, the question of why to buy real estate abroad receives a clear answer when considering profitability parameters and growth predictability.

Conclusion

The answer to why buy real estate abroad in the context of the Czech Republic is formed from a combination of factors—accessibility, stability, profitability, investor rights protection, and high rental demand.

Amid unstable currency markets, geopolitical changes, and global inflation, Czech real estate serves not only as a means of capital preservation but also as a strategic asset with high growth potential!

The real estate market has long been perceived as a safe haven for capital. However, behind the facade of apparent stability lies a multitude of false beliefs that distort perception and lead to erroneous decisions. The mirage of easy profit, “ever-rising prices,” and “rent that feeds” remains resilient, although reality dictates different rules. To eliminate risks and assess real prospects, a deep understanding of mechanisms is required, rather than following common templates. Exposing the most persistent myths about real estate investments helps to form a sound approach to planning and avoid costly mistakes.

Myth #1. “Real estate investments are the most reliable investments”

The deception begins with the term “always.” Even such defensive assets as apartments and commercial premises depend on dozens of variables: from the Central Bank’s credit policy to the state of engineering networks, from demand dynamics in the area to the political situation in the region. Prices for apartments in Sochi, Surgut, or Yaroslavl may not only stop but also decline in the face of oversupply or a change in regional development strategy.

In Moscow, from 2014 to 2017, the secondary market showed negative dynamics: price reductions reached 15% in ruble equivalent, despite the influx of migrants and an increase in rental demand. This proves that price stability is an illusion, not a market law. The mirage of stability turns into stagnation, loss of liquidity, and rising maintenance costs, especially in the case of improper location.

Myth #2. “Renting out an apartment always provides passive income”

Counting on carefree income without considering expenses is a strategic mistake in the context of myths about real estate investments. Owning a property obliges covering utility bills (on average from 4,500 to 8,000 rubles per month for a standard two-room apartment), contributions to major repairs, property tax (0.1–0.3% of the cadastral value), repair works, and, if necessary, services of a management company. For an apartment worth 8.5 million rubles in a business-class residential complex, monthly obligations easily exceed 20,000 rubles.

If the rent brings in 55,000 rubles per month, and vacancies between tenants amount to up to 2 months a year, the actual profitability decreases to the level of a bank deposit—not exceeding 4–5% per annum. Additionally, the tax burden increases after the cancellation of tax deductions starting from 2023. To make a profit, an investor must plan carefully, not rely on the illusion of a “feeding apartment.”

Myth #3. “Real estate prices always rise”

The myth of real estate investments is deeply rooted, especially in post-Soviet mentality. However, the numbers tell a different story. In St. Petersburg, from 2022 to 2023, growth rates for new buildings slowed to 1.8% per year, and for certain segments, including apartments, a decline of up to 7% was recorded. Such declines are typical for overheating or stagnation phases when the market transitions from expansion to consolidation.

Negative dynamics are also observed in monocities, where dependence on major enterprises leads to price volatility. In Novotroitsk, Ussuriysk, Kopeysk, apartments lose up to 30% of their value in 3–4 years with a decrease in population and the closure of plants. The hope for an “ever-rising apartment” is not justified in the face of deteriorating infrastructure and declining migration attractiveness.

Myth #4. “Commercial real estate is always more profitable than residential”

Income level is not the only indicator. Risk coefficient and liquidity are more important. Retail premises in street retail can bring in 10–13% per annum, but remain illiquid in case of the tenant’s business closure. The COVID-19 pandemic showed how quickly an income-generating asset turns into a vacant property that requires payment for maintenance, security, and electricity without any income.

In 2021, in Moscow, over 3,400 vacant premises were recorded on the ground floors of residential complexes, with more than 27% remaining unoccupied for 8 months. Even premium spaces in the “Moscow City” towers stood empty, losing up to 15% of their value per year. Additionally, taxes and depreciation increase. The attractiveness of income turns out to be deceptive if the risk of changing the trading format, closing small businesses, or shifting traffic online is not considered.

Myth #5. “Investing in new developments brings quick profits”

Betting on price growth at the excavation stage works only with a precise understanding of the market. However, since 2021, developers are moving towards dynamic pricing: speculative markups are already included in the initial cost. At the same time, the delivery date may be delayed by 6–12 months, especially for small developers.

Out of 278 residential complexes delivered in Russia in 2023, over 40% delayed commissioning, and 16% froze construction altogether. Such risks undermine the calculation for quick resale. Additionally, increasing mortgage rates and a decrease in demand due to oversupply further reduce profits. Without a clear understanding of the segment, area, developer, and legal conditions, participation in shared construction becomes not an investment opportunity but a risk.

Myth #6. “Investing in foreign real estate is a guaranteed insurance”

The stability of foreign markets is another myth about real estate investments, especially in Turkey, the UAE, Bulgaria, and Georgia. Buying apartments in resorts is often accompanied by hidden restrictions: inability to obtain permanent residency, resale limitations, high maintenance fees, and double taxation.

In Dubai, average maintenance fees exceed $3,500 per year for a 60 m² apartment. Additionally, non-residents face strict tax reporting rules, obligations for annual registration renewal, and property rights documentation.

Furthermore, investors face currency fluctuations, capital withdrawal restrictions, and in case of sanctions pressure, transaction blocking. Outside the EU, the “first buy, last out” rule applies—during unstable policies, it is most difficult for a foreigner to sell the asset.

Myth #7. “Real estate income is higher than from banking instruments”

Comparing with deposits is not always appropriate. Rental yield averages 3.7–5.2% per annum in Russia after deducting all expenses. Deposits in Russian banks offer a rate of 14–16% with interest capitalization, full insurance, and minimal risks.

Financial instruments do not require maintenance, time for management, interaction with tenants, and legal actions. Returns on OFZs (Federal Loan Bonds) and mutual funds also allow forming a passive portfolio without burdens. Only professional analysis allows comparing risks and benefits and choosing a strategy based on the horizon and goal.

Main expenses that novice investors overlook:

1. Monthly utility payments—ranging from 5,000 rubles in regions to 20,000 in major cities.
2. Property tax—0.1–0.3% of the cadastral value.
3. Depreciation repair—starting from 50,000 rubles annually.
4. Management company commissions—8–12% of the rent.
5. Vacancies between tenants—up to 90 days per year.
6. Insurance—7,000–15,000 rubles per year.
7. Costs for finding a tenant and contract formalization—up to 1 month’s rent.

Discipline Instead of Belief in Real Estate Investment Myths

Investing in real estate requires not trust in myths but accurate calculation and balanced analysis. Careful study of costs, market conditions, risks, and goals helps to avoid traps and preserve capital. Myths about real estate investments distort perception, replace logic with intuition, and lead to mistakes. Only by rejecting generalizations and focusing on numbers can real estate be transformed into a growth tool, not a source of losses.