How to obtain Czech citizenship in 2025: current methods

In 2025, the Czech Republic continues to attract foreign buyers and investors in the residential and commercial real estate sector. A stable legal framework, transaction transparency, and predictable property value growth make the country one of the most attractive jurisdictions for investments in Central Europe. Property taxes in the Czech Republic remain an important element to consider when planning the purchase, ownership, and rental of a property.

Main tax when purchasing a property: duty and exceptions

Until 2020, there was a mandatory property purchase tax in the Czech Republic, which was 4% of the contractual value and paid by the buyer. However, in support of the market, the authorities abolished the fee — in 2025, the buyer does not pay a separate fee for the initial acquisition if the property is transferred directly from the developer.

Nevertheless, when buying property on the secondary market, additional financial obligations may arise, such as notary services, registration fees, and administrative costs, which amount to 1 to 2.5% of the transaction value. These expenses should be taken into account when budgeting.

In the case of acquiring a property subject to VAT, such as apartments from a legal entity, the duty is 21% and is included in the price. Typically, such situations are characteristic of new construction and non-residential properties.

Property taxes in the Czech Republic during ownership

After completing the transaction, the new owner is obliged to pay an annual property ownership tax in the Czech Republic. The amount of the fee is calculated based on the cadastral value, area, and type of property. The average rate for an apartment is 0.2–0.5 euros per square meter per year. For a private house, it can be up to 0.8 euros. Additional fees may be set by the municipality, especially in tourist regions such as Prague or Karlovy Vary.

Notification of the assessment is sent at the beginning of each year, and payment must be made by the end of May. Penalties are imposed for late payment. Owners of multiple properties must submit declarations for each address separately. The responsibility for payment lies with the individual or legal entity registered in the land cadastre.

Rental income and tax burden on investors

Foreign buyers often purchase property for rental purposes. In this case, there is an obligation to pay income tax on rentals in the Czech Republic. The rate for non-residents is 15%, but with an improper ownership structure, it can reach 19%. Income is calculated taking into account expenses if accounting is maintained, or according to the standard 60/40 scheme: 60% — expenses, 40% — taxable base.

When renting through a management company, obligations arise for the owner, even if the income is irregular. Violations can lead to administrative sanctions and account blocking. Additionally, it is necessary to consider international agreements on double taxation avoidance, especially if rental income abroad has already been taxed in the investor’s country of residence.

Additional expenses during ownership

In addition to mandatory fees, property owners incur regular expenses for its maintenance. These include utility payments, contributions to a reserve fund, security, cleaning, and technical maintenance of common areas. The amount of expenses depends on the housing format and the management company’s policy. All expenses should be taken into account in calculations, especially considering the current property taxes in the Czech Republic and financial reporting rules. General annual expenses may include:

• utility payments — from 1 to 2 euros per m² per month;
• contributions for repairs — up to 0.5 euros per m²;
• property insurance — from 100 euros per year;
• accounting for rentals — from 500 euros per year.

This structure makes preliminary profitability calculations important, especially if the goal of the purchase is long-term investments in Czech real estate.

Properties available to foreign investors

Foreign citizens have the right to purchase property in the Czech Republic without restrictions, except for agricultural and forest land. The focus is usually on apartments and villas in Prague, houses in Brno, apartments in Karlovy Vary, and commercial real estate in the suburbs. Popular categories include:

• studios and one-bedroom apartments in new residential complexes;
• an apartment in the center of Prague with a view of the river or historical landmarks;
• a house with a plot in an environmentally clean area;
• an established rental business with an existing contract;
• an investment lot in the construction stage.

The choice is made based on the goals — residence, rental, resale — and ownership structure (individual, company, trust).

Taxes for foreign investors in the Czech Republic: key rates

Understanding the rules is a mandatory condition for legal ownership and effective property management. Rates do not change often, but every update in fiscal legislation should be monitored. The main tax rates and fees are:

• ownership tax — 0.2–0.5 euros per m² per year;
• rental income tax — 15–19%;
• VAT on the purchase of a new property — 21%;
• registration fees — up to 2.5% of the transaction price;
• on resale — 15% if the property was owned for less than 5 years.

Compliance ensures transparency of ownership, minimizes conflicts with tax authorities, and allows for future residency status. All aspects are directly related to how property taxes in the Czech Republic are structured and why it is important to consider them in long-term investment planning.

Practical recommendations for purchasing

Before investing capital, it is important to undergo a legal check of the property, analyze cadastral documentation, order an independent appraisal, and calculate potential profitability. Involvement of a professional consultant plays a key role in transaction transparency and protection against hidden costs.

It is necessary to open an account in a Czech bank in advance, ensure notarial support, obtain a tax identification number, and timely submit a declaration. When purchasing property for income generation, it is important to carefully study the management contract. It is also advisable to compare market conditions in the Czech Republic with neighboring EU countries.

This comprehensive approach helps reduce financial risks and maximize the use of legal mechanisms to increase investment efficiency.

Conclusion

Understanding the structure of property taxes in the Czech Republic in 2025 gives foreign investors confidence and financial stability. A well-thought-out purchasing and ownership strategy allows not only to preserve capital but also to ensure a stable source of income at low tax rates. With its transparent market, legal protection, and high demand for rentals, the Czech Republic remains one of the best platforms for investments in the EU.

In the Czech Republic, the cost per square metre is accompanied by legal transparency and home ownership provides stability. The country offers clear rules, protected rights and a clear tax system, making the process a solid investment strategy. The market has adapted to the new economic conditions, maintaining demand and simplified access for foreigners. With the right approach, the asset quickly starts to work – for income, status and future goals. In this article, we have prepared a detailed guide to buying property in the Czech Republic in 2025.

Housing market in the Czech Republic

In 2025, the housing market responded to foreign policy stability, domestic demand and global inflation. Property prices in the Czech Republic did not follow the scenario of its western neighbours: instead of falling, they stabilised. The average cost of a flat in Prague in February 2025 was $6,000 per m². For comparison: in Brno – $4000, in Olomouc – about $3000.

Foreigners have increased their demand: the purchase of property in the Czech Republic increased by 12.4% compared to 2023. Interest is concentrated in cities with universities and good transport logistics: Brno, Plzeň, Liberec.

Geography of interest: where to look so you don’t miss out

Properties in the country offer more than just Prague. Three areas with growth potential have been identified for 2025:

1. Plzeň – proximity to the border with Germany, active industrial cluster, average price $3,000 per m².
2. Ceske Budejovice – historical architecture, tourist interest, price – about $3,000.
3. Carlsbad – spa orientation, liquidity in rentals, home value – $208,000.

Each city forms its own rules and rhythm. Prague is for investment, regional centres are for living.

Guide to buying property in the Czech Republic: stages of the transaction and documents

The acquisition process is not complicated by bureaucracy, but it does require a clear adherence to order.
A guide with clear steps to buying a property in the Czech Republic will help you get it right. The investor needs to follow steps such as:

1. Site Selection. Clarification of technical characteristics, legal cleanliness, presence of encumbrances.
2. Reservation. Signing a deposit agreement (usually 2-5% of the price).
3. Verification. Legal expertise, confirmation of ownership rights in the cadastre.
4. Contract of sale. Signed by the parties, notarised if desired.
5. Filing for registration. Introduction of changes to the cadastre. Term – up to 30 days.
6. Final Calculation. Payment is made via a conditional deposit (notářská úschova).
7. Handing over the keys. Fixing of the acceptance certificate.

Czech law does not require a purchase authorisation. A foreigner is entitled to buy a dwelling by observing the common law of ownership.

Financial maths: taxes, costs, investments

We have prepared a guide to buying property in the Czech Republic, detailing everything you need to know about taxes and hidden costs. Property purchase is exempt from VAT when buying from a private individual. But it is taxed when buying new buildings from a property developer (15%).

Tax base:

1. Property tax (annual): $20 to $300 depending on location.
2. Rental income: taxable (15%).
3. Residents with a residence permit (VNZh) file a tax return according to the general rules.

Investments in the country’s housing stock remain relevant, with long-term rental yields of 3.8-4.5 per cent per annum. The market is focused on sustainability, not speculation.

Rights, obligations, restrictions

The Czech legal system protects the buyer. The ownership right arises after registration in the cadastre.
A guide to buying property in the Czech Republic that emphasises legitimate interests:

• the right to use, dispose of and transfer;
• the obligation to pay utilities and taxes;
• The obligation to maintain the property in a habitable condition;
• prohibition of independent modification of the facade in historic zones without approval.

How to buy property in the Czech Republic for a foreigner? You should comply with the law, use the services of an interpreter and a lawyer.

Living and owning: combining status and comfort

Immigration to the Czech Republic often starts with property. Acquisition of housing does not give automatic residence permit, but it strengthens the position when applying. Especially in the case of business immigration. Life in the Czech Republic gains stability through ownership.

The state supports the transparency of transactions. Registers are open, legal support is regulated. A guide to buying property in the Czech Republic, which opens the way to a safe and sustainable ownership system.

The nuances of registration and the cost of maintenance

The financial burden doesn’t end with the purchase. The cost of maintenance includes regular payments. A flat in Prague will require an average of 4,000-6,000 CZK per month for house maintenance, utilities and a repair fund. A private house – about $410, including heating, water, electricity.

Features include:

• compulsory registration of ownership;
• possible restrictions on the type of development in the protection zones;
• responsibilities to the HOA (e.g., attending meetings, voting on renovation issues);
• The need to insure the property in mortgage financing.

The country’s properties are characterised by moderate utility bills and high transparency in billing.

Barrier points: what hinders and what helps a foreigner

The purchase of property in the Czech Republic by foreigners is regulated at EU level. For non-EU citizens, additional attention to procedures is required, especially when obtaining financing. A foreigner can buy a home without restrictions, but will need:

• notarised translation of documents;
• Czech bank account;
• a trusted person or accredited agent when not in the country.

Banks are willing to lend to non-residents, but require a down payment of at least 30 per cent and proof of income. Registration of residence permit refers to the availability of housing as an additional factor of security.

When to buy and why now

The market has stabilised after rapid growth in 2021-2023. Prices have levelled off, demand for flats is growing slowly, and the volume of supply is 18% higher than a year ago.
For investors, this is an optimal time: price growth has slowed and rental interest remains high.

This article is a detailed guide to buying property in the Czech Republic. The way to a well-considered and long-term investment.
The country offers not just square metres, but a structured system where ownership is a transparency rather than a bureaucratic labyrinth.

Housing investments in 2025 are characterised by minimal risks and high predictability.
Simple legal procedures, protection of buyer’s rights, open cadastral data and a stable legal framework make the Czech Republic one of the most attractive countries in Europe for purchasing property.

Use our guide to buying property in the Czech Republic to make the right moves

This article is a complete guide to buying property in the Czech Republic in 2025. It is a short but important path to a stable investment in a transparent and reliable legal system.
The country offers investors predictability, legal protection and minimal barriers to entry.
Here, square metres are not just an asset, but a tool for growth, status and comfortable living.