Have you bought a house or land and are about to file your property tax return? It’s not as hard as it may seem at first glance. Find out how with our article.
Have you bought a house or land and are about to file your property tax return? It’s not as hard as it may seem at first glance. Find out how with our article.
As with other taxes, the amount of the property tax is calculated by the taxpayer in the property tax return. Although we have encountered in practice overzealous officials of the tax authorities who, on the basis of public registers, have themselves alerted the forgetful owner of the flat to the forgotten return and even prepared the return for him, such a procedure cannot be automatically counted on.
The calculation itself is based not only on the area of the land or building, but also on statutory rates and coefficients (local coefficient and coefficient according to the size of the municipality). Before you start filling in the form, prepare all the documents containing information about your property. An extract from the land registry, a purchase contract or perhaps a building permit will come in handy. For the calculation you will need:
The real estate tax return is submitted to the relevant tax office by the end of January. However, the so-called local jurisdiction of the tax office for real estate tax is decisive, which means that you file your return at the office in whose district the real estate is located – not at your place of residence.
Councils have been given the ability to determine the local coefficient for individual boroughs as part of the tax changes from 2021. They can, for example, levy more money in industrial areas. The truth is that this is the only tax that remains for the municipality or city. By setting its level, the council can support the local economy.
We can help you navigate the law, whether it’s dealing with a specific tax situation, preparing for an audit by the tax authority or defending yourself in court.
The tax base for taxable buildings and units is the built-up area in square metres. This is based on the situation as at 1 January of the tax year. The built-up area corresponds to the area covered by the above-ground part of the building.
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Property tax rates are also found in the law and vary depending on the type of building, structure or unit. The rules are as follows:
(a) for a residential building, the rate is CZK 3.50 per 1 m2 of built-up area; for other buildings forming an accessory to a residential building, the rate is also CZK 3.50 per 1 m2 of built-up area (the calculation of property tax does not change based on whether the building is a new building or an older building),
(b) the rates are higher for a building for family recreation and a building of a family house used for family recreation. They are 11 crowns per 1 m2 of built-up area, and for a building which performs an additional function to these buildings, with the exception of a garage, they are 3.50 crowns per 1 m2 of built-up area,
c) for a garage built separately from residential buildings and for a taxable unit whose predominant part of the floor area is used as a garage, the property tax rate is CZK 14.50 per 1 m2 of built-up area or adjusted floor area,
d) for a taxable building and for a taxable unit, the predominant part of which is used for business, the rates are as follows:
e) for other taxable buildings, the rate is CZK 11 per 1 m2 of built-up area,
(f) for other taxable units, the rate is CZK 3.50 per 1 m2 of the adjusted floor area.
The basic tax rates may be further increased in connection with additional storeys.
The property tax on land is determined depending on the type of land.
In the case of arable land, hop-growing areas, vineyards, gardens and orchards and permanent grassland, the tax base is the price of the land determined by multiplying the actual area of the land in m2 by the average land price per 1 m2 set out in the Decree.
In the case of farm forests and ponds with fish farming, the land price is the product of the actual land area in m2 and the amount of CZK 3.80.
In the case of other land, the tax base is the actual area of the land in m2 determined on 1 January of the tax period.
The tax rate also varies according to the type of land, i.e. whether it is forest, agricultural or other type. In the case of:
(a) arable land, hops, vineyards, gardens, orchards, the rate is 1.35%,
(b) permanent grassland, farm forests and fish ponds, 0,45 %,
c) paved areas of land used for business or in connection with it used for agricultural primary production, forestry and water management 1.80 crowns for each 1 m2,
d) paved areas of land used for or in connection with business serving industry, construction, transport, energy, other agricultural production and other types of business 9 crowns for each 1 m2,
e) for building land 3.50 crowns for each 1 m2,
f) other areas 0.08 to 0.35 crowns for each 1 m2 depending on the type of use,
g) built-up areas and courtyards 0.35 crowns for each 1 m2.
Did you become a new property owner in the previous calendar year? Find out the most important facts about property tax – how much it is, when it is due and how to apply for it.
The amount of property tax depends largely on where the property is located. A municipality may, by general binding ordinance, establish a single local coefficient for all immovable property in the territory of the entire municipality or for all immovable property in the territory of an individual part of the municipality.
In 2025, the local property tax coefficient can be set between 0.5 and 5. The distribution of coefficients for different parts of the municipality can help to take into account the different neighbourhoods, which may differ in terms of the lucrativeness and desirability of the properties located there. This coefficient is then multiplied by the taxpayer’s tax for each type of land, taxable building or taxable unit.
If the municipality does not set the coefficient by ordinance, the statutory coefficient, based on the population at the last census, is used. The latter is according to the Real Estate Tax Act:
From 1 January 2025, municipalities can no longer reduce the statutory coefficient by one to three categories, as was previously the case. However, they can still increase the coefficient by one category by means of a generally binding decree for the entire territory of the municipality, individual cadastral areas, a municipal district or an urban district.
The local property tax coefficient for Prague depends on which part of the city it is (e.g. Prague 9 has a coefficient of 4.5 and Prague 10 a coefficient of 5). On the contrary, the property tax coefficient of Brno, for example, does not address the part of the city at all.
Single-family house:
Built-up area:
Number of floors above ground:
Total = 420 + 168 = 588 CZK
Hradec Králové = statutory town – coefficient 3,5
Tax multiplied by the coefficient: 588× 3,5 = 2 058 CZK
There are many online property tax calculators to help you with your calculations. If you still don’t know how much tax to pay, don’t be afraid to contact the experts at Affordable Advocate who can help you with the calculation.
And what if the coefficient for the calculation changes? In that case, you don’t have to worry about recalculating your tax. The tax office will take care of the changes and will notify you of the property tax increase and ask you to pay it.
Property tax must be paid by 31 May of the year in question. However, if the amount of the tax exceeds CZK 5,000, you can spread it over two instalments:
There are several ways to pay your property tax – it depends on what suits you best:
Property tax is one of the obligations that no property owner should forget. The calculation of the tax depends on the type of property, its size, local coefficients and the type of use of the land or building. The Real Estate Tax Act lays down basic rules that municipalities may regulate by means of local ordinances. The local jurisdiction of the tax office also plays an important role, as the tax return is filed where the property is located, not according to the owner’s residence. In 2025, there are partial changes in the coefficients, but the principles for calculating and paying the tax remain the same. It is worth using the available guides or consulting a professional to complete and submit the return correctly.
Not sure how to do your taxes correctly so you don’t get it wrong? We can help you navigate the law, whether it’s dealing with a specific tax situation, preparing for an audit by the tax authority or defending yourself in court.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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