Property Tax Calculator

Please note that the real estate acquisition tax has been abolished and the effective date in this respect is 31 March 2020. For more information, see the article Abolition of real estate acquisition tax.

Who is the taxpayer

Many people still remember the former situation. The tax was usually paid by the seller and the buyer was only in the position of a guarantor, whose obligation only shifted if the seller failed to pay the tax. However, under the Senate’s statutory measure regulating the tax on the acquisition of immovable property, it is the purchaser who is the taxpayer in the case of a transfer of immovable property for consideration.

Today, the seller is not even a guarantor and does not actually have to be concerned with the payment of the tax. Since November 2016, the tax has only been imposed on buyers who, at worst, have at least a property that the state can take away if they do not pay the tax. According to the law, no other choice is possible.

Who doesn’t pay tax

Onlytransfers of real estate for consideration are subject to tax – the most typical example is the purchase of real estate. However, it can also be, for example, an exchange of land. Conversely, transfers of real estate without consideration, most often in the case of a gift of real estate, are never subject to tax. The law also provides for certain exceptions where no tax is payable even though the transfer is for consideration. These are mainly sales of new houses or flats when they are first sold.

How high is the tax actually?

The amount of the tax has not changed despite the change in the taxpayer, although this was also originally planned. For the most common transfers for consideration of flats, houses, cottages, chalets or garages, the property tax is calculated as 4% of the agreed purchase price. However, the purchase price must be more than 75 % of the local normal price. This will be verified by the tax office from price maps and other documents collected by the tax office. If you are filing a tax return, you often have to give the tax office detailed information about the property you are buying, from the age of the building to the number of toilets.

However, if the property you are selling is exceptional for some reason (e.g. in extremely poor condition and in need of extensive renovation), this method may not be advantageous. The purchase price is small, but the surrounding properties are expensive and so the tax is high.

Therefore, the legislator has also allowed for alternative tax determination. You can have an expert’s report done (in addition, you can deduct the cost of the report from your tax base). Compare the amount of the agreed price in the contract with 75% of the price in the appraisal. Tax is again paid on the higher amount.

When to file your tax return

You can file your tax return electronically or on paper. It is submitted to the tax administrator, which is the tax office in whose district the relevant land or building is located. Unlike the income tax return, the return must be submitted by 31 January and includes all buildings acquired or altered in the previous year.

Under what conditions do you have to file a tax return?

• You have acquired a property in the previous year , whether for a consideration or not (the obligation applies not only to properties bought, but also to inherited or donated properties) and you are the current owner of the property. However, the obligation does not apply to cooperative flats where you are not the actual owner, but the housing association is the legal owner.
• You have owned the property for a long time, but there has been a significant change in the previous year that has affected the tax assessed – e.g. the property has been completed, changed use, changed acreage, etc.
• You have become co-owners of the property – the law allows one of the co-owners to file a return for the whole property, or each co-owner to file a return for their share.
• You have sold (or donated) part of the property but still own the remaining part or another property in the same county.

How to file your tax return

As mentioned above, you can also file your real estate tax return electronically. To file your tax return electronically, we recommend using the Electronic Filing for Tax Administration (EPO) or the Online Tax Office. However, only full tax returns can be filed this way, not partial returns.

If one person has multiple properties throughout the Czech Republic, he/she cannot file one summary tax return, but must file individual returns with the individual tax offices in whose territorial jurisdiction the properties are located. There are a total of 14 tax offices in the Czech Republic. Their territorial jurisdiction follows the boundaries of the regions. However, it is possible to file a summary tax return for several immovable properties located in the territory of one office.