Did you become a new property owner in the previous calendar year? Check out a quick summary on property tax – what it is, when it is due and how to apply for it. We’ll also answer common questions about what to do if you no longer own the property, or what to expect if you didn’t file your tax return on time.
Property tax is a property tax that is regulated by the Real Property Tax Act. It stipulates that the taxpayer is any natural or legal person who owns or uses immovable property (land or a building).
In the vast majority of cases, the taxpayer is the owner of the property. Sometimes, however, it may also be a trust or a unit trust (if the property is owned by the unit trust) or a builder who has the right to build on the land.
Real estate tax is the collective name for two separate taxes. These are the land tax and the buildings and units tax. If we emphasize their separate nature, it is also reflected in the fact that they are listed separately in the tax return.
The subjects of land tax are:
The subject of the tax on buildings and units (flats and non-apartments) are:
The law regulates the types of land and buildings that are completely exempt from the tax. These include, for example, land and buildings owned by the state or a municipality or land and buildings used for schools, galleries and health care facilities. Buildings and units are not subject to the tax on buildings and units, nor are buildings consisting of taxable units (e.g., apartment buildings as a whole).
We can help with the purchase of the property and tax obligations
Are you looking to sell or buy a property? Or do you just need advice on how to proceed after the transfer is completed? We will be happy to help you with everything. We will prepare the necessary contracts and advise you on how to meet all obligations and protect your rights.
Tip: Each taxpayer calculates the amount of the tax himself in his tax return. This is done not only with the area of the land or building, but also with the statutory rates and coefficients (local coefficient and coefficient according to the size of the municipality). How is the tax amount calculated? We have dealt with this in a separate article.
If, on the other hand, you previously owned the property and paid the tax annually, but on 1 January of the new year you are no longer the owner, you must notify the tax office so that you no longer pay the tax. There is no specific form, just a simple computerised or handwritten notice to be delivered to your tax authority (i.e. the local tax office) by 1 February at the latest.
You can pay the tax by bank transfer, bank transfer, SIPO or cash at the tax office. If the tax exceeds CZK 5,000, it is possible to split the payment into two instalments. The standard deadline for paying the tax is the end of May. If the payment is divided into two instalments, the second instalment must be paid by the last day of November.
The tax year is the calendar year and the tax return must be filed by the end of January, with January 1 being the relevant date. However, the return is not filed repeatedly (as is the case for income tax, for example), but only once. Thereafter, the tax is “only” paid.
Tip: Every property owner is required to register for tax. This can be done by filing a real estate tax return, which can be filed electronically or in paper form. However, the tax return is not filed annually, but only once. When it must be filed and what its requirements are, we have discussed this in a separate article.
Many new property owners wonder why they are asked on their property tax form if they are farmers or fishermen. This is because people who farm and fish have a staggered deadline for paying their taxes – specifically August 31 and November 30.
Tip: You will not be fined if the fine does not exceed CZK 200.
Have you sold or donated a property in the previous calendar year? Then you are no longer liable for property tax. However, you must notify the relevant tax office in good time.
There is no prescribed form to opt out of the tax, so a free form letter or a new tax return can be used if you still own any real estate in the zoning district.
Tip: The jurisdiction of the tax office is determined by the location in which the property is located, not by your permanent residence.
At The Affordable Advocate, we can help you with everything. We will protect your rights, prepare contracts, and advise you on the obligations that must be met. We will guide you through the entire process and make sure everything goes without a single mistake.
We provide a complete package of legal services related to real estate sales and purchases, including reservation contracts and escrow services. We will also help you with all tax and land registry issues. Our work is fast and accurate, ensuring a worry-free transaction. You’re also welcome to pay after services are provided.
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.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
