Have you sold your property and think your tax worries are over? Wrong. If you didn’t file your real estate taxes on time, the IRS still considers you a taxpayer – and can expect a payment that is no longer due. Opting out of property taxes is a simple but often overlooked step that every former owner must take by the end of January the following year.
You need to think about your property tax return when there has been a change from the previous tax year:
You do not have this obligation for cooperative flats because the owner is the cooperative, not you as a tenant.
You do not need to file a property tax return every year, only in the cases listed above. What you do need to do each year, however, is pay your property tax. All property owners must pay this by the end of May each year.
If you don’t own the property, you just use it (e.g. as a tenant or member of a housing association), you don’t pay property tax. Similarly, you stop paying if you have lost ownership of the property in the last year (e.g. sold or donated it). In this case, however, you need to opt out of property tax.
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.
You must opt out of property tax when you lose your taxpayer status – that is, when you no longer own any property within the tax authority’s jurisdiction to which the tax applies.
The most common situations:
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The decisive factor is that the loss of ownership occurred in the previous year – specifically, the application for entry into the Land Register was filed by 31 December of the year in question.
It is always the former owner – i.e. the person who has ceased to own the property – who must opt out. You cannot rely on the tax office to register the change automatically on the basis of the land register or the registration of the new owner. The legal obligation is yours.
Notification of the cessation of ownership must be made no later than 31 January of the year following the year in which the transfer took place.
Example: you applied for registration of the new owner on 10 December 2024 → you must submit the notice of extinction of ownership by 31 January 2025.
If you forget, you won’t face a penalty – but the tax office will assume you are still paying the tax.
Have you bought a house or land and are about to file your property tax return? Read on to find out how to calculate your property tax.
If you have another property in the tax office’s jurisdiction where you are still the owner, you are not filing a real estate tax return in the true sense of the word, but a ” partial return”. This is actually a notification of a change in circumstances that affect the tax.
You therefore remain a taxpayer within that tax authority. Therefore, it is not possible to opt out completely, but you must file a new tax return to indicate the change.
Example: you have a house and a garage in the Pilsen region. In 2025 you sell the house but keep the garage. You are still a taxpayer in the Pilsen region, but you must update your tax return so that the authorities can correctly calculate the new tax amount.
A partial property tax disclaimer is filed if you continue to own a property in the county but another property has changed (e.g., sale, acreage change). You cannot use a simple notice like a traditional (full) opt-out – you must file a new tax return.
You have two options:
If you no longer own any property in the county that is subject to real estate tax, you need to opt out of the tax altogether (complete opt-out). The good news is that you don’t need any special form to do this. The law does not specifically provide for a form, so you have two simple options on how to proceed:
The most convenient way to opt out of property tax is to file electronically through the My Taxes portal. On this website, you need to fill in the form General document for submission to the Tax Administration of the Czech Republic, where you will fill in the basic information required for deregistration.
The form must explicitly state that the taxpayer is opting out of the real estate tax. It is also necessary to identify precisely the real estate to which the deregistration relates – for example, the building description number, the parcel number, the area and the cadastral territory. The reason for deregistration, such as sale, donation or exchange of the property, must also be included in the notification.
The completed form can then be sent electronically directly from the portal. Verification of identity is carried out either via the data box or using the Citizen Identity tool – for example, using a bank identity or mobile eGovernment key.
If you prefer a paper form, just send a registered letter to the relevant tax office.
Addressee:Tax Office for [name of the region]
Territorial office in [name of city]
Sender:Name and surname: Jan Novák
Birth number: 800101/1234
Address of permanent residence: U Lesa 25, 100 00 Praha 10
Dear,
I hereby give notice that as of 15 December 2024 I ceased to be the owner of the property located in your territorial jurisdiction. It is a family house No. 112 on building plot No. 123/4, with a built-up area of 120 m², with an adjacent plot of 750 m². The property is located in the cadastral territory of Horní Lhota, municipality of Dolní Újezd, and is registered on the property certificate No 9876.
The property was sold to the buyer [e.g. Petr Svoboda] on [e.g. 12.12.2024], and the proposal for entry of the ownership right into the Land Register was submitted on [e.g. 15.12.2024].
As of the date of filing the proposal for registration, I no longer own any other real estate in the administrative district of your office, and therefore I request to be removed from the register of taxpayers of real estate.
Thank you for your consideration.
Yours sincerely
Jan Novák
[today’s date]
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The notification is submitted to the local tax office, i.e. the one in whose district the property is located – not your permanent residence.
For example, if you have sold a cottage in the Bohemian Forest but live in Brno, you should submit the notification to the tax office where the cottage is located – not your permanent residence
If you have sold the property, your tax liability for it ends (if you still owned the property on 1 January of the year, you pay tax for the last time for that year). However, it is important that the buyer also fulfils their new obligation properly. Otherwise, the tax office may deal with discrepancies and contact you unnecessarily.
Anyone who acquired a property in the previous year is obliged to file a real estate tax return. This obligation arises irrespective of whether the property was purchased, inherited or donated – the decisive factor is that the new owner is registered in the Land Registry on 1 January of the current year.
The new owner must file a tax return by 31 January of the year following the transfer. For example, ifthe application for entry into the Land Registry was filed in 2024, the buyer must file a tax return by 31 January 2025.
Avoid mistakes when applying for entry into the Land Registry with the help of our article.
There’s no need to panic – you can opt out retrospectively. The tax administration allows this option and does not impose penalties for late notification. Just notify as soon as possible.
You must file a real estate tax return if you have acquired real estate in the previous year (by purchase, inheritance, gift), if there has been a change of use or if you have become a co-owner. The return must also be filed if the property is partly sold. The deadline is always 31 January of the following year.
Property tax is payable annually by anyone who is the owner on 1 January of that year. Tenants and members of housing associations do not pay the tax. If you no longer own the property and have no other property in the county, you must opt out of the tax. Opting out is always done by the former owner – no later than 31 January. If you own other property in the county, an updated tax return (regular or partial) is filed instead of an opt-out.
Opting out can be done electronically through the My Taxes portal or in writing by letter to the tax office depending on the location of the property. The notice should include your identifying information, a description of the property and the reason. If you forget, you can also opt out retrospectively – without penalty. The new owner must file their return by January 31 of the year following the transfer.
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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