Taxes in the Czech Republic

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The tax system in the Czech Republic is similar to the tax systems of most advanced European countries. They are the main income of the state budget. We can divide taxes into: direct taxes (income taxes, property taxes) and indirect taxes. Income taxes and indirect taxes, i.e. value added tax (VAT), make up the majority of state budget revenues.

Taxes related to real estate

Personal property tax

Every year property owners pay a personal property tax. This type of tax is different from other taxes because it is paid in advance. In addition, the the tax return on the property is only submitted once. After that, the tax office only calls for a payment each year. A new tax return is sent only when there are substantial changes in the property. For ordinary flats, you can expect to pay several hundred CZK per year.

Property transfer tax

The property tranfer tax is four percent of the tax base. Since November 2016, the buyer of the property is the one who has to pay this tax.

The basis of the tax is either 100% of the purchase price or 75% of the estimated value. The property transfer tax is calculated from the amount which is bigger. Most of the time, the purchase price is higher than the estimated value.

Here is an overview of the other current taxes in the Czech Republic:

1. Direct taxes:

Income tax

  • Personal income tax
  • Corporate income tax

Property taxes

  • Personal property tax
  • Inheritance income tax
  • Gift tax
  • Property transfer tax
  • Road tax

2. Indirect taxes:

  • Value Added Tax (VAT)
  • Excise tax

Words from our past clients

We have been cooperating with Philip & Frank brokers for a few years. Throughout that time it has been proved that it was a good choice. We are especially satisfied with their transparency and regular information about the progress of each project. At the same time we have always been in control of all decision-making. We will be happy to recommend them and their legal services to our friends and relatives. It was our pleasure warking with them.

Martin and Tereza K.

While we were selling our flat, we approached the brokers of Philip & Frank who had been recommended to us. I was really satisfied and delighted. Their truly professional approach – meetings with us, organization of tours of the flat with clients and arranging the formal aspects of the sale, including cooperation with an excellent lawyer – was astonishing. I appreciate their competence and I recommend this real estate agency to other clients.

Ludmila K.

Thanks to the professionalism of Philip & Frank real estate brokers I learned that even purchasing a property can be a pleasant experience. Their thoroughness, reliability, helpfulness and kindness enabled us to concentrate only on the property. We were relieved of all the worries regarding the purchase and we could simply enjoy buying the flat. That is what you dream of but I would never have thought that it could come true. Thank you for your perfect services!

Zuzana P.

contact us

Company Address
Philip & Frank s.r.o.
Viktora Huga 359/6
150 00 Praha 5
Czech Republic