Taxes in the Czech Republic

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.

1. Direct taxes:

Income tax

• Personal income tax
• Corporate income tax

Property taxes

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

2. Indirect taxes:

• Value Added Tax (VAT)
• Excise tax