Czech Republic: Personal Taxation
This page was last updated on 6 September 2019.
There are three types of property tax in the Czech Republic: building tax, land tax and property purchase tax.
Building tax is levied on the owner of a building. There are certain exemptions including properties owned by the state, a local authority or the church. The tax is calculated on the ground floor area of the building. Residential properties are charged at the rate of CZK1 per square metre with rates rising to between CZK5 and CZK10 per square metre for non-residential properties.
Land tax is normally paid by the owner of the piece of land. This tax is normally applied to arable land, including vineyards and orchards and similar tracts of land used for commercial purposes. Exemptions apply to state-owned land, cemeteries and public parks. Tax is calculated as a percentage of the value of the land. Rates are either 0.25% or 0.75% of the value. Certain other types of land (e.g. building plots) are taxed at a rate per square metre.
In 2016, property sales tax was abolished and replaced by property purchase tax. The main change is that the tax is now payable by the buyer rather than the seller. Property purchase tax is imposed whenever land or buildings are sold, at a rate of 4% of either the sale price or tax evaluation price, whichever is higher.