REAL ESTATE TAX

Real estate tax comprises a tax on land (land tax) and a tax on structures (building tax). Real estate tax is generally payable on an annual basis by the registered owner of the land or building(s), although in very specific cases the user or the leaseholder is the payer. All property owners must file tax returns with the relevant tax authorities by 31 January of the relevant tax period only for the first tax period (calendar year), later only when the conditions relevant to tax assessment change.

Land tax is imposed on plots of land entered in the Land Registry and is payable by the owner or, in special cases, by the lessee or user. Tax on land with building permission is CZK 1 per square meter (subject to adjustments in relation to the size of the municipality where the land is located).

Building tax is calculated according to the registered ground area of the building. The tax rate is CZK 1, 5 or 10 per square meter in the case of business premises and CZK 1, 3 or 4 per square meter for residential buildings. This amount may be increased by CZK 0.75 per square meter for each additional floor.

Both land tax and building tax are multiplied by a coefficient that varies according to the locality, ranging from 1 to 4.5 (the highest coefficient applies to Prague). Municipalities can further determine a local coefficient to increase the taxpayer’s tax liability for certain types of real estate.

Based on materials published by CzechInvest.