It is noteworthy that anyone who owns property in the country has to pay tax on it.
- Real estate tax. It comprises building tax and land tax. This tax is paid by the owner listed in the Land Register. The tax is generally based on the size of the property, not on the market value, as opposed to real estate transfer tax. This is the only tax where the revenue goes to the municipality rather than the central government. Property owners will receive a bill to pay the tax. Usually if the tax liability is lower than 5000 CZK the whole tax amount is due on 31 May of the taxable period.
- Building tax. Generally, buildings and flats situated in the Czech Republic are subject to building tax. The tax base for buildings is the ground area in square meters and for flats or non-residential space the area in square meters multiplied by a coefficient of 1.2. The tax rates depend on the use of the building and therefore vary from 1 CZK per square meter (residential buildings) to 10 CZK per square meter (business premises).
- Land tax. Agricultural land and other types of lands such as forests, ponds and building plots of lands are subject to land tax in the Czech Republic. The tax base is derived from an area of the plot of land in square meters and varies according to the type of land.
- Real estate transfer tax. The seller of the real estate is liable to pay the real estate transfer tax, whereas the purchaser is the guarantor. The tax base is the price of the real estate which is generally the higher of the purchase price or appraisal price. The tax rate is 3% of the tax base.
The tax return must be filed with the respective tax authority within 3 months following the month in which the right was registered with the Land Register.