Czech Republic - Property Tax
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Our property services in the Czech Republic
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The Czech Republic has neither a high or low tax regime (although the paperwork can be complicated). When it comes to buying property the taxes are very low as there is no purchase tax (stamp duty) currently.
The following taxes are relevant when purchasing property in the Czech Republic:
Czech Property - Buying Taxes
Czech Property Purchase Tax
There is no purchase tax (stamp duty) when purchasing
property in the Czech Republic.
VAT on new build Czech property
VAT is applied at the rate of 9% on new build apartments below 120 sqm and houses below 350sqm.
Apartments above 120sqm and houses above 350 sqm attract the higher VAT rate of 19%.
Storage is usually priced at the 9% VAT rate.
Garages can be charged at either 9% or 19%, this depends on the developer and whether they include the garage price in the Future Purchase Contract.
Newly renovated apartments also attract VAT at the above rates.
Apartments above 120sqm and houses above 350 sqm attract the higher VAT rate of 19%.
Storage is usually priced at the 9% VAT rate.
Garages can be charged at either 9% or 19%, this depends on the developer and whether they include the garage price in the Future Purchase Contract.
Newly renovated apartments also attract VAT at the above rates.
Czech Property - Selling Taxes
Czech Property Sales Tax
The seller of a property
is required to pay 3% of the sales price to the Czech government.
Czech Capital gains tax
The current rate in the Czech Republic is 21%.
For non-residents, there is no capital gains tax on property if a property is held for five years or more.
For residents, the period is two years.
Czech property purchased through a company will attract 25% tax, however this can be offset against the expenses of the company.
For non-residents, there is no capital gains tax on property if a property is held for five years or more.
For residents, the period is two years.
Czech property purchased through a company will attract 25% tax, however this can be offset against the expenses of the company.
Czech Property - Ongoing Taxes
Czech Income Tax
On 1st January 2008 the Czech Republic introduced a flat rate of 15% income tax.
However, this flat rate is calculated on what is called the Super Gross Salary.
Where: Super Gross Salary = Base Salary + 35% of Base Salary
There is also a 2,070 CZK tax relief (that is currently only available for Czech tax residents).
Social Taxes (for health etc) amount to 35% for the employer and 12.5% for the employee.
However, this flat rate is calculated on what is called the Super Gross Salary.
Where: Super Gross Salary = Base Salary + 35% of Base Salary
There is also a 2,070 CZK tax relief (that is currently only available for Czech tax residents).
Social Taxes (for health etc) amount to 35% for the employer and 12.5% for the employee.
Czech General Sales Tax (VAT)
The current rate of Czech VAT is 19%.
Czech Corporation Tax
The current Corporation tax rate is 21% (in 2008).
However, there are plans to reduce this further in the coming years.
There is a 15% tax on dividends.
However, there are plans to reduce this further in the coming years.
There is a 15% tax on dividends.
Czech Property Annual Tax
There is a small annual tax payable on property in the Czech Republic.
The amount varies depending on the size and location of the
property.
Often the annual tax amounts to less than 50 euros.