Purchasing a home

Living in Europe | Accommodation | Czech Republic

A foreigner can buy a house or a flat in the Czech Republic if he/she is a citizen of the EU or of the USA, has a permanent residence permit or was granted asylum.

It is possible to arrange a mortgage (if needed) directly with a bank, and the house purchase directly with the seller. Alternatively, a real estate agency or construction company (property developer) can do these jobs for you, which may be easier, but they do usually charge a commission of between 3 and 4 % of the real property price.

In case you decide to find a house or a flat without a real estate agency involved at all, there are specialized websites (Bezrealitky.cz, and Sreality.cz).

Before deciding on a suitable property, you should find out:

  • Is the real estate agency or the property developer credible?
  • Who are the neighbours?
  • How is the neighbourhood?
  • What are the plans for construction in the neighbourhood?
  • What is the condition of the roof? Have the technical systems (pipes and electrical system) been replaced?
  • How high are the monthly/yearly charges (heating, renewal fund, etc.)?

It is a good idea when purchasing a property:

  • to obtain a statement from the Land Registry before signing any contract (this will show who is the legal owner of the property you wish to buy, whether there are any loans/debts owing on the property, its size and exact location).
  • to check whether the property lies in a flood-prone area.
  • to get a report on the state of the property.
  • to transfer all money via a Notary ("Notář") or Lawyer ("Advokát") who is insured for making transfers of large sums, on the basis of a written agreement.
  • to agree whether the seller or the purchaser (you) will pay the property transfer tax (N.B. since 2014 it is automatically the purchaser's responsibility unless specified otherwise in the sale contract).
  • to check whether VAT is applicable (this applies especially to new builds and newly renovated properties and is usually 15%), and if so, whether it is included in the quoted price.
  • to compare the price asked for the property with the average price in the area.
  • to consult a lawyer on all contracts.