Czech Republic Property Tax

There is no purchase tax (stamp duty) when purchasing property in the Czech Republic.

VAT is applied at the rate of 10% 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 20%.
Storage is usually priced at the 10% VAT rate.
Garages can be charged at either 10% or 20%, 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.

The seller of a property is required to pay 3% of the sales price to the Czech government.

The current rate in the Czech Republic is 15%.
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.

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.

The current rate of Czech VAT is 20%.

The current Corporation tax rate is 19% (in 2010).
However, there are plans to reduce this further in the coming years.

There is a 15% tax on dividends.

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 100 euros. The property must be registered for tax in the January after purchase and payments made by May each year.