Buying Property in the Czech Republic: A Guide for Foreigners

After finding a suitable property, it’s essential to check its legal status. The property should be registered in the Land Registry (Katastr nemovitostí), and you need to ensure there are no debts, liens, or legal disputes attached to it. A lawyer or notary can help you verify these details before you proceed.

When you decide to move forward with a purchase, you will typically sign a reservation contract (rezervační smlouva) and pay a small deposit to secure the property. This step prevents the seller from offering it to someone else. Next, a purchase contract is prepared, usually by the seller’s lawyer. It’s highly recommended to have your own legal representative review the contract to ensure everything is in order.

Once both parties sign the purchase contract, the transfer of ownership process begins. The contract must be submitted to the Land Registry, and the registration process usually takes about 20-30 days. During this time, the purchase price is often held in escrow to protect both the buyer and the seller. Once the Land Registry confirms the ownership transfer, the final payment is released, and you officially become the owner of the property.

Costs to Consider

Beyond the property price itself, there are other costs associated with buying real estate in the Czech Republic. Legal fees for a notary or lawyer typically amount to around 0.5% of the purchase price. If you use a real estate agent, their commission is usually 3-5%, though this is often paid by the seller or already included in the purchase price.

Property tax is relatively low compared to other European countries, usually a few hundred euros per year. If you are taking out a mortgage, be sure to consider interest rates, loan fees, and any additional financial requirements from your bank.

Why Invest in Czech Real Estate?

There are many reasons why the Czech Republic is an attractive place to buy property. The country has a stable economy and a growing real estate market, meaning property values tend to increase over time. The quality of life is high, with safe cities, excellent public transport, and good healthcare.

The legal process for buying property is transparent, and there are no restrictions for foreign buyers, making it a straightforward investment.
If you are considering buying property in the Czech Republic, make sure to research the market, secure financing if needed, and work with a legal expert to ensure a smooth transaction.

With the right approach, purchasing real estate here can be a valuable and rewarding decision. If you have any questions or need assistance, don’t hesitate to reach out to us as we can guide you through the process.