Buying Property in the Czech Republic: A Guide for Foreigners

Buying real estate in the Czech Republic can be a great opportunity, whether you are looking for a place to live or an investment property. The country offers a stable market, no major restrictions for foreigners, and a relatively straightforward buying process. However, purchasing property as a foreigner comes with certain steps and considerations that are important to understand.

Can Foreigners Buy Property in the Czech Republic?
 Yes!

Unlike some other European countries, the Czech Republic allows foreigners, including non-EU citizens, to buy property without restrictions. You do not need a residency permit or a local business entity to make a purchase. This makes the process simple and attractive for international buyers looking to own real estate here.

WHAT ARE THE STEPS?

Buying property involves several important steps, and understanding them in advance will help you avoid unnecessary complications. The first thing to consider is your budget and financing:

BUDGET

Main thing you need to decide – are you buying with cash, or will you need a mortgage?
If you buy in cash then that is straightforward, but most people do not have this option and need to arrange a mortgage:

Czech banks offer mortgage options to foreigners and no, you do not have to have a permanent residency permit – some banks can accept even employee card which is one of the lowest level of permits here.

Even when you use a mortgage you still need to pay some amount with your own money – this is called DOWNPAYMENT:

Buyers under 36 years old typically need to provide at least 10% of the property’s value as a downpayment, while those 36 and older must put down a minimum of 20%. This is a common problem so make sure you have some cash ready.

MORTGAGE AMOUNT

Rule of thumb is that 50% of your net household income (if you enter the mortgage with your partner or wife/husband your incomes add up together) can be your mortgage repayment, therefore if you make 100.000 CZK per month, your maximum mortgage repayment can be 50.000 CZK which transfer to just about 10 milion CZK.

For accurate mortgage budget calculation, please contact us and we will prepare exact numbers for you!

LOOKING FOR A PROPERTY

Properties are usually found online on various of real estate servers like Sreality, IDNES Reality or Bezrealtiky.
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. We can help you verify legal status of the property.

It is good to have a somebody who is speaking Czech so he/she can help you call the sellers or agents as they very often do not speak English properly. We of course provide this service to our clients and handle the communication between you and the seller.

TIMELINE

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.

TL;DR: WHOLE PROCESS INCLUDING MORTGAGE TAKES AROUND 2-3 MONTHS BEFORE YOU BECOME OWNER OF THE FLAT

We have our own English-speaking lawyers who will explain everything, so you understand the contracts that are written in Czech.