Owning property in Prague or anywhere else in the Czech Republic is an exciting venture, whether you’re settling down or investing for rental income. However, property ownership comes with tax responsibilities. Understanding Czech property tax rules is essential for effectively managing your investment. If you own or plan to own real estate in the Czech Republic, here are the taxes that may apply:
Income Tax, Local fees and VAT – Short-term rentalss
Your tax residency in the Czech Republic doesn’t affect your obligations—you’ll always owe Property Tax if you own property here. The same applies to Income Tax if you rent or sell, as well as potential local fees and VAT if you operate short-term rentals (e.g., Airbnb). You may then seek double taxation relief under a Double Tax Treaty between the Czech Republic and your home country, if one exists.
Let’s dive into the specific tax obligations that might apply to you. While this article may seem detailed, most Prague property owners can relax—if you only own and don’t rent or sell, only the Property Tax section is relevant.
There Is No More Real Estate Acquisition Tax
Sidenote: you may still find articles mentioning the real estate acquisition tax, once set at 4% of a property’s purchase price in the Czech Republic. However, as of this article’s writing in March 2025, that tax no longer exists. Abolished in 2020, it remains off the table, with no current discussions to bring it back. Now, onto the taxes that do matter.
Property Tax (Tax on Immovable Property)
Who?
If you own property anywhere in the Czech Republic—be it a house, an apartment, or a plot of land—you’re liable for the annual property tax. Officially called the "tax on immovable property," it applies to virtually anything registered in the Czech cadastre. For Prague owners, expats and other foreign owners included, this tax is a must, no matter your residency status.
When?
You must file your property tax return by January 31 of the year after acquisition. For example, if you buy a Prague apartment or house in 2025, the deadline is January 31, 2026.
Payment depends on the amount. If under CZK 5,000—true for most properties—it’s due by May 31. If over CZK 5,000, it splits into two equal installments: May 31 and November 30.
How to File the Tax Return?
For Prague property tax, you file a single tax return after acquiring your property. If you buy an apartment in 2025, submit it by January 31, 2026—that’s it unless major changes occur. Refiling is needed only for significant updates, like altered square footage or new construction.
The simplest way to file is online at mojedane.cz. With a Czech bank ID or Data Box (Datová schránka), log in and follow their guide. Without those, use the guide at adisspr.mfcr.cz/pmd/epo/formulare, or download the form, and complete it. Submit online, by mail, or in person at the tax office.
Unfortunately, the portal and forms are in Czech only, and navigating the cadastral registry can be tricky—even for Czech speakers. A good seller’s agent might assist buyers with filing after the purchase. If you have a buyer’s agent, this is typically included in their service. Otherwise, contact us—we can help you file accurately.
How to pay the tax?
After filing, the tax office sends an annual notice with payment details before the deadline, typically by early May. For Prague property tax, a wire transfer is the most common method, though you can also pay in person at the tax office.
How Much Is the Tax?
Property tax in the Czech Republic ranks among the world’s lowest. For most Prague owners—unless you own an entire apartment building or a 1,000 m² luxury flat—expect an annual bill of CZK 850–2,500 (~€35–100). Rates rose slightly in 2024, and while some discuss further hikes, no changes are set.
What if I sell my property?
If you sell your Prague or other Czech property, you must notify the tax office by January 31 of the following year. For example, a 2025 sale requires notification by January 31, 2026. No formal document is needed—a letter identifying the property and confirming you’re no longer the owner is enough. Submit it via mojedane.cz (with a Czech bank ID or Data Box), by mail, or in person. A reliable agent will always assist with this step.
Income Tax - Landlords
Who?
If you own property in Prague or elsewhere in the Czech Republic and rent it out, you’re liable for income tax on your rental income. Your employment status—whether employed, self-employed, or working outside the Czech Republic—doesn’t affect this. Exceptions apply: if your total annual income is below CZK 50,000, or if you’re employed in the Czech Republic and your income outside employment, such as rental income, is under CZK 20,000, you’re exempt from income tax and filing a return.
When?
Depending on how you’re filing your return, it must be filed:
- Regular Returns: By the first business day after March 31. For 2024 income, that’s Tuesday, April 1, 2025.
- Electronic Returns: By the first business day after April 30—typically May 2, as May 1 is a holiday. For 2024 income, it’s May 2, 2025. We recommend this unless using a tax advisor.
- Returns Filed by a Tax Advisor: By the first business day after June 31—Tuesday, July 1, 2025, for 2024 income. A power of attorney must be submitted to the tax office beforehand.
The tax payment is due on the same date as the return filing deadline.
How to file the tax return?
You can file your income tax return electronically via mojedane.cz, which offers a guide, or download the form from adisspr.mfcr.cz/pmd/epo/formulare. Both the portal and forms are in Czech only, making them challenging for non-speakers. We recommend hiring a professional to assist, as filing is rarely straightforward—especially for non-Czech speakers filing for the first time.
How to pay the income tax?
The simplest way to pay your income tax in the Czech Republic is through the online portal at https://adisspr.mfcr.cz/pmd/platba. This site lets you fill out a form and generate a QR code for payment. The interface is in Czech only, but the process is manageable with some guidance.
Here’s how to do it:
- Payment Type: Choose “Daň z příjmu osob podávajících přiznání” (Income tax for persons filing returns). This applies to individuals submitting a tax return, such as for rental income.
- Tax office Location: Enter the county (region) where you filed your tax return. For example, if your property is in Prague, select “Praha” (Prague). This typically matches the location of your taxable property or residence in Czechia.
- Amount: Input the exact amount calculated in your tax return. Double-check this to ensure accuracy.
- Variable Symbol: For the variable symbol, use your Tax Identification Number (DIČ)—a unique 10-digit number assigned by the Czech tax authority. If You Have a TIN (DIČ): if you’re employed, self-employed, or have previously filed a tax return in Czechia, you should already have a DIČ. Enter it as your variable symbol without the “CZ” in the beginning (e.g., 1234567890). If You Don’t Have a DIČ yet: as a new taxpayer (e.g., a foreigner with rental income), you must register with your local tax office (Finanční úřad) before or with your first tax filing. Contact them to obtain your DIČ, which you’ll then use as your variable symbol.
How Much is the Tax?
The tax is based on your tax base, calculated as:
Net Income - Expenses = Tax Base
Net income is the rent collected in the previous year (e.g., 2024 for tax return filed in 2025). Exclude utility deposits (water, heating, etc.) if you bill tenants separately for utilities. If utility deposits are a flat rate with no adjustments, they’re taxable along with the rent. To avoid this, your lease should clearly separate rent and utility amounts.
Expenses: Two options:
- Flat-Rate Expenses: Deduct 30% of your rental income and tax the rest. Simple, but less tax-saving.
- Actual Expenses: Deduct specific costs to lower your tax base, often to zero. Eligible expenses include:
- Depreciation (odpisy)
- Real estate agent fees
- Mortgage interest
- Property equipment costs (furniture, fridge, etc.)
- Repairs and maintenance
- Property insurance
- Property tax
- Car expenses (if tied to the property)
- Other related costs
Depreciation is the biggest tax-saver. For an 8 million CZK property using accelerated depreciation, you could deduct over 500,000 CZK in year two, potentially reducing your tax to zero. Deductions decrease annually, so consider selling after approximately 10 years and restarting with a new property.
If you’re renting out the property as an individual (not a corporation) and unless your tax base exceeds CZK 1,582,812 (in 2024, this amount changes every year), your Income Tax rate will be 15%. Everything above this amount is taxed 23%.
Tax base * 0,15 = income tax
Let’s explain it in an example: you bought an apartment in Prague for CZK 8 million in 2024 and started renting it in 2025 for CZK 20,000 per month + utilities. In 2025, your expenses were CZK 20,000 for a Real Estate agent to find a tenant, 20,000 mortgage interest, 5,000 for small repairs in the apartment and 1,500 for property tax.
Net income: 20,000 * 12 = CZK 240,000
Expenses using the flat-rate: 30% of 240,000 = CZK 72,000
Tax base using the flat-rate: 240,000 - 72,000 = CZK 168,000
Income tax using the flat-rate: 168,000 * 0,15 = CZK 25,200
Expenses using the actual expenses: 20,000 (agent) + 20,000 (mortgage interest) + 5,000 (repairs) + 1,500 (property tax) + 515,000 (accelerated depreciation) = CZK 561,500
Tax base using the actual expenses: 240,000 - 561,500 = CZK -321,500
Income tax using the actual expenses: CZK 0 (cannot go below 0)
Please note that this is an intentionally simplified example used only to illustrate the differences between flat-rate and actual expenses. The numbers don’t fit real cases exactly. Also note that tax loss has further implications.
Income Tax – Sellers
Who?
If you sell your Prague or Czech property at a profit—meaning the sale price exceeds your purchase cost plus expenses—you’re liable for income tax on that gain.
When?
You must declare your profit in the first tax return after selling your property. For example, if you sell in 2025, report it by the 2026 filing deadline.
The same form as for rental income is used — deadlines align with those outlined earlier in the section about rental income.
How to file the tax return?
The filing process mirrors that for rental income. See the “Income Tax for Landlords” section above for details on submitting via mojedane.cz, downloading forms, or using a professional—same steps apply here.
How to pay the income tax?
Payment follows the same process as rental income tax. Refer to the Income Tax - Landlords section above for details on deadlines and methods, which apply identically here.
How Much is the Tax?
The tax you owe is calculated based on your tax base, which is simply your income minus any allowable expenses. Income refers to the amount you receive from selling the property. Expenses, on the other hand, start with the original purchase price of the property and can include additional costs like legal fees, appraisals, repairs, technical upgrades, real estate agent commissions, and more.
If you’re an individual (not a corporation) selling the property, your income tax rate will be 15% on the tax base up to a certain threshold. For property sold in 2024, any amount exceeding CZK 1,582,812 (a figure that adjusts annually) is taxed at 23%.
Let’s Break It Down with an Example: Imagine you bought an apartment in Prague for CZK 5 million in 2021 and didn’t use it as your primary residence. In 2024, you sell it for CZK 8 million. Along the way, you paid CZK 380,000 in real estate agent fees and spent CZK 250,000 renovating the kitchen. Here’s how the tax works:
Income: CZK 8,000,000 (sale price)
Expenses: 5,000,000 (purchase price) + 380,000 (Agent fee) + 250,000 (renovation) = CZK 5,630,000
Tax Base: 8,000,000 - 5,630,000 = CZK 2,370,000
Income tax 2024:
- 15% of CZK 1,582,812 = CZK 237,421.80
- 23% of the remaining CZK 787,188 (2,370,000 - 1,582,812) = CZK 181,053.24
- Total Tax: 237,421.80 + 181,053.24 = CZK 418,475 (rounded for simplicity)
Note that this is a simplified example not taking into account real expenses.
When Am I Exempt from the Tax?
You may not have to pay Income Tax on the sale of your property if certain conditions are met:
- Residency Exemption: If you lived in the apartment or house as your primary residence for at least 2 years immediately before the sale, you’re exempt from the tax.
- Ownership Duration Exemption:
- For properties acquired before January 1, 2021, you’re exempt from Income Tax if you’ve owned the property for at least 5 years at the time of sale, provided it wasn’t your residence.
- For properties acquired after January 1, 2021, the exemption applies after 10 years of ownership, if it wasn’t your residence.
- Reinvestment Exemption: You can also avoid the tax if you reinvest the sale proceeds into housing for your own needs, under these conditions:
- The funds must be used to acquire property for your personal housing by the end of the tax year following the year you received the money.
- Alternatively, you can use an amount equal to the proceeds for your housing needs before the sale, but no earlier than the tax year immediately preceding the sale year.
- To claim this exemption, you must notify your tax authority of the sale proceeds by filing a formal notice.
Meeting any of these criteria can save you from paying Income Tax on your property sale—plan accordingly to maximize your benefits!
Income Tax, Local fees and VAT – Short-term rentals
In the Czech Republic, operating short-term rentals like Airbnb is generally considered a form of accommodation services. As a result, you’ll typically need to secure a trade license, maintain accurate bookkeeping, and meet a range of legal obligations. Additionally, new regulations are currently being introduced that could significantly reshape the short-term rental market—such as caps on the number of nights you can rent out your property each year—so it’s worth staying informed as these changes unfold.
Income Tax
For details on calculating and filing income tax for short-term rentals, the rules are similar as those for landlords—check the Landlord section of this article for more information.
Value Added Tax (VAT)
If your total turnover from any business activities in the Czech Republic—including short-term rentals—exceeds CZK 2,000,000 within any 12 consecutive months, you must register for VAT. The current VAT rate for accommodation services is 12%. Registration involves submitting a separate form, and payments can often be made in installments. For specifics beyond this overview, reach out or consult a tax professional, as VAT details go beyond the scope of this article.
Local Fees
In certain areas of Prague and other Czech towns, short-term rental hosts are required to pay local accommodation fees. For example:
- In Prague 1, the fee is CZK 50 per person per night for stays up to 60 days.
- Other regions may have different rates or rules, so always check the regulations specific to your property’s location.
Paying these fees may require completing a designated form, and compliance is key to avoiding penalties. For the latest details, contact your local municipal authority.
Need Tailored Advice?
Have questions about real estate taxes or a unique situation? We’re here to help! Contact us for personalized guidance, assistance with filing your tax returns, or expert support tailored to your needs. Plus, if you choose us as your seller’s, buyer’s, or rental agent, our comprehensive legal and tax advisory services are included in our fee—no extra cost. Reach out today to get started!
