Buying property in the Czech Republic as a foreigner

The legal side is simpler than people expect

The restrictions on foreigners acquiring property in the Czech Republic are gone. An individual or a company from abroad, whether from the European Union or outside it, can buy an apartment, a house or land on the same terms as a Czech citizen. You do not need a residence permit or a Czech company. What you do need is a Czech personal identification number (rodné číslo) or an identifier for the land registry, and that is assigned as part of the process.

Step by step

• Reservation contract and reservation deposit. The property is taken off the market, usually for two to four weeks.
• Due diligence. Title deed, zoning plan, the declaration of unit ownership, the state of the owners’ association, any easements and liens.
• Purchase contract and escrow agreement. The purchase price never goes directly to the seller but into escrow with a lawyer, a notary or a bank.
• Application to register the transfer in the land registry. The registry has a statutory twenty-day protective period, after which it registers the transfer.
• Handover of the property, with a report recording the meter readings.
• Transfer of electricity, water and gas, notifying the owners’ association and arranging service-charge payments.

Financing from abroad

A foreigner can get a mortgage from a Czech bank, but the terms differ by citizenship and by where the income comes from. EU citizens with income in euros have it easier; with income from outside the EU, banks usually require a higher deposit. Expect the bank to ask for proof of income with a certified translation and expect the whole process to take longer than for a domestic applicant. For a cash purchase the main question is the origin of the funds, because both the lawyer and the bank have obligations under anti-money-laundering legislation.

Power of attorney if you cannot travel

The entire purchase can be handled remotely. The power of attorney needs a certified signature, and if it is certified outside the Czech Republic it needs an apostille, or in some cases full legalisation, depending on the country. This is the single most common place where timetables collapse, because an apostille cannot be arranged overnight. So it is dealt with right at the beginning, not a week before signing.

What tends to be underestimated

• Immovable property tax. The owner pays it annually and the return is filed by the end of January of the year following acquisition.
• Incidental costs. Legal services, escrow, a valuation for the bank, the land registry fee.
• The rules of the owners’ association. Short-term letting is restricted by the articles in a number of Prague buildings. If that is your plan, it has to be verified in advance.
• A delivery address. Without a Czech address or a representative, official post is difficult to deliver.

How I run it

With international clients I work in English, French and Russian. I run the whole process from the selection through the viewings and negotiation to the handover of the keys, including legal services, transferring the utilities and furnishing the interior. The client does not have to speak Czech or be physically in Prague. They only have to say once what they are looking for.