What are some basic facts and figures about the Czech Republic?
Capital city: Prague (1,2 mil inhabitants)
Member of European Union: since May 2004
Population: 10,1 mil
Area: 78 866 km
Population density: 131/km
GDP growth: 2,9% (2003)
GDP: USD 85.40 bn
GDP per capita: USD 8 340
The Czech GDP is currently at the approximate level of of Greek and Portuguese GDP for 2001. Czech GDP growth will accelerate to 3,1 pct in 2005. Inflation is expected to reach 2.3 pct in September 2005. The average wage in the Czech Republic was 6348 EUR/year. The unemployment leveled at approximately 10% (April 2004). Czech crown (CZK) is the Czech official money unit. Current exchange rates as of May 2005: 1 USD = 26,7 CZK, 1 EUR = 31,9 CZK.

Who may acquire Czech real estate?
In principle these are only Czech legal entities, Czech individuals and Czech branches of foreign companies. Foreign individuals and companies have to establish or acquire a Czech registered company or a Czech registered branch through which they will be able to directly acquire a title to real estate located in the Czech Republic.

This administration obstacle is not a great barrier for foreign individuals interested in buying a property in the Czech Republic. Rellox will help you with all necessary administration and registrations.

What are the Czech taxation principles related to real estate?
The general Czech corporate income tax rate is 29%. The real estate transfer tax is charged at a rate of 5%. Real estate tax calculations are usually made according to the size of land or buildings and the tax is generally paid by the seller. There are exemptions from real estate tax.

VAT is charged at two rates: the standard rate of 19% applies to most goods and the reduced rate of 5% applies to services and to most construction works. There is a VAT exempt related to transfer of land, transfer of unfinished structures and also rent in some cases.