Real Estates

Why is it advantageous for a foreigner to buy a flat in Prague?

Note: what is said below about flats, refers analogically also to other types of real estate in the Czech Republic

• Currently, Czech law prevents foreigners from buying real estate in the Czech Republic. This is expected to be permitted within 5 years, but for now, prices are still relatively low in comparison with prices in other major cities of Western Europe and will continue to grow until they reach the level of comparable real estate of Madrid, Paris, Rome, Munich or Brussels. This situation also allows considering a purchase in Prague (or in another czech city) as a good investment, the value of which can only increase in the course of time. Since 1990, the appreciation of residential real estate in Prague has ranged between 10 to 20% annually, depending on the location.
• Until 1 January 2007, Value Added Tax of 5% is paid on the purchase of flats and houses. It will then increase to 19%, which could have a strong appreciation effect on the value of real estate, creating important added value in favor of those who have purchased property before this date.
• If you have been captured by the charm of Prague, you may come whenever you want to enjoy staying in your own flat or house or leave your keys with whomever you wish.
• Because we are going to implement legal conditions so that you can have your flat at your disposal, in the manner explained below.
• Finally, having money in a bank account brings a very small profit, which often does not even compensate for inflation.