All property marked down 20 to 26% for US and UK citizens

Czech Point 101 January 29, 2015 @ 9:38AM

That’s right. The Czech government has declared a sale on all property in Czech Republic, but only for non-Czech citizens. If you are from the USA the discount is 26% off listed prices. For those from the UK it is 20% off. If you live in another part of Europe unfortunately the sale is only 7%.

Manipulation of the CZK

That is in effect what the Czech government has done by artificially depreciating the CZK by fixing it to a rate of 27 CZK/1 EUR. This gave all currencies a 7 to 8% bump against the CZK but since then particularly the GBP and USD have also strengthened substantially against the EUR and thus the CZK.

Below are the exchange rates over the last two years. In each graph you can see the sharp correction in November 2013 when the Czech National Bank fixed the CZK to the EUR.

USD vs CZK over 2 years

USD vs CZK over 2 years

GBP vs CZK over 2 years

GBP vs CZK over 2 years

What is going to happen with CZK?
What’s going to happen when the Czech National Bank stops fixing the exchange rate to the EURO – currently predicted to be at the beginning to middle of 2016?

Personally I’m betting that it is going to jump rather quickly back to free market exchange rates. The Czech National Bank has said that their exit from fixation will not be handled in the same manner as that of the Swiss Franc. However, this is very difficult and expensive to do in reality and I do believe there will be an immediate 5 to 10% correction.

However, the odds are very strongly in favor of purchasing a Czech property right now. With a strongly probable 5 to 10% currency increase combined with 4 to 6% property price appreciation this investment is looking very, very, very good right now.

Want to take advantage of the current sale prices? Drop me an email at: and I will give you some of the latest investment opportunities.

Updated/Aktualizováno: ,


  1. val cech

    Please get me more information on the 25% discount, I need to print it .
    Does this discount apply to all US citizens buying new construction? What is the law if any and applies to all real estate in Melnik CZ ?
    Please reply soon at

    • Czech Point 101

      Hi Val, Thanks for your question. If you read the article you will see that the title is ‘tongue in cheek’. There is a virtual discount right now for US citizens because of the fixed exchange rate of EUR to CZK and how this has affected other currencies. Nathan


Submit a Comment

Your email address will not be published. Required fields are marked *