Restrictions on Foreigners Purchasing Property in Czech Republic – Lifted May 1st, 2009

Czech Point 101 October 21, 2014 @ 8:18AM

A substantial barrier to foreigners purchasing property in Czech Republic has been lifted. This is the previous requirement of the Czech Land Registry for foreigners either to purchase through a Czech company, called an SRO or after possessing a Czech residency permit. 

The timing really could not be better as the Czech property market stares in the face of a rapidly declining GDP, reduced lending by Czech banks and serious financial difficulties in many of the investment minded countries. 

Foreigners can now own Czech property directly

As of May 1st 2009 it is possible for non-Czech citizens to personally own property


As of May 1st, the Land Registry will now be registering any buyer without requiring an SRO or Czech residency permit. This decision, although not passed in Czech parliament, recognizes the EU directive (Article 56 of the EU articles of establishment) which stipulates that all EU member countries must have similar laws on the purchase of property. In fact, this EU directive states that there should be no restrictions on the purchase of property.  

Czech Republic had a five year exemption from this article but this time has now passed. A further 2 year exemption applies on the purchase of land zoned agricultural and forestry meaning foreigners can purchase these types of land only through establishing a Czech company (SRO) or holding the appropriate licenses as a physical person.  

The Czech Republic law which had been recognized by the Land Registry until May 1st has a statement to the effect that international agreements accepted by Czech Republic supersede this law. Thus the Land Registry has decided to recognize the EU directive above current Czech law.  

Internal correspondence which we have received from the Czech Land Registry (correspondence nbr: CUZK 1796 2009-15) makes the above declarations to all Land Registry offices in the different districts.  

This change applies not only to EU citizens but also citizens of third country nations meaning all foreigners.  

What does this mean for the Czech property market?  

The effect would have been much greater had the current crisis not caused Czech banks to tighten lending. As of this writing there is only one bank which has changed their own mortgage approval process so as not to require a Czech residency permit or company. However, this same bank reduced lending to only those who have lived in Czech Republic a provable two years.  

With lending in the Czech Republic for foreigners going rapidly in the last six months from 100 percent + LTV to a maximum of 85 percent LTV with very conservative valuations, the investment market has effectively dried up.  

In reality, the fact that this initial barrier to property purchase was in place, prevented massive speculation by foreigners. This will perhaps prove to be a good thing. Why so? This means that the amount of distressed sales or repossessions will be lower than those countries which did not have restrictions. Both of these types of sales are bad for property values staying steady.  

Do we feel that there will now be an increase in foreign buyers?  

We feel the effect will be a marginal increase in interest from foreigners, especially with the current prevailing conditions. However, should those fundamentals show signs of changing we could see again increased in purchases by non-Czech citizens.

You can ask any questions about this article or Czech property in general, by contacting us at: info@czechpoint101.com.



Updated/Aktualizováno: ,

67 Comments

  1. Mrs. Shazia Aftab

    I would like to purchase land/ plot/ house in there, kindly give me details
    Your earlier response on this regard will highly appreciated
    Thanks & Best Regards,
    SHAZIA AFTAB
    00971 7199903

    Reply
  2. Mrs. Shazia Aftab

    I have already uk visa 5 years & schengen visa for 30 days , i want to visit europe in june mid with my family

    Reply
  3. CZECH POINT 101

    Hi Mrs. Aftab,

    Thanks for your comment.

    I have sent an email with more information how this is possible for you and to find out exactly what you are looking to purchase.

    Nathan

    Reply
    • Akhil sharma

      i want to buy a land in czech republic please advice

      Reply
        • Ana

          Hi! We would like to know if it’s possible to get mortgage for new zealanders? Thank you

          Reply
          • Czech Point 101

            Hi Ana, It is possible but you would need to have a residency permit and income from within the Czech Republic. Nathan

      • Mergen

        Hi,
        What are you interested in? Only a land? and in sq.m or ha?
        We have some parcels near Prague.

        Reply
  4. Diana

    American family willing to buy property in Czech Republic. Can we apply for a loan in Czech Republic although we have a permanent job in USA?

    Thanks for help,

    Diana

    Reply
  5. CZECH POINT 101

    Hi Diana,

    Yes, it is entirely possible for you to get a mortgage in Czech Republic. The rates are as low as 3.79% at 85% LTV to purchase a property you will not live in.

    I will write more to your email address.

    Nathan

    Reply
    • Kevin

      Hi Nathan,

      I would be interested in learning more about this.

      Can you please email me more information on this?

      Reply
  6. Don Magsino

    Hi there, please confirm that any national even non-EU are entitled to buy property in Czech. Do they get residency or do they need to stay in Prague for them to be eligible? Thank you.

    Reply
  7. Nathan Brown

    Hi Don,

    Thanks for your question.

    Yes, this is true that non-EU citizens are entitled to purchase property in Czech Republic. There is no need for them to have a visa or residency permit.

    However, conversely, it also does not entitle a property owner to get a visa or residency permit in Czech Republic.

    Nathan

    Reply
  8. lucia

    Hello,

    I tried to buy property in czech republic and was told by the agents that as a usa citizen (even though I have a visa to live in CR) I was only entitled to purchase property that was not meant for living… ie a garage or a garden. True or false?

    thanks

    Reply
  9. Nathan Brown

    Hi Lucia,

    Thanks for your post and I have responded via email also.

    These agents are very behind on the times. For US citizens it was possible to purchase even before this change in 2009 as there was a special agreement between the US and Czech Republic. We have helped many clients over the years with exactly the same scenario as you.

    Best regards,
    Nathan

    Reply
  10. Babak

    Hello,

    You’ve got a fantastic website and seems like you’re doing a great job. I am utterly confused and desperately in need of help. I’m a Canadian citizen (without EU or Czech residency) looking to buy a flat in Prague. In my research I came across the restrictions for foreign nationals to buy property in Czech Republic then I contacted the Czech Embassy in Ottawa and they confirmed that as a Canadian citizen I can’t buy property. Then 3 real state lawyers and law firms in Prague told me there is no restriction and I can just go there and buy. There is an article on the Czech embassy in Riyadh which says foreign nationals CAN buy but the embassy in Ottawa insist that it is impossible except with SRO (but I also read that in order to get SRO I need long term visa – Canadians get 90 days so I have to apply for that and might not even get it). What makes it worst? most the articles on internet, including on on the website of one the lawyers, say I can’t buy but then some others say I can. I am thinking maybe I should change my mind and not risk my money. I’d really appreciate your help.

    Reply
  11. Nathan Brown

    Hi Babak,

    There is no restriction on Canadian citizens purchasing property. You do not need an SRO. It seems the Czech embassy in Canada does not know the regulations but this is not unusual as sometimes the Land Registries themselves do not know all the changes.

    We have an internal memo from the Land Registry to all it’s branches that confirms this is possible and has been from May, 2009.

    We have also had clients from many different non-EU countries who we have assisted to purchase without an SRO.

    I will write you also an email.

    Nathan

    Reply
  12. S.Singh

    Hi,

    I am from india,My main purpose to get CZ residency,Can I get CZ residency with property investment.

    Reply
  13. Nathan Brown

    Hi S.Singh,

    Thanks for your comment and question. Please see my response to the same question above for Don.

    For more information about visas and residency permits for third-country nationals please see the Ministry of Interior’s website.

    Nathan

    Reply
  14. Tariq Mahmood

    I am a pakistani national living in Belarus for business purpose.I wish to buy some property in Czeck republic.Please guide me how it is possible.

    Reply
  15. Svapnil

    Hi Nathan!
    I read your reply to Don regarding property purchase and residency. However if I belong to a third state and end up buying property in CZ, and I am not entitled for residency then how does one mitigate the restriction to travelling to CZ. It doesn’t make sense allowing to buy property and not giving freedom to enter CZ at will. In other words is there a residency through investment program of any sort similar to EB5 of the U.S.

    Thanks and Regards,
    Svapnil.

    Reply
    • Czech Point 101

      Hi Svapnil,

      Thanks for your further comment.

      Unfortunately there is not a program in Czech Republic which entitles a person for residency when they buy a property. That being said I am not up-to-date with all the visa laws for third-country nationals. I would recommend going through the information on the Ministry of Interior’s website on immigration. I am sorry I can’t help you on this.

      Nathan

      Reply
  16. Samuel Martin

    Dear Sir,
    I am an Australian Citizen and on my recent visit to Prague was so enchanted with the place that I thought it would be a good idea to buy a property.
    I work in Qatar, and hence visited several agents i Prague, who said I need to fund the property a 100%.
    Please advise me
    1.Can I purchase property in Prague
    2 Am I eligible for a loan say after providing the deposit, though I can’t see how this is possible
    3What other pitfalls should I be aware of.

    Very grateful for your advise.
    Sam

    Reply
    • Czech Point 101

      Hi Samuel,

      Thanks for your response and questions:

      1. Yes, any third country national (non-Czech, non-EU) can purchase property in Czech Republic without restriction
      2. Without a Czech long-term residence permit there is only one bank which finances foreigners. It has a list of countries that it views income from as ‘high risk’ and will not lend to them. However, Qatar is currently not on that list so it should be possible to get an 85% loan-to-value mortgage through them.
      3. There are many in Czech Republic because real estate agents are not regulated and there are no requirements for getting a license. Read this Czech property purchase story from Český Krumlov which will give you an idea of some best practices.

      I hope this helps. Please feel free to contact me with further questions: nathan@czechpoint101.com.

      Nathan

      Reply
  17. Harijati

    Dear Sir
    I am Mrs Harijati , Indonesian citizen. I would like to know , is it possible for me to buy a property in Czech republic. Do I need to pay special tax?.
    Thank you. Regards

    Harijati

    Reply
    • Czech Point 101

      Hi Harijati, Thanks for your question.

      Yes, it is 100% possible for you to buy a property in Czech Republic as an Indonesian citizen and no, there is no special tax you would pay.

      There is much confusion regarding whether foreigners can buy property in Czech Republic but it is really quite easy with no restrictions.

      Nathan

      Reply
      • Tom

        this is not correct. owner of property in czech republic is paying tax from property, tax from renting, and usually montly service … ( i am from czech, and have property)

        Reply
        • Czech Point 101

          Hi Tom, Thanks for your comment. There is no special tax for him owning property as a foreigner. I think is what he was referring to. He would pay the same taxes as a Czech citizen. Nathan

          Reply
  18. Payla

    I wondered if you could answer this rather simple question for me – I am an Indian citizen, who recently moved to Prague and am working here with an “Employee Card” and an living here on a “long term residency permit” valid until July 2018 (referred to as “Povolení k dlouhodobému pobytu”). I would like to buy a flat in Prague to live in together with my boyfriend who is a Czech national. Ideally, I would like to co-own the flat with him, but we are not married and do not have any formal partnership. Is is legally possible for a non-EU national on a temporary residence to co-own a property with a Czech national?

    Reply
    • Czech Point 101

      Hi Payla, Thanks for your question. Yes, it is no problem for a non-EU national to co-own a property with a Czech national. The only issue you could have is trying to get a mortgage at the bank for the purchase. However, if you are buying cash you will have no issues at all. Nathan

      Reply
  19. Maria

    Hi. I am from South Africa and I am interested in buying a property in Czech. I was wondering what the possibilities are for me. I saw a property that I like. Do I need an extra visa to stay permanently in Czech? Please help with this. Your help is greatly appreciated.

    Reply
    • Czech Point 101

      Hi Maria, Thanks for your comment and question. There is no need for a special visa to buy property in Czech Republic. For more information on visas I would recommend the Ministry of Interior’s webpage regarding immigration. If you decide to proceed with a purchase don’t hesitate to contact me. Nathan

      Reply
  20. Rob

    Hi,

    Great website and appreciate all the info. I’ve already had experience with purchasing in other foreign countries so am interested in the Czech Republic. As an American, I’d like to clarify a few questions:

    1) After putting down 15%, is it possible to get a mortgage for the remaining 85%, and if so, what bank(s) offer(s) Americans such mortgages?

    2) If a property is purchased, could I, or someone I know stay in the property? In some foreign countries, it’s possible to stay in the property you purchase as long as you do not exceed your tourist visa stay and declare your property a “vacation property.”

    3) Upon selling the property, will a foreign buyer have to pay any special taxes or fees that Czech Republic citizens do not need to pay? Likewise, if I purchase the property and decide to rent it out, are there any taxes or fees I am subject to paying?

    Thanks.

    Reply
    • Czech Point 101

      Hi Rob, Thanks for your feedback on our website.

      1. Please check out this article on mortgage options for foreigners which is still valid with the main change that LTV has decreased.
      2. Yes, there are no restrictions on usage
      3. No, there are no special taxes for foreigners. On income property a foreigner needs to pay currently roughly 15% of net income.

      Hope this helps. Drop me an email at nathan@czechpoint101.com if you would like a more in-depth mortgage options analysis. Nathan

      Reply
  21. Ka

    May I kindly know if I buy property in Czech rep, will I get a permenant residency knowing that Im russian citizen?
    Thanks

    Reply
    • Czech Point 101

      Hi Ka, No, buying property in Czech Republic does not mean you will automatically get a residency permit. Nathan

      Reply
  22. Suzanne

    I am Australian an have property in czech republic left to me in a will by a czech person.Is it possible to transfer that property into my grand daughters name now or would i have to sell it to her.She is also Australian.If i transfer it would there be gift tax to pay in czech.

    Reply
    • Czech Point 101

      Hi Suzanne, We’ve dealt with inheritances of property before but in 2014 so this information would all need to be verified again before you proceeded. For sure your inheritance would have to be complete before thinking about gifting it.

      You can gift a property to a family member without having to pay the real estate transfer tax.

      If your granddaughter is a minor transfer of the property is possible, however it has to be approved in court. The court needs to judge if the transfer is in the favor of the minor. She would need to have curator till 18.

      For further details please email me at: nathan@czechpoint101.com. Nathan

      Reply
  23. Nitin

    Hi i am in poland temporary residency permit in poland 3 year
    I am indian so I am interested in buying a property in Czech so possibly??? Please reply

    Reply
    • Czech Point 101

      Hi Nitin, It doesn’t matter what country you are from or where you have residency permits – all citizens of the world can purchase property directly in Czech Republic. Hope this helps. Nathan

      Reply
      • Nitin

        Thank you.. NATHAN

        Reply
  24. Livia Ujhelyi

    Hello, I would like to obtain information related to the purchase of agricultural land in Czech Republic before May 2009. My ex-husband, US citizen bought agricultural land during our marriage in 2008, we divorced in 2014 in the US.
    We lived in the state where the common law applies( all assests are divided according to 50 percent rules). I am both US and EU citizen. Am I eligible to be a co-owner of the purchased property in CR? The ex-husband had property registered with the Office of the Land in 2008 only in his name, he did not disclosed the purchase of agricultural land in our marital settlement agreement. I am disputing MSA and I would like to know if I can be a co-owner of the purchased property in CR?
    I would appreciate an advice in this matter. Thank you for your response.

    Reply
    • Czech Point 101

      Hi Livia, Thanks for the email and question. There was a further 2 year extension from May 2009 on agricultural land. It was only possible for a foreigner through a Czech company or with the appropriate farming-type licenses to buy agricultural land. However, I don’t think that would mean that the joint property of spouses law did not apply as there is also a similar law in Czech Republic. Here is an article with a little more of a discussion of the joint property of spouses law. I hope this helps. Nathan

      Reply
  25. Zhou (sounds like 'žou')

    Hi Nathan,

    It’s been nearly 8 years since this article was posted, so not sure if you are till answering comments. I’ll just try. I’m from China and have long term employee contract and the employee card. I am seriously considering buying a house and the associated land in Prague because I know I will be working there for years. From the internet, I saw somebody said non-EUs buying property needs creating s.r.o., while others (like you) believe they do not need that. I even consulted (a few minutes ago) the property agent who helped me rent my current apartment, but he also said I have to create s.r.o. for property acquisition. So I’m confused! Actually I have found a few interested houses (with plots) through searching the sreality but now I do not know if I should proceed? Thank you.

    Sincerely Yours,

    Reply
    • Czech Point 101

      Hi Zhou, nothing has changed since this article was written. A person of any nationality can buy property in Czech Republic without restrictions. We have helped hundreds to do so. However, there are not many banks offering mortgages so if you are looking for financing your options are very limited. Hope this helps. Nathan

      Reply
      • Zhou

        Surprised by your quick response! You replied in Friday evening? Really appreciate your hard work. Mortgage is not a big deal (just nice to have), I just want to do it 100% legally. Actually I suspected that the ‘s.r.o.-way’ may not be perfectly legal. You said person of any nationality can buy property here, so the government has officially allowed it, right? Including house and the associated plot, right? Thank you.

        Reply
        • Czech Point 101

          Hi Zhou, Yes, that is correct, if you are not renting the property then you can have problems going the route of buying via an s.r.o. Yes, the government officially made this change in ownership rules in May, 2009. There is a lot of misinformation still on the internet and in some agents heads that an s.r.o. is still necessary but it is not true. Nathan

          Reply
          • Zhou (sounds like 'žou')

            Thank you Nathan. You are the best!

    • Terry Mulholland

      My mom was born in Czechoslovakia but became a US citizen after arriving in Elis Island her mom died and left her house and property ,she left it to me all I know is her step sister and step brother are residing on the property the asked my mom for it but she told them she was leaving to me all I have is her passport how do I locate the property I am a US citizen

      Reply
      • Czech Point 101

        Hi Terry, there are a few online options for searching here: https://nahlizenidokn.cuzk.cz/. But it is easiest if you know the general area that the property was in. Hopefully that website helps. Nathan

        Reply
  26. arezoo

    im looking to buy a house in Prague
    but im not living in Prague my question is: if i wiil buy a house in prague can i get residence visa?

    Reply
  27. arezoo

    im looking to buy a house in Prague
    but im not living in Prague my question is: if i wlil buy a house in prague can i get residence visa?

    Reply
  28. Saly Basha

    Hi,I would like to know more about buying a property in Prague, and would that help me in getting a residency visa if i want to live there?

    Reply
  29. Vatsal

    Hello!
    I am from India, and I live and work in Czech (Prague) since 2016. I am about to get Czech degree soon, and I am on Employee VISA, therefore now I am planning to buy property in Prague.
    1) Could you please suggest whether am I eligible to buy property on my name?
    2) Am I eligible to get house loan (Mortgage Loan)
    Thank you!

    Reply
    • Czech Point 101

      Hi Vatsal, Thanks for your questions. Regarding them: 1. Yes 2. Depends on a number of factors. Please write me at nathan@czechpoint101.com and I can send you a questionnaire in order to be able to evaluate your mortgage potential. Nathan

      Reply
  30. Ken

    Hi, I am interested in buying a house at hill area in Prague. Please advice?

    Reply
  31. Chrystalla Christou

    Hello.
    I have a work permit for CR and i would like to know if i buy an apartment do i get permanent residency?
    Thank you very much

    Reply
    • Czech Point 101

      Hi Chrystalla, Thanks for your email and question. We are not experts on immigration so I would recommend researching here: https://www.mvcr.cz/mvcren/article/immigration.aspx. However, to my knowledge it would only help to fulfill the ‘proof of accommodation’ aspect of your residency. Nathan

      Reply
  32. Nuri

    hello.

    I am from Turkey and stay in czech rep with an employee card.

    I signed a pre-purchase contract for a house under construction. My mortgage is approved. paid %20 in cash to developer.

    However i resigned my job and will go back to Turkey. Is this a problem to register the property on my name.

    Can i register the house after completion with a tourist visa?

    Is my mortgage safe since it was approved 3 motnhs ago?

    Best

    Reply
    • Czech Point 101

      Hi Nuri, it will not be a problem to register the property in your name. With regard to the mortgage it depends if the bank will ask for some final documents or not. Nathan

      Reply
  33. Sarah

    Thanks for providing very good information. I am a non-EU citizen, working in Czech republic, and I have emplyee card, which is valid untill 2022, and also I have permanent working contract, and I am planning to saty in CR for long time. I like to buy an apartment in Czech Republic. Is it any restrictions for non-EU residence to buy an apartment? I have heard that in some areas of Czech Republic such as Meziboří (near Litvínov) there are some limitations for it. It is my pleasure if you advise me about it.

    Reply
    • Czech Point 101

      Hi Sarah, Thanks for your question. We are glad you like our website 🙂 There are no restrictions on foreigners purchasing property in Czech Republic. However, the banks will not lend to everyone so if you are looking for financing it is a different story. Please contact me at nathan@czechpoint101.com and I can get the latest financing information to you. Thanks, Nathan

      Reply
  34. Eunice

    Hello,

    I am non-EU citizen and my daughter is attending medical school in Brno.
    So I would like to purchase a apartment for her.
    I can see that foreign can purchase apartment. What is the admin. cost for purchasing it?
    Can we give a lease to others once my daughter graduated or resell?

    I’d appreciate it for your advise.

    Best regards,
    Yunhee

    Reply

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