What does the total price of a Czech Republic property purchase come out to?

Czech Point 101 November 4, 2016 @ 4:05PM

*NOTE:* As of November 1, 2016 the real estate transfer tax, currently 4%, has changed from being the obligation of the seller to pay to that of the buyer. Please add that amount to the calculations below.

A good rule of thumb is to take the purchase price and add 6 to 8% to cover all real estate commissions, escrow costs, legal expenses and fees if you are purchasing in the 1.000.000 to 2.000.000 range. For purchases above the 2.000.000 CZK range it is on the lower end of the range of 6% and sometimes even lower.

In Brno, if buying through real estate agent, the real estate commission is added to the listed price (typically 3 to 5% + VAT). In Prague, the listed price through a real estate agency typically includes the real estate fee (again, 3 to 5% + VAT).

Thus, on a purchase of a property worth 1.600.000 CZK, your normal total price would be approximately 1.728.000 (total fees are 128.000).

Prices for legal services and commission fees inside of Prague can be higher than outside due to the competition for attractive properties and also higher cost of doing business in the city.

Once purchased, yearly land and property taxes must be paid, but are extremely minimal. They range from 1Kc to 4Kc per square meter, per year. Maintenance fees also apply, and will be briefly discussed in the next question.

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

Are you thinking about investing in Czech real estate? Chapter 21 of our book is: ‘Obtaining a mortgage’.

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