Czech Republic Property Tax Guide

Czech property tax (daň z nemovitých věcí) is a low-rate annual tax on land and buildings. Land tax ranges from CZK 0.60 to CZK 5.00 per square metre, and building tax from CZK 2.00 to CZK 10.00 per square metre, depending on use and location. Municipalities may apply a local coefficient of up to 5 (2 in smaller towns), significantly increasing rates in Prague. The real estate acquisition tax was abolished in 2019. Capital gains on property are exempt after 5 years (časový test) or 2 years if used as permanent residence. All amounts in CZK.

Czech property tax is governed by Act No. 338/1992 Coll., on Property Tax (zákon o dani z nemovitých věcí). For related guidance, see our Capital Gains Guide →, Wealth Tax Guide →, and Personal Tax Guide →.

Land Tax (Daň z pozemků)

Agricultural land: CZK 0.75 per sqm (standard rate). The rate is multiplied by a coefficient based on the cadastral area (katastrální území), ranging from 0.25 (mountain areas) to 1.00 (most areas) to 5.00 (Prague). For arable land, hop fields, vineyards, and gardens, the rate is based on the official land value (cena půdy) multiplied by 0.75%.
Built-up land and courtyards: CZK 0.20 per sqm, multiplied by the local coefficient.
Other land (forests, ponds, etc.): CZK 0.20 per sqm, multiplied by the local coefficient.

Building Tax (Daň ze staveb a jednotek)

Residential buildings: CZK 2.00 per sqm of floor area (zastavěná plocha). Multiplied by a local coefficient of 1.0 to 5.0 (up to 2.0 in towns without city status).
Garages: CZK 8.00 per sqm.
Commercial/industrial buildings: CZK 2.00 per sqm for agricultural production, CZK 6.00 per sqm for other business purposes, CZK 10.00 per sqm for flats used for business.
Local coefficient (místní koeficient): Municipalities may set a coefficient of 1.0 to 5.0 (Prague and statutory cities can use up to 5.0; other municipalities up to 2.0). In Prague, the coefficient is typically 4.5–5.0, significantly increasing the tax. For example, a flat of 100 sqm in Prague with coefficient 5.0: 100 × CZK 2.00 × 5.0 = CZK 1,000 per year.

Real Estate Acquisition Tax (Zrušena 2019)

Abolished: The real estate acquisition tax (daň z nabytí nemovitých věcí) was abolished effective 26 September 2019. Previously, buyers paid 4% of the higher of the purchase price or the official appraisal value. No acquisition tax is payable on purchases made after this date.
Historical context: The tax was originally paid by the seller, but from 2016 the buyer was liable. Its abolition removed a significant transaction cost from Czech real estate transactions. Buyers now only pay notary fees, land registry fees (CZK 2,000), and potential real estate agent commissions.

Capital Gains on Property (Časový test)

5-year exemption: Gains from the sale of residential property are exempt from income tax if the seller has owned the property for at least 5 years (časový test) before the sale. This applies to both Czech residents and non-residents.
2-year exemption (permanent residence): If the seller used the property as their permanent residence (trvalé bydliště) for at least 2 years immediately before the sale, the gain is exempt regardless of the total holding period.
Within the time test: If property is sold within the time test period, gains are taxed as ordinary income at the marginal IIT rate (15% or 23% for high earners).
Commercial property: A 5-year time test also applies to commercial property held by individuals. Companies always pay corporate tax on property gains (no time test applies to legal entities).

Filing and Payment

Tax return: The property tax return (daňové přiznání k dani z nemovitých věcí) must be filed by 31 January of the tax year. A return is required for new properties, changes in ownership, or changes in the property's characteristics. If there are no changes from the previous year, the tax is assessed automatically (no return needed).
Payment: Property tax is paid annually. For amounts below CZK 5,000, the full amount is due by 31 May. For amounts above CZK 5,000, payment can be made in two instalments (31 May and 30 November).
Electronic filing: The Financial Administration provides an online portal for property tax returns and payments. Electronic filing is mandatory for taxpayers with a data box (datová schránka).