Local citizens and foreigners with status in one of the EU countries can buy real estate in the Czech Republic under the same conditions. If the buyer of an apartment/home does not have a residence permit, permanent residence permit or EU citizenship, he can become the owner of local real estate only as a legal entity. To purchase the object, a person is enough to establish a company or transfer part of his business to the territory of the state. However, according to the Treaty of Accession of the Czech Republic to the European Union, which takes precedence over the national legislation of the Republic, to buy real estate in the Czech Republic can any individual / legal entity. You can always find the latest Czech real estate news on the prestigegroup website.
A foreigner does not have to be in person in the state for the transaction of sale and purchase of housing. In the Republic to draw up documents for an apartment can be remotely, through a real estate agency or a general power of attorney. However, the purchase of housing for foreigners is a rather complicated legal and administrative procedure. The article describes how to buy real estate in the Czech Republic for permanent residence, what documents will need to be drawn up, what is the cost of housing and what taxes will need to pay.
Czech real estate market overview
Buying real estate in the Czech Republic is a good investment option. In recent years, the housing market in the Czech Republic has experienced a significant decline (sales of houses fell by 49%, secondary housing – by 51%, new apartments – by 57%), but this has not caused a sharp drop in prices. According to the analysis of the Czech Banking Association, the weak buying activity is directly related to the decrease in the number of mortgage programs and the increase in interest rates on loans.
The purchase of an apartment or house in the Czech Republic implies basic investments, responsibility and administrative burdens for the buyer. Despite these disadvantages and rising housing prices, there are no fewer candidates for its purchase. Having your own apartment/house eliminates the need to pay rent, and also provides the following advantages:
- safety and reliability of investment – the market value of real estate is growing every year, which will allow the owner to benefit in the future;
- the right to rent out – housing can always be given to third parties to have a monthly passive income;
- high yield compared to deposits – even term deposits are not able to bring more profit than the sale of real estate in the Czech Republic or rental housing.
However, owning your own home constantly requires investments in the form of small technical works and sometimes even major transformations. The owner of real estate also has to pay home insurance premiums, tax when selling an apartment or house.
