Buying property in Prague as a foreigner: process, mortgage and taxes
Can a foreigner buy an apartment in Prague? Yes, without restrictions. A guide to the buying process, escrow and the land registry, mortgages for foreigners and the taxes to expect.
Author: Vladislav GlinskijCEO · Prestige Group
In brief
- Foreigners can buy property in the Czech Republic without a special permit or residence.
- The purchase price goes into a lawyer’s, notary’s or bank escrow account.
- There is no property acquisition tax since 2020; registration costs CZK 2,000.
- A mortgage covers at most 80% of the value (90% for applicants under 36) and usually requires Czech residence.
- The whole purchase can be handled remotely with a certified power of attorney.
For many foreigners, buying an apartment in Prague is a logical step — whether they live in the Czech Republic or are looking for a stable investment in Central Europe. The good news: Czech rules are open to foreign buyers. In this guide we explain how the purchase works, what to expect with a mortgage and which taxes apply.
1. Who can buy property in the Czech Republic
Individuals from any country can buy apartments, houses and land in the Czech Republic without a special permit and without needing Czech residence or a company. Just like a Czech citizen, you are entered in the land registry as the owner.
It is also possible to buy through a Czech company (s.r.o.), which some investors choose for tax reasons or for several properties. It is best to discuss this with a tax adviser.
2. The buying process step by step
Choosing and checking the property
Before reserving, have the title deed extract checked: who the owner is and whether the apartment is burdened by a mortgage lien, enforcement or easements. With cooperative apartments you do not buy the apartment but a membership share in the cooperative — the conditions differ, including financing.
Reservation agreement
Once the price is agreed, a reservation agreement is usually signed and a reservation fee paid. The seller takes the apartment off the market for a set period. The agreement should state clearly when the fee is refunded and when it is forfeited — for example if the bank does not approve your mortgage.
Purchase agreement and escrow
The purchase agreement is drafted by a lawyer. The purchase price goes into a lawyer’s, notary’s or bank escrow account and is released to the seller only after the buyer is entered in the land registry. If you don’t speak Czech, you must understand the contract — count on a translation or an interpreter at the signing.
Land registry and handover
The application for registration is usually filed by the lawyer; the administrative fee is CZK 2,000. Registration usually takes a few weeks. Then comes the handover with a handover report and meter readings, and notifying the owners’ association or cooperative of the new owner.
3. Mortgages for foreigners
Czech banks also lend to foreigners, but the conditions are stricter:
- they usually require a Czech residence permit (for EU citizens a residence certificate) and provable income, ideally in the Czech Republic,
- a mortgage can cover at most 80% of the property value, or up to 90% for applicants under 36 — banks often want a larger down payment from foreigners,
- income in a foreign currency is converted and the bank may treat the currency risk more strictly,
- approval takes longer and documents often need certified translations.
Without Czech residence, a mortgage from a Czech bank is exceptional — buyers then usually pay from their own funds or with a loan from their home country. Our financial adviser compares bank offers and tells you in advance what you can get. More on the Financing and mortgages page.
4. Taxes and fees
- Real estate acquisition tax was abolished — it has not been paid since 2020.
- Land registry application: CZK 2,000.
- Property tax: paid every year. The return is filed by 31 January of the year after the purchase; in later years only if something changes.
- Income tax on rent: if you rent the apartment out, the income is taxed in the Czech Republic — even if you live abroad.
- Tax on a later sale: a sale is usually exempt after the statutory holding period or if you lived in the apartment. The conditions depend on the acquisition date, so we recommend a tax adviser.
Add the lawyer’s fee for the contracts and escrow, and possibly a bank valuation and translations.
5. Buying remotely
The whole purchase can be done without being in Prague: we do the viewing on a video call and you sign through a representative with a power of attorney. The power of attorney must have an officially certified signature. If you sign it abroad, it usually needs an apostille (or superlegalisation) and a certified Czech translation.
6. An apartment as an investment
Many foreign buyers rent their apartment out. The yield depends mainly on the location, layout and purchase price — small apartments near the metro rent fastest. If you don’t live in Prague, you can leave the rental and the whole management to us; we explain how it works in the guide Managing an apartment in Prague remotely.
Buying property with Prestige Group
We find suitable properties, check the title, negotiate the price and take care of the lawyer’s contracts and safe escrow — in English, Czech or Russian. See our current apartments for sale or contact us via the Contacts page.
