June´s update: News from the Czech mortgage market

Abolishment of the real estate transfer tax
The real estate transfer tax is supposed to be canceled as the draft law was further discussed during the meeting of Czech Chamber of Deputies. This change would mean that buyers are no longer subject to the 4 % tax rate of the tax base. Tax base was usually the purchase price of the property you were buying.

Decline of Interest Rates
Due to the pandemic Czech banks sharply declined interest rates of mortgage loans. The average interest rate is running at 2.30% nowadays. Currently we are able to get the interest rate below 2% p.a. for our clients!

Mortgage Loans Requirements
It is important to mention that the limitations introduced during the pandemic are still in force, but things are slowly getting back to normal as the health situation is safe and stable in the Czech Republic.