The real estate transfer tax has been officially abolished in the Czech Republic and property purchase has therefore become cheaper

Before the cancelation the buyers had been subject to the 4 % tax rate of the tax base (known as real estate transfer tax). The tax base was usually the purchase price of the property you were buying. As it is no longer applicable you can save for example CZK 200,000 when purchasing a CZK 5,000,000 worth property.

Buying an apartment or house in the Czech Republic is nowadays really affordable considering the side costs. Beside the down payment for the mortgage loan (which is at least 10% of the property price) the buyers need just about CZK 5,000 - 10,000 as an ancillary costs (e.g. for bank´s evaluation, lawyer or escrow).

Low side costs together with favorable mortgage interest rates create interesting opportunities for home buyers or even for investors.