Buying property?

Who can buy real estate property in the Czech Republic?

Expats.cz

Written by Expats.cz
Published on 31.07.2005 20:53 (updated on 31.07.2005)

Written by Richard Gürlich of GÜRLICH, ODROBINA & spol.

Do you intend to start business in the Czech Republic but lack the necessary premises? Would you like to move here and buy your own home, or you do you need land for your real estate development plans? We will help you find a solution to any problems you have.

Non-residents, that is individuals not having permanent residence or owning legal entities headquartered in the Czech Republic, could purchase real estate in the Czech Republic even before the entry of the Czech Republic into the European Union. After the accession and particularly after the adoption of the last amendment to the Foreign Exchange Act, it has become much easier for foreigners and particularly for nationals of members states of the European Community to purchase real estate in the Czech Republic.

Even though, under certain circumstances, real estate in the Czech Republic may be owned by anyone, it is not always so simple. While there are no limits imposed in this respect on a certain group of people, other cases may differ with regard to persons who want to acquire a Czech property and to the various property types.

The following categories of people can acquire real estate in the Czech Republic without any restriction:

  • Citizens of the Czech Republic;
  • Legal entities having their headquarters in the Czech Republic;
  • Foreigners with a permanent residence permit in the Czech Republic;
  • People who have been granted asylum in the Czech Republic.

The following categories of persons are subject to certain restrictions in acquisition of real estate:

Persons who wish to acquire properties other than those listed in clause 2 below:

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a) nationals of an EU member state who hold a residence permit for a member state of the European Community;

b) nationals of other states – solely in cases listed explicitly by the law, e.g. by inheritance, for the diplomatic mission of a state, from a relative, sibling or spouse, etc.

c) legal entities that locate their enterprise or branch in the Czech Republic and are authorised to do business here; otherwise solely under the same conditions as people who are not nationals of a member state of the European Union.

Agricultural and forest lands

This type of real estate is subject to different, more strict legal regulations in comparison with the other property types (see below). Nationals of EU member states who wish to acquire such properties are required to meet other conditions besides being holders of a residence permit. All other persons and entities may acquire such property solely in cases listed explicitly in the law.

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To provide a full picture, we would note that the regulations applying to the acquisition of real estate by citizens of EU member states also apply, under international treaties, to citizens of member states of the European Economic Area, USA and Switzerland.

If you do not fall within any category that can easily meet the conditions for acquisition of real estate, everything is not lost. A relatively simple and smart solution is the establishment of a business company in the Czech Republic, through which the real estate can be purchased.

Even though this article does not and is not intended to provide detailed guidelines for becoming an owner of property in the Czech Republic, it clearly indicates that such a wish is far from impossible. The process should start with your decision and we would be happy to guide you through the future stages. If you have any questions, please do not hesitate to contact us – we are here to serve and assist you.

For more information about the services offered by GÜRLICH & Co. please visit www.akrg.cz or call Mr Richard Gürlich directly on 420 222 101 595