Buying an apartment in the Czech Republic as a foreigner: what is allowed, what it costs and what to expect

Foreigners can buy property in the Czech Republic without any permits — the restriction in the Foreign Exchange Act was repealed back in 2011. But the price in the listing is never the amount you actually spend. Here is what the katastr, a lawyer, escrow and an agency cost, how the deal runs from reservation to keys, which taxes you pay every year, and why a purchased apartment does nothing for your residence permit.

Can a foreigner buy an apartment in the Czech Republic

Yes — and that is the shortest answer in this article. There are no restrictions based on citizenship. The rule that used to limit property purchases by foreigners — §17 of the devizový zákon (Foreign Exchange Act) — was repealed back in 2011. Since then, any individual of any nationality can buy an apartment or a house, including someone with no Czech residence permit at all.

You need no permit, no special status and no Czech shell company for this. You enter the deal on exactly the same footing as a Czech citizen.

What the purchase costs on top of the listing price

The classic beginner's mistake is to budget by the price in the listing. On top of it comes a set of mandatory and near-mandatory costs.

Cost itemHow muchMandatory?
Registering ownership in the katastr nemovitostí (land registry)2 000 KčYes — without it you are not the owner
Property acquisition tax0 KčAbolished by Act 386/2020 Sb.
Legal due diligence on the property and the contractAt the lawyer's rateFormally no, in practice yes
Úschova — escrow for the purchase moneyAt the rate of the notary, lawyer or bankNo, but without it your money is at risk
Property valuation for the bankAt the appraiser's rateYes, if you take a mortgage
Real estate agency commission3–6% of the price plus 21% VATDepends on how the deal is structured

What you need to understand about the agency commission

The commission on a sale runs 3–6% of the property price, with 21% VAT added on top. The figure feels abstract until you plug in a real number: on an apartment priced at 5 million Kč, even at the lower end of 3%, the commission is around 150 thousand Kč; at the top of the range it is twice that, and VAT is added to either figure. This is not a rounding error in your budget but a separate, sizeable line item — agree on it upfront and be clear about who pays it and for what.

The only fixed figure

Out of the whole list, the state takes just 2 000 Kč from you — the fee for registering ownership in the katastr. Everything else is a market service, where the rate depends on the provider, the complexity of the property and the size of the deal. So ask your lawyer, and whoever holds the úschova, for a written quote before you sign anything.

How the transaction works, step by step

Step 1. Reservation

You confirm your intention to buy and take the property off the market. At this stage you are already signing a document that creates obligations — the reservation agreement. Read it as carefully as the main contract: this is where the conditions under which your deposit is non-refundable are most often buried.

Step 2. The purchase contract

The core document of the deal. Before signing, it makes sense to order a legal review — of both the property itself and the wording of the contract. This is the service where cutting costs ends up costing more than the service.

Step 3. Úschova — money held in escrow

The key protective mechanism of a Czech property deal. You do not transfer money to the seller directly. The sum is placed in escrow — with a notary, a lawyer or a bank. The seller receives it only once ownership has officially passed to you. This protects both sides: the buyer is not left without both money and apartment, and the seller does not hand over the apartment for free.

Step 4. Registration in the katastr

In the Czech Republic ownership arises not when the contract is signed, but when the transfer is recorded in the katastr nemovitostí. Filing costs 2 000 Kč. Until that entry is made you are legally not the owner, however thoroughly signed your contract may be.

Step 5. The 20-day protective period

Once the filing reaches the katastr, a protective period begins — 20 days from the date of filing. The pause is built into the system on purpose: it gives time to spot and challenge someone else's attempt to register a transfer of rights to your property. When planning your deal, block out those 20 days as a minimum — the entry will not happen sooner. Do not count on moving in two days after signing.

Taxes: what you pay and when

Acquisition tax — it no longer exists

Daň z nabytí nemovitých věcí (property acquisition tax) was abolished by Act 386/2020 Sb. If someone advises you to set aside a separate percentage of the price for purchase tax, that advice is out of date. You do not have to pay it.

Annual property tax

Daň z nemovitých věcí (annual real estate tax) is payable every year for as long as you own the property. The main thing to remember in year one: the return must be filed by 31 January of the year following the purchase. Buy an apartment this year and your return is due by 31 January next year. After that, if nothing about the property changes, you do not need to file a new return each year — but the tax itself is paid annually.

Tax on a sale and how to be exempt from it

If you sell the property, the income from the sale is exempt from tax after 10 years of ownership — this rule applies to properties acquired from 2021 onwards. For anything bought earlier, the ownership test was 5 years.

The practical takeaway: if you are buying now as an investment and expect to sell in six or seven years, the old five-year rule will not help you. The exemption horizon is ten years of ownership, and you need to factor it into your return calculations from the start.

Insurance: two different policies that people constantly confuse

In the Czech Republic these are two separate products, and the names are similar just enough to cause confusion.

  • Pojištění nemovitosti — insurance of the property itself: the walls, the structure, the building. This is the owner's policy.
  • Pojištění domácnosti — insurance of the contents: furniture, appliances, belongings. Relevant to owners and tenants alike.

An owner normally needs both. If you buy with a mortgage, the bank will require insurance on the property itself — and it may require vinkulace, meaning the insurance payout is assigned in the bank's favour. That is standard banking practice, not a catch.

It is also worth looking at pojištění odpovědnosti — third-party liability insurance. It is often bundled into the household policy, and it is exactly what covers the classic scenario of flooding the neighbours below.

Specific premiums cannot be quoted in advance: they depend on floor area, location and the cover you choose. The numbers have to be run for your particular property.

The big myth: buying an apartment does not give you residency

This has to be said plainly, because an entire industry of promises is built on the myth. Buying property in the Czech Republic does not grant you a residence permit and has no bearing on the OAMP's decision on your application.

An apartment you own is an apartment you own. It is not a ground for residence, not an accelerating factor, not an argument that tips anything in your favour. Your status is determined by the ground you apply under — employment, business, study, family reunification — and a purchased property plays no part in that logic.

If someone is selling you an apartment with a hint that it will help with your paperwork, what they are selling you is not an apartment.

A short pre-deal checklist

  • Make sure your budget covers not only the price of the property but also the 2 000 Kč katastr fee, the lawyer's fee, the úschova, the valuation and — where applicable — the agency commission plus 21% VAT.
  • Never transfer money to the seller directly. Only through úschova.
  • Build the 20-day protective period after the katastr filing into your timeline.
  • Set yourself a January reminder: the property tax return is due by 31 January of the following year.
  • If you are planning to resell, work with a 10-year ownership horizon, not 5.
  • Do not treat a purchase as a step towards residency. These are two different stories.

The easiest way to estimate your payment and work out how much of the sum is genuinely yours is the mortgage calculator in our real estate section. The same page has a consultation request form if you would rather go through a specific property and specific numbers than the general case.

Frequently asked questions

Does a foreigner need a permit to buy an apartment in the Czech Republic?
No. The restriction on property purchases by foreigners was contained in §17 of the devizový zákon (Foreign Exchange Act), and it was repealed in 2011. Even someone without a Czech residence permit can buy, and no additional permission is required.
What tax do you pay when buying property?
None. The property acquisition tax — daň z nabytí — was abolished by Act 386/2020 Sb. The only mandatory payment to the state that remains is the fee for registering ownership in the katastr: 2 000 Kč.
What is úschova and why do you need it?
It is an escrow arrangement with a notary, a lawyer or a bank. The buyer does not transfer the money to the seller directly: the funds sit in the escrow account and are released to the seller only after ownership has officially passed to the buyer. The mechanism protects both sides of the deal.
How long does the transfer of ownership take?
You become the owner at the moment the entry is made in the katastr nemovitostí, not when the contract is signed. Once the documents are filed, a protective period of 20 days from the date of filing applies, and the entry will not be made sooner. Those 20 days are the minimum you should build into your plan.
When do you file the property tax return?
Property tax — daň z nemovitých věcí — is paid annually, and after a purchase the return is filed by 31 January of the year following the acquisition. So if you bought this year, you file by 31 January next year.
After how many years can you sell an apartment tax-free?
For properties acquired from 2021 onwards, the exemption from tax on the sale kicks in after 10 years of ownership. For anything bought earlier, the ownership test was 5 years.
Does buying an apartment give you residency in the Czech Republic?
No. Buying property does not grant a residence permit and does not affect the OAMP's decision. Your status is determined by the ground for residence — employment, business, study, family reunification — and owning an apartment plays no part in that decision.

More on this

Renting a flat in Prague without an agent: how to verify the owner
Address registration in the Czech Republic for foreigners: deadlines, documents, landlord refusals
Mortgage in the Czech Republic for foreigners: who gets approved and how much cash you need
Estate agent commission when renting in Prague: who pays, how much and how to avoid it
Home insurance in the Czech Republic: what renters need and what owners need
A mortgage in Czechia as a foreigner
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