Property tax (daň z nemovitých věcí)

Czech property tax (daň z nemovitých věcí, called daň z nemovitostí until 2014) is paid every year under Act No. 338/1992 Coll. It consists of a land tax and a tax on buildings and units. The taxpayer is usually the owner, and the revenue goes to the municipality where the property lies. It is administered by the tax office (finanční úřad).

Who pays and when

The tax is assessed on the situation as of 1 January, and changes during the year are ignored. The seller therefore pays for the whole year of sale and the buyer first pays for the following year.

• a tax return is due by 31 January, but only if something has changed since the previous year (for example a purchase or occupancy approval)
• a new owner files it by 31 January of the year after registration in the land register; if the land register has not decided by the end of the year the application was filed, by the end of the third month after registration
• tax up to CZK 5,000 is due in one payment by 31 May; higher amounts in two instalments by 31 May and 30 November

How it is calculated

For a flat, the base is the floor area of the unit multiplied by 1.22 (a flat in an apartment building with a share of the land) or 1.20. For a house, the base is the built-up area, and the rate rises by CZK 1.40 for each additional above-ground floor covering more than two thirds of the built-up area. The basic rate for residential buildings and flats is CZK 3.50 per m², CZK 11 for a holiday building and CZK 14.50 for a garage.

For residential buildings, flats and building plots, the rate is further multiplied by a municipality-size coefficient, from 1.0 in a municipality of up to 1,000 inhabitants to 4.5 in Prague. The result is multiplied by the inflation coefficient (1.0 for the years 2024 to 2026) and, where set, by the local coefficient adopted by a municipal ordinance.

Example

For illustration only: a flat with 60 m² floor area in an apartment building with a share of the land, in a municipality of 15,000 inhabitants (coefficient 2.0), no local coefficient. 60 × 1.22 = 73.2 m², and 73.2 × 3.50 × 2.0 = about CZK 512 a year before the statutory rounding up. With a local coefficient of 1.5 it would be about CZK 769.

What has changed

From 2024 (the consolidation package) rates rose by about 80 % and an inflation coefficient was introduced. From 2025 the 1.5 coefficient, which municipalities could apply to selected buildings, was abolished and the rules for local coefficients changed. The real estate acquisition tax, formerly paid by the buyer, was abolished with effect from 26 September 2020, so no such tax arises on a purchase today. Income from a sale is covered by a different tax, income tax.