The Czech government approved the cancellation of the real estate purchase tax
The Czech Government approved the cancellation of the tax on the purchase of real estate on Thursday, April 30, 2020. The new law will also be applied to the transactions provided before December 2019.
That means, that the tax will be returned to those who have already paid it.The new law also changes the condition, that determined the obligation to pay the income tax in case of the real estate sale.The 15% tax of the difference between the property purchase and sale price should be paid only if you owned the property less, then 5 years. With the acceptance of the new law, this period will be increased up to 10 years. According to the Minister of Finance,these measures were taken to resist speculators,as well as to support the potential real estate buyers.The cancellation of the four percent tax will make the property more affordable. Moreover, the saved funds can be used for the subsequent maintenance of the apartment.
We remind you, that the real estate purchase tax was 4% of its value.Since 2016, it had to be paid by the buyer,previously it was the responsibility of the seller.Tax exemption was for those, who purchased an apartment in a new building, received real estate as a gift or inherited it.
