In the late 20th century, voices for autonomy in Slovakia were getting stronger, and a vocal minority was demanding independence. Finally, it was decided by prime ministers of both republics and other leading politicians that splitting the country was the best solution. Many people, including President Havel, called for a referendum, but even a petition signed by a million Czechoslovaks was not enough for the federal parliament to agree on how to arrange it. In the end Havel resigned from his post, as after repeated attempts by the new parliament he was not re-elected as president. Thus, on 1 January 1993, Czechoslovakia ceased to exist for the second time this century. Prague became the capital of the new Czech Republic, and Havel was promptly elected its first president.

 

 

Range varies according to what you wish to purchase as shown below:

From around £60,000+ for a 2 bed apartment

From around £65,000+ for a large family home

From around £85,000+ for a 2 bed flat in Prague

From around £95,000+ for a large family home in Prague

From around £270,000+ for a castle or villa

 

 

The popular places to buy property are Prague and Brno.

 

 

The average cost of living in Czech Republic is very cheap but if you are living in Prague the cost of living is very mostly double.

 

 

EU citizens may purchase land, except for agricultural or forest land, after acquiring the proper residence permit. However, as stated above both EU citizens and non-EU citizens with an SRO are exempt from any restrictions on land purchased at this time, and do not require a residence permit to purchase land.

More importantly, owning land without the protection of an SRO is extremely risky, just as it is at home but even more so here, as your personal assets (including your new property) can be attached via any legitimate, or fraudulent, liability suit.

The simple fact is that foreigners are still seen by many unscrupulous people as a cash cow in the Czech Republic. This reality needs to play an important role in your investment plans. If you are a foreigner, it is assumed that you are rich and unaware of the steps necessary to protect yourself from fraud.

It is also assumed that you do not know just how little the law offers you any protection in these matters, (it doesn't). Therefore, you must always play it safe by keeping your property and business assets under separate, individual SROs in order to protect your assets both here and abroad from litigation and fraud.

 

Forming a Czech limited-liability corporation, called an SRO, is the fastest, most convenient and cost-effective way for a foreign citizen to establish themselves as a resident in the Czech Republic with all the required visas, a tax base, health insurance, and the many benefits of being a legitimate resident.

An SRO is required for any non-EU citizen (except for those from 'favored nation' countries to purchase property in the Czech Republic, and highly encouraged for all EU and local citizens. Why is it so encouraged?

Because for both EU citizens and non-EU citizens alike, forming an SRO allows you as a foreigner to purchase property - start a business - or relocate an existing company in the Czech Republic safely, legally, and with the appropriate tax and liability shelters to protect your assets both here and at home from legitimate, or fraudulent lawsuits.

 

You will need to find a licensed real estate agent as in the Czech Republic many real estate agents are not licensed therefore you cannot risk buying a property from unlicensed agents.

 

 

You will need to appoint a Czech notary to be present when you sign all documents.

 

 

Property Search fees which is around £2,500. SRO maintenance yearly fee £500. Estate agent fee is 5%. Notary fee 1%, Legal fees are around the £1,000 mark.

 

 

SRO tax is 24%; individual tax rate without SRO is 33%. Personal Income Tax is around 19%.

 

 

Mortgages are offered to foreign nationals by local banks via an established SRO, (Czech limited liability Company). Banks lend more freely to long-time established entities and companies than they do new ones, as can be expected. Otherwise, they do not usually distinguish between foreign and local citizens that heavily.

In case of a newly established business (SRO), it is sometimes necessary to provide the bank with a precise business plan in order to assure the lender that adequate funds are available for consistent payments, (a fairly large concern here).

If the bank approves the business plan the mortgage is normally granted under the following five (5) conditions:
1. The amount lent will not exceed 75% of the maximum value of the property, as valued by the bank's own property evaluation firm.
2. The borrower must invest their own funds at a minimum level of 20-30% of the maximum value of the property, et. al.
3. The maximum lending period cannot exceed 15 years.
4. The interest rate is fixed for a maximum of 5 years, after which it is recalculated by the lender.
5. Interest rates currently range from 4-7% per annum.

 

26 Kensington

Palace Gardens,

London

W8 4QY

 

Tel.: (+44) 20 7243 1115
Fax: (+44) 20 7727 9654