Finding an apartment in the Czech Republic, especially in Prague, is not easy: the demand for real estate in this country generally exceeds supply. By the end of summer, when university studies begin, rental housing is in maximum demand here every year. The purchase and sale of real estate is moderately active throughout the year.
The infrastructurally, economically and educationally developed Czech Republic is among the leaders of the European real estate market in terms of investment from abroad.
Can Ukrainians buy real estate in the Czech Republic?
Foreigners are allowed to buy property in the Czech Republic. Buying a home in this country does not give you the right to a residence permit, but it makes it easier to obtain a multiple visa. True, real estate in the Czech Republic can be considered an advantage when considering an immigration application.
To obtain a residence permit in the Czech Republic, in addition to real estate, you must have your own business here.
A Ukrainian can buy an apartment or house in the Czech Republic, in particular, if he has temporary protection status.
An important rule for buying real estate in this country is that the owner of the property can be either one person or several co-owners who are relatives. Strangers cannot purchase real estate in the Czech Republic as co-owners.
If the housing belongs to cooperative property, the buyer should take this into account, since cooperatives often block foreigners from entering them. In this case, you will have to register the purchase and sale of real estate in the name of a legal entity.
Apartment prices
Housing prices in the Czech Republic vary depending on two items:
- the region where the apartment is located;
- market in which it is sold (secondary or primary).
The average cost of residential real estate on the secondary market in Prague is from 4,300 euros/ m2 . Prices for housing in a new building are higher – from 6,000 euros/ m2 .
Budget real estate in the Czech Republic can be seen in the Karlovy Vary and Usti directions. An apartment in a panel house here will cost from 1200 euros/m2 , in a brick building – from 1600 euros/ m2 .
Prices for apartments in the South Moravian Region and Brno are twice as high – from 3,300 euros/m2 and 3,500 euros/m2 , respectively.
The procedure for purchasing real estate in the Czech Republic
The process of buying and selling real estate in the Czech Republic is somewhat different from the same procedure in Ukraine and takes an average of 2 months.
1. Reservation and verification of real estate
Having chosen housing or a commercial property in the Czech Republic, you should check it for “legal purity”. To do this, you should agree with the seller on the reserve of the object.
If the property is free of encumbrances, the buyer makes a deposit.
2. Conclusion of a deposit agreement
The deposit agreement is drawn up in Czech, preferably with the assistance of a translator. It states for what period the real estate reserve is formed, the amount of the deposit and sanctions for failure to comply with the terms of the transaction. The amount of the deposit is set by agreement between the buyer and seller and averages 5% of the price of the property.
3. Opening a deposit account
To conclude a preliminary agreement (on a reserve), you must sign a deposit agreement. We are talking about confirming the buyer’s solvency and storing money until the final transfer of ownership of the object. The deposit can be kept in a bank, real estate agency, notary or lawyer.
The amount for the property will be stored in this account until the procedure for changing ownership of the property is completed.
4. Signing the main purchase and sale agreement
The main contract for the purchase and sale of real estate is concluded in Czech, indicating: information about the buyer and seller, the value of the property, the term and method of recalculating funds. The buyer deposits the full cost of the item into the account.
The main purchase and sale agreement must be notarized.READ ALSO
5. Registration of ownership of real estate
After concluding the main contract for the purchase and sale of real estate in the Czech Republic, this document and an application for re-registration of the right are sent to the Real Estate Cadastre. Review of documents in this instance lasts up to 2 months.
6. Full payment for the object
Until the transfer of ownership to the new owner, the money for the property remains in “interim” storage. As soon as the buyer receives confirmation that the property is registered in his name, full payment for the property is made – the funds left in the escrow account go to the seller.
Taxes and additional payments when purchasing real estate in the Czech Republic
The main payment that the buyer will have to make to the state treasury of the Czech Republic when purchasing secondary real estate is the purchase tax. It is 4% of the cost of the property.
When purchasing housing from a developer, you do not need to pay this tax. Construction companies include VAT of 21% in the final price of an apartment or house.
When registering ownership of housing in the Czech Republic, you must also pay a state fee of 40 euros.
The services of a realtor in the Czech Republic are valued at 5% of the value of the property.
For notary services you will have to pay 50-100 CZK per signature.
Translation services will cost from 400−700 euros.