Real estate in the Czech Republic

Citizens of all countries can purchase any amount of property in the country. Registration of real estate to a legal entity is allowed (if the company is registered in the Czech Republic).

Foreigners have the right to purchase both residential and commercial real estate. Foreign citizens can also purchase agricultural and forest land. In the Czech Republic, there are two forms of ownership: cooperative and personal.

To close a real estate transaction, a foreigner does not need to open an account in a Czech bank.

Czech banks issue loans for the purchase of real estate to both local residents and foreigners. The conditions for obtaining a mortgage are considered very favourable since the Czech Republic offers borrowers fairly low interest rates.

The procedure of the real estate transaction works as follows:

• reservation of the object;
• prepayment;
• conclusion of the purchase and sale agreement;
• payment transaction;
• registration of a new owner.

If the buyer purchases the property immediately, it may take only a few days to close the transaction. If a foreigner takes out a mortgage for the purchase of real estate, the transaction period can reach one and a half months.

To purchase real estate, a foreigner is recommended (but not required) to cooperate with a realtor. When choosing an agency, you should know that real estate activities do not need a license. Therefore, when you look for an intermediary, you should be very careful and study the feedbacks on the company.

In the Czech Republic, it is allowed to close real estate transactions in a remote format. For this purpose, the buyer needs to issue a power of attorney to their representative (for example, a realtor) and notarize it. In addition, the country allows issuing a mortgage without a personal presence. 

The applicant is required to send a package of documents to their authorized representative. All documents for submission to the bank must be translated into Czech. 

In addition to paying for the property itself, the buyer also needs to pay property purchase tax, realtor services, state fees, mortgage fees and pay for translation services, insurance, property valuation, etc. 

The purchase of housing in the Czech Republic is not a basis for obtaining permanent residence, residence permit, or citizenship. The property owner can only apply for a simplified multi-entry visa process.

Types of long-term visas depend on the purpose of the foreigner’s relocation. There are a few types of them:

• long-term business visa; 
• long-term visa for family reunification;
• work visa;
• blue Card; 
• student visa;
• visa for scientific research;
• sports visa;
• investment visa. 

More information: https://realting.com/news/czech-residence-permit-and-permanent-residence

Long-term visas and residence permits gives foreigners the following opportunities:

• to stay in the country 365 days a year;
• to enter the Czech Republic an unlimited number of times;
• to renew a residence permit every two years;
• to travel with no restrictions in the Schengen area and stay in the EU countries for 3 out of 6 months;
• to use social insurance and medical services having insurance;
• to educate children in state kindergartens, schools, and universities for free.

More information: https://realting.com/news/czech-residence-permit-and-permanent-residence

Foreigners who have lived in the country for at least 5 years can apply for permanent residence in the Czech Republic.

More information: https://realting.com/news/czech-residence-permit-and-permanent-residence

To obtain permanent residence, one must meet two conditions: successfully pass the Czech language proficiency exams and confirm sufficient income to support living.

More information: https://realting.com/news/czech-residence-permit-and-permanent-residence