According to the latest news, residents of the Czech Republic will face an increase in property tax next year. This is reported by the news portal Czech Daily. Let's find out what changes are expected and what consequences they will have.

How exactly the real estate tax will change

According to Petra Vodstrčilová, spokeswoman for the Ministry of Finance, the tax rates will increase by about 1.8 times their current value. This applies to all types of real estate, except in cases where the object is exempt from tax or is not subject to taxation.

This decision was influenced by past inflation and energy costs, which forced municipalities to increase tax rates. The new government structure no longer includes state ratios for property taxes but retains the inflation factor.

Example of changes in the tax burden

In the current year, owners of 70-square-meter apartments in a residential building in Prague's Žižkov district paid CZK 1,720 (approximately EUR 71) per year in property tax.

With the proposed increase in the basic tax rate, this amount will rise to CZK 3,010 next year. These are the calculations of the Finance Directorate.

Possibility of tax reduction by municipalities

Under the new rules, municipalities will have the opportunity to reduce property tax rates by about one-tenth. This decision will be up to each individual municipality. However, local government officials say that few will take advantage of this opportunity and that they will still increase property tax rates by 1.8 times.