On 26 September 2020, Act No. 386/2020 Coll. on real estate acquisition tax, which repeals the Senate's statutory measure No. 340/2013 Coll. of 2013. The Chamber of Deputies finally approved the Senate amendment, which was also signed by President Miloš Zeman. Above all, the law brings relief from the payment of a 4% tax and should therefore be a welcome change for the entire real estate market. For example, are you now looking for a property for sale in Prague and you are not sure about the current situation? Learn what's new for you.
The Minister of Finance Alena Schillerová (for ANO) announced the abolition of the tax in March this year. However, the coalition partner of the ČSSD, but also, for example, representatives of the National Economic Council of the Government (NERV) had reservations, so the discussion and approval lasted until the autumn. According to Minister Schillerová, the abolition of the tax was to revive the real estate market as soon as possible, especially during the then first wave of the coronavirus pandemic.
"Unfortunately, the wait and uncertainty were reflected in the freezing of sales. From the end of March, buyers have been waiting to see if the tax will be abolished and they will be able to save a considerable amount of money. As many as 80% of interested parties postponed the signing of the purchase contract and registration in the cadastre. However, the demand returned to more or less normal after the announcement of the tax abolition, "confirms Jiří Kučera, director of the Luxent-Exclusive Properties real estate agency.
Buyers are now no longer required to pay 4% of the purchase price of the property and file a tax return for property acquisition tax. They will also be exempted from the tax retrospectively, in the event that they made a contribution to the real estate cadastre after 1 December 2019. It will be refunded to those who have already paid the tax on request.
The possibility to deduct interest on a housing loan from the income tax base remained in force. The deduction limit has been adjusted – for contracts concluded from 1 January 2021, it will be halved from the original CZK 300,000. "For many interested in purchasing an exclusive real estate, more expensive housing with a large mortgage and a high-interest payment, the purchase will pay off later this year. They will not pay the acquisition tax and they will have a higher limit for deductions, “advises Jiří Kučera.
Attention! If you are planning to buy an apartment in a new development project in Prague, for example, you do not have to worry about the property acquisition tax. This did not apply to new buildings under 5 years of age.
As for the so-called time test for the exemption of income from the sale of immovable property, it is extended from the current five years to ten. This applies to non-residential properties that are deposited in the cadastre after 1 January 2021. Payment of this tax before the expiry of the 10-year period will be avoided if you use the proceeds from the sale to procure housing needs. Income from the sale remains exempt from tax for real estate in which the owner has a permanent residence or otherwise proven residence for at least 2 years.
Life & style
22. 7. 2021
Wondering how to spend your summer? Are you a lover of wine, cycling or hiking? Discover the 1,200 kilometres of wine trails in Moravia! You can choose from a total of eighteen circuits named after the main wine centres. The routes ingeniously connect interesting places and offer visitors day trips and multi-day trips full of exercise and first-class Moravian wine. Once you start with one, you'll want to try the others! Here's a selection of the ones you shouldn't miss, along with a few tips on luxury living.
15. 7. 2021
Luxent - Exclusive Properties offers comprehensive services in the field of luxury real estate. To work in such a specific market, our real estate brokers require, in addition to years of experience, excellent knowledge of the real estate segment, top know-how in marketing and sales support, as well as professionalism and superior client care. An exceptional example is Zdeněk Jemelík, who specialises primarily in the sale of residential properties and development projects and also provides advice on investment acquisitions and leases.
28. 6. 2021
Golf is no longer the domain of a select few who live in exclusive apartments and family villas. Golf tourism is becoming increasingly popular in the Czech Republic. It combines a passion for sport with visits to historical monuments or trips through beautiful countryside. So whether you are a seasoned matador or a beginner, you are sure to enjoy travelling in conjunction with golf! So where to go?
16. 6. 2021
Are you planning to buy an exclusive property? In addition to luxury apartments in Prague, family villas and commercial buildings, you can also choose from historic ones! In the Czech Republic, unlike Western European countries, we have monuments that have been relatively preserved, but during the previous regime it was impossible to buy them. Since then, they have been in great demand among businessmen and celebrities. They build private residences, company headquarters, hotels, spas, restore castle parks, vineyards or develop other agricultural activities on the land. Are you interested in how this unique segment works? Lenka Munter, a specialist at Luxent - Exclusive Properties, who has valued the properties of the British royal family for Forbes in New York, will guide you through the world of historic properties. The company currently offers several castles in its portfolio, including those in Světlá nad Sázavou, Encovany and Stružná.
26. 5. 2021
Luxent - Exclusive Properties specializes in arranging the purchase and sale of exclusive properties, including historic buildings. This is a very specific skill set that requires an individual approach: extensive professional experience and knowledge of history and art also comes in handy. In this interview, Lenka Dušková Munter, sales specialist for historical properties, will guide us through this world of historical gems.
3. 5. 2021
26. 4. 2021