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
1. 11. 2022
In a renovated apartment building in Prague 8, an intimate project consisting of five duplex apartments of up to 233 m2 was created, in which elements of the historic roof were preserved. The units are completed and ready to move in. Their exclusive sale is handled by our real estate agency Luxent - Exclusive Properties.
17. 10. 2022
The chamber project Lofty Anděl includes three exclusive apartments ranging from 104 to 138 m2. They are located on the fifth floor of a renovated corner building in Prague 5 and are in loft style. The original design of each of them reflects a different design - industrial, art deco or minimalist. They can become your new home at the end of this year. The sale of luxury apartments is exclusively handled by our real estate agency Luxent - Exclusive Properties.
6. 10. 2022
The development project Rezidence Nad Černými lesy, located 30 km from Prague in Kostelec nad Černými lesy, offers 32 design apartments for sale. Exclusive sale of apartments with terrace, balcony or front garden is offered by real estate agency Luxent - Exclusive Properties.
30. 6. 2022
The interest in holiday properties in the country is not waning. However, their supply is completely insufficient after almost two years of boom. This, together with the rising price of building materials and labour, is reflected in their high prices. The new project Apartments Albeřice with 11 design units, which is growing in the mountain village of Horní Maršov - Dolní Albeřice in the Krkonoše Mountains, should help to satisfy the enormous demand. The exclusive sale of luxury apartments has now been launched by our real estate agency Luxent - Exclusive Properties! The construction of the low-rise building is expected to start towards the end of this year, with completion planned for the 4th quarter of next year.
16. 5. 2022
Are you dreaming of a new exclusive property near Prague, but at the same time close to nature? Now we have launched the sale of luxury houses in the second phase of the development project Březový háj, which is growing in the village of Předboj. It includes 4 original family villas of 6+kk and 7+kk with gardens, terraces and swimming pools - and their construction has already started! Despite the situation on the real estate market, where, among other things, prices are rising due to a shortage of building materials, interest in the project is huge. Of the sixteen houses in the first phase, only the last one is currently available for purchase. Their implementation will be completed at the turn of this spring and summer, and the entire project with the second phase should be completed in the summer of 2023.
9. 5. 2022
The steep rise in real estate prices, the rising cost of mortgages and the deterioration of their availability, inflation, the rise in prices of building materials and the shortage of building materials - this is the current situation on the real estate market. However, even this does not discourage those interested in luxury housing or a profitable investment. The demand for new flats, especially in Prague, still significantly exceeds the supply. The huge interest is also evidenced by the fact that in many development projects from our portfolio the last units remain to be purchased. In order to at least partially satisfy the "hunger" for luxury new buildings, work is in full swing. Let's take a closer look at the current developments!
15. 3. 2022
The interest in real estate, especially recreational ones, is still enormous. However, since the domestic supply is not able to cover it, Czechs are now turning their attention more and more abroad, for example to Slovakia. A development project called Marina Liptov, which comprises 33 modern apartments in layouts from 2+kk to 4+kk, is growing right next to the Slovak dam Liptovská Mara on the Váh River under the Tatra Mountains. They offer the possibility of active relaxation in their own facilities in a popular Slovak recreational location as well as the opportunity for a promising investment in an apartment. The project should be completed by the end of next year. Our Luxent - Exclusive Properties office has become the exclusive partner for their sale in the Czech Republic - let's take a closer look now!
19. 1. 2022
Winters are relatively mild in our area, but if you have a warm heart, you may miss the sunshine during the cold months. And if you experience these feelings every winter, you might want to consider investing in an apartment in a warm climate. Find out what's trending right now and which luxury properties abroad you can choose from in this article!
12. 1. 2022
Do you want to go skiing or cross-country skiing? Wondering where to spend your spring break with family or friends? Get yourself a holiday property in the mountains! You will see that you can choose from our range of exclusive properties in renowned domestic resorts in no time.
3. 1. 2022
It can already be said with certainty that 2021 will go down in mortgage history as a record year - whether in terms of the volume of mortgages arranged due to huge interest or above-standard interest rate increases. We will now take a closer look at the various factors that have shaped the mortgage market in recent months and will also be reflected in the period ahead.