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
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.
28. 12. 2021
The luxury segment, comprising unusual properties in prestigious locations, forms a distinctive part of the residential market. And it has its own special requirements. Properties that are the focus of our real estate agency Luxent - Exclusive Properties require professional brokers with perfect knowledge of the specifics of this market. They will now take you on an excursion into the world of exclusive real estate with a few selected, untouched gems!
2. 12. 2021
The jewel of our real estate agency Luxent - Exclusive Properties' portfolio are two building plots with building permits for luxury house development projects - Nad Šáreckým údolím in Prague 6 and Zahrada snů in Prague 8. The common feature of the buildings is the emphasis on the highest quality materials and equipment, the pursuit of maximum energy efficiency and also a sensitive setting in the space that honours the genius loci. You can start building your home as soon as you purchase the land. You'll also appreciate the fact that both have now seen a significant price adjustment!
10. 11. 2021
In the popular Krkonoše resort of Harrachov, an intimate project Harrachov Peaks is growing, which includes 16 unique units, including three exclusive penthouse duplexes. Our real estate agency Luxent - Exclusive Properties has launched an exclusive sale of luxury apartments with layouts from 1+kk to 4+kk. But don't hesitate for long, the huge demand for holiday properties is definitely not going to subside! Mountain residential house offers the possibility of a second home in nature and at the same time an investment opportunity. The project is scheduled for completion in December next year, and you can look forward to the handover of the units in January 2023.
8. 9. 2021
In an attractive location of Prague 5, on the border of Smíchov and Radlice, directly below Dívčí hrady, construction of an original and timeless development project - the Garden Lofts residence in industrial style has started. The building includes 22 luxury apartments with terraces, balconies or front gardens. They are now exclusively for sale by our real estate agency Luxent - Exclusive Properties. The project will be completed in the spring of 2023. The construction is being carried out by the renowned construction company Swietelsky.
11. 8. 2021
We have opened a model house in the exclusive residential complex Březový háj in Předboj, Prague-East. Most of the 16 luxury villas, including one bungalow from the first stage, are already sold or reserved. But do not despair! During this year we are going to offer for purchase 4 more houses from the second one. The exclusive sale of luxury homes is handled by our real estate agency Luxent - Exclusive Properties. The first phase is scheduled to be completed next spring, and the entire project is expected to be finished in late 2022/early 2023.
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.