How banks count a company director's income for a mortgage

Banks count a company director's income only where it demonstrably reaches you: a salary or director's fee, and a profit share that has actually been paid out. Profit left in the s.r.o. (the Czech limited liability company) counts at only some banks, and then only in proportion to your stake.

In every other respect a director and partner (jednatel, společník) borrows on the same terms as an employee: LTV 80 % (90 % if at least one applicant is under 36) and a rate of around 5.00 %.

So the usual obstacle is not a weak company but tax planning. Take a director on a net salary of CZK 18,000. At the banks' usual internal threshold of 45 % and a rate of 5.00 % over 30 years, he can borrow roughly CZK 1.5 million. With a regular, documented dividend the same person can reach CZK 5.8 million (worked through below). Much of that gap comes down to how you prepare in the 12–24 months before applying.

How does the bank count a director's income from the company?

The bank's first question is in what capacity you take money out of the company. Each route needs a different document and carries a different weight:

In practice a conservative bank sees you as an employee on a low salary and ignores dividends, while another bank assesses the whole company. Banks differ more on this than on price, so your choice of bank largely decides how much you can borrow.

When the bank looks at the company instead of you

Once you hold a controlling stake, the bank knows you set your own pay, so it starts reading the accounts. It looks mainly at:

• the result for the last two years: a loss in the latest year usually means the bank counts neither the profit share nor the company's profit;
• equity: if it is negative, most banks stop there, whatever your salary;
• the company's debts, meaning loans, leases and above all anything you guarantee personally (a promissory note or a guarantee declaration). The bank may add such a guarantee to your own liabilities, which shrinks the room for a mortgage;
• whether the financial statements are filed in the collection of deeds (sbírka listin). The company is required to file them and the bank checks the commercial register, so missing years are a warning sign;
• arrears with the tax office, the ČSSZ (Czech Social Security Administration) or the health insurer.

If the company has not yet completed one accounting period, the bank usually counts only the salary or director's fee. As with a newly self-employed person (OSVČ), there is no history to average.

One director, two very different mortgages

The figures show the ceiling a bank will allow under the usual internal threshold of 45 % of net income for all loan payments. DSTI has not been a binding ČNB limit since 1 July 2023, but banks still apply their own version of it. A real offer may be lower once other loans and the household's subsistence minimum are taken off.

Had Martin left the profit in the company, only a bank that counts his share of company profit could get him to the higher figure. There are fewer of those, and each sets its own conditions.

Documents a director will be asked for

On top of the standard papers (two identity documents and the property documents), expect to provide:

• an income confirmation for the salary or director's fee, and personal bank statements for 3–6 months showing the payments coming in;
• the contract for the performance of office, if your fee is paid under it;
• the corporate income tax return for the last 1–2 years, with proof of filing;
• the financial statements (balance sheet and profit and loss account) for the same period;
• minutes or a resolution of the general meeting on the distribution of profit;
• a statement of the account the profit share was paid into;
• at some banks, confirmation that the company owes nothing to the tax office and the insurers;
• an overview of the company's loans and of your personal guarantees for them.

An income confirmation you sign for yourself as director carries little weight, which is why the bank wants statements showing the salary actually moving from the company account to yours. The full list for every type of applicant is in the article on mortgage documents.

Five mistakes directors often make

1. Keeping the salary at the minimum to save on contributions. The saving on social and health insurance is small change next to the loan you lose if the bank assesses you on salary alone.
2. Paying a one-off dividend just before applying. A bank that accepts dividends wants a track record. A single payout a month before the application looks staged and is often counted only in part, or not at all.
3. Taking money out as loans. Convenient for tax, doubly bad for the bank: it is not income, and the company's claim on you looks like debt.
4. A loss year caused by a big purchase. A car or equipment that pushes the result into the red can stop banks that would otherwise count profit from doing so.
5. Unfiled accounts and company arrears. They tell the bank the company's paperwork is not in order, and by extension neither is the money you plan to repay from.

A plan for the 12–24 months before you apply

If you expect to buy in a year or two, set up your payouts with the bank in mind, not just your tax adviser:

1. 24 months ahead: decide whether you want to be assessed on salary or on dividends. For dividends, start a regular annual payout now; for most banks the second year of payouts is the turning point.
2. 12 months ahead: raise your salary or director's fee to the level the mortgage needs. Banks want a stable amount over several months, not a jump just before you apply. Ask your accountant what the higher contributions will cost. It is usually tens of thousands a year, against millions on the loan.
3. 6 months ahead: close and file the accounts, hold the general meeting, decide on the distribution of profit and pay your share into your personal account.
4. 3 months ahead: repay any loans from the company, check the credit registers and get a pre-approval (předschválení) from two banks that treat company income differently.

Short on time? The quickest routes are a co-applicant with employment income, or a bank that counts company profit. Other ways to improve how a bank sees you are in the text on creditworthiness and in the comparison of employees and the self-employed.

Can you buy the flat through your s.r.o.?

A mortgage for your own home is a consumer loan to you as an individual: you buy the flat, it serves as collateral, and you can deduct up to CZK 150,000 of interest a year from your tax base. Buying a flat into the s.r.o. as an investment is a different product altogether, a business loan to the company, assessed and priced on other terms.

So there is no true mortgage for an s.r.o. The Consumer Credit Act (No. 257/2016 Coll.) protects only consumers, meaning individuals acting outside their business, so a company gets neither the 14-day reflection period before signing nor the statutory cap on early repayment fees; the contract sets both. The bank looks at how the company is doing and may want you to guarantee the loan personally.

Buying a flat to let in your own name brings in the ČNB recommendation for investment mortgages in force since 1 April 2026: LTV of at most 70 % and DTI 7. It is a recommendation, not a binding limit, but banks follow it. Details are in Mortgage for an investment property.