Comparison parameters
Left side — mortgage. Right — renting.
Buy or rent in Czech Republic — what works for you?
"Renting is throwing money away" — every potential homebuyer hears it. The truth is more nuanced. In Prague especially, with rents 3–4 % of property value, renting can come out ahead even over 10 years. In smaller cities (rents 5–7 % of value), buying tends to win. The ten-year figures for Prague with 2026 rents and rates are worked through in rent or buy in Prague.
The 5 % rule
Internationally used rule: if annual rent is under 5 % of the property's value, renting wins economically. Above 5 %, buying tends to win. Prague today is around 4 %; Brno 5–6 %; smaller cities 6–7 %.
Hidden costs of ownership
Beyond the mortgage payment, owners also pay: property tax (1–4k Kč/year), insurance (5–15k/year), SVJ contributions (2–5k/month), and maintenance (rule of thumb: 1 % of property value annually). For a 5M property that's 50–100k/year on top of the mortgage. Renters pay none of this.
Frequently asked questions
What time horizon makes sense for the comparison?
At least 10 years. Below 5 years, renting almost always wins because you've barely paid down any principal. Above 15 years, buying typically wins. The crossover point depends heavily on local rent-to-price ratios.
How fast do rents grow in Czech Republic?
We have no verified long-term growth figure to quote, so treat the calculator's default of 3 % a year as an assumption and change it to your own view. For the level of rents: in 2026 a Prague 1+kk lets for roughly CZK 16,000–20,000 a month and a 2+kk for CZK 20,000–26,000.
What property appreciation is realistic?
Nobody can promise a rate, and recent years show how much it swings: in Q2 2026 older flats sold for 14 % more than a year earlier and Prague flats for 11 % more (ČBA). Over 10 or 20 years, jumps like that alternate with flat or falling years, so the calculator's default of 3 % a year is deliberately cautious.
Should I let "rent is wasted money" influence me?
No, it's a myth. Mortgage interest is also "wasted money" in the early years — you pay mostly interest then. The real difference is that, long-term (15+ years), ownership builds equity. But until then the gap is smaller than people assume.
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